University of Idaho reports improved finances but flags retiree obligations; reorganizes equity offices and updates JFAC on Phoenix, WWAMI and INL partnerships

BOISE — The University of Idaho told the Joint Finance‑Appropriations Committee on Jan. 27 that years of aggressive budget reductions have improved the institution’s financial position but that legacy retiree benefit obligations (OPEB) and accounting treatment continue to depress unrestricted reserve ratios.

Kevin Campbell, a Legislative Services Office analyst, presented the University of Idaho’s FY2025 numbers: an enrollment of about 12,286, roughly 1,352 full‑time equivalent employees cited in the presentation, and a base general‑fund appropriation of approximately $196.3 million. Campbell said about 68.5% of the university’s budget is personnel and roughly 29.3% operating expenses.

President C. Scott Green told the committee the university undertook a base reduction of about $26 million in FY2021 to align expenses with revenues and credited those steps with stabilizing the university.

"We took aggressive action and right‑sized the University," Green told the committee. "We moved toward a positive unrestricted net position and we have sufficient cash reserves to support short‑ and long‑term obligations, but our reserve ratios remain affected by a prior retiree medical benefit program that required an accounting change." (First reference: President C. Scott Green, Jan. 27 testimony.)

Accounting and reserve ratios: Green and his finance team explained that the university’s unrestricted net‑position was negative because of an accounting change tied to a prior retiree medical benefit (OPEB) obligation. The university reported a positive total net position when restricted assets are included; CFO testimony cited a positive total net position of about $319 million while unrestricted net‑position remained negative by about $17 million on the balance sheet. Green said the negative unrestricted position resulted from a one‑time reclassification linked to the prior retiree benefit program.

Federal grants and pass‑throughs: Committee members pressed the university about a large volume of federal awards that are administered through the institution and then passed to subrecipients. Representative Tanner asked for a list of subrecipients and detail on the pass‑through amounts. President Green said the university frequently acts as a lead on multi‑institution research contracts and distributes funds to partners; he agreed to provide the committee a list of subrecipients and the associated pass‑through amounts on request.

Reorganization of student equity offices: The committee heard that the State Board of Education’s resolution regarding diversity, equity and inclusion led the university to eliminate several named equity‑focused offices. President Green said the university closed the Office of Equity and Diversity, the Office of Multicultural Affairs, the Black/African‑American Cultural Center, the LGBTQA office and the Women’s Center; the Chief Diversity Officer position was repurposed as Executive Director of Tribal Relations. Green said staff whose positions were eliminated have been reassigned to other roles (for example, the former director of the Black Student Center now serves as associate director of student involvement), and that some roles, such as the LGBTQ director, have not been refilled.

University‑Phoenix transaction: President Green updated the committee on negotiations connected to a potential affiliation with the University of Phoenix. He said the sellers extended the deadline for a transaction decision through June 10, under a non‑exclusive agreement that allows the sellers to seek other bidders or public markets. The university received an initial $5 million when the agreement was signed to offset transaction costs; Green said a breakup fee of up to $20 million could be payable if the sellers decline to proceed and another buyer is selected. Green told the committee any path forward would require legislative review and State Board consideration.

WWAMI and medical‑education partnerships: Committee members discussed WWAMI, the multi‑state medical‑education partnership that places Idaho medical students in a distributed training model. President Green said the University of Idaho continues to operate and enroll students in WWAMI classes and that discussions with other potential partners — for example, the University of Utah — are ongoing. Any change in affiliation, he said, would be subject to State Board of Education review and approvals.

INL and energy/nuclear research: Green described a formal agreement to reinforce collaborations with Idaho National Laboratory (INL) focused on three areas: (1) nuclear materials and fuel‑cycle engineering, (2) nuclear integrated energy systems, and (3) power engineering and secure cyber‑physical systems. He cited examples including 3‑D printing of replacement parts for molten salt reactors, work to reduce nuclear waste, hydrogen supply‑chain projects and cyber resilience for utility infrastructure.

Water research and extension: The university highlighted water policy and technical research, including the Idaho Water Resources Research Institute and hiring Kendra Kaiser to coordinate research priorities across the state. Green cited ongoing projects on the Portneuf River, Big Wood Valley, Ada County groundwater, Lake Coeur d’Alene water quality work with mining partners, recharge research in the Palouse Basin, and efforts to make adjudication records more searchable.

Committee follow‑up and context: Committee members raised questions about the university’s reserve ratios, federal grant pass‑throughs, the organization of student support services after the DEI office changes, and how any breakup fee or transaction proceeds from the Phoenix agreement would appear in the university’s financial statements. Green said the initial $5 million has been used to offset expenses and that any additional breakup fee would first cover transaction costs; remaining funds, he said, would be allocated to institutional priorities such as capacity in high‑demand programs.

What’s next: Committee leadership postponed the systemwide colleges and universities hearing to allow follow‑up on unanswered questions. University officials agreed to provide requested lists of federal subrecipients, job descriptions and other requested materials to the committee.

Sources: Legislative Services Office presentation (Kevin Campbell); testimony of President C. Scott Green and University of Idaho staff including CFO and deans; questions and responses on record at the Jan. 27 JFAC hearing.