ISU president vows accountability after forensic lab funding transfer; budget analyst flags tuition‑fund reporting error

Idaho State University President Rob Wagner and Legislative Services Office budget analyst Kevin Campbell appeared before the Joint Finance‑Appropriations Committee on Jan. 29 to present ISU’s FY2026 budget request and to answer questions about state funds originally appropriated for an Eastern Idaho forensic pathology laboratory.

Campbell began the presentation with an overview of ISU’s finances and enrollment. "Idaho State University has an enrollment of more than 12,000 students, supported by 1,244 FTE and a base budget of $171,100,000," Kevin Campbell, Budget and Policy Analyst, Legislative Services Office, told the committee. He also flagged a technical reporting error in the tuition‑and‑fees slide and said the Legislative Services Office is tracking down the discrepancy; he confirmed ISU has not overdrawn its state treasury account.

Why it matters: the committee uses the hearings to weigh budget requests and to ensure state appropriations are used according to legislative intent. Lawmakers pressed ISU leadership about an item that became a focus in the media: money the Legislature appropriated for a forensic pathology lab intended to serve Eastern Idaho.

Wagner described the lab matter as an accountability failure that predates his presidency but said ISU will correct processes and return funds where required. "It became apparent in late, middle to late 2023 that a facility on Idaho State University's campus was no longer desirable by the county," Rob Wagner, President of Idaho State University, told the committee. He said ISU had spent a small portion of the appropriation on a consultant and that, following a memorandum of understanding (MOU), the remaining funds were transferred to the county. "Looking back in retrospect, I think, I believe, Idaho State University should have kept those funds. We should have been responsible for those funds," Wagner said, adding that the university will improve tracking and ownership of legislative funds.

On student‑success and administrative changes, Wagner told the committee that two campus resource centers — the Diversity Resource Center and the Gender Resource Center — were closed effective Nov. 15 as part of a refocus on academic completion. He said two full‑time equivalents (FTE) tied to those centers were reassigned: one to student involvement to support student clubs and the other to the university’s Office of Equal Opportunity and Title IX, which now reports directly to the president. Wagner said ISU has created the Bengal Success Center to centralize academic success services for traditional and nontraditional students.

Budget details and requests Campbell walked members through five‑year trends, noting variations caused by enrollment workload adjustments, CEC (capacity enhancement committee) allocations, one‑time rescissions and transfers of administrative functions to centralized state offices. Highlights he cited for ISU: - Personnel comprises about 74.8% of ISU expenditures, operating costs about 21.2% and capital outlay about 3.9%. - Past adjustments included a $385,700 reduction for an enrollment workload adjustment in FY2021, $7.2 million in CEC in FY2023 (partially offset by tuition) and assorted consolidations in FY2024 and FY2025. - For FY2026 ISU requested $907,300 in operational capacity enhancement, $233,700 for endowment adjustments and $988,100 for the enrollment workload adjustment.

Wagner said ISU faced a multi‑year budget optimization challenge when he arrived and that the campus is on track to present a balanced FY2026 budget a year ahead of schedule. He also highlighted workforce‑focused initiatives — particularly in health sciences — and said ISU wants to expand clinical training and residency pathway partnerships so graduates are more likely to remain in Idaho.

Federal funding and implementation risk Committee members asked whether federal funding pauses or legal actions could affect ISU programs. Wagner said that when the university reviewed an early federal directive, it briefly estimated up to about $25 million of federal activity could be at risk; by the end of the day that action was enjoined by a court order and the university was working with national associations to evaluate impacts. "We had more questions than answers," Wagner said, adding that ISU is monitoring and will follow federal and state directives.

Committee reaction and next steps Representative Manwaring thanked Wagner for returning funds and for the institutional review. Committee co‑chairs and members repeatedly asked for clarity on how ISU will document legislative intent and follow an invoice or expense‑tracking protocol for appropriated funds. Wagner said he will implement clearer ownership and accountability lines for legislative funds and invited committee follow‑up as the university implements changes.

Wagner closed by urging lawmakers to view ISU as a statewide workforce and research asset, and he asked the committee to consider investments that support retention and completion in health sciences and other high‑need programs.

Ending: The presentation and Q&A concluded with committee members asking for written follow‑up on fund tracking and implementation steps; the committee then moved on to the Boise State University presentation.