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Committee reorganizes Early Learning budget and approves $14 million for Idaho Child Care Program
Summary
JFAC approved reorganization moves placing the Idaho Child Care Program in a new Early Learning and Development division, approved a $14 million one-time governor's initiative for ICCP and other maintenance and technical adjustments, and moved Extended Employment Services into Medicaid.
The Joint Finance-Appropriations Committee approved reorganization and funding actions that reconstitute Early Learning and Development as a standalone division and allocate $14,000,000 one time for the Idaho Child Care Program (ICCP) as a governor's initiative.
Budget analyst Alex Williamson told the committee that the reorganization moved roughly $57 million into the new Early Learning and Development division—primarily from other departmental adjustments—and that the governor recommended a one-time $15 million initiative for ICCP; the committee approved $14 million of that request for FY2026. The committee also approved start certification funds, a small FMAP-related population forecast shift (reducing federal funds and increasing general fund by $81,800 net-zero), and removed 3 FTE and approximately $3.5 million from the Early Learning budget so that extended employment services could be moved to the Division of Medicaid as part of the reorganization.
Why it matters: The ICCP initiative stems from underutilized federal funds in prior years; Williamson said approximately $45 million in federal funds is available over three years and the governor's recommendation sought to allocate $15 million per year. The funds come with spending requirements, including that roughly 70% be used for direct services (contracted slots and direct child-care payments), with the remainder for quality initiatives and administrative caps.
Committee action and votes: The motion to implement the listed maintenance and enhancement items, including the $14,000,000 one-time ICCP allocation and the reorganization adjustments, passed with a combined tally of 18 ayes and 2 nays. The committee adopted associated intent and conditions language by unanimous consent for the ICCP funds.
Discussion highlights: Senator Cook and other members pressed the division for clearer requirements and procurement justification for technology and software requests, asking for more rigorous requirements and vendor solicitation before funding large software outlays. Representative Tanner and the work group described the reorganization as a net-zero departmental adjustment after the companion move into Medicaid is completed.
Next steps: The motions carry due-pass recommendations and the committee adopted intent language to prioritize direct services and quality improvements for the $14,000,000 ICCP allocation.
Clarifying details: {"category":"governor_initiative","detail":"Governor recommended $15,000,000; committee approved $14,000,000 one time for ICCP in FY2026","value":14000000,"units":"USD","approximate":false,"source_speaker":"Alex Williamson"},{"category":"reorg_amount","detail":"Approximate funds moved into Early Learning and Development division in reorganization","value":57000000,"units":"USD","approximate":true,"source_speaker":"Alex Williamson"}
Ending: The committee authorized the ICCP one-time allocation and completed the budgetary steps to formalize Early Learning and Development as a distinct division, while continuing oversight expectations on procurement and program design.
