Lawmakers hear tighter revenue forecasts and JFAC rescissions affecting natural resources budgets

Janet Jessup, Budget and Policy Analyst for the Legislative Services Office, reviewed the natural resources agency budgets and recent JFAC adjustments, telling the committee that JFAC implemented a 3 percent rescission for FY 2026 (converted from an executive holdback), an additional 1 percent rescission for some agencies, and a 5 percent ongoing base reduction for FY 2027.

Keith Bybee, Budget and Policy Analysis Division Manager, presented revised cash-position numbers and revenue forecasts. Bybee summarized downward revisions in revenue forecasts and cash: "While the Legislature originally projected a $419 million beginning balance, actual unobligated cash came in lower at $313 million," he said, noting the Governor's revenue forecast revised revenue from $5.929 billion to $5.512 billion and that the Legislature adopted a $5.665 billion estimate. Bybee explained that those changes, together with exemptions for major cost drivers like public schools, Medicaid and corrections, left little margin and prompted further rescissions.

Senators raised questions about the Fire Suppression Deficiency Fund and whether the executive could cover catastrophic fire costs and later seek legislative funding; Jessup said she knew of no statutory credit limit for the fund and described historical funding and transfer practices. Senator Grow emphasized fiscal uncertainty—wildfire suppression costs, Medicaid enrollment variability, and population-driven pressures on corrections and schools—and reminded members that the Idaho Constitution requires the Legislature to adopt a balanced budget. The committee adjourned without taking votes on budget items during this meeting.