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Senate Bill 1131 — Department of Insurance, Appropriations FY26 (-3)

Senate Bill 1131 — Department of Insurance, Appropriations FY26 (-3)

by
Niklas Kleinworth
February 27, 2025

The Idaho Spending Index serves to provide a fiscally conservative perspective on state budgeting while providing an unbiased measurement of how Idaho lawmakers apply these values to their voting behavior on appropriations bills. Each bill is analyzed within the context of the metrics below. They receive one (+1) point for each metric that is satisfied by freedom-focused policymaking and lose one (-1) point for each instance in which the inverse is true. The sum of these points composes the score for the bill.

Rating: (-3)

Bill Description: Senate Bill 1131 appropriates $12,093,100 and 77.50 full-time positions to the Department of Insurance for fiscal year 2026.

Does this budget incur any wasteful spending among discretionary funds, including new line items? Conversely, does this budget contain any provisions that serve to reduce spending where possible (i.e. base reductions, debt reconciliation, etc.)? 

The Legislature agreed to provide a large statewide change in employee compensation (CEC) of nearly 5% for all state employees this year. Senate Bill 1131 offers an additional $48,100 in salary and benefits increases for state fire marshalls to compete with the market. This increase is in addition to the generous increase provided by the CEC. When factoring the value of the CEC, the total increase for these positions is more than $95,700 — nearly double the value of the request. This is a wasteful use of taxpayer funds.

(-1)

Is the continuation or growth in ongoing spending, if any, inappropriate for the changes in circumstances, scope of the agency, or current economic environment? Conversely, is the continuation or growth in ongoing spending appropriate given any change in circumstances or economic pressures?

This legislation funds ongoing spending for the Department of Insurance at $11,923,900, growing it from the base by 20.6% in the last three years. This rate is 7.5 points faster than what would be prescribed by inflationary pressures and growth.

(-1)

Does the budget grow government through the addition of new permanent FTPs or through funding unlegislated efforts to create new or expanded entitlement programs? Conversely, does this budget reduce the size of government staff and programs except where compelled by new legislation?

Senate Bill 1131 increases adds two new FTPs to the Department of Insurance: one for a new staff actuary at a cost of $201,900 and another for a regulatory compliance specialist at a cost of $121.200. 

The additional regulatory compliance specialist is particularly concerning because the Office of the Attorney General is responsible for providing legal representation to state agencies. This request is for an internal attorney to relieve the workload of the deputy attorneys general working within the office, but its effect allows the department to circumvent the AG’s office.

(-1)

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