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House Bill 391 — Miscellaneous, Replacement Items, Appropriations FY26 (-4)

House Bill 391 — Miscellaneous, Replacement Items, Appropriations FY26 (-4)

by
Niklas Kleinworth
March 10, 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: (-4)

Bill Description: House Bill 391 is an enhancement of $654,100 and 0.00 new full-time positions for miscellaneous expenditures and replacement items for fiscal year 2026. This legislation appropriates a total of $31,692,100 and 223.54 full-time positions to the agency.

This budget contains appropriations for the Commission for the Blind and Visually Impaired, the Office of the Lieutenant Governor, the Idaho State Lottery, the Brand Inspection Division, the Commission of Pardons and Parole, the Public Utilities Commission, and Idaho Public Television.

Analyst Note: House Bill 391 is similar to House Bill 370 which printed earlier this legislative session. The difference with House Bill 391 is that it includes an additional agency by including Idaho Public Television. Adding this agency changed the score from a -3 to a -4 since IPTV is not only outside the proper role of government, but its budget structure tends to promote wastefulness. This observation is consistent with IPTV ratings in years past.

Does this budget enact powers and activities that extend beyond the proper role of government? Conversely, does this budget fulfill the proper role of government?

The Idaho State Lottery is more than three decades old. But the problems with establishing and running a government gambling operation are no different today than they were in 1989, when the state sold its first lottery ticket. 

The government shouldn’t be in the lottery business, which is a tax on the poorest, who hope that a winning ticket will solve their financial problems. It also is a tax on people whose hopes lead them to conclude that they may be lucky enough to “strike it rich,” even though the odds don’t favor them. The lottery’s business model depends on purchases from people who cannot afford tickets, making it highly dubious public policy. Given the current trajectory of the economy, it is likely that ticket sales will continue to increase as Idahoans seek ways to escape an ever-rising cost of living.

Additionally, this legislation provides the appropriation for Idaho Public Television. Idaho Public Television provides coverage of state government affairs including Idaho in Session and proceedings of the Idaho Supreme Court. It also supports the Idaho emergency alert system. These operations are arguably necessary aspects of the role that IPTV plays in keeping Idahoans informed about the activities of their government.

The agency, funded through monies provided by the Friends of Idaho Public Television account, provides syndicated content and weekly news that does not exclusively serve the role of making government activities transparent to Idahoans. Critically, much of this content and news reporting has a decidedly partisan slant that is not appropriate for a non-partisan state agency. These activities do not align with the proper role of government.

(-1)

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 budget for Idaho Public Television is split into two components: monies sourced from the General Fund and those sourced from donations made to the Friends of Idaho Public Television Account — better known as the “Friends Account.” As of the 2023 fiscal year, funds from the Friends Account were continuously appropriated, leaving only general fund dollars under the direct oversight of the Legislature.

Being that the funds from the Friends Account are continuously appropriated, they are no longer directed for use as approved by the Legislature. Though the Legislature retains the right to regain the authority to directly appropriate these funds at a later date (Section 67-3514, Idaho Code), a majority of the members of the Joint Finance and Appropriations Committee must vote to suspend the budget law exemption to view these funds. This effectively hides these funds from scrutiny and debate. The Legislature is unable to determine what would be a valid expenditure from the General Fund since these funds are not directly appropriated. Most recent estimates suggest these funds make up about 71% of the overall budget for IPTV in the 2024 fiscal year, this obscures most activities within this state agency from the public view. This is not a transparent use of funds and prevents the Legislature from curbing waste in the General Fund.

(-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 these agencies at a grand total of $35,127,300. Six of the seven agencies included in this budget saw growth from the base in the last three years, far exceeding the rate of inflation over the same period. The only agency that grew slower than inflation was the Public Utilities Commission at 11.59% over that time. They will receive the following ongoing appropriations and corresponding growth:

  • Brand Inspection: $4,045,600 (+24.5%)
  • Commission for the Blind and Visually Impaired: $6,273,200 (+21.2%)
  • Lieutenant Governor: $313,400 (+71.2%)
  • Idaho State Lottery: $8,539,800 (+33.5%)
  • Pardons and Parole: $4,407,500 (+22.5%)
  • Public Television: $4,089,300 (+ 83.35%)
  • Public Utilities Commission: $7,458,500 (+11.6%)

Because of the accelerated growth in this budget the last three years, a truly fiscally responsible enhancement budget for FY2026 would reverse the growth with a reduction to the base budget, or negative appropriation for these agencies.

Analyst Note: Ongoing spending for Idaho Public Television excludes those funds included in the Friends of Idaho Public Television account since these funds are not visible in the budget book. This growth was measured from 2022 calculating the base appropriation as $2,230,300.

(-1)

Does this budget perpetuate or expand state dependence on federal dollars, thereby violating principles of federalism? Conversely, does this budget actively reduce the amount of federal dollars used to balance this budget?

This legislation appropriates $4,779,200 in federal funds to support the Commission for the Blind and Visually Impaired. Most of these funds go toward personnel costs, supporting approximately 65% of its staff — about 31 FTPs. This demonstrates that the commission depends heavily on federal funding.

(-1)

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