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House Bill 426 — The Office of the State Controller, Appropriations FY26 (-2)

House Bill 426 — The Office of the State Controller, Appropriations FY26 (-2)

by
Rachel Hazelip, M.A.P.P.
March 20, 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: (-2)

Bill Description: House Bill 426 is an enhancement of $15,243,000 and 10.00 new full-time positions (FTP) for the Office of the State Controller for fiscal year 2026. This legislation appropriates a total of $40,470,900 and 125.00 full-time positions to the agency.

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 Office of the State Controller at $40,470,900, growing from the base by 72.2% in the last three years. This rate is 58 points faster than what would be prescribed by inflationary pressures and growth.

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 negative appropriation — a reduction to the base budget.

(-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?

House Bill 426 would appropriate $2,527,800 in funds annually to support ten new full-time positions. These new positions would include new Luma personnel, financial specialists, and a Communications Manager. The Business Information Infrastructure Fund (BIIF), which is managed by the State Controller, supports the modernization of the state's accounting system, Luma. It was created to be for the temporary implantation of Luma. However, this legislation moves BIIF staff and funding, making them a permanent administrative wing in the Office of the State Controller. The creation of these new positions adds to the overall size and ongoing expense of the government, with no known offsets in other agencies at this time. 

Even if permanency was the intention for these positions all along, moving these positions and funds into a permanent department in the office demonstrates the inefficiencies with the new system that promised more streamlined administration.

(-1)

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