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 460 is an enhancement of $35,000 and 0.00 new full-time positions for the Division of Vocational Rehabilitation for fiscal year 2026. This legislation appropriates a total of $26,980,700 and 148.00 full-time positions to the agency. The bill also contains a $4.4 million supplemental for FY25.

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 Division of Vocational Rehabilitation (DVR) is required under Idaho Code to work “on behalf of Idahoans with disabilities to improve the quality of the vocational rehabilitation services provided to Idaho residents.” The division, however, is largely a pass-through entity by which the federal government gives grants to private organizations that serve Idahoans with disabilities. This is evidence that the market (albeit subsidized with grants) already created private organizations filling a need for these services, rendering the state agency (DVR) unnecessary to care for this population. It is beyond the proper role of government for a state agency to administer this program as a mere middle-man where the subsidies are already addressing such services.

(-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 Division of Vocational Rehabilitation at $26 million shrinking from the base by 5.1% in the last three years. This negative growth is within what would be prescribed by inflationary pressures and growth.

(+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?

DVR is mostly federally funded. This appropriation would bring the total federal appropriation to $20,108,800 — or 75% of the total appropriation for the agency. This demonstrates substantial dependence on the federal government.

(-1)

Does this budget contain hidden fund transfers or supplemental expenditures that work to enact new policy or are not valid emergency expenditures? Conversely, are fund transfers only made to stabilization funds or are supplemental requests only made in the interest of resolving valid fiscal emergencies?

Last year, the Legislature learned that DVR grossly mismanaged its appropriations, causing it to incur a $4.7 million budget shortfall. DVR then asked for $2.7 million in state funds to match federal funding to dig its way out. The Legislature opted to not fund the agency, forcing it to use existing appropriations to correct the matter for the time being.

House Bill 460 bears the same $2.7 million general fund request, which would provide the state match required to use $10 million in additional federal funds awarded to help get the agency upright again. In addition, there is a $1.7 million general fund request to cover client services already provided. But now that legislators have learned more of the situation and the degree to which the agency lost track of its spending, it would be imprudent for them to appropriate the full amounts requested. Audits Division Director April Renfro described how DVR could not attest that the agency’s fund balance was valid. The agency is also set to undergo a full forensic audit of its finances, going back to 2019. The Legislature should only appropriate enough funds to cover the known debts owed by the agency.

(-1)