Bill Description: House Bill 975 suspends the transfer of moneys from the Budget Stabilization Fund in FY26, despite fund balances exceeding 15% of General Fund revenues as required by Idaho Code Section 57-814.

Rating: -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 reduce budget expenditures or taxes, or are supplemental requests only made in the interest of resolving valid fiscal emergencies? Does this budget abuse continuous funding or obfuscate the appropriations process? Conversely, does it reduce the use of continuous funds or clarify the appropriations process?

This legislation would set aside Idaho Code to halt the transfer of approximately $53 million to the general fund from the budget stabilization fund. Idaho currently directs all balances that exceed 15% of general fund revenues from the stabilization fund to the general fund. H968 conditionally sweeps funds from many accounts into the general fund if the balance falls below $150,000,000. This includes the 27th payroll fund, which is set aside for certain payments to state employees.

Considering the high likelihood that many of these transfers will need to be made, it makes better sense not to suspend transfers from the budget stabilization fund. Setting aside Idaho Code for single-year suspensions of the law obfuscates the appropriation process and weakens the statutory purpose of the budget stabilization fund. The funds exceeding 15% of revenues should be used before drawing down other funds.

It would be better if these funds were returned directly to the taxpayers. But failing that, excess stabilization funds should not be accruing to state balances, let alone beyond the statutory cap.