Rating: –1

Bill Summary:

House Bill 426 provides a supplemental appropriation of $15,551,300 to the Idaho Office of the State Controller for Fiscal Year 2026. The funding includes $3.2 million for personnel costs and $12.3 million for operating expenses, drawn from the General Fund and dedicated funds such as the Data Processing Services Fund. The bill also reduces prior personnel allocations by $308,300 and authorizes the addition of ten new full-time equivalent positions.

In addition to these appropriations, the bill mandates recovery of indirect service costs into the Indirect Cost Recovery Fund and addresses a $1,074,400 accounting error in the Division of Veterans Services stemming from a Department of Administration billing issue. A corrective report is required to be submitted to the Joint Finance-Appropriations Committee and the Legislative Services Office. The bill takes effect July 1, 2025.

Reason for Rating:

House Bill 426 expands state government through the addition of new full-time positions and a substantial increase in spending, without implementing performance-based budgeting or structural reforms. The bill allocates over $15 million with limited justification or outcome requirements, signaling a lack of alignment with the Idaho Republican Party Platform’s emphasis on fiscal discipline, transparency, and limited government. While it includes some internal accounting corrections and reporting provisions, these do not offset the broader concerns about government growth and weak financial safeguards. For these reasons, H0426 is rated –1.