Relates to the appropriation and transfer of moneys in the state treasury for fiscal years 2026 and 2027.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 968 BY APPROPRIATIONS COMMITTEE AN ACT1 RELATING TO APPROPRIATIONS FOR FISCAL YEARS 2026 AND 2027; TRANSFERRING2 MONEYS FROM THE PERMANENT BUILDING FUND TO THE LEGISLATIVE ACCOUNT AND3 PROVIDING THAT THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE SPEAKER4 OF THE HOUSE OF REPRESENTATIVES SHALL DIRECT THE STATE CONTROLLER TO5 LIMIT THE FUNDS TRANSFER TO THE LEGISLATIVE ACCOUNT FOR FISCAL YEAR6 2026; TRANSFERRING MONEYS FROM THE IDAHO BROADBAND FUND TO THE GENERAL7 FUND FOR FISCAL YEAR 2026; TRANSFERRING MONEYS FROM THE SCHOOL DISTRICT8 BUILDING ACCOUNT TO THE GENERAL FUND FOR FISCAL YEAR 2026; APPROPRI-9 ATING AND TRANSFERRING FUNDS FROM THE TWENTY-SEVENTH PAYROLL FUND TO10 THE GENERAL FUND FOR FISCAL YEAR 2026 IF REVENUES DO NOT MEET TARGETS;11 APPROPRIATING AND TRANSFERRING MONEYS FROM THE AMERICAN RESCUE PLAN12 ACT STATE AND LOCAL FISCAL RECOVERY FUND TO THE STRATEGIC INITIATIVES13 FUND FOR FISCAL YEAR 2026; APPROPRIATING AND TRANSFERRING MONEYS FROM14 THE AMERICAN RESCUE PLAN ACT STATE AND LOCAL FISCAL RECOVERY FUND TO THE15 FIRE SUPPRESSION DEFICIENCY WARRANT FUND FOR FISCAL YEAR 2026; PROVID-16 ING THAT THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE SPEAKER OF THE17 HOUSE OF REPRESENTATIVES SHALL DIRECT THE STATE CONTROLLER TO LIMIT THE18 FUNDS TRANSFER TO THE LEGISLATIVE ACCOUNT FOR FISCAL YEAR 2027; APPRO-19 PRIATING AND TRANSFERRING INTEREST EARNINGS FROM THE BUDGET STABILIZA-20 TION FUND TO THE GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND21 TRANSFERRING INTEREST EARNINGS FROM THE PUBLIC EDUCATION STABILIZA-22 TION FUND TO THE GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND23 TRANSFERRING INTEREST EARNINGS FROM THE WATER POLLUTION CONTROL FUND TO24 THE GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND TRANSFERRING25 INTEREST EARNINGS FROM THE PERMANENT BUILDING FUND TO THE GENERAL FUND26 FOR FISCAL YEAR 2027; APPROPRIATING AND TRANSFERRING INTEREST EARN-27 INGS FROM THE STRATEGIC INITIATIVES PROGRAM (DEDICATED) FUND TO THE28 GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND TRANSFERRING IN-29 TEREST EARNINGS FROM THE STRATEGIC INITIATIVES PROGRAM (LOCAL) FUND TO30 THE GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND TRANSFERRING31 MONEYS FROM THE STRATEGIC INITIATIVES GRANT PROGRAM FUND TO THE GENERAL32 FUND FOR FISCAL YEAR 2027; AND DECLARING AN EMERGENCY AND PROVIDING EF-33 FECTIVE DATES.34

Be It Enacted by the Legislature of the State of Idaho:35

SECTION 1. LEGISLATIVE TRANSFER REDUCED 4% FOR FISCAL YEAR 2026. There36 is hereby appropriated and the Office of the State Controller shall transfer37 $5,803,500 from the Permanent Building Fund that is obligated for remodeling38 legislative space to the Legislative Account as soon as practicable. Upon39 passage and approval of this act, and after the cash transfer in this sec-40 tion has occurred, the President Pro Tempore of the Senate and the Speaker of41 the House of Representatives shall direct the Office of the State Controller42 to limit the amount transferred from the General Fund to the Legislative Ac-43

2 count pursuant to Section 67-451(2), Idaho Code, to $8,170,600 for the pe-1 riod July 1, 2025, through June 30, 2026.2

SECTION 2. IDAHO BROADBAND FUND CASH TRANSFER FOR FISCAL YEAR 2026.3 There is hereby appropriated and the Office of the State Controller shall4 transfer $13,000,000 from the Idaho Broadband Fund to the General Fund as5 soon as practicable for the period July 1, 2025, through June 30, 2026.6

SECTION 3. SCHOOL DISTRICT BUILDING ACCOUNT CASH TRANSFER FOR FIS-7 CAL YEAR 2026. There is hereby appropriated and the Office of the State8 Controller shall transfer the remaining balances from the School District9 Building Account, with the exception of the Public Schools Facilities Coop-10 erative Fund subaccount, to the General Fund as soon as practicable for the11 period July 1, 2025, through June 30, 2026.12

SECTION 4. TWENTY-SEVENTH PAYROLL FUND CASH TRANSFER FOR FISCAL YEAR13 2026. It is the intent of the Legislature that if General Fund revenues for14 fiscal year 2026 do not meet the legislative target of $5,510,100,000 and the15 remaining cash balance in the General Fund is insufficient to cover revenue16 shortfalls for the remainder of fiscal year 2026, notwithstanding the provi-17 sions of Section 57-826, Idaho Code, the State Board of Examiners is autho-18 rized to direct the Office of the State Controller, between May 1, 2026, and19 June 30, 2026, to transfer sufficient funds from the Twenty-seventh Payroll20 Fund to the General Fund for the purpose of balancing the state budget. Such21 transfer is considered an appropriation of moneys.22

SECTION 5. CASH TRANSFER TO THE STRATEGIC INITIATIVES FUND FOR FISCAL23 YEAR 2026. There is hereby appropriated and the Office of the State Con-24 troller shall transfer 50% of the interest earnings generated in fiscal25 years 2024, 2025, and 2026 to the American Rescue Plan Act State and Local26 Fiscal Recovery Fund or $32,877,300, whichever is greater, to the Strategic27 Initiatives Fund as soon as practicable for the period July 1, 2025, through28 June 30, 2026. The amount shall be confirmed with the Legislative Services29 Office Budget and Policy Analysis Division.30

SECTION 6. CASH TRANSFER TO THE FIRE SUPPRESSION DEFICIENCY WARRANT31 FUND FOR FISCAL YEAR 2026. There is hereby appropriated and the Office of the32 State Controller shall transfer 50% of the interest earnings generated in33 fiscal years 2024, 2025, and 2026 to the American Rescue Plan Act State and34 Local Fiscal Recovery Fund or $32,877,200, whichever is greater, to the Fire35 Suppression Deficiency Warrant Fund as soon as practicable for the period36 July 1, 2025, through June 30, 2026. The amount shall be confirmed with the37 Legislative Services Office Budget and Policy Analysis Division.38

SECTION 7. LEGISLATIVE TRANSFER REDUCED 5% FOR FISCAL YEAR 2027. On39 July 1, 2026, and after the cash transfer in Section 1 of this act has oc-40 curred, the President Pro Tempore of the Senate and the Speaker of the House41 of Representatives shall direct the Office of the State Controller to limit42 the amount transferred from the General Fund to the Legislative Account pur-43

3 suant to Section 67-451(2), Idaho Code, to $8,085,500 for the period July 1,1 2026, through June 30, 2027.2

SECTION 8. BUDGET STABILIZATION FUND CASH TRANSFER FOR FISCAL YEAR3 2027. Notwithstanding the provisions of Section 57-814, Idaho Code, and any4 other provision of law to the contrary, the Office of the State Controller5 shall transfer interest earnings generated from the fund balance in the Bud-6 get Stabilization Fund during the period July 1, 2026, through June 30, 2027,7 to the General Fund on June 30, 2027, or as soon thereafter as practicable.8 Such amount shall be confirmed with the Legislative Services Office Budget9 and Policy Analysis Division and only be used to ensure a minimum General10 Fund ending cash balance of $150,000,000 as determined by the legislative11 record.12

SECTION 9. PUBLIC EDUCATION STABILIZATION FUND CASH TRANSFER FOR FIS-13 CAL YEAR 2027. Notwithstanding the provisions of Section 33-907, Idaho14 Code, and any other provision of law to the contrary, the Office of the15 State Controller shall transfer interest earnings generated from the fund16 balance in the Public Education Stabilization Fund during the period July17 1, 2026, through June 30, 2027, to the General Fund on June 30, 2027, or as18 soon thereafter as practicable. Such amount shall be confirmed with the19 Legislative Services Office Budget and Policy Analysis Division and only be20 used to ensure a minimum General Fund ending cash balance of $150,000,000 as21 determined by the legislative record.22

SECTION 10. WATER POLLUTION CONTROL FUND CASH TRANSFER FOR FISCAL YEAR23 2027. Notwithstanding the provisions of Section 39-3630, Idaho Code, and24 any other provision of law to the contrary, the Office of the State Con-25 troller shall transfer interest earnings generated from the fund balance26 in the Water Pollution Control Fund during the period July 1, 2026, through27 June 30, 2027, to the General Fund on June 30, 2027, or as soon thereafter as28 practicable. Such amount shall be confirmed with the Legislative Services29 Office Budget and Policy Analysis Division and only be used to ensure a min-30 imum General Fund ending cash balance of $150,000,000 as determined by the31 legislative record.32

SECTION 11. PERMANENT BUILDING FUND CASH TRANSFER FOR FISCAL YEAR 2027.33 Notwithstanding the provisions of Section 57-1108, Idaho Code, and any other34 provision of law to the contrary, the Office of the State Controller shall35 transfer interest earnings generated from the fund balance in the Permanent36 Building Fund during the period July 1, 2026, through June 30, 2027, to the37 General Fund on June 30, 2027, or as soon thereafter as practicable. Such38 amount shall be confirmed with the Legislative Services Office Budget and39 Policy Analysis Division and only be used to ensure a minimum General Fund40 ending cash balance of $150,000,000 as determined by the legislative record.41

SECTION 12. STRATEGIC INITIATIVES PROGRAM (DEDICATED) FUND CASH TRANS-42 FER FOR FISCAL YEAR 2027. Notwithstanding the provisions of Section 40-719,43 Idaho Code, and any other provision of law to the contrary, the Office of the44 State Controller shall transfer interest earnings generated from the fund45

4 balance in the Strategic Initiatives Program (Dedicated) Fund during the1 period July 1, 2026, through June 30, 2027, to the General Fund on June 30,2 2027, or as soon thereafter as practicable. Such amount shall be confirmed3 with the Legislative Services Office Budget and Policy Analysis Division4 and only be used to ensure a minimum General Fund ending cash balance of5 $150,000,000 as determined by the legislative record.6

SECTION 13. STRATEGIC INITIATIVES PROGRAM (LOCAL) FUND CASH TRANSFER7 FOR FISCAL YEAR 2027. Notwithstanding the provisions of Section 40-719,8 Idaho Code, and any other provision of law to the contrary, the Office of the9 State Controller shall transfer interest earnings generated from the fund10 balance in the Strategic Initiatives Program (Local) Fund during the period11 July 1, 2026, through June 30, 2027, to the General Fund on June 30, 2027, or12 as soon thereafter as practicable. Such amount shall be confirmed with the13 Legislative Services Office Budget and Policy Analysis Division and only be14 used to ensure a minimum General Fund ending cash balance of $150,000,000 as15 determined by the legislative record.16

SECTION 14. STRATEGIC INITIATIVES GRANT PROGRAM FUND CASH TRANSFER FOR17 FISCAL YEAR 2027. There is hereby appropriated and the Office of the State18 Controller shall transfer the remaining balance in the Strategic Initia-19 tives Grant Program Fund to the General Fund for the period July 1, 2026,20 through June 30, 2027. Such amount shall not be less than $4,150,200 and21 shall be confirmed with the Legislative Services Office Budget and Policy22 Analysis Division and only be used to ensure a minimum General Fund ending23 cash balance of $150,000,000 as determined by the legislative record.24

SECTION 15. An emergency existing therefor, which emergency is hereby25 declared to exist, Sections 1 through 6 of this act shall be in full force and26 effect on and after passage and approval, and Sections 7 through 14 of this27 act shall be in full force and effect on and after July 1, 2026.28