H 968

                    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
1AN ACT
2  RELATING TO APPROPRIATIONS FOR FISCAL YEARS 2026 AND 2027; TRANSFERRING
3      MONEYS FROM THE PERMANENT BUILDING FUND TO THE LEGISLATIVE ACCOUNT AND
4      PROVIDING THAT THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE SPEAKER
5      OF THE HOUSE OF REPRESENTATIVES SHALL DIRECT THE STATE CONTROLLER TO
6      LIMIT THE FUNDS TRANSFER TO THE LEGISLATIVE ACCOUNT FOR FISCAL YEAR
7      2026; TRANSFERRING MONEYS FROM THE IDAHO BROADBAND FUND TO THE GENERAL
8      FUND FOR FISCAL YEAR 2026; TRANSFERRING MONEYS FROM THE SCHOOL DISTRICT
9      BUILDING ACCOUNT TO THE GENERAL FUND FOR FISCAL YEAR 2026; APPROPRI-
10     ATING AND TRANSFERRING FUNDS FROM THE TWENTY-SEVENTH PAYROLL FUND TO
11     THE GENERAL FUND FOR FISCAL YEAR 2026 IF REVENUES DO NOT MEET TARGETS;
12     APPROPRIATING AND TRANSFERRING MONEYS FROM THE AMERICAN RESCUE PLAN
13     ACT STATE AND LOCAL FISCAL RECOVERY FUND TO THE STRATEGIC INITIATIVES
14     FUND FOR FISCAL YEAR 2026; APPROPRIATING AND TRANSFERRING MONEYS FROM
15     THE AMERICAN RESCUE PLAN ACT STATE AND LOCAL FISCAL RECOVERY FUND TO THE
16     FIRE SUPPRESSION DEFICIENCY WARRANT FUND FOR FISCAL YEAR 2026; PROVID-
17     ING THAT THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE SPEAKER OF THE
18     HOUSE OF REPRESENTATIVES SHALL DIRECT THE STATE CONTROLLER TO LIMIT THE
19     FUNDS TRANSFER TO THE LEGISLATIVE ACCOUNT FOR FISCAL YEAR 2027; APPRO-
20     PRIATING AND TRANSFERRING INTEREST EARNINGS FROM THE BUDGET STABILIZA-
21     TION FUND TO THE GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND
22     TRANSFERRING INTEREST EARNINGS FROM THE PUBLIC EDUCATION STABILIZA-
23     TION FUND TO THE GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND
24     TRANSFERRING INTEREST EARNINGS FROM THE WATER POLLUTION CONTROL FUND TO
25     THE GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND TRANSFERRING
26     INTEREST EARNINGS FROM THE PERMANENT BUILDING FUND TO THE GENERAL FUND
27     FOR FISCAL YEAR 2027; APPROPRIATING AND TRANSFERRING INTEREST EARN-
28     INGS FROM THE STRATEGIC INITIATIVES PROGRAM (DEDICATED) FUND TO THE
29     GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND TRANSFERRING IN-
30     TEREST EARNINGS FROM THE STRATEGIC INITIATIVES PROGRAM (LOCAL) FUND TO
31     THE GENERAL FUND FOR FISCAL YEAR 2027; APPROPRIATING AND TRANSFERRING
32     MONEYS FROM THE STRATEGIC INITIATIVES GRANT PROGRAM FUND TO THE GENERAL
33     FUND FOR FISCAL YEAR 2027; AND DECLARING AN EMERGENCY AND PROVIDING EF-
34     FECTIVE DATES.
35 Be It Enacted by the Legislature of the State of Idaho:
36      SECTION 1. LEGISLATIVE TRANSFER REDUCED 4% FOR FISCAL YEAR 2026. There
37 is hereby appropriated and the Office of the State Controller shall transfer
38 $5,803,500 from the Permanent Building Fund that is obligated for remodeling
39 legislative space to the Legislative Account as soon as practicable. Upon
40 passage and approval of this act, and after the cash transfer in this sec-
41 tion has occurred, the President Pro Tempore of the Senate and the Speaker of
42 the House of Representatives shall direct the Office of the State Controller
43 to limit the amount transferred from the General Fund to the Legislative Ac-
                                      2
1  count pursuant to Section 67-451(2), Idaho Code, to $8,170,600 for the pe-
2  riod July 1, 2025, through June 30, 2026.
3      SECTION 2. IDAHO BROADBAND FUND CASH TRANSFER FOR FISCAL YEAR 2026.
4  There is hereby appropriated and the Office of the State Controller shall
5  transfer $13,000,000 from the Idaho Broadband Fund to the General Fund as
6  soon as practicable for the period July 1, 2025, through June 30, 2026.
7      SECTION 3. SCHOOL DISTRICT BUILDING ACCOUNT CASH TRANSFER FOR FIS-
8  CAL YEAR 2026. There is hereby appropriated and the Office of the State
9  Controller shall transfer the remaining balances from the School District
10 Building Account, with the exception of the Public Schools Facilities Coop-
11 erative Fund subaccount, to the General Fund as soon as practicable for the
12 period July 1, 2025, through June 30, 2026.
13     SECTION 4. TWENTY-SEVENTH PAYROLL FUND CASH TRANSFER FOR FISCAL YEAR
14 2026. It is the intent of the Legislature that if General Fund revenues for
15 fiscal year 2026 do not meet the legislative target of $5,510,100,000 and the
16 remaining cash balance in the General Fund is insufficient to cover revenue
17 shortfalls for the remainder of fiscal year 2026, notwithstanding the provi-
18 sions of Section 57-826, Idaho Code, the State Board of Examiners is autho-
19 rized to direct the Office of the State Controller, between May 1, 2026, and
20 June 30, 2026, to transfer sufficient funds from the Twenty-seventh Payroll
21 Fund to the General Fund for the purpose of balancing the state budget. Such
22 transfer is considered an appropriation of moneys.
23     SECTION 5. CASH TRANSFER TO THE STRATEGIC INITIATIVES FUND FOR FISCAL
24 YEAR 2026. There is hereby appropriated and the Office of the State Con-
25 troller shall transfer 50% of the interest earnings generated in fiscal
26 years 2024, 2025, and 2026 to the American Rescue Plan Act State and Local
27 Fiscal Recovery Fund or $32,877,300, whichever is greater, to the Strategic
28 Initiatives Fund as soon as practicable for the period July 1, 2025, through
29 June 30, 2026. The amount shall be confirmed with the Legislative Services
30 Office Budget and Policy Analysis Division.
31     SECTION 6. CASH TRANSFER TO THE FIRE SUPPRESSION DEFICIENCY WARRANT
32 FUND FOR FISCAL YEAR 2026. There is hereby appropriated and the Office of the
33 State Controller shall transfer 50% of the interest earnings generated in
34 fiscal years 2024, 2025, and 2026 to the American Rescue Plan Act State and
35 Local Fiscal Recovery Fund or $32,877,200, whichever is greater, to the Fire
36 Suppression Deficiency Warrant Fund as soon as practicable for the period
37 July 1, 2025, through June 30, 2026. The amount shall be confirmed with the
38 Legislative Services Office Budget and Policy Analysis Division.
39      SECTION 7. LEGISLATIVE TRANSFER REDUCED 5% FOR FISCAL YEAR 2027. On
40 July 1, 2026, and after the cash transfer in Section 1 of this act has oc-
41 curred, the President Pro Tempore of the Senate and the Speaker of the House
42 of Representatives shall direct the Office of the State Controller to limit
43 the amount transferred from the General Fund to the Legislative Account pur-
                                      3
1  suant to Section 67-451(2), Idaho Code, to $8,085,500 for the period July 1,
2  2026, through June 30, 2027.
3SECTION 8. BUDGET STABILIZATION FUND CASH TRANSFER FOR FISCAL YEAR
4  2027. Notwithstanding the provisions of Section 57-814, Idaho Code, and any
5  other provision of law to the contrary, the Office of the State Controller
6  shall transfer interest earnings generated from the fund balance in the Bud-
7  get Stabilization Fund during the period July 1, 2026, through June 30, 2027,
8  to the General Fund on June 30, 2027, or as soon thereafter as practicable.
9  Such amount shall be confirmed with the Legislative Services Office Budget
10 and Policy Analysis Division and only be used to ensure a minimum General
11 Fund ending cash balance of $150,000,000 as determined by the legislative
12 record.
13     SECTION 9. PUBLIC EDUCATION STABILIZATION FUND CASH TRANSFER FOR FIS-
14 CAL YEAR 2027. Notwithstanding the provisions of Section 33-907, Idaho
15 Code, and any other provision of law to the contrary, the Office of the
16 State Controller shall transfer interest earnings generated from the fund
17 balance in the Public Education Stabilization Fund during the period July
18 1, 2026, through June 30, 2027, to the General Fund on June 30, 2027, or as
19 soon thereafter as practicable. Such amount shall be confirmed with the
20 Legislative Services Office Budget and Policy Analysis Division and only be
21 used to ensure a minimum General Fund ending cash balance of $150,000,000 as
22 determined by the legislative record.
23      SECTION 10. WATER POLLUTION CONTROL FUND CASH TRANSFER FOR FISCAL YEAR
24 2027. Notwithstanding the provisions of Section 39-3630, Idaho Code, and
25 any other provision of law to the contrary, the Office of the State Con-
26 troller shall transfer interest earnings generated from the fund balance
27 in the Water Pollution Control Fund during the period July 1, 2026, through
28 June 30, 2027, to the General Fund on June 30, 2027, or as soon thereafter as
29 practicable. Such amount shall be confirmed with the Legislative Services
30 Office Budget and Policy Analysis Division and only be used to ensure a min-
31 imum General Fund ending cash balance of $150,000,000 as determined by the
32 legislative record.
33     SECTION 11. PERMANENT BUILDING FUND CASH TRANSFER FOR FISCAL YEAR 2027.
34 Notwithstanding the provisions of Section 57-1108, Idaho Code, and any other
35 provision of law to the contrary, the Office of the State Controller shall
36 transfer interest earnings generated from the fund balance in the Permanent
37 Building Fund during the period July 1, 2026, through June 30, 2027, to the
38 General Fund on June 30, 2027, or as soon thereafter as practicable. Such
39 amount shall be confirmed with the Legislative Services Office Budget and
40 Policy Analysis Division and only be used to ensure a minimum General Fund
41 ending cash balance of $150,000,000 as determined by the legislative record.
42      SECTION 12. STRATEGIC INITIATIVES PROGRAM (DEDICATED) FUND CASH TRANS-
43 FER FOR FISCAL YEAR 2027. Notwithstanding the provisions of Section 40-719,
44 Idaho Code, and any other provision of law to the contrary, the Office of the
45 State Controller shall transfer interest earnings generated from the fund
                                       4
1  balance in the Strategic Initiatives Program (Dedicated) Fund during the
2  period July 1, 2026, through June 30, 2027, to the General Fund on June 30,
3  2027, or as soon thereafter as practicable. Such amount shall be confirmed
4  with the Legislative Services Office Budget and Policy Analysis Division
5  and only be used to ensure a minimum General Fund ending cash balance of
6  $150,000,000 as determined by the legislative record.
7SECTION 13. STRATEGIC INITIATIVES PROGRAM (LOCAL) FUND CASH TRANSFER
8  FOR FISCAL YEAR 2027. Notwithstanding the provisions of Section 40-719,
9  Idaho Code, and any other provision of law to the contrary, the Office of the
10 State Controller shall transfer interest earnings generated from the fund
11 balance in the Strategic Initiatives Program (Local) Fund during the period
12 July 1, 2026, through June 30, 2027, to the General Fund on June 30, 2027, or
13 as soon thereafter as practicable. Such amount shall be confirmed with the
14 Legislative Services Office Budget and Policy Analysis Division and only be
15 used to ensure a minimum General Fund ending cash balance of $150,000,000 as
16 determined by the legislative record.
17     SECTION 14. STRATEGIC INITIATIVES GRANT PROGRAM FUND CASH TRANSFER FOR
18 FISCAL YEAR 2027. There is hereby appropriated and the Office of the State
19 Controller shall transfer the remaining balance in the Strategic Initia-
20 tives Grant Program Fund to the General Fund for the period July 1, 2026,
21 through June 30, 2027. Such amount shall not be less than $4,150,200 and
22 shall be confirmed with the Legislative Services Office Budget and Policy
23 Analysis Division and only be used to ensure a minimum General Fund ending
24 cash balance of $150,000,000 as determined by the legislative record.
25      SECTION 15. An emergency existing therefor, which emergency is hereby
26 declared to exist, Sections 1 through 6 of this act shall be in full force and
27 effect on and after passage and approval, and Sections 7 through 14 of this
28 act shall be in full force and effect on and after July 1, 2026.