Permanent Building Fund: committee hears requests for projects, deferred maintenance and reporting on multi‑year capital portfolio
February 17, 2025 | Finance, SENATE, Committees, Legislative, Idaho
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Legislative analysts and Division of Public Works officials briefed the Joint Finance‑Appropriations Committee on the Permanent Building Fund portfolio and the division's fiscal 2026 capital and maintenance recommendations.
The Permanent Building Fund finances capital projects and facility maintenance across state agencies and higher education. Legislative Services analyst Frances Lippitt told members the fund receives several dedicated revenue streams (a $10 fee per income tax filing, $5 million from sales tax, $5 million from cigarette tax, one‑third of beer tax proceeds, three‑eighths of lottery earnings, interest and other sources) and that the state has invested roughly $1.1 billion of general‑fund money in recent years to accelerate deferred maintenance and capital work. Lippitt noted the total value of active public works projects is about $1.9 billion, roughly $1.4 billion of which are capital projects; about 42% of funding for those capital projects has been committed.
Major project requests and recommendations: Administrator Dale Reynolds and deputy Kelly Berard described specific FY26 recommendations from the division and the permanent building fund advisory council. Highlights the committee heard include:
- Idaho State University life sciences complex: $14 million from the permanent building fund toward a roughly $127.77 million project that also includes $35.77 million in agency funds and $78 million in bonding to build a new 108,000 square‑foot life sciences facility to replace aged lab space.
- Micron Center for Materials Research (Boise State): $2.5 million to expand lab space in shelled square footage on the third floor; the Legislature previously appropriated $7.8 million for initial lab build‑out.
- Idaho State Police District 2 (Lewiston): an additional $5.525 million request after an earlier appropriation of $9.975 million; the division said attempts to buy and retrofit an existing building were unsuccessful and the new request would allow purchase of land and new construction to meet ISP needs.
- Bonneville County readiness center utilities: $5.56 million to provide utility connections for a U.S. Army National Guard readiness center; federal construction requires utilities to be present prior to construction.
- Department of Lands Ponderosa office expansion: $6.5 million for office expansion, restroom/shower facilities and improved security at the Ponderosa office.
- Joint military science and veterans assistance center (University of Idaho): $8 million requested.
The FY26 recommendation package also includes restored repurposed appropriations ($12.5 million) and $68.2 million in alterations, repairs, accessibility improvements and building maintenance (a split that includes $25.1 million for alterations and repairs, $37.8 million for building maintenance, $3.2 million for accessibility projects and $2 million for Capitol Mall/Chinden Campus facilities maintenance).
How projects are tracked: Lippitt walked the committee through the way the Permanent Building Fund is budgeted: capital projects receive appropriations and any unexpended balances become continuously appropriated under Idaho Code §57‑1105 to allow multi‑year projects to continue. She pointed committee members to a detailed capital budget report and a project status report the division provides to the committee on SharePoint; committee members asked for a list of projects that have not started work within four years so staff could consider the repurposing language lawmakers added last year requiring re‑appropriation of inactive funds.
Timing and delivery: Reynolds told the committee project timelines vary by delivery method and complexity; multi‑year projects are common. For an example, a large prison project under design is expected to take roughly 2½ years once construction begins. Reynolds said the division has about 500 active projects and is hiring project managers to accelerate delivery; the division reported about 42% of capital project funding is committed and that for the past few years the division typically expends 50–70% of appropriation in the first year of a project.
Ending: Committee members requested project‑level status lists (including projects that have not met the four‑year shovel/commencement threshold) and continued updates from the division. Lippitt and Reynolds directed members to the division's November capital budget report on SharePoint for a project‑by‑project accounting of authorizations, commitments and remaining balances.
The Permanent Building Fund finances capital projects and facility maintenance across state agencies and higher education. Legislative Services analyst Frances Lippitt told members the fund receives several dedicated revenue streams (a $10 fee per income tax filing, $5 million from sales tax, $5 million from cigarette tax, one‑third of beer tax proceeds, three‑eighths of lottery earnings, interest and other sources) and that the state has invested roughly $1.1 billion of general‑fund money in recent years to accelerate deferred maintenance and capital work. Lippitt noted the total value of active public works projects is about $1.9 billion, roughly $1.4 billion of which are capital projects; about 42% of funding for those capital projects has been committed.
Major project requests and recommendations: Administrator Dale Reynolds and deputy Kelly Berard described specific FY26 recommendations from the division and the permanent building fund advisory council. Highlights the committee heard include:
- Idaho State University life sciences complex: $14 million from the permanent building fund toward a roughly $127.77 million project that also includes $35.77 million in agency funds and $78 million in bonding to build a new 108,000 square‑foot life sciences facility to replace aged lab space.
- Micron Center for Materials Research (Boise State): $2.5 million to expand lab space in shelled square footage on the third floor; the Legislature previously appropriated $7.8 million for initial lab build‑out.
- Idaho State Police District 2 (Lewiston): an additional $5.525 million request after an earlier appropriation of $9.975 million; the division said attempts to buy and retrofit an existing building were unsuccessful and the new request would allow purchase of land and new construction to meet ISP needs.
- Bonneville County readiness center utilities: $5.56 million to provide utility connections for a U.S. Army National Guard readiness center; federal construction requires utilities to be present prior to construction.
- Department of Lands Ponderosa office expansion: $6.5 million for office expansion, restroom/shower facilities and improved security at the Ponderosa office.
- Joint military science and veterans assistance center (University of Idaho): $8 million requested.
The FY26 recommendation package also includes restored repurposed appropriations ($12.5 million) and $68.2 million in alterations, repairs, accessibility improvements and building maintenance (a split that includes $25.1 million for alterations and repairs, $37.8 million for building maintenance, $3.2 million for accessibility projects and $2 million for Capitol Mall/Chinden Campus facilities maintenance).
How projects are tracked: Lippitt walked the committee through the way the Permanent Building Fund is budgeted: capital projects receive appropriations and any unexpended balances become continuously appropriated under Idaho Code §57‑1105 to allow multi‑year projects to continue. She pointed committee members to a detailed capital budget report and a project status report the division provides to the committee on SharePoint; committee members asked for a list of projects that have not started work within four years so staff could consider the repurposing language lawmakers added last year requiring re‑appropriation of inactive funds.
Timing and delivery: Reynolds told the committee project timelines vary by delivery method and complexity; multi‑year projects are common. For an example, a large prison project under design is expected to take roughly 2½ years once construction begins. Reynolds said the division has about 500 active projects and is hiring project managers to accelerate delivery; the division reported about 42% of capital project funding is committed and that for the past few years the division typically expends 50–70% of appropriation in the first year of a project.
Ending: Committee members requested project‑level status lists (including projects that have not met the four‑year shovel/commencement threshold) and continued updates from the division. Lippitt and Reynolds directed members to the division's November capital budget report on SharePoint for a project‑by‑project accounting of authorizations, commitments and remaining balances.
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