Joint Finance reviews Department of Administration budget; governor's housing fund faces depletion by August 2026

At a Joint Finance-Appropriations Committee meeting, legislative analysts and Department of Administration officials reviewed the department's 2026 budget and warned the Governor's Housing Fund will be exhausted by August 2026 unless the legislature provides an appropriation.

The department provides central services for state agencies — including facilities maintenance, procurement, group insurance administration and the division of public works — and draws most of its revenue from dedicated funds paid by client agencies. "The governor's housing fund . . . provides a monthly housing stipend to the governor currently set at $4,551," Legislative Services budget analyst Frances Lippitt told the committee. Lippitt said the department requested a $30,000 general‑fund appropriation for fiscal 2025 that the Legislature did not approve and is now requesting $60,600 for fiscal 2026 to restore the fund's balance. Without additional appropriation, the fund will be depleted in August 2026, Lippitt said.

Why it matters: the Department of Administration centralizes key services used across state government, including security and maintenance of state buildings, statewide procurement, and management of the state's group insurance plan. Shortfalls in dedicated funds can drive requests for general‑fund support or force changes to services paid by client agencies.

Department director Steve Bailey told the committee the department's budget covers five major programs and that roughly two‑thirds of the department's appropriation is funded by the administration and accounting services fund, sourced by agency payments for services. Bailey also answered questions about the department's handling of the Chinden Campus and custody of vehicle leases, and said the department is staffing up in areas that have seen increased workload since the state's health plan and investments in building maintenance expanded.

On risk, insurers and property valuation: Faith Knowlton, the department's administrator for risk and insurance programs, said the division currently has one analyst responsible for about $11 billion in insured property and more than 8,500 vehicles. "It would be possible for our staff of one to be able to manage what the agencies are doing outside, which is the reason we are requesting this position," Knowlton said, describing errors agencies have made entering insurable replacement values (for example, insuring demolished buildings or including land in replacement‑value estimates). Since beginning a multi‑year appraisal program the office identified and removed about $500 million in over‑insured property values in the first set of appraisals, saving roughly $120,000 in premiums in that year, Knowlton said; the office is conducting a four‑year appraisal cycle to reduce future overpayments.

Personnel and enhancement requests: Lippitt outlined ongoing and one‑time enhancement requests included in the department packet. Ongoing requests discussed included three new positions for fiscal 2026 (including an employee benefit specialist for the office of group insurance and a property‑values analyst for risk management) and a financial specialist to assist invoice processing. One‑time requests included equipment for new positions, a trailer for security staff (the department withdrew an original $49,000 truck request after repurposing an existing vehicle and reduced the request to $8,500 for a trailer), vehicle replacements for postal and public works functions, and $79,000 for IT hardware recommended by the Office of Information Technology Services. The governor recommended the requested enhancements, Lippitt said.

Committee follow‑ups and requests: Committee members asked for supplemental breakdowns of continuously appropriated components of various funds (in particular the retained risk and group insurance accounts) so they can track reserve and direct investment balances. Representative Tanner asked the department to provide a list of continuous appropriation categories and fund detail for the retained risk account; Lippitt said she would provide that information. Several members requested the department provide the governor's housing committee history and the most recent committee report outlining options for a residence or continued stipend.

What the department said about authority and statutes: Lippitt said the department's statutory authority is in Chapter 57, Title 67 of Idaho Code and that the Governor's Housing Committee and the Governor's Residence Fund are established in Idaho Code section 67‑455. The department also explained that some funds and program components are continuously appropriated (for example, the group insurance fund and certain trustee/benefit payments), which affects how balances and direct investments are reported.

Ending: Committee members asked the department to supply requested fund detail and the governor's housing committee report so lawmakers can decide whether to appropriate general funds for the stipend or pursue other options. The Department of Administration officials said they would provide the requested materials to the committee staff.