An ad-hoc panel of Idaho lawmakers looking for ways to pay for the state’s expansion of Medicaid is focused on tapping into county indigent funds rather than increasing taxes.

Sen. Mary Souza, R-Coeur d’Alene, said the interim committee, on which she serves, thinks it can find up to $10 million in indigent funds from across Idaho’s 44 counties to help pay for the voter-approved Medicaid expansion, which is expected to cost $40 million annually.

“As a committee, we are not looking at any tax increases,” Souza said Friday during a legislation forum in Coeur d’Alene.

Lawmakers want to identify offset funds that will not be necessary once the expansion kicks in. These are in the areas of the Judicial Services, Health and Welfare and the Department of Correction.

Lawmakers say the millions they are considering taking from county indigent funds would not affect those who rely on the money because Medicaid expansion will cover those costs.

Indigent funds are budgeted state money set aside to assist those considered below the poverty level in areas such as food, clothing and shelter.

Souza emphasized lawmakers are still looking at the math and how using local indigent funds to pay for expansion would affect those who rely on the state assistance.

“We want to take a more moderate approach during the first year and see how it impacts the counties and then sit down and look at the hard data to see if that’s the way we want to go,” Souza said.

Rep. Jim Addis, R-Coeur d’Alene, who also serves on the interim committee, said it’s difficult at this time for lawmakers to gauge funding specifics for the expansion.

“We really don’t know how many people are going to sign up until January 2020 so we’re making educated guesses — we really need to see the numbers,” he said. “But we’re doing our best to ease the burden on taxpayers.”

Already, state officials have identified about $29 million that could be used to cover the first year of the Medicaid expansion. All funds being considered would be offset by the increased coverage through the expansion, Souza said.

Souza said lawmakers do not want to impose a hardship on those who rely on indigent funding.

“What we’re saying is the counties will no longer need this (portion) of indigent funding because that population falls under the Medicaid expansion,” she said.

Souza said lawmakers are also considering dipping into money collected from the Millennial Fund, created in 2000 after Idaho and other states sued tobacco companies for misleading the public about the dangers of smoking.

Souza said the interim committee will meet again on Nov. 4 in what she expects to be their final meeting of the year.

“We will review draft legislation that I think will be considered when the Legislature convenes after the first of the year,” she said.