JFAC reverses commission cuts

BOISE — In its first round of budget enhancements before the Joint Finance-Appropriations Committee, members reversed course on certain cuts and, after much debate, deferred action on others. 

A key reinstatement of funds was approved for the Idaho State Tax Commission after Division of Financial Management Administrator Lori Wolff sent a letter to Joint Finance-Appropriations Committee members highlighting that cuts to the commission could delay this year’s tax processing by as much as 24 weeks and delay tax refunds by up to six weeks.

Addressing these concerns, the body voted to add funding to the commission to assist with the current tax filing season and restore future funding, which was cut when setting the commission's baseline budget. 

JFAC first voted unanimously to supplement the Tax Commission with $765,300 to help overhaul its systems and forms for the tax changes in the One Big Beautiful Bill, which were signed into law by Gov. Brad Little last week. 

In a 15-4 vote, the committee also moved to restore the $903,000 in general funds previously subtracted from the commission’s budget next fiscal year. 

In both cases, the funding changes will need be passed by the House and the Senate to become law. 

Though enhancements to the Idaho State Tax Commission passed without fanfare, the same could not be said for the Idaho National Guard’s State Education Assistance Program (SEAP), which provides enlisted soldiers and airmen up to $8,000 per year for tuition and fees at Idaho institutions. 

Maj. Gen. Timothy J. Donnellan appeared before JFAC in January to discuss the military division’s recent modernization efforts and the cuts headed their way. In that meeting, Donnellan said the agency has been able to “absorb” the 3% reduction recommended by Little. Still, it came at a cost to SEAP by reducing the education reimbursement amount for enlistees. 

“Many of our enlistees join the National Guard, one (because) they want to stay in Idaho, but two because Idaho offers this state education assistance," Donnellan said in January. “So we’ve had to reduce that fund, and I am concerned if we were to reduce it further, we would break faith with our soldiers and airmen who have enlisted.” 

He added that any further cuts to the program “would concern me,” remarks made before JFAC voted to reduce the agency’s budget by an additional 2% starting next fiscal year. 

Now several weeks removed from this meeting, the committee considered a budget enhancement that would restore $190,800 in state general-fund funding to SEAP for the next fiscal year, maintaining 69% of the program’s funding. 

Rep. James Petzke, R-Meridian, spoke in favor of restoring the funding. He noted Idaho lags behind neighboring states (including Oregon, Washington and Utah), which offer 100% tuition reimbursement through their respective programs. 

“This is a pretty key thing that we are already behind the ball on,” Petzke said. 

Sen. Janie Ward-Engelking, D-Boise, who presented an initial motion to provide the full $190,800 requested for SEAP, said the agency doesn’t have “unlimited places that they can take an additional 2% decrease in funding.” In many cases, alternative cuts to the Idaho Military Division would result in a loss of federal matching funds and, in turn, more significant financial consequences, she said. 

With several committee members asserting they lacked the necessary information to vote for funding the education program, Rep. Kyle Harris, R-Lewiston, introduced a substitute motion to hold the budget request and have the program brought back for consideration at the committee chair’s discretion. 

Since the committee votes on the newest motions first, Ward-Engelking's initial motion to fund SEAP would not be put up for a vote if Harris's were to pass first. 

To force a vote on the matter, Sen. Jim Woodward, R-Sagle, followed Harris with a separate motion to provide $100 in additional funding beyond the original motion from Ward-Engelking. He framed the vote as being whether or not to “support the education of those who have taken an oath to give their lives for ours.” 

Woodward’s motion failed on a 7-11 vote, with Sen. Scott Grow, R-Eagle, Sen. Phil Hart, R-Kellogg, Sen. Cindy Carlson, R-Riggins, Sen. Zuiderveld, Sen. Galloway, Rep. Josh Tanner, R-Eagle, Rep. Steve Miller, R-Fairfield, Rep. Harris, Rep. Chris Bruce, R-Kuna, Rep. Elaine Price, R-Coeur d’Alene, and Rep. Brandon Mitchell, R-Moscow opposed.

The committee then returned to Harris' motion, voting 11-7 to defer consideration of the reimbursement program to a later date, leaving Ward-Engelking’s original motion without a vote.  

In tabling the issue, it is up to JFAC’s committee chairs to reintroduce the budget request. If the matter is not addressed again before the close of this year’s legislative session, SEAP will be reduced to 39% of its previous funding level next fiscal year, decreasing the tuition reimbursement for current and future National Guardsmen significantly.