Idaho Budget Committee Opts to Hold Millions in Rainy Day Funds

JFAC votes to withhold over $50 million from general fund despite 2% cuts to state agencies

Apr. 2, 2026 at 7:05am

Got story updates? Submit your updates here. ›

The Idaho Joint Finance-Appropriations Committee (JFAC) voted on Wednesday to hold more than $50 million in the state's Budget Stabilization Fund, or 'rainy day' fund, rather than automatically transferring the money to the general fund for the upcoming fiscal year. This decision comes despite JFAC previously approving 2% ongoing cuts to most state agency budgets, including a $7.3 million reduction for Idaho's colleges and universities.

Why it matters

The decision by JFAC to withhold millions from the general fund budget could have significant implications for state services and programs, especially at a time when agencies are already facing tight budgets due to the 2% cuts. This move raises questions about the committee's priorities and whether they are adequately funding critical state needs.

The details

JFAC voted to keep $53.7 million in the Budget Stabilization Fund, which is the amount exceeding the 15% cap on the fund's balance compared to the projected $5.51 billion general fund revenue for fiscal year 2026. Existing state code directs the state controller to automatically transfer any funds above the 15% threshold to the general fund, but JFAC opted to override this and retain the money in the rainy day fund.

  • The JFAC committee voted on this decision on Wednesday, April 2, 2026.
  • The $53.7 million in question would have been automatically transferred to the general fund for fiscal year 2027 based on the projected $5.51 billion general fund revenue for fiscal year 2026.

The players

JFAC

The Joint Finance-Appropriations Committee, the budget-making committee in the Idaho Legislature.

Janie Ward-Engelking

A Democratic state senator from Boise who criticized JFAC's decision to withhold the funds from the general fund.

Got photos? Submit your photos here. ›

What they’re saying

“It makes no sense to me that we would set aside code and not put this money in the general fund, especially when we have cut budgets to the bone and then some.”

— Janie Ward-Engelking, State Senator

What’s next

The Idaho Legislature will need to approve the final state budget, including whether to accept JFAC's decision to retain the $53.7 million in the rainy day fund rather than transfer it to the general fund.

The takeaway

JFAC's decision to withhold millions from the general fund budget, despite already implementing 2% cuts to most state agencies, raises concerns about the committee's priorities and whether they are adequately funding critical state services and programs. This move could have significant implications for the state's budget and the services it provides to residents.