Bill Analyses and Ratings

Rating: 0

Bill Summary:
Senate Bill 1209 (2025) appropriates $7.23 million in additional funding to Idaho’s public higher education institutions and the Office of the State Board of Education for Fiscal Year 2026. The funds are distributed among Boise State University, Idaho State University, Lewis-Clark State College, and the University of Idaho, with smaller allocations for systemwide programs. It also applies one-time reductions totaling $4 million ($2 million each from BSU and U of I), along with an additional $57,800 cut from U of I’s operating budget. Institutions are allowed to restore these reductions in their FY2027 budget requests.

The bill directs $1 million to the Idaho Water Resources Research Institute (IWRRI) to fund actionable water research projects at Idaho’s public colleges. It also mandates that the State Board of Education develop an outcomes-based funding model to replace the current enrollment-based formula by the end of 2025, with full implementation expected by FY2028 or earlier.

S1209 requires the Legislative Audits Division to conduct compliance audits at all four major universities for adherence to state laws regarding diversity, equity, and inclusion (DEI). Costs for the audits will be billed to the institutions. The bill further requires transparency and legislative oversight of any negotiations involving the Idaho College of Osteopathic Medicine (ICOM), explicitly barring nondisclosure agreements that would prevent disclosure to the Legislature.

An emergency clause enacts the bill on July 1, 2025.

Reason for Rating:
While the bill includes several measures aligned with conservative priorities—such as DEI compliance audits, transition to outcomes-based funding, and oversight of institutional acquisitions—it still injects millions in new funding into Idaho’s public university system without implementing structural reform. The temporary nature of the budget cuts and their allowed restoration in future budgets reflects a preservation of the status quo rather than a meaningful reduction of government scope or spending. This mix of positive oversight and continued funding expansion balances out to a neutral rating.