Week 11: Idaho Legislative Session

The legislative session, which may conclude within the next couple of weeks, is a critical period for us. Despite being in the final stretch, we are diligently monitoring several significant issues that could affect counties.

Transportation Funding

Earlier this week, the Joint Finance Appropriation Committee made a decision that could significantly impact us. They set the funding for ITD’s Strategic Initiatives Program at a lower level than the past two years. The Governor’s recommendation to increase Strategic initiatives to $311M this year to account for inflationary costs was not heeded. As a reminder, 40% of these funds are distributed to counties, highway districts, and cities for road and bridge maintenance. 

Instead of increasing the budget, JFAC set the Strategic Initiatives at $275 million for FY26. The local share is estimated to be reduced by $10 million from FY25. Assuming House Bill 25 passes, the loss of funds would be offset by H0025, which raises the amount of funds allocated to local highway jurisdictions through TECM to $45 million, an increase of $11 million from FY25. 

This appropriation has not yet received a bill number. Please check your inbox next week for further information, including a bill number. In the meantime, we urge you to talk  with your legislators over the weekend and encourage them to support funding the Strategic Initiatives Program.

Taxation Trailer Bill: House Bill 435 

House Bill 435 was introduced this morning in Revenue and Taxation. It is an 18-page trailer bill that changes three different bills that passed the legislature this year. The main impact on counties is a change to House Bill 354, which passed earlier this week. It would change the median ratio of the assessed value to market value for categories of property being tested from 90-110% to 95-105%.

Short-term Rentals: Senate Bill 1162

Over the summer and fall, a working group met to develop a compromise solution for short-term rentals. At the beginning of the session, talks broke down. The stakeholders were told that if they could not agree on a bill, no bill would be introduced in the House Business Committee. The House Business Chairman (Representative Lance Clow) stayed true to that commitment, refusing to hear any bills that were not agreed upon by stakeholders. 

This legislation was introduced in the Senate Local Government and Taxation at the request of Idaho REALTORS. Yesterday, the committee held a full hearing on the bill. While concerns were expressed about the bill not being the compromise bill that was worked on during the interim, the committee chose to send it to the 14th order for amendments. IAC took an opposing position on this bill. We are working with other stakeholders on amendments to make the bill more workable. 

If you are concerned about this bill, please contact your Senators and remind them about the importance of balancing the private property rights of all property owners, including those impacted by short-term rentals, as well as the responsibilities counties have regarding public safety.

Public Defense: Senate Bill 1181 

The Senate Judiciary and Rules Committee heard Senate Bill 1181 today. The bill, which passed out of committee and was sent to the 14th Order for a simple amendment at the request of the bill sponsor, Chairman Todd Lakey, addresses several aspects of public defense. 

While the bill does not encompass all the changes that counties were hoping for, it does establish legislative intent language for developing and implementing a plan for transitioning out of county facilities. It also specifies that the State Public Defender is responsible for paying for any transcripts they request, thereby relieving counties of this financial burden. 

The bill also clarifies the roles of district public defenders, including their leadership responsibilities for managing public defense in their districts, and specifies certain office building expenses as the responsibility of counties. It also outlines the types of cases the SPD is to cover.