The door to the Joint Finance-Appropriations Committee room at the Idaho State Capitol building in Boise on Jan. 6, 2023. (Otto Kitsinger for Idaho Capital Sun)
The outcome of a lawsuit filed with the Idaho Supreme Court over the blocked sale of the Idaho Transportation Department’s former Boise headquarters has the potential to affect the transportation budget, an attorney for the Idaho Legislature said Wednesday.
In April, the would-be buyers of the Idaho Transportation Department’s former Boise headquarters filed suit after the Idaho Legislature approved budget language blocking the $51.7 million sale, the Idaho Capital Sun previously reported. The group of buyers includes Hawkins Co., Pacific West Communities and FJ Management.
In court filings, the Idaho Supreme Court has indicated it may hear oral arguments for the case in late August. Meanwhile, important state budget milestones are set to take place shortly before and after oral arguments may take place.
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The first milestone occurs July 1, when the state begins the new fiscal year 2025 and the new budget takes effect. The budget language blocking the sale of the former headquarters building is included in the Idaho Transportation Department’s fiscal year 2025 budget. That budget provides $592 million in additional funding for the Idaho Transportation Department.
The second milestone occurs Sept. 1, when all state agencies, including the Idaho Transportation Department, must submit their fiscal year 2026 budget request to the state.
Depending on the outcome of the lawsuit, the state may be able to hang on to the State Street property and spend $32 million to renovate it. Or, the Idaho Supreme Court could side with the would-be buyers and order the state to complete the sale for $51.7 million, which would eliminate the need for renovations but could require the state to relocate the Idaho Transportation Department or renovate other state office space to accommodate the department.
“If the (would-be buyers) win the case and the bills are found to be unconstitutional, it’s definitely going to affect ITD’s budget,” Elizabeth Bowen, legal counsel for the Idaho Legislative Services Office, said during the Idaho Legislature’s Joint Finance-Appropriations Committee meeting on Thursday at the Idaho State Capitol in Boise.
“I imagine they will be bringing a certain request to you that the Legislature declined to fund this year,” Bowen added. “So it could (affect the transportation budget). If the (buyers) dont win I don’t imagine it will have much of an effect.”
As a result, legislators know budget changes could be coming.
“We may need to be quite flexible on this,” said Rep. Clay Handy, R-Burley.
What’s happened in the lawsuit over Idaho Transportation Department’s headquarters
Since the lawsuit was filed in April, the case has drawn high-profile legal developments.
Last month, the Idaho Transportation Department and Idaho Department of Administration filed court documents switching their legal counsel from Idaho Attorney General Raúl Labrador’s office to a private outside attorney, the Sun previously reported.
Labrador’s office withdrew as counsel days after Idaho Gov. Brad Little’s office issued public statements saying Labrador filed a brief and answer in the case without getting the approval from some of the state’s top officials, which Boise Dev reported first.
The Department of Administration and Idaho Department of Transportation are now represented by outside private counsel.
In addition, House Speaker Mike Moyle, R-Star, filed a motion on May 15 to intervene in the case on behalf of the Idaho House of Representatives. Even though they are both parties to the same lawsuit against the state, Moyle is using a different legal strategy and arguments than the private counsel representing the Idaho Transportation Department and Idaho Department of Administration, court documents indicate. Moyle is arguing the State Street property was never properly put up for sale, Idaho Reports reported.
Idaho budget committee’s tour included field trip to observe in-demand career training programs
The Joint Finance-Appropriations Committee, or JFAC, is a powerful legislative committee that sets each element of the state budget. Even though the Idaho Legislature adjourned for the year April 10 and is not in session, JFAC is conducting its spring tour this week.
After the discussion about the lawsuit and an overview of the procedures for writing and editing budget bills, legislators traveled to College of Western Idaho in Nampa to get a closer look at some of the workforce training programs the college offers.
Legislators met with College of Western Idaho President Gordon Jones while touring labs and classrooms used for auto repair, welding, mechatronics and healthcare courses. During law enforcement training, JFAC members watched a portion of College of Western Idaho’s tactical medical training, which involved a simulated active shooter scenario inside a medical facility. Legislators stood a few feet away as the simulation played out, complete with fake blood and blanks fired from training firearms.
The programs legislators learned about are eligible for the Idaho Launch program championed by Little. Under Idaho Launch, the state provides grants of up to $8,000 to Idaho high school and home school graduates to put toward an Idaho-based training program for in-demand jobs.
The Idaho Launch has been hotly debated in the Idaho Legislature and only passed by a slim 36-34 vote in the Idaho House in 2023.
Wednesday was JFAC’s second day of meetings. During JFAC’s first meeting on Tuesday, Lori Wolff, the new administrator of the Idaho Division of Financial Management, told committee members not to expect another big budget surplus when the state’s 2024 fiscal year ends June 30.
The Joint Finance-Appropriations Committee will conduct the final meeting from its spring tour at 9 a.m. Thursday at the Idaho State Capitol in Boise. The meeting will be live streamed online for free on the Idaho in Session service.
JFAC will also conduct a fall tour before the 2025 legislative session convenes in January, said Rep. Wendy Horman, R-Idaho Falls.
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