Who Does What: Governor, DFM, LSO, JFAC and the Officers Who Hold the Money

Idaho's state budget has no single author. The Governor writes one version and the Legislature writes another. Staff from two branches reconcile the numbers. Three other officers record the money, hold it and approve some of its movements. A reader who knows who holds which pen can tell, in any budget story, whether someone proposed a number, voted for it, signed it or only reported it.

The Governor and the Division of Financial Management

Idaho Code 67-3501 makes the Governor "the chief budget officer of the state." The Division of Financial Management is the Governor's budget staff. As of the 2026 reporting, its administrator is Lori Wolff, who has been quoted in Idaho news coverage on budget guidance, holdbacks and revenue forecasts. What the executive branch does in the budget process:

• Sets request rules: DFM and the Legislative Services Office jointly produce the Budget Development Manual, which sets submittal procedures and the inflation, benefit and employee compensation percentages. DFM budget analysts work with agencies on technical issues.
• Prepares the Executive Budget: Idaho Code 67-3507 requires four parts: a budget message, a detailed financial plan for all funds with the capital program, annual performance plans, and federal funding reports. The Governor transmits it within five days of the session's start (67-3506).
• Presents recommendations: The DFM administrator or a designee attends JFAC meetings and presents the Governor's recommendation with the information to back it up (67-3513(1)). By January 15, DFM also reports to JFAC on authorized positions, vacancies and recommended compensation changes.
• Forecasts revenue: DFM publishes the economic forecast and the monthly General Fund Revenue Report (lesson 4).
• Controls hiring and pay inside the appropriation: No agency outside the legislative and judicial branches may fill a new position without DFM approval, or change a position's pay without DFM confirming the spending authority is sufficient (67-3519).
• Monitors spending: DFM watches spending throughout the year, and the Governor may order temporary reductions when revenue falls short.

The Governor also acts at the end of the legislative process. Under Article IV, section 10 of the Constitution, a bill that the Governor does not approve is returned with objections to the house where it started, and two-thirds of the members present in each house can pass it over the objection. The 2026 record shows the veto at work on budget bills: the Legislative Fiscal Report notes that the Governor vetoed H.B. 975, a bill on transfers from the Budget Stabilization Fund when its balance exceeds 15 percent of General Fund revenue, and issued line-item vetoes of parts of H.B. 968, the main transfers bill, and H.B. 978, a Health and Welfare appropriation. The sine die report lists four bills vetoed outright and two with line-item vetoes among the session's bills.

Holdbacks: the Governor's mid-year tool

Idaho Code 67-3512A says that if the Governor "may determine that the expenditures authorized by the legislature for the current fiscal year shall exceed anticipated moneys available," the Governor may reduce spending authority by executive order. The statute sets limits:

• Reductions for elected officers in the executive department may not go to a level that prevents their constitutional duties.
• Reductions for the legislative and judicial departments need the written permission of the head of that department.
• The head of any executive department, office or institution may appeal to the State Board of Examiners.
• The Governor may not cut spending authority below the level needed to keep expenditures within revenues.
• A temporary reduction "shall not result in a reduction of appropriation." The Governor may restore the authority by another executive order.

Executive Order 2025-05, signed August 15, 2025, ordered a 3 percent reduction in FY2026 General Fund spending authority for covered agencies, with K-12 public schools exempt and constitutional officers, legislative officials and judicial officers invited, but not required, to review their own appropriations. Lesson 5 takes up the details and disputes.

The Legislative Services Office

The Legislative Services Office is the Legislature's nonpartisan staff. Its Budget and Policy Analysis division supports JFAC, and the 2026 Legislative Fiscal Report lists Keith Bybee as division manager and names a senior analyst for each cluster of agencies. The Legislative Council, which under Idaho Code 67-429 collects information, drafts bills and conducts research for the Legislature, releases audit reports prepared by LSO's Legislative Audits division. LSO's budget documents:

Document	What it is	When it appears
Legislative Budget Book	The primary reference JFAC uses to set the budget: statewide reports, then each agency's request beside the Governor's recommendation	Start of the session
General Fund Budget Monitor	Monthly tracking of revenue, appropriations and the balance (cited in the Legislative Fiscal Report as LSO's monthly Budget Monitor)	Monthly
Sine Die Budget Packet	The General Fund budget update at the close of the session, with a Governor-versus-JFAC comparison by agency	At adjournment
Legislative Fiscal Report	The summary of the budget as adopted, with the legislation behind each agency's number	After the session
Idaho Fiscal Sourcebook	Every fund: sources of revenue and uses	Annually
Idaho Fiscal Facts	A pocket reference of facts, figures and trends in the state budget	Annually

Sources: LSO publications page; Legislative Fiscal Report. LSO's phone for the Budget and Policy Analysis division is (208) 334-3531.

LSO staff do not vote. They write what the Legislature is voting on, and in November 2025 an LSO presentation to JFAC supplied the $555.2 million FY2027 shortfall figure that dominated the early debate. When a number first comes from LSO, the right shorthand is "LSO analysts projected," not "the Legislature decided."

JFAC: who is on it and how it works

JFAC is two committees acting jointly: the Senate Finance Committee and the House Appropriations Committee. The 2026 roster in the Legislative Fiscal Report shows 20 members, 10 from each chamber, with Sen. C. Scott Grow as Senate Finance chair and Rep. Josh Tanner as House Appropriations chair, who serve as the committee's co-chairs, and Sen. James Woodward and Rep. Steve Miller as vice chairs. The list shows 17 Republicans and 3 Democrats. Membership changes: the Idaho Capital Sun reported in January 2025 that nine of the 20 members were new to the committee that year, and the November 2026 election will affect the next one.

How it votes

• The committee meets in joint open session. Idaho Code 67-3513 allows it to go into executive session by a two-thirds vote, but "no votes or any official action may be taken" in executive session.
• Per the Capital Sun's January 2025 account, a budget needs a majority of the Senate members and a majority of the House members of JFAC. A budget that fails is held in committee and may be rewritten. In November 2025 the Capital Sun reported that the threshold became a majority of the members present from each chamber (it had been six yes votes from each chamber regardless of attendance), under interim procedures that leaders hoped to turn into a formal joint rule.
• The co-chairs alternate presiding, the Capital Sun reported.
• After JFAC votes, the appropriation bill goes to the floor. The chamber where it starts depends on the sponsoring member's chamber. Both chambers must pass it before it reaches the Governor.

The 2024 change: maintenance first, enhancements separate

Before 2024, JFAC took each agency's whole budget in one hearing and bill. The co-chairs announced a new approach in late 2023 and described it in early January 2024: set a maintenance budget for every agency first, and put new spending requests in separate bills so that each can be argued on its own. The JFAC minutes of January 9, 2024 state that JFAC would "set the statewide maintenance budgets first," then hold agency hearings on additional requests such as replacement items, non-discretionary adjustments and line items. They add that the committee meets as workgroups and as a full committee to review new requests.

The first test was rocky. JFAC passed ten omnibus maintenance bills on January 16, 2024 covering more than 100 agencies and divisions and over $5.1 billion in General Fund spending. On February 2, with one co-chair absent, 12 of the 20 members passed standalone budgets that competed with the maintenance bills; the House narrowly passed the original maintenance budgets on February 7. The session ended April 10, 2024 after 94 days. Rep. Wendy Horman, then a co-chair, said General Fund growth in the FY2025 budget was 1.7 percent, down from 12 percent a year earlier. Supporters praised the working groups; critics said the maintenance bills did not accurately reflect maintenance spending (see Hard questions).

Germane committees and the full Legislature

JFAC decides money. The House and Senate germane committees, the standing committees whose subject area covers a bill (for example, Education, Health and Welfare or State Affairs), decide policy. The 2024 minutes say policy bills tied to budget proposals, such as a school bonding proposal, go to the germane committees, and that the Legislature sets policy while the Governor's proposals are recommendations. Some extra budget requests depend on a policy bill passing first.

The two tracks sometimes miss each other. The Legislative Fiscal Report notes that in 2026 the Legislature passed H.B. 556, which increased the per diem rates paid to county jails, but did not fund the estimated $3.1 million impact, which the report says will likely lead to a supplemental appropriation request in the next session. A policy committee can create a cost. Only an appropriation pays for it.

The full House (70 members) and Senate (35 members) then vote on each appropriation bill. Floor votes are real checkpoints. In March 2024 the Senate voted 16 to 19 against H.B. 723, the Idaho Transportation Department's enhanced budget, and in March 2026 it rejected S.B. 1375, the FY2027 health and human services maintenance budget, 10 to 25 (Idaho Capital Sun). A rejected budget goes back to JFAC to be rewritten. For how testimony reaches these committees, see the course on testifying before Idaho Legislature committees.

Comparing the Governor's proposal with what passed

LSO's sine die packet compares the Governor's revised recommendation with JFAC's action for FY2027. It is a snapshot taken on April 2, 2026, before the Governor acted on the last bills, and the final figures in the Legislative Fiscal Report differ slightly. Dollars are in millions.

FY2027 General Fund	Governor's revised recommendation	JFAC action	Difference
Revenue projection (before law changes)	5,679.2	5,816.6	+137.4
Public School Support	2,734.1	2,750.4	+16.3
Colleges and universities	382.7	375.1	-7.6
Division of Medicaid	1,047.1	1,047.9	+0.8
Department of Correction	388.1	385.8	-2.3
Total original appropriations	5,631.9	5,621.7	-10.2

Source: LSO, 2026 sine die General Fund Budget Update and General Fund Comparison, April 2, 2026.

The Governor and JFAC landed within 0.2 percent of each other on the total (10.2 divided by 5,631.9 is 0.18 percent) but chose different mixes. The Legislature gave public schools $16.3 million more than the Governor's revised recommendation and colleges and universities $7.6 million less. It also used a higher revenue projection, which is the JFAC choice that shows how the budget is the Legislature's to write. The Legislative Fiscal Report adds that the Legislature began budget setting for most General Fund agencies with a 5 percent ongoing reduction from the FY2026 original appropriation, exempting Public School Support, some Health Education Programs, Medicaid, the Department of Correction, Idaho State Police and the Office of the Secretary of State from the reduced starting point.

After the vote: Examiners, Controller and Treasurer

The State Board of Examiners

Article IV, section 18 of the Constitution names the Governor, the Secretary of State and the Attorney General as the board of examiners, with power "to examine all claims against the state" and other duties prescribed by law. In the budget these duties show up as:

• Appeals of holdbacks: executive agency heads may appeal a temporary reduction (67-3512A).
• Transfers: moving appropriation from one account category to another needs the board's consent (67-3511(1)). Moves between programs within an agency need DFM and board approval if the cumulative change is not more than 10 percent, and legislative appropriation above that. Moving money between funds needs express legislative approval (67-3511(2)).
• Unanticipated outside money: money from sources other than state money that was not known when appropriations were set needs approval of the DFM administrator and the board (67-3516(2)).
• Emergency year-end transfers: in 2026, H.B. 968 gave the board access to Budget Stabilization Fund money, limited to the lesser of the shortfall or one-half of one percent of the original General Fund appropriation, which the Legislative Fiscal Report calculates as $28,119,702.50 (lesson 6).

The State Controller

Idaho Code 67-1001 makes the elected Controller responsible to "superintend the fiscal concerns of the state, with its accounting, informational, payroll, and related data processing services." The Controller keeps the account of every warrant drawn on the treasury and a separate account under each appropriation showing the unexpended balance, and delivers a financial statement for the preceding fiscal year by January 1. The Controller's office also holds the spending authority on file that a holdback reduces (67-3512A). The current Controller is Brandon D. Woolf, according to the office's website.

The State Treasurer

Under Idaho Code 67-1201 the State Treasurer receives and keeps the state's money, issues receipts and pays out amounts drawn by the Controller. Idaho Code 67-1210 makes it the Treasurer's duty to invest idle moneys in the state treasury in listed categories such as federal obligations and state or local bonds. The current Treasurer is Julie A. Ellsworth, according to her office's website, which lists the State Depository, banking services, the Local Government Investment Pool and unclaimed property among its programs. The Treasurer's work reaches the budget directly: the General Fund revenue table in the Legislative Fiscal Report has a line for State Treasurer interest earnings of $15.7 million in FY2025 and $11.4 million estimated for FY2027.

A table of roles

Role	Who (October 2026)	Budget power	Where to find records
Governor	Gov. Brad Little	Recommends; signs or vetoes; may order temporary reductions; chief budget officer	gov.idaho.gov; executive orders at adminrules.idaho.gov
DFM	Administrator Lori Wolff	Executive Budget, forecasts, position control, monitors spending	dfm.idaho.gov
LSO Budget and Policy Analysis	Division manager Keith Bybee	Nonpartisan analysis, budget books, monitors, drafting of appropriation bills	legislature.idaho.gov/lso/bpa
JFAC	Co-chairs Sen. C. Scott Grow and Rep. Josh Tanner; 20 members	Sets budgets, introduces appropriation bills, may increase or decrease items	JFAC page: agendas, minutes, video
Germane committees	House and Senate standing committees	Decide policy bills tied to budget requests	Committee pages on legislature.idaho.gov
House and Senate	70 and 35 members	Pass or defeat each appropriation bill	Bill pages and roll calls
Board of Examiners	Governor, Secretary of State, Attorney General	Hears holdback appeals; approves transfers and unanticipated federal money	Secretary of State's office
State Controller	Brandon D. Woolf	Keeps accounts and spending authority; pays warrants; annual financial report	sco.idaho.gov
State Treasurer	Julie A. Ellsworth	Holds and invests state money; banking	sto.idaho.gov

Questions and answers

Who has the final say on the state budget?

The Legislature adopts appropriations, and the Governor may sign or veto them. A two-thirds vote of the members present in each house can pass a bill over a veto (Article IV, section 10). The Governor controls spending authority during the year within the limits of 67-3512A.

What is the difference between DFM and LSO?

DFM is the Governor's budget staff in the executive branch. LSO is the Legislature's nonpartisan staff. They jointly prepare the budget development manual and help agencies in the summer, then each advises its own branch.

Why do the Senate and House both have to approve JFAC's budgets?

Because JFAC only introduces the bills. Each appropriation bill is a bill like any other and needs a majority in each chamber, then the Governor's signature.

Can a citizen testify to JFAC?

JFAC holds its meetings in open session and posts agendas. Whether public testimony is taken on a given budget is set in the agenda. Lesson 10 covers how to weigh in, and the testimony course describes committee procedure.

Can the Governor spend money the Legislature did not appropriate?

No. Article VII, section 13 says no money is drawn from the treasury except under appropriations made by law, and 67-3516(1) says appropriations are fixed budgets. Non-state money not known at appropriation time can be added with approval of the DFM administrator and the Board of Examiners.

Who counts the money after the session?

The Controller records appropriations, spending authority and expenditures and delivers a financial statement by January 1. DFM and LSO track revenue against forecast.

Do elected officers like the Secretary of State or the Attorney General have their own budgets?

Yes. Their agencies have appropriations like any other. Under 67-3512A, a holdback cannot reduce an elected officer's spending authority to a level that prohibits the discharge of constitutional duties. The Legislative Fiscal Report shows the Secretary of State's office was exempt from the 5 percent reduced starting point in FY2027 budget setting.

Where do I find who sits on JFAC today?

The JFAC page on the Legislature's website lists members and co-chairs. It was showing Sen. Grow and Rep. Tanner as co-chairs in October 2026.

Hard questions

"Is it right for the Governor to impose holdbacks without a vote?"

Idaho Code 67-3512A gives the Governor that authority when spending is expected to exceed available money, so the practice is lawful and its limits are in the statute. Supporters of the power point to the Constitution's requirement for a balanced budget (Article VII, section 11) and the need to act within a fiscal year when revenue falls. Critics point out that the cuts fall on agencies the Legislature funded, and that the Legislature's budget committee is not part of the decision. The statute offers one check: agency heads can appeal to the Board of Examiners.

"Do the 2024 changes help or hurt public understanding?"

Speaker Mike Moyle, Sen. Scott Herndon and Rep. Brooke Green praised the working groups and the added transparency in the Capital Sun's 2024 reporting. Rep. Britt Raybould and Sen. Janie Ward-Engelking said the maintenance budgets did not accurately reflect maintenance spending and that the split made whole-budget votes harder. In 2026, Sen. Kevin Cook said a legislator who tried to find a specific cut in the 50-page rescissions bill would be "clueless." The documents are public either way: the Legislative Fiscal Report assembles the pieces by agency.

"Should the same people who write the budget also be the ones to approve exemptions and restore funding?"

That is what happens when JFAC revisits its own decisions. In 2026 the Legislature restored funding for the State Tax Commission, for National Guard tuition benefits and, in the amount of $265,200, for the Department of Lands' wildfire preparedness, according to the Capital Sun's wrap-up. Supporters call that responsiveness. Opponents of across-the-board cuts argue the restorations show that uniform cuts did not match need. The Legislature decides, and the record is in the committee votes.

"Should staff, not elected members, have such influence over the numbers?"

LSO and DFM analysts prepare options and documents, but the votes belong to members and the signature to the Governor. The staff roles are written in statute and in the Legislature's rules. People who want more member-driven analysis point to the 2024 workgroups. People who want more staff transparency point to the budget monitor and the Legislative Budget Book, both public. How much weight the staff view carries is a question for members, which is why naming the voter, not only the document, matters.