The Joint Finance-Appropriations Committee (JFAC) is an influential legislative committee that sets every element of the state budget. The Idaho Legislature is not currently in session, but the JFAC held a series of interim informational hearings this week in Boise and Nampa.

During Thursday's JFAC meeting at the Idaho State Capitol in Boise, Jason Mercier, vice president of the Mountain States Policy Center, told lawmakers that Texas is the best example of a state that incorporates performance-based budgeting into the state budget process. Mercier recommended that lawmakers identify the outcomes citizens expect, find the strategies that will be most effective at achieving that outcome, and then prioritize funding to implement those strategies.

Senator Janie Ward-Engelking, Democrat of Boise, asked for examples of Democratic states that use such budget practices. She raised concerns about Texas' use. The Mountain States Policy Center is a 501(c)3 nonprofit based in Idaho. that describes itself as a free market think tank that promotes individual liberty, limited government and free markets. The Center promotes publicly Initiatives for free school choice.

“Idaho came out of the recession very quickly. We've always had a balanced budget and we've done a really good job of putting a lot of money into our emergency funds,” Ward-Engelking said during Thursday's meeting.

“To be honest, everything I've ever read about the Mountain States Policy Center has been very partisan,” Ward-Engelking added. “So I'm wondering if you could give us an example, maybe a Democratic-controlled state that uses this process, because I'm a little concerned that we're using Texas as a model here.”

Grow defended the Mountain States Policy Center, arguing that it does operate in the Democratic-controlled state of Washington and is merely making a recommendation to the JFAC.

Republican Rep. Josh Tanner of Eagle liked the emphasis on performance-based budgeting.

“…The reason I'm actually in this position is because taxpayers, when they spend their hard-earned money, they expect a result. They expect something tangible for what they spend,” Tanner said.

During the three-day information sessions of the JFAC, no budgets or proposals were voted on.

On the first day of meetings on Tuesday, the new head of the Idaho Division of Financial Management, Lori Wolff, told JFAC members, no government surplus expected when the state's 2025 fiscal year ends June 30. April tax revenues were $60.3 million below projections. Wolff told JFAC members that the May numbers, which have not yet been released publicly, don't look good either.

On Wednesday, the JFAC members received an update on the lawsuit Developers filed suit against the state after JFAC and the Idaho Legislature blocked the sale of the Idaho Transportation Department's former Boise headquarters on State Street for $51.7 million. Oral arguments in the case could be held in August, and the outcome of the case could impact the transportation budget.

JFAC members will likely hold one or two more interim meetings before the 2025 legislative session begins in January, Grow and Horman said.