Rather than consolidating, Idaho budget committee eliminates all funding for two state agencies

A dispute over whether to reinvest savings into personnel who would focus on nuclear energy appears to have temporarily scuttled the Idaho Legislature’s plans to consolidate two state agencies into one to achieve budget savings. 

Instead of consolidating the Office of Species Conservation and Office of Energy and Mineral Resources into one new office as directed by House Bill 737, the Idaho Legislature’s Joint Finance-Appropriations Committee simply eliminated all funding and personnel for the two offices on Wednesday.

JFAC members first voted unanimously to entirely eliminate funding for both the offices in fiscal year 2027, which begins July 1.

Plans had called for JFAC to then pass one additional proposal Wednesday to merge the two offices into a new state agency called the Office of Species, Mineral and Energy Coordination. 

However, that proposal failed to gain the necessary support to advance after JFAC members argued over how many positions to reduce in the consolidation process. 

Sen. Kevin Cook, R-Idaho Falls, pushed to reduce two full-time positions when combining the two agencies. Cook said that would leave two other positions intact and available to work on nuclear energy development, which is a top policy priority for President Donald Trump and Idaho Gov. Brad Little.

However, Rep. Kyle Harris, R-Lewiston, made a last-minute proposal to cut four positions in the merger process and not save two positions for nuclear energy work. 

Several legislators said Harris’ proposal was a mistake that would cost Idaho energy development opportunities. 

In the fallout over the debate, Cook’s proposal to leave the positions in for nuclear development and Harris’ proposal to take the positions out both failed to achieve the necessary support to advance. When Cook and Harris’ proposals had failed, JFAC had already eliminated funding for the two agencies. 

JFAC members then adjourned Wednesday’s meeting without taking up any other proposals to merge the two agencies. That means JFAC succeeded in stripping away all of the funding for both agencies but never created the new agency that was supposed to emerge out of the consolidation process.

JFAC still has time to take up the consolidation effort again before the 2026 legislative session adjourns. Finishing the consolidation process would entail adding funding and personnel to staff the new agency.

Idaho Capital Sun is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Idaho Capital Sun maintains editorial independence. Contact Editor Christina Lords for questions: info@idahocapitalsun.com.