JFAC approves reductions to Secretary of State Office
BOISE — The Secretary of State’s Office is due to face additional cuts, and several behavioral health programs could be restored in Idaho following a series of votes by the Joint Finance-Appropriations Committee on Monday.
After JFAC’s budget recommendation for the Secretary of State’s Office failed on the House floor last week, the committee brought forward a revised proposal to instead reduce the office’s funding for fiscal year 2027.
The key budget addition — unchanged from JFAC’s previous recommendation — adds $350,000 in general funds for a voter pamphlet. This pamphlet, which includes ballot measure information and voting deadlines, is required by law to be mailed to each Idaho household in even-numbered years when a constitutional amendment, initiative or government referendum is on the election ballot.
The Idaho House last week rejected a proposed budget increase to pay for the production of an informational voters’ pamphlet, the Idaho Capital Sun reported.
Secretary of State Phil McGrane has said he anticipated sending 850,000 pamphlets in advance of the November election, with constitutional amendments already set to be considered by voters, as previously reported by the Idaho Press.
JFAC co-chair Josh Tanner argued on the House floor last week that the office should be subject to additional cuts to align with the 1% or 2% reductions imposed on other state agencies. A few days removed from these comments, the committee voted to reduce the office’s base budget by $114,200, or 2%, on an ongoing basis.
The reduction comes after the Secretary of State’s Office made an $850,000 reversion for the current fiscal year, a reduction McGrane had said was equivalent to a 15% cut for his office.
Though unable to speak to this reduction before the committee on Monday, McGrane has previously said the office was facing a backlog of filings from businesses seeking approval to operate in the state of Idaho. Though the office aims to process business filings within three days, current processing times stand at around 30 days.
Sen. Jim Woodward, R-Sagle, requested that McGrane speak to the impact of this reduction before the committee, but was denied by Tanner, who said that additional testimony could not be provided during a budget-setting meeting.
Without hearing from McGrane on the impact of these cuts, the committee voted 15-3 to fund voter pamphlets and implement an ongoing 2% reduction.
Following the vote, McGrane provided comments on what this reduction would mean for his office and the core election and business divisions. McGrane said this cut wouldn't prevent the office's voter pamphlet from coming together for the upcoming election, but would be felt by businesses submitting filings and seeking to register a new business venture.
McGrane said the office processed 650,000 of these filings in the 2025 calendar year, a 50% increase from five years ago, while the business services staff saw no similar growth.
Unlike other state agencies and constitutional officers, the Secretary of State’s Office is funded by fees it assesses to businesses rather than taxpayer dollars. This resulted in the office having a $2.1 million surplus that was returned to the state in fiscal year 2025, a return, McGrane said in a written statement, that was “on track” to be improved this year with record business filings in the state.
Limited behavioral health restorations
The committee voted to restore the assertive community treatment (ACT) and peer support services programs, bringing back a limited number of behavioral health programs that the Idaho Department of Health and Welfare (IDHW) cut last year.
ACT has provided treatment for individuals with severe and persistent mental illnesses, allowing for 24/7 treatment outside of a hospital setting. At the same time, peer support services utilize specialists who have recovered from their own mental health condition to share their experience and support individuals facing ongoing mental health difficulties.
The committee voted 16-2 to support a motion from Rep. Brandon Mitchell, R-Moscow, to restore these two services through a combined $10.1 million in funding from the state’s opioid settlement fund and Millennium Fund and another $20.5 million in federal matching funds.