Steven Tanner — Representative Tanner is asked whether he wants to wait and go second on the agenda or proceed earlier.
Steven Tanner — Was said to have left for another meeting and asked that the committee be informed that revenue impacts on policy bills should be shared with JFAC.
Keith Bybee — Keith Bybee of LSO is introduced and then introduces himself as the Division Manager of the Budget Policy Analysis Division, explaining that he has been asked to provide the committee with a budget update.
Edward Hill — Idaho State Police is used as an example of an agency with encumbered funds and carry forward appropriations.
Steve Berch — Representative Steve Berch is acknowledged by the chair and asks whether questions should be held until the end or asked periodically during the presentation. He is then directly addressed again as the discussion continues, with a response beginning to address his question.
Mr. Bybee — Mr. Bybee is recognized by the committee and responds to questions about budget and fiscal assumptions. He clarifies that the figures discussed are nominal year-over-year growth and not inflation-adjusted, explains that sales tax exemptions and exclusions total about $2 billion compared with roughly $3.3 billion in current sales tax collections, and then addresses questions about contract inflation. He notes he is not a contract law expert, explains that contract inflators are relatively small, and distinguishes them from health insurance and health care costs, which are driven by experience and projected to grow significantly. He also says contract inflation is tracked in JFAC budget documents and gives an example involving rent for a state agency office.
Mr. Bybee — Mr. Bybee explained that the chart being discussed reflects only straight general fund appropriation growth and does not include budget surplus transfers to the Transportation Department or the permanent building fund. He said he would provide the chart to the committee and noted it had been removed from his pocket slides this year. The discussion then continued with references to Mr. Bybee having pulled up the Legislative Services website and having shown a similar chart earlier.
James Ruchti — Representative Birch asked a series of follow-up questions about the fiscal presentation slides, first asking whether the slide four figures were adjusted for inflation and whether revenue growth is discussed, then moving to slide five to request that the bar chart also include dollar values for sales tax exemptions and exclusions. He further asked whether including FY26 exemption amounts would roughly cut the displayed percentages in half, and later said he would follow up on the figures, clarifying that his question was informational rather than political.
John Gannon — Representative Gannon questioned whether escalating contract costs are a major driver of budget growth, expressing concern that contracts for projects or other purposes tend to increase over time. He asked how much these rising costs contribute to overall budget increases and whether agencies should more carefully scrutinize how contracts are administered.
Joe Alfieri — The chair interrupts Mr. Bybee and frames a question about how conformity to the One Big Beautiful Bill Act affects the budget impact range.
Vito Barbieri — Representative Vito Barbieri seeks confirmation that the proposed overtime tax exemption applies only to the extra premium pay on overtime hours—for example, the additional 50 cents on top of a $1.00 hourly wage—rather than the entire overtime wage, and Mr. Bybee confirms that understanding.
Charlie Shepherd — Charlie Shepherd asks follow-up questions about the bill’s tips provision, specifically how the deduction applies when tips are included as part of wages and whether it applies only above minimum wage or to all tips up to $25,000, noting that in some restaurants tips are treated as part of the employee’s actual wage.
Jeff Ehlers — During the discussion of tip/tax treatment and related fiscal estimates, the chair invites Representative Jeff Ehlers to weigh in, and the conversation continues with acknowledgments of his input. Representative Ehlers then explains that the item is not included in the Tax Commission’s estimates because no proposal under consideration would return to conforming with it, and he notes the range of possible fiscal impacts. The exchange ends with thanks to Representative Ehlers for his explanation.
Chris Mathias — Representative Chris Gannon asks about bonus depreciation, specifically whether it is being added back in and how Idaho would treat bonus depreciation if the state conforms to the One Big Beautiful Bill.
Chris Mathias — Was referenced as having asked about sales tax distributions.
Mike Moyle — Representative Monks asked whether the 22-year history percentages included transfers or were separate, then followed up by asking if there was a chart showing true growth across budget categories that included all transfers, and requested one if it did not already exist.
Keith / Mr. Bibi (questioned speaker, likely Mr. Bybee) — Was asked whether the historical percentages included transfers.
Mr. Chris LaHosett — Was introduced as the next presenter from LSO.
Christopher LaHocet — Introduced himself as a budget and policy analyst with the Legislative Services Office and began a presentation on revenue resources.
— Was referenced as having asked about sales tax distributions; exact identity uncertain because the name is not in the expected member list.
Mr. LaHocet — The presenter concluded his remarks and offered to answer questions; the chair then thanked and excused him.