Idaho Transportation Department budget sent back to committee

The Idaho Senate in session at the Idaho Capitol in Boise on April 6, 2021. (Otto Kitsinger for Idaho Capital Sun)

Even with legislators hoping to wrap up their annual legislative session this week, the Idaho Legislature may not be finished fighting about the $51 million sale of the Idaho Transportation Department’s flooded former headquarters. 

This file photo of the Idaho Transportation Department’s old State Street headquarters in Boise was taken March 21, 2021, before the building flooded. (Otto Kitsinger for Idaho Capital Sun)

On Tuesday, the Idaho Senate sent House Bill 723, the fiscal year 2025 enhanced budget for the Idaho Transportation Department, back to the Joint Finance-Appropriations Committee, rather than voting on it on the Senate floor. The budget includes language blocking the state’s $51 million sale of the Idaho Transportation Department’s former headquarters at 3311 State St. in Boise to a group of developers that includes Hawkins Companies, The Pacific Companies and FJ Management. 

The Idaho House of Representatives had passed the enhanced transportation budget by a single vote last week, and the Idaho Senate was the last legislative hurdle for that budget before going to Gov. Brad Little for final consideration. But instead the transportation budget is heading back to the Joint Finance-Appropriations Committee, or JFAC – the powerful legislative committee that sets each element of the state budget. 

JFAC is scheduled to meet at 8 a.m. Wednesday at the Idaho State Capitol in Boise. But as of this article’s publication deadline Tuesday afternoon, JFAC’s agenda for Wednesday did not include consideration of the transportation budget. 

Transportation budget revokes sale of Idaho Transportation Department building

The $592 million fiscal year 2025 enhanced budget for the Idaho Transportation Department is notable for several reasons. Attached to the budget is budget language revoking the state’s authority to sell the former State Street headquarters. The building flooded in 2022, and state officials told JFAC in November the state sold the State Street property to the Hawkins Companies and other developers for $51 million.

The Idaho Transportation Department asked for $56.3 million in the fiscal year 2025 budget to relocate to a different state-owned office complex on Chinden Boulevard. But instead, JFAC set the budget with $32.5 million to renovate the State Street headquarters, not relocate. JFAC members who supported blocking the sale said renovating, not selling and relocating, was the most financially responsible use of taxpayers funding that makes up the state budget. 

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But the would-buyers of the State Street property issued a written statement to the Idaho Capital Sun last week saying they were weighing legal options and that the buyers had followed all of the steps in a competitive bidding process to buy the property.  

The transportation budget bill also includes $200 million in new funding to repair local bridges across the state – the final tranche of a three-year, $600 million initiative that Little highlighted in January’s State of the State address.  

“Nine hundred bridges in Idaho have been rated poor or predate the moon landing,” Little said in the Jan. 8 State of the State address. “We have put $400 million into this effort in the past few years, and it’s time to buckle up and finish the job.”

In separate action Tuesday, the Idaho Senate also sent the Department of Administration’s enhanced fiscal year 2025 budget back to JFAC, rather than voting on it, because that budget also included identical language revoking the state’s authority to sell the State Street property.

Even though legislative leaders are working to wrap up the legislative session, there is no legal requirement to adjourn by a certain date. Legislators had to push back their original adjournment target of March 22 after the Idaho House got bogged down in budget disputes and a likely unprecedented leadership shakeup that resulted in House Republicans ousting former Majority Leader Megan Blanksma from her leadership post on Feb. 8.  

Even if legislators resolve their differences over the sale of Idaho Transportation Department headquarters this week, it is unlikely legislators will adjourn the session for the year by Friday. More likely, legislators will wrap up their business at some point, and then recess for about five days to see if Little vetoes any late session bills. Initially going at recess, rather than adjourning officially, allows legislators to return to the Idaho State Capitol to attempt to override any gubernatorial vetoes. But if legislators immediately adjourn for the year, they would not have the ability to override any potential vetoes.

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