(C) Idaho Capital Sun This story was originally published by Idaho Capital Sun and is unaltered. . . . . . . . . . . Idaho state agency announces sudden $4.7M budget shortfall as Legislature prepares to adjourn • Idaho Capital Sun [1] ['Clark Corbin', 'More From Author', '- April'] Date: 2024-04-03 Just as Idaho legislators were hoping to wrap up their annual legislative session, the Idaho Division of Vocational Rehabilitation asked for a last-minute, emergency supplemental funding request Wednesday because the division is facing a $4.7 million shortfall and is unable to pay its bills. “Currently, we have funds authorized for payments we do not have appropriations to cover,” Idaho Division of Vocational Rehabilitation Administrator Jane Donnellan wrote in a letter to the chairs of the Joint Finance-Appropriations Committee on Tuesday. “Furthermore, we have three months remaining of this fiscal year to provide services.” According to the division’s website, the Idaho Division of Vocational Rehabilitation is a state/federal program that helps people with disabilities prepare for, secure, retain or regain employment. Currently, the division is serving 8,244 Idahoans with disabilities. “The impact of ceasing services would be significant in their ability to become contributing members of their community and to the state,” Donnellan wrote to the Joint Finance-Appropriations Committee co-chairs in the letter. Reasons for budget shortfall for Idaho Division of Vocational Rehabilitation are still unclear It was not immediately clear where the money went or why it was just brought to legislators’ attention right as they announced their plan to wrap up the annual legislative session. Donnellan told legislators she checks the division’s budget monthly, and just learned of the shortfall Friday. Donnellan also told the Joint Finance-Appropriations Committee that the division has experienced recent turnover multiple times with its fiscal officer position since 2022. While few details about the shortfall were publicly disclosed Tuesday and Wednesday, what is known is that the shortfall represents almost 18% of the Division of Vocational Rehabilitation’s total overall budget for this year. The division’s total budget for the current fiscal year 2024 is $26.5 million. That compares to an estimated budget shortfall of $4.7 million. To make up the shortfall, Donnellan requested $2.7 million in supplemental funding, pulled mostly from federal funding. The division also plans to use salary savings to make up an additional $550,000 and push some of its payments back until the 2025 fiscal year that begins July 1. Need to get in touch? Have a news tip? CONTACT US The Joint Finance-Appropriations Committee, or JFAC, voted 17-3 to approve the $2.7 million supplemental funding request. JFAC also voted to approve budget language that blocks the division from hiring additional new positions in fiscal year 2025 and blocks the division from paying for replacement items in fiscal year 2025. However, hours later on Wednesday, Rep. Wendy Horman, R-Idaho Falls, pulled the supplemental funding request off the House floor and back to JFAC. “Since that hearing, new information has come to light questioning the accuracy of the numbers we were given in our hearing this morning, so we are asking for the bill to be returned to committee so our staff can get to work on additional verification of the numbers,” Horman said on the House floor Wednesday afternoon. It was not immediately clear what will happen next. Gov. Brad Little’s chief of staff, Zach Hague, told JFAC’s co-chairs that the governor’s office immediately ordered an independent audit of the division. “We will take into consideration any necessary personnel actions or management actions in response to any audit findings,” Hague wrote in a letter to Sen. Scott Grow, R-Eagle, and Horman, the co-chairs of JFAC. The Legislative Services Office may also conduct an audit into the division as well. However, the Legislative Services Office’s audit division just published a glowing accountability report of the Division of Vocational Rehabilitation, on Jan. 4, which did not flag any financial concerns or deficiencies. The report covered the time period from July 1, 2019, through June 30, 2023, and included an evaluation of internal controls over financial controls, as well as a review of compliance with appropriations and contracts, according to the accountability report. “We did not identify deficiencies to report,” a summary from the Legislative Services Office concluded. “There are no findings and recommendations in this report.” Documents presented to JFAC on Wednesday indicate the Division of Vocational Rehabilitation identified more than 300 vendors with an outstanding balance. The largest outstanding amount was for more than $325,000 for Idaho State University. Dozens of school districts, colleges, universities and medical providers were listed among the vendors in documents JFAC received. 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