This bill amends Chapter 35, Title 67 of the Idaho Code by adding a new section, 67-3512B, which mandates the legislative services office to provide the joint finance-appropriations committee with a calculated reduction from the governor's budget document. This reduction will account for changes in employee benefit costs, health insurance costs, and employee compensation for entities receiving legislative appropriations and having fifty or more full-time equivalent positions. The calculation will be based on a five-year average of actual personnel cost expenditures compared to total personnel costs originally appropriated, or an average of all years if the entity has been in existence for less than five years. The calculated reductions will be included in each entity's appropriation bill and applied to all fund types.

Additionally, the bill declares an emergency, stating that it will take effect on July 1, 2026. This urgency suggests that the legislature aims to implement these changes promptly to ensure better budget management and oversight of personnel costs within state-funded entities.