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 that have fifty or more full-time equivalent positions. The calculation will be based on a five-year average of actual personnel cost expenditures divided by the total personnel costs originally appropriated, or an average of all years if the entity has been in existence for less than five years. The joint committee has the discretion to include these calculated reductions in each entity's appropriation bill.

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 a more accurate and equitable budgeting process for state entities.