The Problem
State agencies often have little incentive to save money or improve efficiency because any savings from good performance get reabsorbed into the general fund or lost in the next budget cycle. Employees and managers who find ways to cut waste or deliver better results rarely see direct benefits, leading to complacency and missed opportunities for improvement. Without rewards tied to measurable outcomes, agencies focus on spending their full budget to avoid future cuts instead of maximizing value for taxpayers.
What I'll Do Day One as Governor
Sign an executive order to create a Performance-Based Budget Bonus Pool using existing resources and authority. Right away:
Direct the Division of Financial Management to identify savings from Budget Allocation, State Procurement and Contracts, Agency Performance Audits, and other efficiency reforms, and allocate a small percentage (up to five percent) of verified savings into a bonus pool.
Require agencies to submit performance targets at the start of each fiscal year (for example, reduced overtime costs, faster service delivery, lower complaint rates), with clear metrics approved by the Governor's office.
Award bonuses from the pool to agencies and employees who meet or exceed targets, with payments tied to documented results (such as dollars saved or services improved).
Launch pilots in three to five agencies (such as Health and Welfare, Transportation, and Corrections) to test target setting, measurement, and bonus distribution, with results posted on Transparent Idaho in ninety days.
Use existing savings to fund the pool (no new spending required).
This uses powers I already have under executive oversight of state agencies and existing budget management statutes. No new laws needed first.
How This Is Different From Now
Right now, agencies have no financial incentive to beat performance targets or save money because savings disappear into the general fund. Employees see no reward for efficiency, so the focus stays on spending budgets fully to protect future allocations. This way creates a direct link between results and rewards. It enforces existing budget discipline more effectively, motivates agencies to deliver better value, and ensures savings from waste reduction go back to the people who earned them through hard work and smart decisions.
What I'll Push the Legislature For
Easy laws to make it permanent:
Establish the Performance-Based Budget Bonus Pool in statute with strict rules on eligible uses (bonuses for employees and agencies meeting targets).
Require agencies to set and report annual performance metrics tied to budget outcomes.
Mandate public posting of bonus awards, savings sources, and performance results on Transparent Idaho.
Cap the pool at five percent of verified savings and require supermajority legislative approval for any changes to the rules.
No big new spending. The pool is funded entirely from existing savings and reallocations.
How We'll Check It Works
We will keep it honest with:
Public postings on Transparent Idaho showing performance targets, savings sources, bonus awards, and results achieved.
Regular audits of pool allocations, agency performance data, and compliance by the State Controller.
Citizens Task Force to review bonus proposals, take public input on agency performance, and recommend adjustments.
Yearly report showing dollars saved, bonuses distributed, services improved (for example, reduced wait times or overtime), and overall efficiency gains.
Everything open for anyone to look at and ask about.
Answers to Common Questions
Won't this encourage agencies to game the system or set easy targets?
No. Targets are set with Governor's office approval and verified by independent audits. Metrics are tied to real outcomes (such as services delivered or costs reduced), and the Citizens Task Force reviews proposals for fairness.
How do we make sure bonuses go to the right people?
Agencies must show how bonuses reward employees who contributed to the results. Public reporting and audits ensure transparency and prevent misuse.
Does this cost taxpayers extra money?
No. The pool is funded entirely from verified savings. If no savings are achieved, no bonuses are paid.
What if an agency meets targets but the results are not meaningful?
Targets are set with clear, measurable outcomes that directly benefit Idahoans. Audits and public reporting ensure only high-impact results qualify.
How does this connect to the budget reform?
This pool is a direct incentive built into the budget reform process. Agencies that perform well in budget metrics earn bonuses from their own savings.
How does this connect to agency performance audits?
Audits verify the performance data used to determine bonuses. Findings from audits help set realistic, high-impact targets for the next cycle.
How does this connect to procurement and contracts reform?
Savings from reduced vendor waste and outsourcing flow into the bonus pool. Agencies that negotiate better contracts or reduce markups can earn rewards.
What about rural agencies with fewer resources?
Targets are scaled to agency size and mission. Rural agencies get credit for maintaining service levels despite challenges, and bonuses can support rural-specific needs.
How will we know if it is working?
Public reports on Transparent Idaho will track savings generated, bonuses distributed, performance improvements, and service gains. Citizen input helps refine the process.
What if the Legislature tries to redirect the bonus pool?
Supermajority approval is required to change the rules or access the pool, making it difficult to misuse. Public transparency and citizen oversight add pressure to keep it focused on results.