Gov. Brad Little is ordering state agencies to permanently cut 3% from their budgets for the upcoming fiscal year after ordering them to temporarily slice the same amount from their current year spending plans in August.
Lori Wolff, Little’s budget director, sent a memo to state agencies Wednesday, saying, “While revenues remain healthy, they are trending lower than prior forecasts.”
“This effort is about ensuring that Idaho government remains lean, efficient, and aligned with the values of our taxpayers,” Wolff wrote.
Little’s order must still get legislative approval when lawmakers return to Boise in January, as they ultimately set the state’s budget.
Tax collections for August came in stronger than in July, but both corporate and personal income tax revenues are falling below projections drawn up by the Division of Financial Management.
The nonpartisan Legislative Services Office estimates Idaho will take in $460.5 million less than expected. The office’s latest fiscal publication estimates the state will end the fiscal year next June with $21.8 million instead of the $439.8 million Idaho lawmakers predicted.
Earlier this year, Republican leadership and Gov. Little signed off on a tax cut package totaling more than $450 million, the largest piece of which related to personal and corporate income taxes.
Other pieces include $50 million in private school tuition subsidies and property tax relief.
Little originally proposed $100 million in tax cuts and initially cast doubts on the more than quadrupled amount pushed by the legislature.
“If I would’ve thought we could do [$450 million], I would’ve proposed [$450 million],” he told reporters during a press conference in February.
Administration officials told reporters Thursday they don’t anticipate the governor calling on legislators to roll back these tax cuts.
In addition to asking agencies to make permanent the 3% budget cuts, the Little administration told them to remove any equipment or vehicle replacement requests from their budget requests if they’re paid through for the general fund.
Agencies must submit their revised plans to the Division of Financial Management by Oct. 3.
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