Gov. Brad Little will soon decide whether to impose further budget cuts to state agencies in the current fiscal year.
House lawmakers on Friday gave the OK to $131.3 million in cuts. That would add an extra 1%, across-the-board trim to most state agencies on top of Gov. Little’s 3% cuts made last summer.
Rep. Brandon Mitchell (R-Moscow), who sponsored the bill, said these further cuts are needed to stave off a projected budget deficit.
“At this point, it’s all about maintaining a strong fiscal reputation. Idaho has been known for the conservative fiscal management and balanced budgets,” Mitchell said.
The state is constitutionally obligated each year to balance its budget, which is the only obligation lawmakers have to complete each year.
Following years of successive income tax cuts for individuals and corporations, revenue initially came in much lower than expected for the first several months of Idaho’s fiscal year that begins July 1.
That, along with unexpected expenses linked to the One Big Beautiful Bill passed last year by Congress, spurred Gov. Brad Little to propose a relatively austere budget in January – no raises for state employees and little room for additional expenditures.
Republican leaders, along with the Joint Finance and Appropriations Committee, took things further by deepening Little’s ongoing budget cuts.
While the package passed Friday includes an additional 1% in reduced spending, the budget for the upcoming fiscal year takes an extra 2% slice from most government offices.
“We have to make the cuts. We don’t have a choice,” said Rep. Faye Thompson (R-McCall). “Our budget is exploding.”
Records presented to JFAC last fall show Idaho’s budget has remained nearly flat for the past two decades when factoring in population growth and inflation.
Opponents say these spending reductions are harming citizens, like the three people enrolled in a shuttered mental health program who’ve died since it closed.
Rep. Clay Handy (R-Burley) said lawmakers should dip into the state’s more than $1.5 billion in reserves to offset some of the pain that could be brought by these cuts.
“[The] rainy day fund, or whatever you want to call it, it’s for when you have hiccups. It’s not [something you] sit on until there’s a disaster,” said Handy.
Rep. Jack Nelsen (R-Jerome) agreed with using Idaho’s savings account, saying tax revenue is already rebounding for future years.
Income tax cuts made over the last several years, Nelsen said, will help Idaho’s economy grow.
“The rubber is going to hit the road. We’re going to get the return on it,” Nelsen said.
The Little administration has pushed back against some of the cuts for weeks. He’ll now have to decide whether to sign, veto or let the bill take effect without his signature when it hits his desk next week.
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