Idaho
Idaho’s projected state budget deficit increases to $58.3 million – East Idaho News
BOISE (Idaho Capital Sun) – Idaho’s projected state budget deficit for the current fiscal year 2026 has increased to $58.3 million, according to the state’s latest revenue forecasts and budget documents released this week.
The projected deficit has increased from a month ago, when the state budget was projected to end the fiscal year with a $56.6 million deficit, the Idaho Capital Sun previously reported.
Overall, state revenues have come in below forecasts in three out of the first four months of the current fiscal year, state records show.
According to the November edition of the General Fund Budget Monitor report published by the nonpartisan Idaho Legislative Services Office on Wednesday, total state revenue collections have come in $103.1 million, or 5.8%, less than the revised forecast issued by the Idaho Division of Financial Management. In addition to revenues coming in below budget projections, cumulative revenues have also come in $59.5 million, or 3.4%, below the actual revenue collections compared to the same time period last year, according to the General Fund Budget Monitor.
When it comes to the bottom line, the state general fund is projected to end the current fiscal year 2026 on June 30 with a budget deficit of $58.3 million.
In interviews Thursday, two prominent legislators from two different political parties presented two very different assessments of the budget situation.
“It keeps me up at night,” said House Minority Leader Ilana Rubel, D-Boise. “I cannot underscore enough how dire the situation we are facing is.”
Rubel said 3% budget cuts ordered by Gov. Brad Little this summer are already causing harm to Idaho’s elderly, disabled and low income families. She predicted more cuts will be forthcoming, calling it “a catastrophe.”
Idaho budget committee co-chair says Idaho won’t see a budget deficit
On the other hand, Rep. Wendy Horman, an Idaho Falls Republican who co-chairs the Joint Finance-Appropriations Committee, said the latest monthly budget reports show Idaho’s economy is healthy. She pointed out the state has record levels of savings accounts and cash reserves and said the largest tax cuts in state history are going to provide real benefits to Idahoans.
“We’re coming off the largest tax cut in state history and individual income tax collections are still up,” Horman said.
“I am looking at the trends now, and we have one month up and three months under revenue forecasts, but the numbers are small. They are not off by hundreds of millions. By no stretch is revenue in a free fall – it isn’t.”
Horman said one revenue source – corporate income tax collections – are down by $58.3 million. That number is identical to the projected deficit of $58.3 million.
“You can explain the entire variance simply with corporate income tax numbers,” Horman said.
Idaho legislators are required to pass a balanced budget
The Idaho Constitution requires the state to have a balanced budget and prohibits the state from spending more money than the amount of revenue that is collected.
In simple terms, revenue is the amount of money the state takes in. Idaho’s largest sources of revenue are taxes, specifically individual income taxes, sales taxes and corporate income taxes.
The latest revenue report covers the first four months of the 2026 fiscal year.
“We will set a balanced budget,” Horman told the Sun on Thursday. “The constitution requires it. I am personally committed to it. And I anticipate we will leave as large of a cash balance as we can to carry over into next year to guard against unforeseen circumstances. It was a wise decision to do it last year. And it will be a wise decision to do it again next year while still maintaining the core functions of government.”
Projected budget deficit does not include impact of President Trump’s tax cuts
The projected budget deficit does not include the cost of paying for more than $100 million in supplemental funding requests the Idaho Legislature will consider in 2026. The projected deficit also does not include the cost of conforming to tax changes included in the One Big Beautiful Bill Act that President Donald Trump signed into law this summer.
The nonprofit Idaho Center for Fiscal Policy released a report Nov. 6 estimating that conforming to the personal and corporate tax changes in the One Big Beautiful Bill Act could reduce Idaho revenue by an additional $284.4 million.
“Idaho’s lawmakers should ensure that our state revenue is protected to provide the public services that Idahoans rely on — like our education system, roads, and public safety,” said May Roberts, policy analyst for the Idaho Center for Fiscal Policy. “Idaho’s budget should not take a hit to fund corporate tax breaks that primarily benefit businesses in other states.”
Big budget decisions await Idaho Legislature in 2026
During meetings this month at the Idaho State Capitol, leaders of the Idaho Legislature’s Joint Finance-Appropriations Committee, or JFAC, vowed that the Legislature will intervene to ensure the state ends the fiscal year with a balanced budget.
JFAC is a powerful legislative committee that sets all of the budgets for every state agency and department.
Horman emphasized that Idaho is not now in a budget deficit, and the deficit is a projected forecast. What matters, she said, is where the budget actually stands when the 2026 fiscal year ends.
Idaho runs on a fiscal year calendar that begins July 1 and ends June 30. That means that the current fiscal year 2026 ends June 30.
The latest budget documents released by the state cover the months of July through October, representing one-third of the full fiscal year.
The state’s projected revenue shortfalls are not limited to the current fiscal year. The gap between revenue projections and requested budget expenditures is projected to widen during the upcoming 2027 and 2028 fiscal years, according to budget documents presented to the Legislature’s budget committee earlier this month.
One budget scenario that state staffers presented to JFAC last week showed an estimated budget deficit of $555.2 million – more than half of a billion dollars – for fiscal year 2027.
Horman said that $555 million figure is just a projection and said the Idaho Legislature has never agreed to fund everything that the state agencies requested.
The revenue shortfall is occurring after the Republican-controlled Legislature reduced state revenues by more than $450 million during the 2025 legislative session to pay for tax cuts and a new education tax credit that reimburses families for nonpublic school education expenses, including tuition at private, religious schools.
“Prior budget crises we have faced were due to the housing crisis in 2008 that we had to react to,” Senate Minority Leader Melissa Wintrow, D-Boise, said in a text message to the Idaho Capital Sun last week. “This one is a direct result of the Legislature setting a questionable revenue projection in order to do tax cuts.”
Gov. Little sounded public warnings during the 2025 legislative session about the impact of revenue reductions on the budget.
During a Feb. 25 breakfast with reporters, Little said he was not very happy about the reductions in state revenue.
“If I would have thought we could do $450 (million), I would have proposed $450 (million),” Little told reporters Feb. 25.
In contrast to the $450 million worth of revenue reductions, Little proposed $100 in tax cuts and another $50 million for private school education initiatives in his January 2025 State of the State address.
Despite his concern with the revenue reductions, Little did sign each of the tax cuts and the new private school education tax credit into law earlier this year.
The 2025 legislative session begins Jan. 12 at the Idaho State Capitol in Boise.
=htmlentities(get_the_title())?>%0D%0A%0D%0A=get_permalink()?>%0D%0A%0D%0A=htmlentities(‘For more stories like this one, be sure to visit https://www.eastidahonews.com/ for all of the latest news, community events and more.’)?>&subject=Check%20out%20this%20story%20from%20EastIdahoNews” class=”fa-stack jDialog”>
Idaho
Idaho angler reels in record 43.25-inch lake trout at Payette Lake
MISSOULA, Mont. — An Idaho Falls angler is back in the Idaho record books after landing a record-setting lake trout at Payette Lake.
Idaho Fish and Game said Dylan Smith caught and released a 43.25-inch lake trout on May 2, setting a new state catch-and-release record for the species. The fish surpassed the previous record of 42 inches.
The catch marks Smith’s second appearance in Idaho’s record books. He previously held the state catch-and-release lake trout record after landing a trophy fish in 2018 before that mark was later broken.
According to Fish and Game, Payette Lake has become one of Idaho’s premier lake trout fisheries thanks to years of management efforts aimed at improving both lake trout and kokanee populations.
Idaho
Boise’s North End finds new way to mark Pride after Idaho law halts flag display
Pride Month looks different this June along Boise’s Harrison Boulevard, where a long-standing tradition of hanging Pride flags on lamp posts has been put on hold after a new state law restricted which flags can be flown on government property.
For several years, Pride flags lined lamp posts along Harrison Boulevard in Boise’s North End neighborhood. But Idaho House Bill 561, signed by Gov. Brad Little in March, restricts which flags can be flown on government property, including the City of Boise’s Harrison lamp posts.
In response, a group of neighbors formed Pride North End and launched a distribution effort to help residents show support from their own front yards. The group has been making Pride flags and yard signs available to people who want to display them at home.
“I thought that I would…be a personal example of ‘yes, this is what I do.’ This is what I believe in,” said Edna Schochat, a North End resident.
Pride North End has already distributed more than 900-yard signs and 250 flags. The group’s original donation goal was around $2,000 to order 100 flags and 200 yard signs, but it has exceeded that GoFundMe goal, reaching $10,000 worth of donations.
The group plans to continue holding public flag and sign distributions through the end of the month.
“We cannot just say something without doing something that proves that we mean what we say,” Schochat said.
Pride North End said any leftover funds after materials are distributed will go to local LGBTQ+ nonprofits. A link to the group’s GoFundMe can be found here.
Idaho
New Idaho education laws: What students, parents and educators should know
July 1 isn’t just the start of a new fiscal year for Idaho public schools. It’s also the effective date for many new education-related laws.
From mandatory moments of silence to restrictions on taxpayer funding for teachers’ unions, the Legislature enacted a slew of new policies affecting public schools during this year’s session.
Here’s what educators, parents and students should know:
School trustees, administrators and teachers
Here are the new laws that will affect school trustees, administrators and teachers:
Union activities. Public schools can no longer use taxpayer resources to accommodate teachers’ unions — including by giving teachers paid time off for union “activities” or by using payroll systems to deduct union dues.
The list of union “activities” in House Bill 516 is long. Among other things, it includes:
- Supporting or opposing candidates for office
- Influencing legislation
- Promoting union membership
- Participating in the “administration business or internal governance” of a teachers’ union
- Preparing, conducting or attending a union event
- Distributing union communications
- Speaking on the union’s behalf
- Engaging in union negotiations
- Filing a grievance on behalf of the union
A school district can’t give teachers paid time off to participate in these activities, unless the union reimburses the district.
HB 516 was based on a report from the Washington-based Freedom Foundation, an anti-union think tank, which alleged that public schools have spent more than $1 million subsidizing teachers’ unions.
The bill also prohibited districts from:
- Deducting union dues through payroll systems.
- Increasing teacher pay to cover union dues.
- Requiring that teachers meet with the union.
- Sharing employees’ contact information with the union.
- Communicating on the union’s behalf.
Civics instruction. Public schools must now ensure that their civics instruction aligns with a law aimed at cultivating the “virtue and knowledge necessary for self-government.”
Senate Bill 1336 codified nearly four pages of requirements for civics instruction. By the time public school students graduate, they must exemplify the virtues of “prudence, justice, fortitude, moderation and patriotism” while understanding the “fundamental principles of the nation’s republican form of government” along with the “history, meaning, significance, and effect of key historical documents.”
Click here to read the list of principles and texts that students must understand.
The bill also required that high school students complete two credits in American history and two credits in American government. These classes must include instruction on the American Revolution and founding along with instruction on the incompatibility of totalitarianism with the principles of American government.
The bill also “encouraged” public schools to display historical portraits of George Washington “in a conspicuous place” in each classroom where civics is taught.
Public charter schools can request an exemption from many of the new requirements. Traditional public schools cannot.
Lastly, the bill pushed back the implementation date for a new civics test that the Idaho Department of Education is writing. The new test will be required in 2027-28, rather than during the upcoming school year.
High-needs funding. Public schools are now eligible to receive up to $100,000 in state funding for “high-needs” special education students.
Senate Bill 1288 set aside $5 million for students who require full-time staff support or specialized equipment. Districts can apply for the state funds to cover students whose individual education program-related costs exceed $30,000 annually.
The state will fully reimburse costs between $30,000 and $80,000. Costs above $80,000 will be reimbursed at 80%, and reimbursement is capped at $100,000. Forty percent of the state funds are reserved for rural schools.
Sexual abuse reporting. School districts are no longer allowed to conduct an internal investigation of abuse in lieu of reporting an incident to law enforcement.
Sen. Tammy Nichols, R-Middleton, proposed the law in response to sexual abuse complaints against Gavin Snow, a former special education assistant in the Boise School District.
Senate Bill 1412, which passed with unanimous support, also requires that school districts ask job applicants for sworn statements disclosing pending or prior investigations, resignations during investigations or disciplinary action stemming from misconduct. An applicant who lies in the disclosure is no longer eligible for the job.
Funding flexibility. Public school districts and charter schools are now eligible for flexibility in how they spend state funds — if they meet performance benchmarks.
To qualify for the “earned autonomy,” districts would have to post high marks on test scores and graduation rates while charters would be graded on academics and financials.
House Bill 883’s sponsors estimated that about 10 districts and 15 charters would qualify.
Parents
Here are the new laws that parents should be aware of:
Social transition reporting. Parents will now have a right to be notified if their child identifies as a different gender at school. Schools could face a six-figure penalty for failing to comply.
House Bill 822 requires that public school officials notify parents within 72 hours if their child requests help with “social transitioning.” This includes when a student asks to go by a different pronoun or use a bathroom or participate on a sports team that doesn’t align with their birth sex.
Sponsored by Rep. Bruce Skaug, R-Nampa, the law gives parents the right to sue a school or healthcare provider for relief and monetary damages if they aren’t notified within the 72-hour window.
The attorney general can also seek a civil penalty up to $100,000.
Rep. Bruce Skaug, R-Nampa
Virtual school policy. Parents of virtual-school students will have new restrictions on money they receive to cover the costs of home learning.
After a state report last year found examples of taxpayer money being misused, lawmakers added limits on “supplemental learning funds.” According to House Bill 624, this money can only be spent on “eligible educational expenses, including:
- Computer hardware, internet access or other devices used to meet a student’s educational needs.
- Textbooks, curricula or other instructional materials, including educational software.
- Fees for standardized tests, advanced placement exams, certificate exams or college admissions exams.
- Therapies, including behavioral, physical, speech-language and audiology therapies, along with other State Board of Education-approved services.
In addition to the rules around supplemental learning funds, HB 624 added reporting requirements for private vendors that contract with virtual schools. Vendors must disclose the costs and services they provide while demonstrating a “clear relationship between the public funds received and the services provided.”
Military preference on charter waitlists. Active-duty military parents could be eligible for preference on charter school waitlists.
Lawmakers passed a bill that allows charter schools to place children from military families third among categories of students given preference on waitlists. It’s up to each charter school whether they implement the change.
Students
Here are the new laws that students should know about:
Moment of silence. Public school students will now have to start each school day with a moment of silence.
They can use the 60 seconds however they want — to reflect, meditate or pray — but they must be silent, and “no other activities shall take place,” according to House Bill 623.
Sponsored by Rep. Bruce Skaug, R-Nampa, the law requires that a moment of silence occur “at or near the beginning of each school day.” It prohibits teachers from instructing students on the “nature of any reflection” they might engage in.
School leaders also must notify parents about the moment of silence and “encourage” them to “provide guidance” to their children on how to use it, according to the law.
Idaho Launch cuts. Less state aid will be available for students going to college after they graduate in 2027.
For the current fiscal year and next fiscal year starting July 1, state lawmakers — with Gov. Brad Little’s approval — cut $10 million from Idaho Launch. The program offers high school graduates $8,000 to spend on an in-state higher education degree or workforce training certificate.
While the award amounts will remain the same, the state now has $65 million in scholarship money to dole out, compared to $75 million in previous years.
IDLA cuts. Fewer students are eligible to take discounted courses through the state’s online learning platform, the Idaho Digital Learning Alliance (IDLA).
House Bill 940 cut funding for IDLA’s elementary program, limiting the platform to students in grades 6-12. The bill also cut driver’s education, and eliminated state funding for students attending all-virtual schools and non-public schools — although private- and home-schoolers can pay IDLA’s full course fee and seek reimbursement through the Parental Choice Tax Credit.
HB 940 also set new fees for courses that are eligible for state funding. Courses that satisfy a graduation requirement are $40, while courses that don’t meet a graduation requirement are $100.
Copyright 2026 KMVT. All rights reserved.
-
Atlanta, GA2 minutes agoMinnesota’s golden gift to Atlanta just became Wolves’ worst nightmare
-
Minneapolis, MN7 minutes agoFOX 9 Good Day: June 24, 2026
-
Indianapolis, IN14 minutes ago3 Colts Stars Heralded as NFL’s Most Important
-
Pittsburg, PA17 minutes ago14+ things to do this weekend, from the Andy Warhol Bridge 100th Birthday Bash to OpenStreetPGH
-
Augusta, GA22 minutes agoAugusta Commission receives results of 2024 budget audit
-
Washington, D.C29 minutes agoAAPI Data Releases 2026 AAPI State Fact Sheets, Highlighting the Growing Influence of AAPI Communities Across All 50 States and Washington, D.C. – AAPI Data
-
Cleveland, OH32 minutes agoLeBron James Cleveland Homecoming Possible In Exchange For Former All-Star Center
-
Austin, TX37 minutes agoForman Capital Provides $28.2 Million Lot Development Loan for a 253-Acre Mixed-Use Project Near Austin, Texas