Enacted Budget – Fiscal Year 2026
Idaho Governor Brad Little signed a series of bills comprising the state’s fiscal 2026 budget. The enacted budget calls for $5.62 billion in general fund appropriations, a 6.8 percent increase over original enacted levels for fiscal 2024. The budget is based on general fund revenues, before tax policy changes, of $6.40 billion for fiscal 2026, representing projected growth of 5.6 percent compared to fiscal 2025 estimates. When incorporating income tax changes, property tax relief, and other tax reductions, as well as transfers to various other state funds, total resources or net revenues for fiscal 2026 (including the beginning balance) are estimated at $6.06 billion. The state’s estimated general fund ending balance for fiscal 2026 is $440 million. Additionally, the state is projected to end fiscal 2026 with combined reserves in the Budget Stabilization Fund, Public Education Stabilization Fund, Higher Education Stabilization Fund, 27th Payroll Fund, Idaho Millenium Fund and Emergency Funds totaling $1.308 billion, or 22.1 percent of the fiscal 2026 general fund revenue estimate.
The budget makes key investments that align with the governor’s Keeping Promises plan. For education, the budget expands school choice and provides additional funding for rural school facilities, increased teacher pay, and literacy. Additionally, the budget includes resources to support reforms and transformation efforts in the state’s foster care system, as well as funding for additional seats at community and technical colleges. The enacted spending plan also adds a new prosecutor focused on combatting drug trafficking and funds a fentanyl awareness campaign for another year. To support the state’s transportation system, the budget funds a number of projects through a combination of bonds and direct appropriations. The budget also delivers ongoing funding for water infrastructure projects as well as fire suppression activities. In addition to this range of targeted investments, the budget builds on previous tax relief efforts by incorporating additional tax cuts in enacted legislation. This includes reducing income tax rates, expanding the income tax exemption on military pension income, removing capital gains and losses for precious metal bullion, providing a parental choice tax credit, increasing the current food tax credit, and providing funds for further property tax relief. Also, the budget funds employee compensation increases equivalent to about a 5 percent increase statewide, though percentage increases vary by agency and certain job categories such as state troopers, engineers, health care, and information technology received additional funding.