Enacted Budget – Fiscal Year 2025
Idaho Governor Brad Little signed a series of bills comprising the state’s fiscal 2025 budget. The enacted budget calls for $5.27 billion in general fund appropriations, a 1.7 percent increase over original enacted levels for fiscal 2024. The budget is based on general fund revenues, before tax policy changes, of $5.93 billion for fiscal 2025, representing projected growth of 5.1 percent compared to fiscal 2024 estimates. When incorporating income tax changes and dedications to the school facilities fund, as well as transfers to various other state funds, total resources or net revenues for fiscal 2025 (including the beginning balance) are estimated at $5.46 billion. The state’s estimated general fund ending balance for fiscal 2025 is $189 million.
The budget makes key investments in public education, workforce development, transportation, public safety, water quality and outdoor recreation, and public health, while also providing additional tax relief and preparing the state for economic uncertainty. The budget makes the largest ever investment in school facilities, increasing dedicated funding for this purpose by $1.5 billion over the next 10 years – including $125 million annually devoted to a new School Modernization Facilities Fund. Additionally, the budget fully funds the Idaho LAUNCH program at $75 million to award grants to high school graduates to attend college, a career technical school, or a training program for an in-demand career. The budget also funds other priorities that were included in the governor’s IDAHO WORKS plan, such as: $200 million as the third and final tranche of an effort to improve local bridges; $25 million to construct a secure, forensic mental health facility; $30 million for state water infrastructure investments and $20 million for outdoor recreation; and $2 million from the opioid settlement fund to invest in the behavioral health workforce and service capacity. The budget provides additional tax relief by lowering the individual and corporate income flat tax rates; directing $200 million of state funds towards school capital construction needs to reduce property taxes; and adding $150 million in new property tax relief with the surplus eliminator passed last session. Meanwhile, the budget promotes fiscal conservatism by continuing to limit spending growth, augmenting the Fire Suppression Deficiency Fund by $17 million, and maintaining structural balance over a five-year time horizon using fiscal stress testing. The state is projected to end fiscal 2025 with combined reserves in the Budget Stabilization Fund, Public Education Stabilization Fund, Higher Education Stabilization Fund, 27th Payroll Fund of $1.17 billion.