Idaho

Idaho

Budget Cycle
Annual
  

Governor Submits Budget
January (5 days after legislature convenes)
Fiscal Year Begins
July 1
 
Governor Signs Budget 
5 days after bill receipt or 10 days after adjournment

Budget Links

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

Enacted Budget – Fiscal Year 2023

Idaho Governor Brad Little signed a series of bills comprising the state’s fiscal 2023 budget. The enacted budget calls for $4.6 billion in general fund appropriations, a 9.5 percent increase over original enacted levels for fiscal 2022. The budget is based on general fund revenues, before tax policy changes, of $5.5 billion, representing annual growth of 5.3 percent over fiscal 2022 estimates. After tax changes, total general fund revenues are estimated at $5.2 billion and net revenues (after transfers) amount to $4.9 billion. The state is expected to end fiscal 2023 with a general fund balance of $235 million and total rainy day funds of $1.1 billion. The budget provides a 12.5 percent increase in K-12 education, the largest in state history, as well as key investments in career and workforce training, transportation, public safety, water and agriculture projects, public health, and election integrity. The budget also provides $1.5 billion in tax relief over five years, including one-time income tax rebates of $350 million (recognized in fiscal 2022) and ongoing reductions to income tax rates. In addition, the enacted budget continues to boost rainy day funds, pay off debt, and fund deferred maintenance. The state also appropriated American Rescue Plan Act (ARPA) funds for job training, water projects, outdoor recreation, workforce housing development, and childcare infrastructure, largely in line with the governor’s recommendations.

Proposed Budget - Fiscal Year 2023

On January 10, Idaho Governor Brad Little released his recommended budget for fiscal year 2023. The proposal calls for $12.7 billion in total fund spending and $4.6 billion in general fund spending, reflecting increases of 12.7 percent in total spending and 8.1 percent in general fund spending compared to fiscal 2022 levels. General fund revenue in fiscal 2023 is forecast to total $5.32 billion (2.9 percent growth) before proposed tax changes. The governor recommends increasing rainy day funds by $260 million, bringing both the Budget Stabilization Fund and the Public Education Stabilization Fund to statutory maximums and combined reserve fund balances to $1.1 billion (about 22 percent of forecasted revenue). The executive budget also outlines the governor’s recommendations for remaining American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds.


Proposed Budget Highlights 

The governor’s budget prioritizes funding for education, tax relief, public safety, transportation and broadband infrastructure, water projects, behavioral health, and election integrity. The budget also takes steps to promote fiscal conservatism, such as by paying off building debt, investing in deferred maintenance, and bolstering rainy day funds. Funding recommendations include:

One-Time State Investments (General Fund)

  • $175.8 million to pay off bonds for state buildings and $18.5 million to pay off the callable portion of GARVEE transportation bonds
  • $250 million for state building deferred maintenance
  • $20 million to improve water quality
  • $75 million for water infrastructure projects

 

Tax Relief

  • $350 million for one-time income tax rebates of approximately 12 percent in fiscal 2022
  • $251 million to lower the top individual and corporate income tax rate from 6.5 percent to 6 percent beginning in fiscal 2023


Education

  • $104 million to increase teacher pay by 10 percent, plus $17.8 million to provide a $1,000 bonus for all teachers
  • $105 million to increase the state’s contribution to teacher health insurance
  • $47 million for literacy programs
  • $50 million for grants to help families with education expenses
  • $10 million for career technical education
  • $24.8 million for higher education, a 7.1 percent increase for universities and 4.8 percent for community colleges


Other Priorities

  • Child welfare: Adds 21 social workers, 3 psychosocial rehabilitation specialists, and a 7 percent pay increase for safety assessors and case managers. The budget also increases monthly rates for all foster families, with a 60 percent rate increase for families with foster children 12 years old and under.
  • Healthcare capacity: Adds 14 new medical residents to address the state’s physician shortage and increases capacity for education programs for nursing, occupational therapy, medical assistants, and other health professions.
  • Behavioral Health: Invests $50 million in behavior health initiatives including new community behavioral health clinics, psychiatric residential treatment facilities, and youth crisis centers.


ARPA Investments

  • $50 million for job training and apprenticeships for in-demand professions
  • $45 million to expand capacity and enhance accommodations for state parks
  • $70 million to improve water quality
  • $250 million for water infrastructure projects
  • $450 million of ARPA and Infrastructure Investment and Jobs Act (IIJA) funds for local water and wastewater systems with an emphasis on rural communities
  • $225 million of ARPA and IIJA funds to upgrade broadband infrastructure