BOISE, Idaho — Idaho's budget policy-makers have identified a $79.9 million shortfall in the state's budget this year.
Is this large number something Idahoans should be concerned about?
Idaho News 6 senior reporter, Don Nelson, sat down for an interview with Lori Wolff, the administrator for the Division of Finance Management (DFM), to find out.
See what Lori Wolff from the Division of Finance Management says are the reasons for the shortfall
"In your view, why is [there a deficit]?," asked Nelson.
Wolff replied. "There were several things that happened throughout the session. We did a series of fairly significant tax cuts, which obviously impacts revenue. And then starting in January, we also started missing on our sales tax projections."
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The Division of Finance Management is an extension of the Governor's office. I asked Wolff how the national economy dictates what happens here.
"Many states are seeing the same thing in sales tax, maybe just a little more consumer-cautious purchasing," explained Wolff. "So a little softer there. Our income and corporate tax is still pretty strong."
So what about the Rainy Day fund we hear so much about? Well, it's for days like this. Governor Little can't reach into the state's coffers and use those funds to cover the shortfall.
"So [in] Idaho, our rainy day funds are used when it's raining," added Wolff. "We've used it when we've had a recession. We've used it when we've had some economic downturns. "
I ran into a long-time Idahoan visiting from Coeur d'Alene who was shocked when I asked him about it. He couldn't believe it was possible to run such a large deficit when there are so many people moving into Idaho.
I asked House Speaker Mike Moyle about the shortfall projections. He said he wasn't too concerned about the numbers and thinks the DFM is just being cautious.
There will be another budget projection in January, just in time for the 2026 State Legislators to debate those numbers.
