BOISE, Idaho — In its August update, the State of Idaho's Division of Financial Management (DFM) identified a $79.9 million shortfall in the state government's budget for the current year.
A part of the Executive Office of the Governor, the DFM provides the state's executive branch with fiscal guidance, management, and oversight.
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The budget deficit reflects a downward trend in the State of Idaho's revenue forecast, which was recently estimated to be $853.9 million less than previously predicted. "When factored into the current year budget approved by the Legislature, the General Fund ending balance is projected to be negative $79.9 million," reads the DSM update.
The DFM attributes the lowered state revenue forecast to two factors: recently passed legislation that will negatively impact the state's General Fund and revisions to Idaho's economic forecast.
In terms of legislation, the DFM identified several bills (HB 25, HB 40, HB 93, HB 144, HB 226, HB 231, HB 304, and HB 479) that are contributing to the shortage. They include newly enacted tax exemptions, deductions, and notably, a credit for those wishing to educate their children outside of publicly funded K-12 education programs.
"The original January revenue estimate of $6.4 billion was revised downward to $5.55 billion by DFM in the August forecast, reflecting a $853.99 million reduction driven by legislative changes and updated economic data" - Division of Financial Management
Idaho's economic outlook has also been updated to incorporate a national forecast that indicates a "downward revision" for the US GDP, as well as a slight increase in inflation.
Governor Brad Little recently signed an executive order aimed at cutting 3% from select state agencies with the hopes of saving the General Fund tens of millions of dollars.
It remains unclear whether select agency funds targeted for budget cuts will be enough to satisfy the deficit or create a surplus.
The governor previously stated that K-12 education would not be affected by the state funding cuts.
