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Spokane, Washington  Est. May 19, 1883

Eye On Boise

Tax revenues up for first two months; if trends hold, state budget headed for surplus

Idaho state tax revenues in August came in 2.2 percent ahead of forecasts and 6 percent higher than last August, according to the latest Idaho General Fund Revenue Report. Coming on top of July’s strong revenues, that puts fiscal year-to-date general fund revenues at $530.3 million, 3.3 percent ahead of forecast and 7.8 percent ahead of the same period a year earlier.

All three of the main categories of state tax revenues exceeded forecasts in August: Individual income taxes, corporate income taxes and sales taxes. You can see the full monthly report online here.

But the state’s general fund is actually even more flush at this point, the Legislative Budget Office reports. That’s because on top of the higher-than-expected revenues, the state Department of Health & Welfare reverted $19.1 million back to the General Fund in August, $16.1 million of that from Medicaid, due to unspent funds from the past year. Plus, the state’s revenue forecast has been revised by state economists, as it is each August to reflect economic conditions and results of enacted legislation, and is now $28.3 million more than it was when lawmakers set the state budget in the spring. Put all those factors together, and the projected year-end ending balance for the fiscal year that started July 1 comes out a whopping $64.5 million higher than lawmakers anticipated when they adjourned sine die on March 25.

That could change as the year goes on, but if it doesn’t, Idaho would have a $64.5 million surplus on its hands on July 1, 2017. For the past two years, Idaho’s had a two-year “surplus eliminator” law that directed surplus funds to state savings and road projects. But that will expire before the end of the current fiscal year. So it’s up to lawmakers when they convene in January to decide what to do next. You can see the LBO's monthly General Fund Budget Monitor here.



Betsy Z. Russell
Betsy Z. Russell joined The Spokesman-Review in 1991. She currently is a reporter in the Boise Bureau covering Idaho state government and politics, and other news from Idaho's state capital.

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