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

FY2026 (proposed)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)

Proposed Budget - Fiscal Year 2026

On January 6, Idaho Governor Brad Little released his recommended budget for fiscal year 2026. 
The proposal calls for $14.38 billion in total fund spending in fiscal 2026, including $5.66 billion in general fund spending. The budget recommendation reflects a total fund spending increase of 3.5 percent, and a general fund spending increase of 7.4 percent compared to original appropriations for fiscal 2025. General fund budgeted revenue in fiscal 2026 is forecasted to total $5.93 billion, a 5.6 percent increase over fiscal 2025 estimated revenue. After proposed transfers and disbursements, maintenance expenditures and proposed enhancements, the governor’s fiscal 2026 budget projects an ending balance of $228 million. The budget estimates total reserve fund balances – including the Budget Stabilization Fund, Public Education Stabilization Fund, Higher Education Stabilization Fund, and 27th Payroll Fund – of $1.2 billion at the end of fiscal 2025. 

Proposed Budget Highlights 

The governor presented his “Keeping Promises” plan, outlining investments in priority areas such as education, workforce development, transportation and infrastructure, natural resources, healthcare and human services for children and families, and safety and security, while also reducing regulation, providing additional tax relief, and addressing the state’s housing shortage. Highlights of the budget include:

Education

  • Additional public school funding, including for continued investments in rural school facilities, mental health and school safety, and accountability initiatives to improve learning and literacy outcomes
  • Investment to support school choice initiatives
  • State funds for teacher pay increases and teacher health insurance
  • Additional funding for priority needs outlined by public schools in the State Department of Education’s budget

Economy & Workforce

  • Funding for additional seats at community and technical colleges
  • One-time funds for infrastructure projects to increase capacity for in-demand workforce programs

Infrastructure and Transportation

  • Additional funds to augment the Transportation Expansion and Congestion Mitigation bonding program
  • 3 percent increase for state and local transportation projects funded through the Strategic Initiatives Program

Natural Resources

  • One-time supplemental funding to replenish the Fire Suppression Deficiency Fund that was depleted in 2024, as well as ongoing funding in the amount equivalent to the five-year average of annual fire suppression expenditures
  • Funds for improved aviation and detection efforts to support early fire suppression 
  • Ongoing funding for critical water infrastructure that will support the state’s agricultural industry

Children & Families

  • Invests in reforms to improve the foster care system and recruit foster parents
  • Additional federal funds for multiple years to expand access to high quality, affordable childcare for working families
  • Targeted funding to increase the number of medical residency positions to address physician shortage 
  • Funds to incentivize doctors to practice in rural communities

Safety and Security

  • Invests in cybersecurity to combat increasing threats, including from foreign adversaries
  • Additional funds for the State Public Defenders Office as the state transitions public defense responsibility from counties to the state per 2022 enacted legislation
  • Funding for the interdiction of drones and contraband at state prisons
  • Funds a new prosecutor position in North Idaho and for the continuation of awareness campaign to fight fentanyl impacts

Other

  • Provides an additional $100 million in ongoing tax relief 
  • Invests in strategies to increase the supply of affordable homes
  • 5 percent increase in employee compensation for permanent positions, with an additional 4.5 percent increase for IT and engineering positions
  • Energy and mining permitting reform to accelerate major projects