(UPDATED, 2:13 p.m., with comments from Gov. Brad Little.)
Idaho’s tenuous budget passed a key stress test in April.
Tax collections beat projections by $26.4 million — increasing the state’s budget cushion.
The new Legislative Services Office report comes with less than two months left in the budget year. The state closes the books on the 2025-26 spending year on June 30.
When the 2026 legislative session adjourned April 2, lawmakers expected to have $67.3 million on the bottom line.
With the new April revenue numbers, that projected cushion increases to $93.8 million.
The April revenue numbers are important every year because they reflect the last-minute swell of income tax returns. And income tax season does cast some uncertainty over the rest of the budget year.
“The (State) Tax Commission is still processing tax returns; it is not clear how much additional tax refunds will be distributed back to taxpayers through May and June,” the LSO report said.
This year’s numbers take on added significance after a legislative session dominated by big budget decisions — and debates between legislators and Gov. Brad Little.
- After Little cut most agency budgets by 3% for this year, legislators tacked on 1% cuts — despite the governor’s initial reservations.
- Legislators also insisted on immediate tax relief. They wanted to fast-track adoption of President Donald Trump’s One Big Beautiful Bill and a projected $155 million in tax cuts this year. Little proposed delaying the cuts until July 1, and the start of a new budget year, but eventually went along with legislators’ plans.
- Legislators pinned their budget and tax decisions on higher revenue forecasts — adding $152.7 million to Little’s projected bottom line.
Little hailed the budget news Thursday.
“We made responsible decisions to rein in spending, protect our balanced budget, and keep Idaho on strong financial footing,” he said in a statement. “At the same time, we are continuing to invest in the priorities that secure Idaho’s long-term success — strong schools, reliable infrastructure, water projects, and public safety.”
