Governor Brad Little announced Friday that Idaho state revenues exceeded projections for the third consecutive month, marking a strong start to Fiscal Year 2027. State collections are more than $90 million ahead of forecasts through the first three months of the fiscal year, which began July 1.
Revenue Growth Continues
The Idaho Division of Financial Management issued the September General Fund Revenue Report, showing that general fund revenues for the month exceeded forecasts by $39 million, or 7%. This follows similar positive trends in July and August. Through the first quarter of Fiscal Year 2027, total state revenues are up $90.3 million, representing a 6.8% increase over projections.
Individual income tax collections have driven much of this growth, rising 18.3% fiscal year to date. Officials at the Division of Financial Management attributed the increase in withholding revenue to Idahoans working more hours and potential bonus activity. Sales tax collections remained nearly in line with forecasts, while corporate income tax collections came in 7.9% below projections.
Fiscal Discipline Remains Priority
Governor Little emphasized that strong revenue growth does not automatically translate to increased spending. In a written statement issued Friday afternoon, the governor noted that Idaho’s economy is performing well but warned against unsustainable expenditures.
“Idaho’s strong revenue growth is encouraging and reflects the strength of our economy, but we must remain disciplined and make spending decisions based on what we can responsibly sustain,” Little said. “In addition, strong withholding growth shows us Idahoans are working, businesses are hiring and our economy is strong.”
The current fiscal environment follows significant budget adjustments made last year. Governor Little and state legislators approved near across-the-board budget cuts for almost all state agencies, programs, and departments. Those reductions were necessary to offset federal tax cuts signed into law by President Donald Trump through the One Big Beautiful Bill Act and to ensure the state maintained a balanced budget.
Election Year Budget Debate
The revenue surplus comes as Idaho prepares for the 2026 general election. Governor Little is scheduled to present his budget recommendations for the next fiscal year to the Idaho Legislature in January, kicking off the 2027 legislative session.
Terri Pickens, Governor Little’s Democratic opponent in the November election, has outlined a different approach to state finances. On Tuesday, Pickens stated that if elected, she would present a budget that restores the cuts implemented last year. Her proposal contrasts with the administration’s current strategy of maintaining fiscal restraint despite higher-than-expected revenue collections.