Governor Brad Little announced Friday that Idaho state revenues exceeded forecasts for the third consecutive month, marking a strong start to Fiscal Year 2027. The state’s general fund is more than $90 million ahead of projections as of September, according to data from the Idaho Division of Financial Management.
Revenue Growth Driven by Income Taxes
September general fund revenues outpaced expectations by $39 million, a 7% increase over projections. Through the first three months of the fiscal year, which began July 1, total state revenues have risen by $90.3 million, or 6.8%, compared to budget estimates.
Individual income tax collections led the growth, surging 18.3% fiscal year to date. Officials at the Division of Financial Management attributed this increase to Idahoans working more hours and potential bonus activity. Corporate income tax collections, however, fell short of expectations, coming in 7.9% below projections. Sales tax collections remained nearly in line with forecasts.
“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 a written statement Friday afternoon.
Budget Cuts Linked to Federal Tax Legislation
The current fiscal discipline follows significant budget reductions approved last year by Governor Little and Idaho state legislators. Lawmakers implemented near across-the-board cuts for almost all state agencies, programs, and departments. These measures were designed to offset the impact of federal tax cuts from the One Big Beautiful Bill Act, signed by President Donald Trump, while ensuring the state maintained a balanced budget.
“In addition, strong withholding growth shows us Idahoans are working, businesses are hiring and our economy is strong,” Little added.
Election Year Budget Proposals
Governor Little is scheduled to present his budget recommendations for the upcoming fiscal year to the Idaho Legislature in January, kicking off the 2027 legislative session. The revenue performance has become a focal point in the 2026 general election between Little and his Democratic opponent, Terri Pickens.
Pickens stated Tuesday that if elected in November, she would present a budget plan aimed at restoring the cuts implemented last year. Her proposal contrasts with Little’s approach of maintaining fiscal restraint despite higher-than-expected revenue collections.