Idaho Gov. Brad Little is asking state agencies, outside of public schools, to cut spending by 3% by the end of June next year.
Little signed an executive order Friday directing the agencies to:
- review their operations and consider possible consolidation to reduce spending
- eliminate positions that have been vacant for more than six months
- review current contracts and recommend ways to reduce costs associated with them
- review the number of boards and number of people serving on them to look for possible reductions
- limit state travel
The reductions and reviews of potential further savings must be completed by the end of fiscal year 2026, which is June 30, 2026. Public K-12 schools and spending were exempt from the directions in the order.
“It’s in our DNA here in Idaho to balance the budget, cut taxes, and right-size government so we can continue to make public schools our top priority,” Little said in an emailed statement. “My executive order today delivers on our promise to Idahoans that we will implement President (Donald) Trump’s tax cuts for Idahoans and make the best use of their hard-earned money while putting public schools first.”
The Idaho Legislature during the 2025 session approved more than $400 million in anticipated annual revenue reductions from tax cuts and credits, and another $50 million toward a tax credit for private education and tuition costs. Most of those reductions will go into effect in the current fiscal year.
State revenue came in below Idaho Legislature’s projections
The prior fiscal year ended June 30, with most revenue coming in higher than the prior year but lower than predicted. During the month of June, the state’s general fund revenue was $355.2 million, according to a report from the Division of Financial Management, which was $39.1 million less than projected for that month. In May, revenue to the state general fund was $141.1 million below what the legislative budget writers had forecasted, the Idaho Capital Sun reported.
The Legislature this year approved and the governor signed the state’s largest income tax cut, which is expected to cut revenues by $253 million annually. Lawmakers also passed $100 million to reduce property tax bills, and $50 million to increase the grocery tax credit.
Idaho Democrats, education union officials push back against budget holdbacks, but Republican legislators support governor’s call
The Idaho Democratic Party criticized the cutbacks ordered by the governor as a result of the “reckless Republican rule” and the tax cuts.
“Idaho Democrats opposed giveaways to the wealthy and costly voucher schemes because we knew they would blow a hole in the budget and do nothing for working families,” Democratic Party Chair Lauren Necochea said in an emailed statement. “Now, the resulting cuts make it harder for the next generation to pursue careers that support a family, weaken state law enforcement, and strip away other critical services, like health care for people with disabilities.”
Idaho Education Association President Layne McInelly said in a Friday statement that the holdbacks were “very unfortunate and completely predictable.”
“The Idaho Legislature’s massive tax cuts easily foretold this outcome, even as lawmakers dismissed the needs of basic governing and Idaho’s most vulnerable residents,” McInelly said. “However, Gov. Little’s exclusion of public schools in these budgetary clawbacks highlights the crucial role he must play as a defender of Idaho public schools.
“Because of the State of Idaho’s chronic underfunding of public education, IEA members and the rest of our state’s dedicated educators have long been forced to do more with less. Further reducing the already spartan funding provided for public schools would have hurt Idaho students and families significantly.”
Republican legislative leaders supported the governor’s order on Friday.
“The Governor’s executive order today further reinforces our strong track record of living within the people’s means and making government as efficient as possible so we can continue to prioritize education,” Senate President Pro Tempore Kelly Anthon, R-Rupert, said.
Democrats call for repeal of new state law that funds private schools with public tax dollars
In response to the governor’s ordered budget cuts, Democrats are targeting a repeal of the private school choice tax credit, which allows — for the first time in Idaho’s history — state money to go toward private K-12 education.
Legislative minority party leaders Sen. Melissa Wintrow and Rep. Ilana Rubel, both of Boise, called for a special legislative session to repeal the school choice tax credit, which has gone into effect but will not be open for families to apply for until January 2026. A special session, which happens outside of the approximately three-month regular legislative session that goes from January to April, can only be convened by legislators with the support of 60% of both chambers.
“Instead of cutting already lean budgets, a more responsible approach is to call a special session to repeal the costly $50 million private school voucher scheme and pay the bills we already have,” Wintrow said in a written statement. “Ending this wasteful scheme will not close the hundreds of millions of dollars in budget shortfalls created by Republican giveaways.”
Idaho Capital Sun is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Idaho Capital Sun maintains editorial independence. Contact Editor Christina Lords for questions: info@idahocapitalsun.com.