Governor Brad Little announced Friday that Idaho’s state coffers have outpaced financial projections for three straight months, generating a surplus of more than $90 million as the new fiscal year begins. The positive revenue trend offers a contrast to the budget reductions enacted last year to offset federal tax changes.
Fiscal Year 2027 Revenue Report
The Idaho Division of Financial Management released its September General Fund Revenue Report, showing that collections for the month beat estimates by $39 million, a 7 percent increase. Since the fiscal year started on July 1, total state revenues have climbed $90.3 million above forecasts, marking a 6.8 percent gain overall.
Individual income tax withholdings drove much of this growth, rising 18.3 percent compared to projections for the period. Division officials noted that employees working extra hours and receiving bonuses contributed to the higher collections. Sales tax receipts remained close to expected levels, while corporate income tax collections lagged by 7.9 percent.
Budget Discipline and Federal Tax Cuts
Last year, Governor Little and state lawmakers approved sweeping budget cuts across nearly all agencies and departments. Those reductions were necessary to balance the state budget after President Donald Trump signed the One Big Beautiful Bill Act, which included federal tax cuts that reduced revenue flowing to Idaho.
“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,” Governor Little said.
Election Year Budget Proposals
The governor plans to present his budget recommendations for the coming year to the Idaho Legislature in January, launching the 2027 legislative session. The fiscal outlook has become a key issue in the November general election between Little and his Democratic challenger, Terri Pickens.
Pickens stated Tuesday that if elected, she would propose a budget that reverses the spending cuts implemented under Little’s administration. Her plan aims to restore funding levels for state programs that were reduced last year.