Idaho state revenues beat monthly projection —  again

Idaho state revenues beat their forecast for the third straight month and are now more than $90 million ahead of projections to begin Fiscal Year 2027, Gov. Brad Little announced Friday.

For September, general fund revenues exceeded their forecast by $39 million, or 7%, according to the September General Fund Revenue Report issued by the Idaho Division of Financial Management.

Idaho’s state government runs on a fiscal year calendar that begins July 1 each year. 

Through the first three months of Fiscal Year 2027, state revenues are now up by $90.3 million, or 6.8%.

The surging revenues in this year’s state budget are a stark contrast to last year, when Little and Idaho state legislators approved near across-the-board budget cuts for almost all state agencies, programs and departments to pay for federal tax cuts President Donald Trump signed into law through the One Big Beautiful Bill Act and to ensure the state passed a balanced budget, the Idaho Capital Sun previously reported. 

State revenues were also up in July and August.

“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. “The difficult decisions we made last year put us in a stronger fiscal position, and we need to continue prioritizing the investments that matter most to Idahoans while protecting our long-term financial stability.”

Income tax withholdings are driver of state revenue increase

Individual income tax withholdings are a big part of the revenue increase. The September General Fund Revenue Report said individual income tax collections are up 18.3% fiscal year to date.

“It appears that employees are getting lots of hours of work and that there may be some bonus activity being paid by employers,” Idaho Division of Financial Management officials wrote in the September revenue report. 

Little said that is more evidence of a strong state economy.

“In addition, strong withholding growth shows us Idahoans are working, businesses are hiring and our economy is strong,” Little said. “This is good news for Idahoans and our communities.”

While income tax revenue and miscellaneous state revenues are coming in ahead of projection, corporate income tax collections have come in 7.9% below projections, while sales tax collections are nearly in line with forecasts. 

Idaho’s governor will begin the 2027 legislative session in January by presenting budget recommendations for next year to the Idaho Legislature. 

Terri Pickens, Little’s Democratic opponent in the 2026 general election, said Tuesday she would present a budget restoring the budget cuts Little and the Idaho Legislature made last year if she is elected in November.