Committee hears governor—s FY2026 budget projecting $5.9 billion in revenues; members warned of tradeoffs on tax relief, transfers

The Joint Finance-Appropriations Committee heard an overview of the governor—s budget outlook and cash reconciliation from Keith Bybee, division manager for budget policy analysis in the Legislative Services Office. Bybee told the committee the governor—s FY2026 recommendation assumes about $5.9 billion in ongoing general fund revenues and a total of roughly $6.36 billion in cash available once adjustments are included, and proposes roughly $5.65 billion in general fund appropriations for 2026.

Why it matters: the governor—s recommendation leaves a relatively small projected ending balance while the state still faces choices between tax relief, ongoing program growth and transfers to savings or targeted spending. Committee members were repeatedly reminded that past legislatures created structural balances that now create policy tradeoffs this session.

Bybee walked members through the revenue and expenditure lines that underlie the governor—s recommendation and the committee—s cash reconciliation. He said Idaho—s revenue peak during the COVID years pushed the state from about $4.0 billion in general fund receipts to more than $6.2…