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Joint finance committee accepts EROCs cautious revenue recommendation
Summary
The Economic Outlook and Revenue Assessment Committee presented a lower median revenue projection than the governors in JFAC; members accepted the committees recommendation by unanimous consent.
The Joint Finance-Appropriations Committee accepted a revenue recommendation from the Economic Outlook and Revenue Assessment Committee (EROC) that places general fund totals below Governor Brad Littles original projections for fiscal years 202527 and 2026.
EROC co-chair Senator Kevin Cook told JFAC the committee, after reviewing economic data and expert testimony, recommends that "total general fund revenues available for appropriation [be] $5,990,000,000 for fiscal year 2025, and $6,400,000,000 for fiscal year 2026." The committee cautioned the Legislature to be "cautious in making appropriations above the committee's revenue recommendation."
The recommendation came after EROCs median projections were lower than the governor's submission. Senator Cook summarized the committees comparative findings: the committees median projection for 2025 was below the governors projection; for 2026 the committees median was lower than the governors recommendation; and for 2027 the committees median remained below the governors forecast. Representative Jeff Ehlers, EROC co-chair, thanked committee members and staff for their work compiling the assessment.
The motion to accept the EROC report was made and seconded in JFAC; the committee approved the report by unanimous consent with no recorded objections. Committee chairs and members said the recommendation will guide JFACs appropriation discussions in the weeks ahead as the Legislature balances its budget under Idahos constitutional requirement. Article VII, Section 11 of the Idaho Constitution requires that appropriations be balanced within available revenues; EROC framed its work around that requirement.
Why it matters: JFAC uses revenue estimates as the baseline for appropriation decisions. The committees lower, more cautious revenue recommendation narrows the Legislatures room to add new spending without either cutting elsewhere or increasing reserves drawn from other accounts. EROC cited economic uncertainty tied to the Federal Reserves inflation response and the presidential election as factors in the recommendation.
Next steps: JFAC will use the committees revenue recommendation when setting the formal general fund revenue projection the Legislature will adopt and when it begins detailed appropriation work on program maintenance and enhancement bills scheduled in the coming week.
