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Legislative staff outline FY2025–26 budget picture, warn of choices between tax relief and services

2578416 · January 8, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Legislative Services Office briefed the Joint Finance Committee on the governor's FY2025 and FY2026 revenue forecasts, structural balance and projected general fund expenditures, highlighting a roughly $700 million projected structural surplus and the tradeoffs lawmakers will face between tax relief and ongoing program funding.

Keith Bybee, division manager of Budget Policy Analysis for the Legislative Services Office, told the Joint Finance Committee that the governor's recommendations put Idaho in a strong near‑term cash position but present policy choices for the Legislature.

"The good news about all of this is the legislature has really managed its finances to put yourself in a position to make changes that are reflective of the policy," Bybee said, summarizing why the state has a multiyear structural surplus under the current forecast.

Bybee walked members through historical revenue growth, noting an unusual spike during the COVID years when general fund revenues rose from roughly $4 billion to more than $6.2 billion over two years. He…

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