Governor’s ‘keeping promises’ executive budget projects $6.2 billion in FY26, boosts schools, transportation and wildfire funding

Division of Financial Management Administrator Laurie Wolf told the Joint Finance and Appropriations Committee on Jan. 8 that Gov. Brad Little’s executive budget for fiscal 2026 is a “keeping promises” budget that preserves a structural balance while funding education, transportation, wildfire management and workforce programs.

Wolf said the administration used a conservative revenue forecast and projects total general‑fund receipts of about $6.2 billion for FY26, with a projected FY26 ending general‑fund balance of $227 million after recommended transfers. For FY25, Wolf said the administration projects roughly $5.9 billion in general‑fund revenue and an ending balance of about $383 million.

The governor’s proposals include a range of targeted enhancements: an additional $150 million for public schools overall — including $83 million the presentation described as directed to teacher pay and nearly $30 million for school employee health insurance — $50 million proposed for a state transportation expansion and congestion mitigation fund, and a package of natural‑resources spending that includes a $60 million supplemental to backfill the state fire‑suppression account for FY25 and a $40 million ongoing appropriation for FY26 for fire response and fire‑management capacity.

Wolf also described revenue‑management decisions the administration recommends: a proposed $59 million transfer to the budget stabilization (rainy‑day) fund and a $50 million transfer to the public education stabilization fund in FY26. After those transfers, she said, Idaho would hold a revert reserve of roughly $1.4 billion — about 22% of the budget by her calculation.

On public safety and state systems, Wolf urged investment in cybersecurity and infrastructure, proposing $10 million in ongoing general‑fund support for information‑technology security and replacement needs, and smaller ongoing items including $500,000 for a rural physician incentive and $500,000 to continue a fentanyl enforcement program. Wolf said the administration recommends $3.4 million in corrections spending targeted at contraband and transportation security in state prisons.

The governor’s presentation also addressed higher education and workforce training. Wolf said the budget includes $25 million in workforce training, split into $15 million one‑time grants (with private matching required) to expand capacity at community and technical colleges and $10 million ongoing for career‑technical education operating costs.

Public defense was a notable line item. Wolf said the state consolidated public defense funding beginning Oct. 1 and that a December Supreme Court decision clarified the state’s payment responsibilities. The governor’s executive package, she said, includes a $5.4 million supplemental for FY25 and roughly $16.8 million in additional FY26 funding; Wolf said the administration’s total FY26 recommendation to support the state public‑defense system is about $83 million, and observed that a policy decision will be required about whether and how to expand transfers to the statutory public‑defense fund (which is funded by a distribution of online sales tax).

Wolf described other priorities in the budget: $50 million in revenue adjustments set aside for education‑choice initiatives (to be considered only with accompanying policy language), $15 million one‑time for a workforce‑housing fund, $30 million ongoing to the Idaho Water Resource Board for prioritized recharge projects and a three‑percent increase in the state’s strategic transportation initiative (raising total strategic transportation funding from roughly $302 million to about $312 million annually).

Committee members asked for clarifications. Senator Cook and others asked about the mechanics of transfers and the statutory thresholds; Wolf said the requested $59 million budget stabilizer transfer aligns with statutory maximum language. Several members questioned wildfire funding: Wolf said roughly $12 million remained in the suppression account at the time of presentation and argued a supplemental was needed to avoid running short if additional fires occur before the new fiscal year. On public‑defense funding, Wolf repeatedly emphasized the change in legal exposure following the court decision and that some policy choices on funding sources remain for the Legislature.

Wolf and committee staff emphasized conservatism in forecasting: she told the committee that the administration used conservative revenue assumptions while preserving funds for tax relief and reserves. Wolf said the governor is holding $100 million for potential tax relief and will work with the Legislature on how best to return funds to taxpayers.

The committee did not vote on the budget at this meeting; Wolf’s presentation was an opening overview. Deputies and analysts from Legislative Services and the governor’s Division of Financial Management will present agency budgets in coming days as the committee follows its established hearing schedule.

Looking ahead, Wolf noted that several elements in the executive package will require policy decisions by the Legislature — including any modification of transfers to the public‑defense fund, the use of the $50 million set aside for education‑choice initiatives and the statutory handling of replacement and IT security items reported by agencies. Agency presentations and line‑by‑line hearings were scheduled in coming weeks.