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Idaho closes budget year with fiscal flourish |
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July 17, 2017 |
Idaho’s surging economy produced $29 million
more than projected in State tax revenue in June
and almost $94 million more than economists
expected for the fiscal year that ended June 30,
enabling the State to meet the constitutional
requirement for a balanced budget while beefing
up its rainy day fund.
“This reflects great credit on our State’s
fiscal discipline and sound public policies that
put taxpayers first,” Governor C.L. “Butch”
Otter said. “Once again, the people of Idaho are
leading the way both in terms of growing our
economy and sustaining a State government that
respects the fact that it’s their money.”
The Governor’s Division of Financial Management
issued its final General Fund Revenue Report for
fiscal 2017 today, summarizing tax receipts for
June and the past 12 months. Its highlights
included June tax collections of $361 million or
8.8 percent more than anticipated.
That also was 9.9 percent better than the
previous June and the third month in a row that
revenues exceeded forecasts. For all of fiscal
2017, the State took in almost $3.45 billion
compared with the predicted $3.35 billion. The
8.3 percent revenue increase was well above the
expected 5.4-percent growth rate.
The strong revenue growth resulted in two
transfers to the Budget Stabilization Fund,
which is used to help protect State programs and
services from economic downturns. Idaho law
requires a transfer of up to 1 percent of the
General Fund when revenue grows by more than 4
percent, which resulted in a $31.8 million
transfer.
The Legislature also passed “surplus eliminator”
legislation this year that resulted in an
additional $27.5 million transfer. With the two
new transfers, the rainy day account now totals
$318.7 million.
Lieutenant Governor Brad Little said: “Our
conservative fiscal approach to budgeting makes
Idaho a shining example among states for how to
keep their financial houses in order while
delivering the critical public services that
citizens need. While many others are struggling
to keep their governments operating and digging
out from staggering deficits, Idaho can focus on
growing our economy and continuing to improve
our public processes while reducing the burden
on taxpayers.” |
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