Idaho state budget

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Idaho took a fiscally conservative approach in its FY 2010 budget passed by the Idaho State Legislature and signed by Gov. Butch Otter. The FY 2010 budget retracted spending from FY 2009 in response to less revenues, yet further decreases in revenue projections announced in September for the current fiscal year that started July 1, 2009 and ends June 30, 2010 have already created a $151.4 million budget shortfall.[1]

Gov. Otter announced September 25, 2009 “tiered holdbacks” of state spending averaging a total of 4% to close the budget gap until the Idaho State Legislature meets in January of 2010 to make transfers and adjustments in light of the lower revenue figures. Gov. Otter will request the Legislature to transfer $49.3 million from the Public Education Stabilization Fund to the General Fund. This transfer combined with the 4% tiered holdbacks will cover 65% of the current year’s shortfall.[2]

Regarding the holdback, Gov. Otter stated, “This is not an across-the-board holdback. My executive order distinguishes between the critical, constitutionally required, essential and other services of state government.” This goes way beyond the difference between ‘necessary’ and ‘nice.’ It goes to the fundamental requirements and expectations that we have for state government.” [3]

[edit] Budget Background

Gov. Otter recommended in January of 2009 a 4% holdback of appropriations for FY 2009 to finish the year with an additional 2% to be held in reserve, which the State of Idaho Joint Finance and Appropriations Committee confirmed.[4]

Idaho State Budget Comparison All Funds[5]

FY 2008 Appropriated FY 2008 Actual FY 2009 Appropriated FY 2010 Requested FY 2010 Gov’s Rec.
$6.04 billion$5.27 billion$5.90 billion$6.42 billion$5.79 billion

Idaho State Budget Comparison General Funds[6]

FY 2008 Appropriated FY 2008 Actual FY 2009 Appropriated FY 2010 Requested FY 2010 Gov’s Rec.
$2.83 billion$2.80 billion$2.96 billion$3.23 billion$2.74 billion

FY 2008 – FY 2009 Comparison of General Fund Revenue Collections[7]

Individual Income Tax Corporate Income Tax Sales Tax Product Tax Misc. Revenue Total
FY 2008$1,430.2$189.7$1,142.5$26.8$120.7$2,909.9
FY 2009$1,167.9$141.0$1,022.2$29.7$104.8$2,465.6
$ Change($262.3)($48.7)($120.3)$2.9($15.9)($444.3)
 % Change(18.3%)(25.7%)(10.5%)10.8%(13.2%)(15.3%)

Idaho's fiscal year begins July 1 and ends June 30 of the following year. In September individual state agencies submit their budget requests for the next fiscal year. Between October and November the Governor hears from each agency and works with analysts before completing the recommended budget for the upcoming fiscal year. [8] During the first week that the Legislature returns to session in January the Governor presents his budget recommendation. The bill must pass the House and the Senate before it is signed by the Governor.[9]

[edit] Budget figures

The following table provides a history of Idaho's expenditures and gross domestic product (GDP).

Fiscal Year Expenditures (billions) GDP (billions)
2000 $6.4 [10] $35.0 [10]
2001 $7.0 [10] $35.6 [10]
2002 $7.6 [10] $36.7 [10]
2003 $8.0 [10] $38.1 [10]
2004 $8.4 [10] $42.6 [10]
2005 $8.9 [10] $46.4 [10]
2006 $9.3 [10] $48.4 [10]
2007 $9.8 [10] $51.1 [10]
2008 $10.2 [10] $54.0 [10]
2009 $10.7* [10] $57.0* [10]


See Idaho state budget (2008-2009) for more details.

[edit] Accounting Principles

The Legislative Audits Division of the Legislative Services Office, under the direction of the Legislative Council, is charged with the responsibility to audit the State of Idaho’s Comprehensive Annual Financial Report (CAFR) and perform the annual Federal Single Audit required by federal regulations. Their audit reports are published online. Don Berg is Manager of the Division.[11]

Donna M. Jones has been Idaho State Controller since 2007. The Idaho state controller is one of seven statewide elected constitutional officers in the executive branch of Idaho state government and serves a four-year term. In 1994, a constitutional amendment passed by Idaho voters changed the name of the state auditor to state controller. This amendment granted the state controller the authority to establish statewide internal pre-audit accounting controls to assure state funds are spent properly. The amendment transferred post-audit functions to the Legislative Services Office enabling separation of accounting and after-the-fact auditing operations.[12]

The state controller is the chief fiscal officer of the state of Idaho, responsible for:[13]

  • Maintaining all accounting and financial records
  • Paying all the state’s bills and employees
  • Preparing the state’s annual financial report
  • Operating the state’s Computer Service Center

The Institute for Truth in Accounting (IFTA) rates Idaho “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Idaho’s CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[14] Idaho's CAFRs are published online by the Idaho State Controller.[15]

Credit Rating Fitch Moody's S&P
Idaho[16] NRAa2AA

[edit] Economic Stimulus Package

Idaho is expected to receive $1.25 billion from the $787 billion dollar economic stimulus.[17] All told, the federal stimulus plan would create or save 17,000 jobs in Idaho, based on White House estimates.[18]
For more information on how the federal stimulus funds are being used in the state of Idaho, visit the state recovery website.

According to preliminary reports, Idaho is expected to receive:

  • $46 million towards the state food stamp program [19]
  • $294,200 towards the Idaho Commission on the Arts [20]
  • $19.5 million to the Idaho Department of Environmental Quality for water infrastructure projects [21]
  • $201 million in education stabilization funds [22]
  • $105 million for low-income and special-needs students [22]

[edit] Budget transparency

Idaho currently has no statewide, official spending database online, despite Idaho Representative Phil Hart's work to promote transparency through Idaho House Bill 177 (2009).

[edit] Legislation

[edit] Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases
State DatabaseSearchabilityGrantsContractsLine Item ExpendituresDept/Agency BudgetsPublic Employee SalaryExemption Level
Nonen/an/an/an/an/an/an/a

[edit] Limitations and Suggestions

[edit] Economic Stimulus Transparency

  • The Economic Recovery and Reinvestment Act of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[23]
  • It is estimated that Idaho will receive at least $728 million in federal funding.[24]

[edit] Support for creation of the database

[edit] Public employee salary information

  • Information from 2005 about Idaho's state salaries is available from the Des Moines Register here.
  • A listing of the Idaho state payroll from 2008 is posted here.

[edit] See Also

Idaho taxpayer-funded lobbying

[edit] External links

[edit] Additional reading

[edit] References

  1. Gov. Butch Otter News Release, “State Revenue Forecast Down Sharply,” September 3, 2009
  2. Gov. Butch Otter News Release, “Governor Orders Tiered Holdback,” September 25, 2009
  3. Gov. Butch Otter News Release, “Governor Orders Tiered Holdback,” September 25, 2009
  4. University of Idaho, “State of Idaho Budget Holdback Update,” February 14, 2009
  5. Idaho State Legislature, “FY 2010 Legislative Budget Book,” retrieved October 20, 2009
  6. Idaho State Legislature, “FY 2010 Legislative Budget Book,” retrieved October 20, 2009
  7. Idaho State Legislature, Legislative Perspective, "General Fund Budget Update," July/August 2009
  8. Idaho Legislature,"Budget process," retrieved April 14,2009
  9. Division of Financial Management,"Budget process," retrieved April 14,2009
  10. 10.00 10.01 10.02 10.03 10.04 10.05 10.06 10.07 10.08 10.09 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 US Government Spending,"Idaho State and Local spending," retrieved April 13,2009
  11. Idaho Legislative Audits Division Web site, retrieved October 20, 2009
  12. Office of the Idaho State Controller Web site, retrieved October 20, 2009
  13. Office of the Idaho State Controller Web site, retrieved October 20, 2009
  14. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  15. Office of the Idaho State Controller Web site, retrieved October 20, 2009
  16. "State of Indiana", “State Credit Ratings-as of June 24, 2009
  17. Oregon Public Broadcasting,"Idaho’s Governor Releases Stimulus Spending Plan," March 12,2009
  18. American Recovery and Reinvestment Act,"Impact," retrieved April 13,2009
  19. KIDK,"Health and Welfare receives money for programs," April 12,2009
  20. Idaho Statesman,"Idaho arts commission gets slice of stimulus pie," April 13,2009
  21. Watertech Online,"EPA announces stimulus funds for water projects," April 10,2009
  22. 22.0 22.1 Idaho Statesman,"Stimulus may not keep Idaho school budget intact," February 27,2009
  23. National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
  24. Wall Street Journal, "Stimulus Spending by State," April 9,2009