Idaho state budget
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Idaho took a fiscally conservative approach in its FY 2011 budget passed by the Idaho State Legislature and signed by Gov. Butch Otter.
Idaho will receive $104 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.[1]
[edit] FY 2011
Gov. Otter proposed a budget for FY2011 with no tax increase. He also proposed that there be no increased funding for raises in any fund category and that 400 state positions, most of which are currently vacant, be eliminated.[2]
The governor also proposed saving $10 million with ongoing savings of $7 million annual by eliminating the Department of Parks and Recreation with park maintenance being transferred to the Department of Lands and the fees portion being transferred to the Department of Fish and Game.[2] Other proposed cuts include beginning a four-year phase-out of general fund spending for Idaho Public Television, the Digital Learning Academy and five other agencies, including the Human Rights Commission, Hispanic Commission, and the Idaho Council for the Deaf and Hard of Hearing.[2][3]
Under the budget approved by the legislature's Joint Finance-Appropriations Committee, the state's budget for Medicaid is also reduced.[4] That budget also cuts by approximately 9% the funding to both the Idaho Commission on the Arts and the office of the Secretary of the State.[3]
One month into the fiscal year, State Budget Director Wayne Hammon said, “We’ve taken a slow, cautious conservative approach … I’m cautiously optimistic that we’re going to be OK. I’m cautiously optimistic that we’re done cutting things.” He noted that the state’s approach of gradual holdbacks dating back to September 2008 reduced the state government to the size it was in 2005 and helped avoid drastic cuts.[5]
[edit] Furloughs
All 400 Idaho State Tax Commission employees have taken 27,040 hours of furlough, saving Idaho $670,108.59 With a looming state budget gap, Idaho's four top tax collectors took furlough days to reduce their own salaries in a show of solidarity with state workers who were having their wages cut. They learned on June 23, 2010, however, that their move violates state law and they will get be paid for the days they took off, a total $11,995.41.[6]
[edit] Executive Economic Council
House Minority leader John Rusche publicly sent a letter asking Gov. Otter to have outside economists at Idaho universities, the Idaho Tax Commission, and the Associated Taxpayers of Idaho review the next state budget revenue projection, due in August. The governor denied the request but the state could set up a new Executive Economic Council consisting of five experts appointed by the governor. The council would not be able to review the August figures but could review the next projection in December.[7]
[edit] Medicaid Funds
If Congress does not approve Medicaid fund, there will be a $71 million hole in the budget that state Budget Director Wayne Hammon said will be plugged with remaining rainy-day funds.[5]
[edit] General Fund Revenue Book
The General Fund Revenue Book can be found here.
| Category | FY2010 | FY2011 | % Change FY2010 | % Change FY2011 |
|---|---|---|---|---|
| Individual Income Tax | $960.16 | $1,023.97 | 14.1% | 6.6% |
| Corporate Income Tax | $124.87 | $141.53 | 30.8% | 13.3% |
| Sales Tax | $627.50 | $647.29 | 6.6% | 3.2% |
| Product Taxes | $15.96 | $20.70 | 1.2% | 29.7% |
| Miscellaneous Taxes | $92.46 | $151.15 | 12.0% | 63.5% |
| Total | $1,820.96 | $1,984.64 | 12.1% | 9.0% |
[edit] FY 2010
The FY 2010 budget retracted spending from FY 2009 in response to less revenues, yet further decreases in revenue projections announced in September 2009 for the current fiscal year that started July 1, 2009 and ends June 30, 2010 created a $151.4 million budget shortfall.[8][9]
According to the governor's "2010 State of the State" address, in order to balance Idaho's FY 2010 budget in addition to the already implemented 4% tiered holdbacks announced in September 2009 a $40 million budget cut is necessary to solve the existing budget shortfall. Specifically cuts will be made to public education, cash for a livestock research center will be delayed, 400 state jobs will be cut and various fees increased. Despite the proposed budget cuts the governor said he would not increase taxes.[10] However, in January 2010 state officials announced that a revenue forecast for FY 2010 is less $69 million below Gov. Otter's estimate of $40 million.[11]
For FY2010, the state's revenues were $2.26 billion, less than forecasts that ranged from $2.65 billion to $2.34 billion.[5]
The FY2010 General Fund Revenue Book, including the economic forecast, revenue projections broken down by tax, and and an explanation of the tax structure, can be found here.
[edit] Budget Background
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. [12] 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.[13]
[edit] Budget figures
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.[14]
Idaho State Budget Comparison All Funds[15]
| 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[16]
| 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[17]
| 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%) |
The following table provides a history of Idaho's expenditures and gross domestic product (GDP).
| Fiscal Year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $6.4 [18] | $35.0 [18] |
| 2001 | $7.0 [18] | $35.6 [18] |
| 2002 | $7.6 [18] | $36.7 [18] |
| 2003 | $8.0 [18] | $38.1 [18] |
| 2004 | $8.4 [18] | $42.6 [18] |
| 2005 | $8.9 [18] | $46.4 [18] |
| 2006 | $9.3 [18] | $48.4 [18] |
| 2007 | $9.8 [18] | $51.1 [18] |
| 2008 | $10.2 [18] | $54.0 [18] |
| 2009 | $10.7* [18] | $57.0* [18] |
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.[19]
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.[20]
The state controller is the chief fiscal officer of the state of Idaho, responsible for:[21]
- 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
| Credit Rating | Fitch | Moody's | S&P |
| Idaho[22] | NR | Aa2 | AA |
[edit] 2009-2010 budget crisis
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.[23]
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.” [24]
According to the governor's "2010 State of the State" address, in order to balance Idaho's FY 2010 budget an additional $40 million will be cut from the state budget. Specifically cuts will be made to public education and cash for a livestock research center will be delayed. Additionally the governor plans to cut 400 state jobs, raise state park fees, eliminate Idaho Public Television $1.7 million funding over the next four years. In terms of cutting approximately 400 state jobs, according to reports, most of the jobs to be eliminated are currently vacant. The governor also proposed eliminating funding to a total of six agencies, include: the Human Rights Commission, Hispanic Commission, Independent Living Council, Developmental Disabilities Council, Deaf and Hard of Hearing Council and Digital Learning Academy. However, despite the budget cuts the governor said he would not increase taxes. The proposed budget totals $2.46 billion, a $40 million decrease from the FY 2010 budget.[10] [25]
[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).
- See also: Evaluation of Idaho state website
[edit] Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary | Exemption Level |
|---|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
[edit] Economic Stimulus Transparency
- It is estimated that Idaho will receive at least $728 million in federal funding.[26]
- Idaho will receive $104 million from the federal government as part of the second stimulus, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.[27]
- The economic recovery website for Idaho is available here.
[edit] Error in ARRP
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[28][29]
The Recovery.gov website overshot the number of Congressional Districts in Idaho by ten. The State’s 5th District received $1.2 million, though it does not exist.[30]
[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
[edit] External links
- State Budget Solutions, Idaho
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Idaho Freedom Foundation
- Idaho Division of Financial Management
- Idaho Legislature, Budget Process Information
- Idaho Government spending
- Idaho FY 2010 budget
[edit] Additional reading
- Gov. Butch Otter,"State of the state 2010," January 11, 2010
- Gov. Butch Otter,"State of the state 2009," January 12,2009
- Associated Press,"State budget crisis has steadily worsened," February 14,2009
[edit] References
- ↑ Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
- ↑ 2.0 2.1 2.2 FY2011 Executive Budget
- ↑ 3.0 3.1 National Conference of State Legislatures
- ↑ Idaho State Journal March 5, 2010
- ↑ 5.0 5.1 5.2 The Times News MagicValley.com "Otter's budget chief 'cautiously optimistic'" July 29, 2010
- ↑ The Salt Lake Tribune "Idaho tax collectors try to take pay cut but can’t" June 23, 2010
- ↑ Idahoreporter.com "State’s August budget update won’t get second opinion, as Dems requested" July 26, 2010
- ↑ Gov. Butch Otter News Release, “State Revenue Forecast Down Sharply,” September 3, 2009
- ↑ Idaho Legislature,"FY 2010 budget," retrieved January 31, 2010
- ↑ 10.0 10.1 Associated Press,"Idaho Gov Proposes Education, Public TV Fund Cuts," January 11, 2010
- ↑ Idaho Statesman,"Idaho's revenue blues grow even worse," January 21, 2010
- ↑ Idaho Legislature,"Budget process," retrieved April 14,2009
- ↑ Division of Financial Management,"Budget process," retrieved April 14,2009
- ↑ University of Idaho, “State of Idaho Budget Holdback Update,” February 14, 2009
- ↑ Idaho State Legislature, “FY 2010 Legislative Budget Book,” retrieved October 20, 2009
- ↑ Idaho State Legislature, “FY 2010 Legislative Budget Book,” retrieved October 20, 2009
- ↑ Idaho State Legislature, Legislative Perspective, "General Fund Budget Update," July/August 2009
- ↑ 18.00 18.01 18.02 18.03 18.04 18.05 18.06 18.07 18.08 18.09 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 US Government Spending,"Idaho State and Local spending," retrieved April 13,2009
- ↑ Idaho Legislative Audits Division Web site, retrieved October 20, 2009
- ↑ Office of the Idaho State Controller Web site, retrieved October 20, 2009
- ↑ Office of the Idaho State Controller Web site, retrieved October 20, 2009
- ↑ "State of Indiana", “State Credit Ratings-as of June 24, 2009
- ↑ Gov. Butch Otter News Release, “Governor Orders Tiered Holdback,” September 25, 2009
- ↑ Gov. Butch Otter News Release, “Governor Orders Tiered Holdback,” September 25, 2009
- ↑ Oregon Public Broadcasting,"Idaho Legislators Scour Budget, Look For Places To Cut Spending," January 25, 2010
- ↑ Wall Street Journal, "Stimulus Spending by State," April 9,2009
- ↑ Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ Idaho, Watchdog.org, November 17, 2009
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