Governor Brad Little announced Friday that Idaho state revenues have surpassed forecasts for the third consecutive month, with general fund collections running more than $90 million ahead of projections as Fiscal Year 2027 begins.
The Idaho Division of Financial Management released its September General Fund Revenue Report, showing that monthly collections exceeded expectations by $39 million, or 7%. Through the first three months of the fiscal year, which began July 1, state revenues are up by a total of $90.3 million, representing a 6.8% increase over projections.
Revenue Drivers and Tax Trends
Individual income tax collections have surged 18.3% fiscal year to date. Officials at the Division of Financial Management attributed this growth to increased employee hours and potential bonus activity. Sales tax collections remain nearly in line with forecasts, while corporate income tax collections are running 7.9% below projections.
“Idaho’s strong revenue growth is encouraging and reflects the strength of our economy, but we must remain disciplined and make spending decisions based on what we can responsibly sustain,” Little said in a written statement Friday afternoon.
The governor added that the robust withholding data indicates Idahoans are working and businesses are hiring. “In addition, strong withholding growth shows us Idahoans are working, businesses are hiring and our economy is strong,” Little said.
Budget Context and Political Response
Last year, Governor Little and state legislators approved near across-the-board budget cuts for almost all state agencies, programs, and departments. Those reductions were implemented to offset federal tax cuts from the One Big Beautiful Bill Act signed by President Donald Trump and to ensure a balanced budget.
Terri Pickens, Governor Little’s Democratic opponent in the 2026 general election, stated Tuesday that she would present a budget restoring last year’s cuts if elected in November. The governor is scheduled to present his own budget recommendations for next year to the Idaho Legislature in January, kicking off the 2027 legislative session.