State agencies in Idaho are being directed to maintain the reduced spending levels established during the 2026 legislative session, according to budget officials. As first reported by Bonner County Daily Bee, Governor Brad Little’s administration is prioritizing fiscal restraint as it prepares for the upcoming fiscal year.
Lori Wolff, the governor’s budget chief, instructed state agencies in May to submit “barebones” budgets for fiscal year 2028, which begins on July 1, 2027. The directive explicitly told departments not to request funding to restore services or programs that were cut during the previous legislative cycle.
“We were very tight on our bottom line before, so it doesn’t give us a whole lot of room,” Wolff told the Bonner County Daily Bee regarding the state’s financial constraints. “So, our focus this year is going to be on keeping those budgets at where we set them last year.”
The strategy reflects a broader effort to operate public programs with less funding following years of state tax reductions. While projected revenue has increased, non-discretionary spending obligations are consuming the majority of those gains. Mandatory costs for Medicaid, state prisons, and public schools leave little flexibility for discretionary agency growth.
Budget requests from various state agencies are now publicly available on the Division of Financial Management’s website. The Idaho Department of Health and Welfare’s request was expected to be posted Tuesday. Governor Little typically releases his comprehensive proposed budget in January, ahead of the legislative session.
The Idaho Legislature is scheduled to convene in January 2027 for its regular session. Lawmakers will review agency requests during the first few months of the year. The Joint Finance-Appropriations Committee plays a central role in this process, separating agency budgets into baseline “barebones” funding and any proposed new spending.
By capping agency requests at 2026 levels, state leaders aim to preserve fiscal discipline while meeting mandatory obligations.