Governor Brad Little announced Friday that Idaho state revenues exceeded projections for the third consecutive month, marking a strong start to Fiscal Year 2027.
The Idaho Division of Financial Management released its September General Fund Revenue Report, showing the state is more than $90 million ahead of forecasts. Through the first three months of the fiscal year, which began July 1, total revenues have climbed by $90.3 million, or 6.8 percent above expectations.
September Gains Drive Cumulative Surplus
September general fund revenues outpaced their forecast by $39 million, a 7 percent increase over projections. This follows similar positive trends in July and August, contributing to the cumulative surplus reported for the quarter.
Individual income tax collections have been the primary driver of this growth. Withholdings are up 18.3 percent fiscal year to date. Officials at the Division of Financial Management attributed the increase to Idahoans working more hours and potential bonus activity.
“Strong withholding growth shows us Idahoans are working, businesses are hiring and our economy is strong,” Little said in a statement Friday afternoon.
Sales tax collections remained nearly in line with forecasts. However, corporate income tax collections fell short, coming in 7.9 percent below projections. Miscellaneous state revenues also contributed to the overall positive balance.
Budget Discipline Remains Priority
The revenue surge comes after state lawmakers approved near across-the-board budget cuts for almost all state agencies, programs, and departments last year. Those reductions were necessary to offset federal tax cuts enacted by President Donald Trump through the One Big Beautiful Bill Act and to ensure a balanced state budget.
Little emphasized that despite the encouraging revenue growth, fiscal restraint remains essential.
“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.
Election Year Budget Proposals
The governor is scheduled to present budget recommendations for the next fiscal year to the Idaho Legislature in January, kicking off the 2027 legislative session. The timing places the proposal at the center of the upcoming general election campaign.
Terri Pickens, Governor Little’s Democratic opponent in the 2026 race, has outlined a contrasting approach to state finances. On Tuesday, Pickens stated that if elected in November, she would present a budget plan aimed at restoring the cuts implemented last year.