LITTLE: Fiscal Discipline is Why Idaho Finished Strong

By Governor Brad Little

Good government starts with living within our means.

Idaho, unlike neighboring Left Coast states and the federal government, doesn’t spend money we don’t have. We don’t raise taxes when budgets get tight. We right size spending to match the taxpayers’ means.

When I rolled out my ENDURING IDAHO budget plan earlier this year, we made a deliberate choice to keep Idaho on a strong financial footing. We asked state agencies to prioritize their spending, operate more efficiently, and stay focused on the services Idaho families value most. We based those decisions on the best financial information available at the time because Idaho has always succeeded by planning ahead, budgeting responsibly, and making decisions grounded in facts.

Now, Idaho is proud to have closed Fiscal Year 2026 in a stronger financial position than projected. General Fund revenues came in above both the executive and legislative branches’ forecasts.

We did it while preserving our investments in the priorities that will ensure our long-term success: public schools, transportation, water infrastructure, public safety, workforce development, and rural health care.

But to be clear – while transferring hundreds of millions into the new fiscal year is a good thing, it does not mean government suddenly has unlimited new money to spend.

Some may look at the year-end cash balance and conclude that Idaho should restore spending reductions or significantly expand government. We won’t.

There is an important difference between a year-end cash transfer and ongoing revenue. Cash transfers help strengthen Idaho’s financial position, but they do not create a permanent source of funding for permanent government spending.

Like we have done in years past, we will stay laser focused on fiscal discipline.

That approach is a key reason we maintained our coveted AAA credit rating from Moody’s, putting Idaho among the nation’s best-managed states.

The ratings agency specifically cited our conservative budget management, healthy reserves, low long-term liabilities, and willingness to make timely budget adjustments. This doesn’t happen by accident. They result from years of responsible decision-making.

Fiscal Year 2026 also marked another milestone for Idaho taxpayers. The state issued more than $910 million in individual income tax refunds – the largest amount ever returned in a single fiscal year. That reflects our ongoing commitment to tax relief and returning more of Idahoans’ hard-earned money while continuing to invest in the things that will position our growing state for success.

Going forward, our approach will remain exactly the same.

We will continue to budget conservatively. We will continue to distinguish between one-time cash and ongoing revenue. We will continue to make decisions based on long-term sustainability, and we will continue to hold the line on spending more than we have.

Idaho’s financial strength wasn’t created by luck or a single good fiscal year. It was built through consistent fiscal discipline, responsible stewardship of taxpayer dollars, and a willingness to make difficult decisions when necessary.

Those principles have served Idaho well, and they will continue to guide us as we keep building a stronger future for generations to come.

About Brad Little

Brad Little is the 33rd Governor of Idaho.

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