RE: FOR IMMEDIATE RELEASE
January 13, 2026
Contact: Rep. Josh Tanner
Boise, Idaho — Josh Tanner, Co-Chair of the Idaho Joint Finance and Appropriations Committee (JFAC), today warned that the Governor’s proposed budget does not balance on an ongoing basis and places Idaho’s long-term fiscal stability at serious risk.
“The Governor’s budget does not balance,” Tanner said. “It relies on one-time gimmicks, spends more than the state takes in on an ongoing basis, and leaves Idaho with the lowest ending fund balances in nearly a decade.”
Under the proposal, ending balances fall to just $32 million in FY 2026 and $25 million in FY 2027, levels Tanner described as dangerously low for a state Idaho’s size.
“These razor-thin reserves leave Idaho with virtually no margin for error,” Tanner said. “Any revenue slowdown, economic disruption, or continued Medicaid growth could force a special legislative session.”
Tanner emphasized that the budget abandons a core Idaho budgeting principle: ongoing expenses must be paid with ongoing revenues. On an ongoing basis, the budget runs a $25 million deficit in FY 2026 and a $103 million deficit in FY 2027, with the imbalance growing in future years.
“This is a structurally unbalanced budget,” Tanner said. “Temporary fixes are being used to mask permanent spending commitments. That is not sustainable, and it is not responsible.”
The proposal also allows non-discretionary spending—largely driven by Medicaid—to continue growing rapidly, increasing by $111 million in FY 2026 and $127 million in FY 2027. Even after proposed holdbacks, ongoing spending continues to rise, with balance achieved only on paper.
“Medicaid growth is crowding out every other priority,” Tanner said. “Instead of presenting real reforms, the Governor leaves behind a Medicaid budget hole based on unspecified cuts, shifting the toughest decisions to the Legislature.”
Tanner further criticized the budget for pushing costs into the future, noting that it fails to replenish the fire deficiency fund, cancels previously approved building projects, and eliminates $275 million in ongoing transportation funding.
“This budget spends today and sends the bill to tomorrow’s taxpayers,” Tanner said.
Tanner concluded by making clear that the Legislature will act to restore fiscal discipline.
“Idaho families cannot spend more than they earn, and neither can state government,” Tanner said. “JFAC and the Legislature will restore structural balance, rein in non-discretionary spending, and protect Idaho taxpayers. Idaho needs a budget that lives within its means—and that is exactly what we intend to deliver.”
Representative Josh Tanner
District 14
Idaho House of Representatives
About Josh Tanner
Rep. Josh Tanner represents District 14 in the Idaho House of Representatives, where he serves as co-chair of the Joint Finance-Appropriations Committee. Tanner is a lifelong resident of Idaho, a local small business owner, and a commissioner of the Eagle Fire District. He lives in Eagle with his wife and children.
