Boise – Given the state’s strong economic growth, the State of Idaho will not borrow money in the bond market to meet anticipated cash flow requirements for the upcoming fiscal year.
This is the second year since 1982 that Idaho will not issue a State of Idaho Tax Anticipation Note (TAN) in order to meet the anticipated cash flow requirements due to the time lag between when state revenue is received and when state expenses are incurred.
“This move is about good government and prudent management of taxpayer dollars. Given the uncertain economic times, we must minimize state borrowing and limit the amount of General Fund that is committed to interest payments on loans,” Governor Brad Little said.
The move was approved today by the Treasurer’s Credit Rating Enhancement Committee.
When the state issues TANs, the state pays interest to an external entity. In recent years the interest has averaged more than $15 million to a national bank. Those taxpayer dollars will be saved this year by not issuing the TAN.