Idaho ends fiscal year with budget surplus and improved credit rating
(Boise, ID) – Governor Brad Little commented today on the news that Idaho closed the books on Fiscal Year 2024 with another strong performance, further reinforcing Idaho’s economic strength, prudent budgeting, and focus on the taxpayer.
Idahoans will receive an additional estimated $76.5 million in property tax relief moving forward on top of the hundreds of millions in property tax relief they have received over the past year after the passage of a 2023 property tax cut measure as part of Governor Little’s “Idaho First” plan.
Based on strong revenues, particularly in steady sales tax performance, Idaho closed out Fiscal Year 2024 with a $52.5 million surplus that will go directly to property tax relief, and the state will put another $24 million in unspent agency funds toward property tax relief as well.
“The Legislature and I are proud to deliver even more tax relief to help Idahoans combat the horrible impacts and soaring costs of inflation caused by the Biden-Harris administration. What Idaho is doing is working. Our conservative approach to governing means we encourage economic prosperity, we rein in government spending, and we manage our budget with money to spare, unlike Washington, D.C. We also have the largest ever balance in rainy day funds to help us weather any economic storm,” Governor Little said. “Idaho embraces ‘kitchen table economics,’ just like everyday Idahoans. Washington, D.C. could slash the federal debt by following Idaho’s example!”
State leaders are able to deliver the tax reduction because revenue came in stronger than expected and agencies spent less than they were budgeted.
In addition, the state has a $320 million ending balance that will carry over into Fiscal Year 2025, keeping the state in an excellent position to absorb any economic uncertainty.
Idaho leads the nation in delivering historic tax relief for our people. In addition to the property tax relief announced today, the State of Idaho is on pace to turn back $4.6 billion in tax cuts to the people of Idaho since Governor Little took office in 2019 – more than any other state per capita. The tax cuts included a new, lower flat income tax, lower payroll taxes for Idaho businesses, and an enhanced grocery tax credit.
In addition, Moody’s Ratings last week upgraded Idaho to AAA for Idaho’s sales tax bonds and school guaranty program, including an upgrade for Idaho’s transportation bonding. The rating saves even more taxpayer money in the long run. The ratings reflect the general economic strength of Idaho’s strong performance in state sales tax pledged to back these bonds and gives the state favorable credit ratings on bonds, which decreases interest rates and improves financial performance.
More importantly, it reflects Idaho’s strong credit position due to stability in state revenues, trust in Idaho’s growing economy, and low debt and long-term liability burden.
“Idaho remains one of the strongest economic performers in the United States, continuing to rank at or near the top of all states in terms of growth in population (including prime working age), employment, GDP and income. The state’s economic expansion is driving steady growth in revenue, which is supporting additions to reserves and fund balance,” the report said.
The ratings upgrades are timely because of Idaho’s historic new investments in school facilities and the $1 billion available for public school facility modernization efforts. As Idaho goes to bond for these dollars, the better credit score means lower borrowing costs, ensuring more of the school facility investment goes toward construction and actual real costs of upgrading and replacing school buildings.