The Idaho Revenue Forecast got a boost Monday as the state’s budget committee voted unanimously to adopt a more optimistic projection than Governor Brad Little had recommended. The decision sets the stage for the 2026–2027 state budget and gives lawmakers more flexibility in spending.
The Joint Finance-Appropriations Committee, or JFAC, delayed the vote by a day last week but ultimately agreed to use the Economic Outlook and Revenue Assessment’s recommendations. The committee approved revenue projections of more than $5.6 billion for fiscal year 2026 and about $5.8 billion for fiscal year 2027. Both figures are higher than those recommended by the governor. This year’s projection is roughly $152.5 million, or 2.8%, higher than Little’s forecast. Next year’s figure exceeds Little’s projection by about $137.4 million, or 2.4%.
JFAC is a powerful legislative panel that sets budgets for every state agency and department. Adopting a revenue figure is a critical step because Idaho’s Constitution requires the state to pass a balanced budget, ensuring expenses do not exceed revenues.
Rep. Josh Tanner, an Eagle Republican and co-chair of JFAC, said the committee felt confident adopting the more optimistic projection because it is still lower than the Idaho State Tax Commission’s $6.3 billion forecast for fiscal year 2027. Tanner also cited a strong January revenue report showing a surge in corporate income tax collections. Based on the report, Idaho is now projecting a $106.2 million budget surplus for fiscal year 2026.
Revenue collections in December were strong enough to reverse a projected $40 million deficit, giving the state its first surplus in months. Tanner noted, “So we’re sitting heavy as we sit right now.”
Although JFAC ultimately agreed to adopt the higher revenue targets unanimously, the process was not entirely smooth. Earlier motions to accept the Economic Outlook and Revenue Assessment Committee’s report were initially rejected, and different members cited varying reasons for supporting the final figure.
Senate Minority Leader Melissa Wintrow, D-Boise, welcomed the higher projection, saying it could prevent deep cuts to programs and services. Sen. Jim Woodward, R-Sagle, said he hopes it allows for more funding for wildfire suppression and transportation infrastructure. Rep. Kyle Harris, R-Lewiston, said the increase provides room for tax cuts and ensures compliance with federal tax incentives outlined in the One Big Beautiful Bill Act. Rep. Rod Furniss, R-Rigby, said the higher revenue figure gives legislators more of a cushion to maintain a larger ending cash balance and guard against economic uncertainty.
This year, JFAC adopted the revenue projection earlier in the legislative session than in recent years. Monday marked the eighth day of the 2026 session. By contrast, last year JFAC waited until March 5, 59 days into the session, to set a revenue target. That delay drew criticism from some lawmakers who argued that budgets and tax cuts had already been passed before revenue projections were finalized.
The adoption of a higher Idaho Revenue Forecast signals stronger-than-expected state finances, potentially allowing lawmakers to maintain programs, increase investments, and provide a more flexible budget for the coming fiscal years.
