Little Big, beautiful bill could reduce revenue

During a recent visit to Lewiston, Idaho Governor Brad Little underscored the state's robust economic growth while acknowledging the risks posed by proposed federal tax and spending cuts. The Idaho legislature passed tax cuts that will reduce state income by $453 million, although Little's conservative budget proposed much smaller reductions of around $100 million. He expressed uncertainty regarding the specifics of federal tax changes being debated, particularly concerning the collection of taxes on tips and benefits. Little indicated that significant cuts to federal programs like Medicaid could severely impact the state's budget, especially given a proposed $880 million reduction in Medicaid funding. He noted Idaho's prudent financial management, with a rainy day fund constituting 23% of the state budget, which could help cushion any revenue shortfalls.

In addition to fiscal concerns, he highlighted the legislature's approval of over $30 million for the Idaho Department of Water Resources and new laws to protect electricity companies from liability lawsuits. These measures aim to support critical infrastructure and resources in the state. Little remains optimistic about Idaho's growth trajectory despite the looming uncertainties from federal fiscal policies.