Idaho lawmakers head into 2023 with projected $1.5B surplus — and ideas on how to use it

JFAC co-chair supports property tax reductions in new legislative session  

By: - December 15, 2022 4:40 am

The House in session at the Idaho Capitol on April 6, 2021. (Otto Kitsinger for Idaho Capital Sun)

Even with revenue collections coming in below forecasts, the state of Idaho is projected to end the 2023 fiscal year with a $1.54 billion budget surplus, according to the last budget and revenue update before the new legislative session starts in January. 

The numbers

The Legislative Services Office’s General Fund Budget Monitor report for November and the Division of Financial Management’s Idaho General Fund Revenue Report say state revenues for the first five months of the current fiscal year were $29.8 million, or 1.4%, below forecasts. Idaho’s fiscal year runs from July 1 to June 30.

Idaho’s revenues at this point, almost halfway through the fiscal year,  are 7.2%, or $144.6 million, more than they were last December — when the state was building toward the 2022 fiscal year’s record budget surplus.

During the Sept. 1 special session, Gov. Brad Little and the Idaho Legislature responded to that surplus by passing a law to issue tax rebates, reduce the income tax rate and direct $410 million per year towards funding public school and career programs. 

Little will issue a new revenue forecast and budget proposals on Jan. 9, the first day of the 2023 legislative session. 

New JFAC co-chair calls for using surplus to reduce property taxes

Rep. Wendy Horman, R-Idaho Falls, the new House co-chair of the Joint Finance-Appropriations Committee, said she supports directing some of the state’s surplus to a property tax reduction. 

“We need to remember some Idahoans are experiencing sticker shock with these property tax assessments. Although the state does not levy property taxes, local governments do,” Horman said in a telephone interview. “I still think that needs to be part of our conversation about what we do with this surplus.”

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Horman is part of a growing list of legislators calling for reducing property taxes. On Sunday, the Idaho Press reported that Sen. C. Scott Grow, R-Eagle, has spent months working on a property tax proposal. 

As the Senate co-chair of JFAC, Grow is Horman’s counterpart on the powerful budget writing committee that meets daily during the legislative session to set each element of the state budget. 

“I think it has become imperative we bring any good ideas we have to the table to solve what is creating a crisis for some Idahoans,” Horman added. “Whether you own property or you rent and are going to see your rent costs shoot through the roof, it impacts everyone in one way or another.”


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Clark Corbin
Clark Corbin

Clark Corbin has more than a decade of experience covering Idaho government and politics. He has covered every Idaho legislative session since 2011 gavel-to-gavel. Prior to joining the Idaho Capital Sun he reported for the Idaho Falls Post Register and Idaho Education News. His reporting in Idaho has helped uncover a multimillion-dollar investment scam and exposed inaccurate data that school districts submitted to the state.