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Idaho state budget

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Idaho state budget

Flag of Idaho.png
Budget calendar:  Annual
Fiscal year:  2014
State Credit Rating:  AA+ (as of May 2012)
Current Governor:  Butch Otter
Financial figures
GF expenses[1]:  $2.7 billion
All funds expenses:  $7.2 billion (FY 2013 estimate)
Spending % Change:  Green Arrow Up Darker.svg7.4%[2]
% from Federal Funding:  34.90%
State Debt:  $15,094,322,000
Per Capita State Debt:  $9,459
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Idaho, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Idaho's total expenditures increased by approximately $900 million, from $6.3 billion in 2009 to $7.2 billion in 2013. This represents a 12.5 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

Idaho operates on an annual budget cycle with each fiscal year beginning in July. The sequence of key events in the budget process is as follows:[5][6]

  1. Budget instructions are sent to state agencies in June of the year preceding the start of the new fiscal year.
  2. State agencies submit their budget requests to the governor by September.
  3. The governor submits his or her proposed budget to the Idaho State Legislature five days after the session convenes.
  4. In March the legislature adopts the budget. A simple majority is required to pass a budget.

In Idaho, the governor has line-item and item veto of appropriations authority.[6]

The legislature is constitutionally required to pass a balanced budget; however, the budget does not have to be balanced in order for the governor to sign it into law.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
  • Federal funds: "Funds received directly from the federal government."
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures**
Idaho $2,699 $2,792 $1,718 $33 $7,242 $4,492.18
Colorado $7,942 $7,334 $13,203 $0 $28,479 $5,405.66
Montana $1,947 $2,115 $1,978 $0 $6,040 $5,949.77
Utah $4,990 $3,405 $3,739 $469 $12,603 $4,344.56
Wyoming $3,709 $2,353 $2,549 $0 $8,611 $14,778.82
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Idaho can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Idaho 25.7% 8.1% 0.3% 27.2% 3.7% 10.9% 24.2%
Colorado 25.3% 9.0% 0.0% 20.7% 2.7% 5.4% 36.9%
Montana 15.5% 9.8% 0.5% 16.8% 3.1% 12.7% 41.5%
Utah 24.7% 11.9% 0.9% 17.5% 2.0% 9.2% 33.9%
Wyoming 3.9% 5.5% 0.0% 9.5% 4.6% 9.5% 66.9%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, expenditures on elementary and secondary education, higher education and corrections fell. During the same time period, expenditures on Medicaid and transportation rose by 5.3 percentage points, a 24.2 percent increase in the share of the budget, and 0.5 percentage points, a 4.8 percent increase in the share of the budget, respectively. The table below details changes in expenditures from 2008 to 2012.[7][9][10][11][12] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
2012 25.7% 8.1% 0.3% 27.2% 3.7% 10.9% 24.2%
2011 25.5% 7.6% 0.2% 28.5% 3.3% 11.0% 23.8%
2010 27.4% 7.7% 0.3% 23.0% 3.3% 10.4% 27.9%
2009 27.4% 8.2% 0.3% 22.8% 3.6% 8.9% 28.8%
2008 28.6% 8.3% 0.3% 21.9% 4.1% 10.4% 26.4%
Change in % -2.9% -0.2% N/A 5.3% -0.4% 0.5% -2.2%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Idaho $1,152 $1,313 $194 $0 $140 $2,799 $1,736.21
Colorado $2,186 $5,642 $640 $13 $111 $8,592 $1,630.87
Montana $62 $1,048 $177 $57 $734 $2,078 $2,046.96
Utah $1,633 $2,652 $313 $0 $495 $5,093 $1,755.68
Wyoming $499 $0 $0 $0 $549 $1,048 $1,798.65
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][9] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Idaho ($ in millions)[7][9]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $1,152 $1,313 $194 $0 $140 $2,799 $1,736.21
2012 $1,027 $1,206 $187 $0 $167 $2,587 $1,621.34
2011 $972 $1,153 $169 $0 $150 $2,444 $1,543.00
2010 $956 $1,062 $97 $0 $150 $2,265 $1,442.02
2009 $1,022 $1,168 $141 $0 $134 $2,465 $1,594.64
Change in % 12.72% 12.41% 37.59% N/A 4.48% 13.55% 8.88%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][13]
Source: National Association of State Budget Officers

State budgets by year

Fiscal year 2014

DocumentIcon.jpg See budget bill: 2013 Legislative Fiscal Report

Idaho state budget -- 2014
Idaho State Legislature
Text:SB 1174 (The FY 2014 budget is made up of many legislative bills, thus SB 1174 is only a portion of the entire budget.)
Legislative History
Introduced:March 14, 2013
State House:March 28, 2013
Vote (lower house):61-5
State Senate:March 25, 2013
Vote (upper house):34-1
Governor:Butch Otter
Signed:April 9, 2013

Governor Butch Otter gave a State of the State Address outlining his proposed budget for fiscal year 2014 on January 7, 2013. Details of the speech and the proposed budget can be found here.

The state's fiscal year 2014 general fund budget of $2.78 billion passed the Idaho State Legislature in April 2013. That total was an $81 million increase over fiscal year 2013. Funding for elementary and secondary education, along with funding for higher education and other education costs, amounted to over 60 percent of the FY 2014 budget. Though the budget did increase by 2.9 percent over the previous year, many funds were cut for a number of different agencies, including the Department of Labor, the Office of Drug Policy and the Secretary of State's Office.[14][15]

Fiscal year 2013

See also: Idaho state budget (2012-2013)

Fiscal year 2012

See also: Idaho state budget (2011-2012)

Fiscal year 2011

See also: Idaho state budget (2010-2011)

Fiscal year 2010

See also: Idaho state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][10]

Historical state budget spending in Idaho ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $2,505 40% $1,348 21.5% $2,382 38% $32 0.5% $6,267
2010-2011 $2,451 37.1% $1,450 22% $2,670 40.4% $32 0.5% $6,603
2009-2010 $2,338 36.6% $1,455 22.8% $2,573 40.2% $27 0.4% $6,393
Averages: $2,431.33 38% $1,417.67 22% $2,541.67 40% $30.333 0% $6,421
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Idaho had a state debt of over $15 billion. Its state debt per capita was $9,459. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[16][17]

Total state debt in Idaho[18]
Type Totals U.S. rank
Total state debt $15,094,322,000 45
Per capita debt $9,459 44
State and other fund expenditures $3,853,000,000 28

Public pensions

See also: Idaho public pensions and Idaho public employee salaries

A 2012 report from the Pew Center on the States noted that Idaho's pension system was funded at 79 percent at the close of fiscal year 2010, just below the 80 percent funding level experts recommend. Consequently, Pew designated the state's pension system as being "in need of improvement."[19]

The funding ratio for the state's pension systems decreased from 104.49 percent in fiscal year 2007 to 84.87 percent in fiscal year 2012, a drop of 19.2 percentage points, or 18.4 percent. Likewise, unfunded liabilities increased from approximately -$500 million in fiscal year 2007 (a surplus) to more than $2 billion in fiscal year 2012.

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit rating indicates lower risk for an investor, which in turn lowers costs for taxpayers.[20]

The table below lists the Standard and Poor's credit rating for Idaho from 2001 to 2012 (grades from surrounding states are provided for additional context).[20]

S&P credit ratings from 2001 to 2012
Idaho Colorado Montana Utah Wyoming
2012 AA+ AA AA AAA AAA
2011 AA+ AA AA AAA AAA
2010 AA AA AA AAA AA+
2009 AA AA AA AAA AA+
2008 AA AA AA AAA AA+
2007 AA AA AA- AAA AA
2006 AA AA- AA- AAA AA
2005 AA AA- AA- AAA AA
2004 AA AA- AA- AAA AA
2003 AA AA- AA- AAA AA
2002 AA AA- AA- AAA AA
2001 AA AA AA- AAA AA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[21]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[21]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Idaho 34.90% $2,479,094,000 16
Colorado 28.85% $6,310,538,000 35
Montana 38.46% $2,202,444,000 6
Utah 31.61% $4,481,494,000 31
Wyoming 36.00% $2,213,249,000 13

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, Idaho received $1.6 billion in federal stimulus funding between February 2009 to June 2013.[22]

Idaho also received $104 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the president signed into law on August 10, 2010.[23]

Budget transparency

See also: Evaluation of Idaho state website and Constitutional provisions regarding reading of bills

The Idaho Constitution provides in Article 3, Section 15 that a bill be read on three days in each legislative chamber previous to the final vote. This provision is dispensable in case of urgency with a two-thirds majority of the members of the house where bill is pending. Final passage of all bills must be read at length.[24]

Government tools

The state currently has no statewide, official spending database online, despite Idaho Representative Phil Hart's work to promote transparency through Idaho House Bill 177 in 2009.[25]

Transparency Legislation

See also: Idaho transparency legislation

2011

By a vote of 6-3, the Idaho House Commerce and Human Resources Committee killed a public records bill that proposed that 114 non-government organizations comply to the Public Records Law that participate in the state pension system.[26]

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Idaho, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[27][28]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Idaho tied for 46th in the nation with three other states, earning three out of eight possible points.[28]

Idaho - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting N
600px-Red x.png
Annual cycle
{{{1}}}
Binding revenue forecast N
600px-Red x.png
Legislative revenue forecast N
600px-Red x.png
Non-partisan staff N
600px-Red x.png
Constitution or statutory tax/spend limitations
{{{1}}}
(both)
TOTAL 3

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[28]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[29] According to the report, Idaho received a grade of F and a numerical score of 44, indicating that Idaho was "failing" in terms of transparency regarding state spending.[29]

Accounting principles

See also: Idaho government accounting principles

The Legislative Audits Division of the Legislative Services Office, under the direction of the Legislative Council, is charged with the responsibility to audit the State of Idaho’s Comprehensive Annual Financial Report (CAFR) and perform the annual Federal Single Audit required by federal regulations. Their audit reports are published online and can be found here. Don Berg is the Manager of the Legislative Audits Division.[30]

Donna M. Jones has been Idaho Controller since 2007. The Idaho Controller is one of seven statewide elected constitutional officers in the executive branch of the Idaho state government and serves a four-year term. In 1994, a constitutional amendment passed by Idaho voters changed the name of the state auditor to state controller. This amendment granted the state controller the authority to establish statewide internal pre-audit accounting controls to assure state funds are spent properly. The amendment transferred post-audit functions to the Legislative Services Office enabling separation of accounting and after-the-fact auditing operations.[31]

The state controller is the chief fiscal officer of the state of Idaho, responsible for:[31]

  • Maintaining all accounting and financial records
  • Paying all the state’s bills and employees
  • Preparing the state’s annual financial report
  • Operating the state’s Computer Service Center
Credit Rating Fitch Moody's S&P
Idaho[32] NR Aa2 AA+

Standard & Poor's boosted the state's credit rating from AA to AA+ in part because of the state's use-of-revenue assumptions that would put the state on more solid financial ground.[33]

Contact information

Idaho Division of Financial Management
304 N. 8th Street, 3rd Floor
PO Box 83720
Boise, ID 83720-0032
Ph: 208.334.3900
Fx: 208.334.2438
E-mail: info@dfm.idaho.gov

See also

External links

Additional reading

References

  1. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 9.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  11. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  13. United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  14. NPR "What Idaho’s $2.78 Billion Budget Looks Like," accessed August 21, 2013
  15. "Budget Activities Summary 2013," accessed August 21, 2013
  16. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  17. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  18. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  19. Pew Center on the States, "Widening Gap Update: Idaho," June 18, 2012
  20. 20.0 20.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  21. 21.0 21.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  22. Recovery, "Stimulus Spending by State", February 2014
  23. Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
  24. Idaho Constitution, "Article 3, Section 15"
  25. Idaho State Legislature, "House Bill 177," 2009
  26. Magic Valley Times News, "Idaho House panel kills public records bill," March 18, 2011
  27. Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
  28. 28.0 28.1 28.2 Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
  29. 29.0 29.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  30. Idaho Legislature, "The Legislative Audits Division," accessed October 20, 2009
  31. 31.0 31.1 Office of the Idaho State Controller Website, "Duties of the State Controller," accessed October 20, 2009
  32. State of Indiana, “State Credit Ratings," June 24, 2009
  33. Dow Jones Newswire, "S&P Upgrades Idaho A Notch On Structural Balance, Pension Management," March 30, 2011