Credit: Contributed photo
Idaho Capitol Building
As of Wednesday, August 8, 2018
BOISE Governor C.L. “Butch” Otter and State Controller Brandon Woolf announced that continuing strong economic growth enabled the State of Idaho to end fiscal 2018 with $100.7 million more tax revenue than anticipated despite June collections that were $19.3 million less than forecast.
“Our ability to pay for the public services needed by a growing population is a credit to the dynamism and diversity of Idaho’s economy and the talents, abilities and efforts of our entrepreneurs, employers, and the men and women who provide the means,” Governor Otter said. “All of us in State government are committed to living within those means, and to ensuring that Idahoans’ tax dollars are used efficiently and effectively.”
Total tax receipts for the budget year through June 30 were 8.2 percent over the year before, far exceeding the 5.3-percent growth forecast by the Division of Financial Management.
Despite the weak June results due to revenue that was below projections for both individual and corporate income taxes, total individual income tax receipts in fiscal 2018 were 10.7 percent over the previous year and $68.6 million more than forecast. Corporate income tax collections of $238.7 million in fiscal 2018 were up 11.5 percent from the year before and $22.9 million more than expected. The sales tax brought in $1.49 billion during the recently completed budget year – a 7.8-percent increase from fiscal 2017 and $18.5 million more than projected. Overall, the State collected more than $3.73 billion in General Fund revenue in the 12 months through June.
End-of-year adjustments, including agency reversions (amounts budgeted but not spent), led to a total cash surplus of $120.6 million.
That enabled the State to begin the new budget year by making “surplus eliminator” transfers of almost $60.3 million each to the Strategic Initiatives Fund supporting State and local transportation programs and the Budget Stabilization Fund providing a hedge against future economic downturns. Another nearly $34.5 million was transferred into the Budget Stabilization Fund as required by law when the General Fund grows by more than 4 percent in the previous fiscal year. The rainy day fund now holds a total of more than $413.5 million.
“The tax dollars of Idaho’s citizens are accounted for in accordance with the law, and the State of Idaho closed its fiscal year with a balanced budget,” said Controller Woolf, the State’s chief fiscal officer. “Because of our Idaho values the State’s leaders have made prudent, fiscally responsible decisions. Idaho maintains a strong financial position going into the new fiscal year.”