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Little: 'Big, beautiful bill' could reduce revenue
Little: 'Big, beautiful bill' could reduce revenue

Yahoo

time06-05-2025

  • Business
  • Yahoo

Little: 'Big, beautiful bill' could reduce revenue

May 6—In a visit to Lewiston on Monday, Idaho Gov. Brad Little said Idaho is in good economic shape but spending and tax cuts pending in Congress could leave the state vulnerable to reduced revenue. Idaho has been among the fastest growing states in the country over the past few years and the Legislature has used budget surpluses as justification for significant tax cuts. During the recently adjourned 2025 legislative session, lawmakers passed tax cuts that will reduce state income by $453 million. Little, who submitted what he called a conservative budget seeking much more modest cuts — about $100 million worth — signed those tax bills. On Monday, he said the as-of-yet unknown details of tax cuts being debated by Congressional Republicans — such as the possibility that taxes would not be collected on tips, overtime or social security benefits — will play a role in the state's income. "We always adopt the federal tax code. We don't know what's going to be in that big, beautiful bill," he said referring to President Donald Trump's desire to extend tax cuts from his first term and fund his domestic agenda. "When we do that, our revenue projection might go down." Nor does the state know the degree to which federal programs, some of which play outsized roles in the Gem State, may be cut. Little said Idaho does a good job in pitching in its own money to fund big-ticket items like schools, roads and infrastructure, and social safety net programs. But the federal government also helps pay for many of them and Trump is seeking to shrink the federal government's financial liabilities. "Medicaid is a big one. If they change the FMAP (federal medical assistance percentage) — which is the federal government share of what they pay — if they change that a lot, that's going to be a big hit," Little said. A federal budget blueprint calls for $880 million in cuts to Medicaid, a medical program for low-income and disabled people. Little said the state would seek a waiver for its Medicaid work requirement. Daily headlines, straight to your inboxRead it online first and stay up-to-date, delivered daily at 7 AM "That might help us a little bit," he said. Little said hypothetical revenue shortfalls would be softened by its savings account. "We do have about 23% of our total state budget in a rainy day fund. It's not raining. We're the fastest growing state." The governor touted the legislature's approval of more than $30 million to fund the Idaho Department of Water Resources and said it leaves the small agency in position to help the Lewiston Orchards Irrigation District in its long-term goal of drawing water from the Clearwater River, solve water supply problems on the Palouse and deliver water from Dworshak Reservoir to the Dworshak National Fish Hatchery. Little said a new law will help shield Idaho's electricity companies and cooperatives from the sorts of lawsuits that have plagued some of the biggest investor-owned utilities in the West when power lines or other equipment cause fires. "If you're a utility and you do everything right. You know you have your right-of-ways prepared. Your equipment is in good shape. There's going to be a limit to the amount of liability you have." Barker may be contacted at ebarker@

Idaho House passes Water Resources budget with $30M for infrastructure projects
Idaho House passes Water Resources budget with $30M for infrastructure projects

Yahoo

time27-03-2025

  • Politics
  • Yahoo

Idaho House passes Water Resources budget with $30M for infrastructure projects

The Idaho State Capitol rotunda is pictured in this Jan. 23, 2024, photo. (Otto Kitsinger for Idaho Capital Sun) The Idaho House of Representatives voted 56-13 on Thursday to pass the Idaho Department of Water Resources budget with $30 million in new funding for water infrastructure projects. Idaho water issues came to a head last May when the Idaho Department of Water Resources director issued a curtailment order requiring 6,400 junior water rights holders who pump off the Eastern Snake Plain Aquifer to shut off their water in order to protect senior water rights holders from a forecasted shortfall. The curtailment order was in place for about three weeks until the two sides reached an agreement that resolved the issue for 2024. The two sides then continued negotiations until the Surface Water Coalition and Idaho Groundwater Association reached a long-term settlement agreement last fall. Then, in conjunction with his Jan. 6 State of the State address, Idaho Gov. Brad Little called for spending $30 million on water projects to increase water levels in the aquifer and support the settlement agreement. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The $30 million was included in House Bill 445, the fiscal year 2026 budget enhancements for the Idaho Department of Water Resources, which the Idaho House took up Thursday. Several legislators stood up on the House floor and made passionate speeches in favor of approving the funding and the budget. 'Water is the lifeblood of our state,' Rep. David Cannon, R-Blackfoot, said. 'Water is the lifeblood of my legislative district. There is no more urgent issue in the immediate term or in the medium term or in the long term to the state of Idaho than water. And in my view, House Bill 445, is one of the most important bills to come through this session. And I urge unity. I urge the state to join together on this issue for the betterment of Idaho and for the protection of Idaho water going forward.' Rep. Stephanie Mickelsen, an Idaho Falls Republican and chair of the Idaho Ground Water Appropriators, said there are more water projects than there is money to go around, and many projects take multiple years to complete. But Mickelsen said legislators have a responsibility to protect water resources. She described investments in water projects as investments in the state's overall economy. 'I had ancestors that came and dug the very beginning of the canals in Taylor, Idaho,' Mickelsen said. 'And now I sit here and I look and we're not going to sacrifice anything to keep these waterways and this aquifer healthy? We could have the problems of the Ogallala (Aquifer) that are in Nebraska and Kansas, and they are a declining resource that they may not be able to save. The lucky thing for Idaho is we have plenty of water, but we have to make the investment to protect the resource that we have.' Not every legislator agreed with spending the money, however. CONTACT US 'I understand the importance of water in our state,' Rep. David Leavitt, R-Idaho Falls, said. 'It is the lifeblood of our state. It's what makes everything function, every single industry. But the reality is this is $30 million. This is a massive amount of money. And with this money, we don't know where it's going to be spent.' Several legislators pushed back, saying it is not true that the state doesn't know where the money is going or what the projects are for. Page 2 of the bill, beginning on line 38, states projects shall prioritize aquifer recharge, groundwater management, development and rehabilitation of water storage and conveyance systems, including reservoirs, diversion structures, pipelines and canals, water supply and delivery improvements that enhance efficiency and conservation, emergency water repairs and upgrades to ensure the reliance of vital water systems. Additionally, Rep. Wendy Horman, R-Idaho Falls, passed out documents to all legislators Thursday outlining specific water projects. 'That's why I handed out the list of projects – so you all can see this is not a secret,' Horman said. 'If you're not knowing what these projects are, it's only because you're not looking. Here they are!' After a passionate, hourlong debate the Idaho House voted 56-13 to pass the budget with the $30 million for water projects. House Bill 445 heads next to the Idaho Senate for consideration. SUPPORT: YOU MAKE OUR WORK POSSIBLE

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