ALERT: The State of Idaho is Suddenly Broke

Is Idaho out of money?

They Didn't See This Coming?

I had a conversation with Idaho House Minority Leader Ilana Rubel. She said she doesn’t like to say I told you so, but that she warned of trouble as a budget was adopted earlier this spring. When I asked if the state had a cash flow problem, she replied that cash flow is a temporary hiccup, but this is bigger.

The state is short almost 142 million dollars in revenue projections. Governor Brad Little is warning state agencies that they are going to be asked to trim spending.

Credit Bill Colley.

Rubel is a Democrat. I’m a Republican. There isn’t much we agree on, but I remember listening to the Governor’s State of the State address and thinking it didn’t add up. You can’t promise to increase spending across a wide spectrum of programs while at the same time offering massive tax cuts.

Idaho Doesn't Have a Printing Press

Unlike the federal government, Idaho can’t print money or borrow from foreign governments (debt issuance). The state must balance its budget. Impersonating the federal government is a bad idea. A seriously bad idea.

I didn’t hear an echo from Republicans when I sounded an alarm. After all, many got the initial headlines and told constituents they could see more spending on their special interests, and be allowed to keep more of their own money. And the Tooth Fairy is real!

Last week, I spoke with State Senator Glenneda Zuiderveld. She told me it doesn’t sound like the Governor has any plans to have legislators come back and clean this mess up before 2026.

Once again, you’ve been snookered. Remember, ladies, when he says he’ll still love you in the morning, you’ve heard it before. There’s a lesson to be learned.