The Idaho Spending Index serves to provide a fiscally conservative perspective on state budgeting while providing an unbiased measurement of how Idaho lawmakers apply these values to their voting behavior on appropriations bills. Each bill is analyzed within the context of the metrics below. They receive one (+1) point for each metric that is satisfied by freedom-focused policymaking and lose one (-1) point for each instance in which the inverse is true. The sum of these points composes the score for the bill.
Rating: (-1)
Bill Description: House Bill 373 is an enhancement of $12,200 and 0.00 new full-time positions for the Division of Financial Management for fiscal year 2026. This legislation appropriates a total of $44,988,700 and 22.00 full-time positions to the agency.
Does this budget enact powers and activities that extend beyond the proper role of government? Conversely, does this budget fulfill the proper role of government?
For yet another year, this budget sustains more than $41 million in spending authority for funding from the American Rescue Plan Act that is built into the base as pass through spending. These funds were added to the base budget in the 2024 fiscal year to provide support to small businesses and mortgage assistance to homeowners in response to the economic effects of the pandemic.
ARPA and the IIJA were largely partisan measures from Washington, DC, and they represented gross federal overreach and a massive surge in the national debt. These concerns were compounded by issues of state sovereignty, since the federal government is paying for new entitlement programs in Idaho on the backs of our grandchildren. This funding represents the staggering growth of Idaho’s dependence on the federal government and its reach outside of its proper role. So far, no plan has been articulated as to what will happen when these funds expire in 2026 while Idahoans are dependent on receiving this government assistance.
(-1)
Does this budget incur any wasteful spending among discretionary funds, including new line items? Conversely, does this budget contain any provisions that serve to reduce spending where possible (i.e. base reductions, debt reconciliation, etc.)?
This budget makes a modest cut of $8,900 to enforce a 3% spending increase limit on general fund spending increases. This constitutes a 42% reduction in the proposed increases — therefore, not a true cut to the budget. Though it does not result in a net reduction in the budget relative to the FY 2025 original appropriation, this provision should be seen for its merits as the 3% limit on spending. It is positive for the legislature to set growth limits on agencies and enforce them.
(+1)
Is the continuation or growth in ongoing spending, if any, inappropriate for the changes in circumstances, scope of the agency, or current economic environment? Conversely, is the continuation or growth in ongoing spending appropriate given any change in circumstances or economic pressures?
This legislation confirms the maintenance budget for the Division of Financial Management of $44,796,300. This funding includes $41,682,000 in COVID relief funding from the American Rescue Plan Act. These funds are one time in nature. Removing these funds leaves a maintenance balance of $3,114,300. This is an 18.5% increase from the base over the last three years and higher than what would be prescribed by inflationary pressures over the same period.
Because of the accelerated growth in this budget the last three years, a truly fiscally responsible enhancement budget for FY2026 would reverse the growth with a reduction to the base budget, or negative appropriation.
(-1)
