A strong economy needs stability. A balanced state budget requires honest math. Unfortunately, Republicans in power broke these basic rules. Chaotic economic policies, phony revenue projections, and negligent tax cuts have set the stage for painful hits to schools, public safety, and other essential services, all of which are already underfunded. The result is a downward spiral that will weaken our economy well into the next year.

For the last half of 2024, state revenues were on track. Everything changed in January. Under the Trump regime, reckless tariff wars slammed retirement savings, disrupted supply chains, and closed off markets for Idaho’s farmers. Prices rose, investments slowed, and consumer confidence faltered.

Meanwhile, billionaire campaign donor Elon Musk illegally fired scores of diligent Idaho employees and canceled lawful grants and partnerships with local farms, nonprofits, and others that fueled smart investments in our communities.

That chaos reached Idaho’s bottom line. Since January, revenues have come in below projections nearly every month. Today, we’re $141.5 million below projections.

But instead of responding, Idaho’s Republican leaders looked the other way. They refused to criticize the chaos from Washington, and worse, they failed to prepare Idaho for the financial hit.

The Idaho State Tax Commission projected less than 1% revenue growth for the coming year. Republican lawmakers ignored that and based the budget on 6.8% to justify a $50 million private school voucher scheme and sweeping tax handouts tilted toward the wealthy.

Governor Little knew these giveaways were too deep. He said so. Then, he caved, signing them into law.

The coming year’s budget is now on a collision course. Little has ordered every state agency to prepare for budget cuts in July.

The Idaho Department of Education has warned that every public school district in the state could be affected. In Twin Falls, district leaders called it a “double whammy,” having first lost public dollars to voucher schemes and now facing holdbacks due to falling revenue.

These cuts will also ripple through the Idaho State Police, firefighting, healthcare, basic infrastructure, and many other areas.

And while services shrink, the tax breaks stay in place. Wealthy households and private schools keep their special deals. The price will be paid by everyday families who lost their child tax credit, by students sitting in crowded classrooms, and by Idahoans pursuing career training they can no longer afford.

Idahoans deserve better. We deserve leaders who tell the truth about our economy, who protect core services before handing out special favors, and who prioritize the next generation instead of the next campaign donor.

This crisis wasn’t an accident. It was a choice. And in 2026, voters will get the chance to make a different one.

Onward,

Lauren Necochea
Idaho Democratic Party Chair