Expect budget-setting to be contentious in the 2026 Legislature

By Sen. Jim Woodward, R-Sagle
Reader Contributor

In the past decade, we have made substantial investments in Idaho’s future by investing in infrastructure. Rural sewer and water, state and local transportation, and schools have been a real focus in the recent past. Those investments are going to get cut short soon.

Unfortunately, it appears we are going to prove an old adage true: “It isn’t the decisions made during difficult times that will cause you grief, it is the decisions made during good times.” 

The state of Idaho is facing budget difficulties in the current year with potentially bigger challenges in the next few years. Why? Because the Legislature got too aggressive cutting taxes. 

In the past eight years, Idaho has reduced the income tax rate five times. I have been in the Senate for three of those rate reductions. I voted for the first two because I support keeping our taxes low. I voted against the 2025 income tax reduction with the belief it would cause problems balancing the budget in a few years. Instead, the problem came home to roost in a matter of months, as evidenced by the Gov. Brad Little’s 3% budget holdback this summer.

We also overestimated revenues. Every year, we balance the state budget. To do that we estimate tax collections for the upcoming budget year, then decide how we will spend the amount we have estimated.

In the 2025 legislative session, political gamesmanship ran amok. Normally, the revenue estimate is voted on in the first or second week. We went two months without setting an estimated revenue, while spending money as if there were no limit. 

In other words, some folks figured out what they wanted to spend and then set the revenue estimate to match. 

I believe it is unprecedented in Idaho history to set budgets without first setting the revenue estimate. It is another step down the path toward functioning (or not functioning) like Washington, D.C.

That is a pretty strong complaint I’ve made. What am I doing about it then? I am going back to Boise in January to fight for balanced, thoughtful decision-making like Idaho is traditionally known for. I believe budget-setting will be the most prominent and contentious issue of the 2026 legislative session. 

As vice-chair of the Joint Finance and Appropriations Committee, I will be pushing for a more conservative budgeting process.

Jim Woodward is the Dist. 1 Republican senator from Sagle. He serves on the Joint Finance-Appropriations (vice-chair) and Education committees. Reach him during the legislative session at 208-332-1349 (Statehouse), 208-946-7963 (home) or [email protected].