Legislative update: 2026 session recap

By Rep. Mark Sauter, R-Sandpoint
Reader Contributor

Greetings. As the session wound down, I found myself wondering about how the work of this Legislature resonated with our residents and what Idahoans in our state were expecting. Were our efforts reflective of the values of those who came before us? Did our actions compare to what previous Legislatures did? 

From the opening “gavel” to start the legislative session, budget issues were the talk in the hallways and among the legislators. We had to address a shortfall situation for the 2026 budget, determine how to address the federal adoption of the Big Beautiful Bill (BBB) and to craft a balanced budget for 2027. We had a multitude of new bills to vote on as well (more on that in a future column). Developing a balanced budget is the No. 1 priority of the Legislature.

As we ended the session earlier this month, the Legislature addressed the issues noted above with a variety of solutions. The 2026 budget should end with a small surplus and the 2027 budget year is balanced and has a conservative surplus to address unforeseen situations and costs that may arise. 

I think it’s important to note that “the beat goes on” for tax cuts for our residents. We maintained conservative solutions for our voters, like property tax reductions implemented in 2023 and 2024. Income tax reductions from last year remain in effect as well. With the Idaho adoption of the BBB, our residents will also keep more of their hard-earned money from tips, overtime and car-loan interest. Qualified seniors will also get deductions for their federal taxes. 

The battle to right-size the state budget and staff numbers continues. Some have pointed out the growth of the overall budget over the past several years and the need to rein in spending. Others have called attention to our population growth and inflation as influential factors. 

During this legislative session, many short-term fixes were implemented to address what appears to be a cash flow problem or what could be a downward trend in revenues. Because of the adoption of the BBB this session — and its “look back” aspect for 2025 for individual and business returns — the legislative body had to reduce state spending by $125 million. 

The conservative Legislature wanted to be sure Idaho residents got their deductions for all four years of the BBB. We also had to reduce 2026 spending to match the forecasted 2026 revenues in real time, as we are receiving them. 

All the above noted actions resulted in a 2027 budget that is $2 million less than the original 2026 budget. 

It’s important to note that the short-term fixes are not sustainable. We cannot expect our roads and infrastructure to hold up without investing in timely repairs and replacement. We can’t expect our bridges to last forever, either. We also cannot forgo deferred maintenance on our state facilities. 

I serve as the House member on the Permanent Building Fund Committee. To balance the state budget this year, Gov. Brad Little made some serious cuts to building maintenance projects. That same action was taken for many years in previous decades, and our state subsequently experienced the increased costs for repair of bad roofs and water damage. 

There is reason to believe Idaho will grow out of our current situation. By the end of this year, we should have a better understanding of our overall income tax and corporate tax revenues as the BBB effects are passing through our system. Sales tax revenue has been climbing each year and should help in 2027. 

It’s not an Idaho value to only hope for things to get better. The conservative thing to do is to plan for tough times when we are in good times, knowing good times don’t always last. The same can be said for tough times — we Idahoans get through them and hopefully learn from them.

I’m working hard and consistently to protect what our district, and the great state of Idaho, values with fiscally conservative values, including a transparent and balanced budget.

It’s an honor to represent this district in Boise and to be a voice for our area in local matters like Lake Pend Oreille. Questions or thoughts? Email me at [email protected].

Rep. Mark Sauter is a second-term Republican legislator representing District 1A. He serves on the Agricultural Affairs; Education; and Resources and Conservation committees.