Idaho Governor Little calls special session on budget surplus

Governor Brad Little announced that a special legislative session will be held on September 1 to use the state’s $2 billion projected surplus. He says it will help address inflation.

“We’re calling an extraordinary session to address the crushing impacts of historic inflation on Idaho families and schools,” Little said. “The cost of basic fundamentals to live everyday life has skyrocketed, and schools are faced with the burden of rising operating costs. Idaho’s powerful economic engine, combined with years of fiscal conservatism in state government mean tax revenues have outpaced government spending, month after month, year after year. As a result, we are now projecting a new record budget surplus – $2 billion – which is hundreds of millions more than we expected. With the emergency before us, we’re going to give it back to the people and help our schools.”

The inflation bill would include:

• Immediate tax cuts: $500 million in one-time income tax rebates. Residents would get 10% of their 2020 income taxes paid.

• Flat income tax: This would cut the first $2,500 of income from taxation for individuals and $5,000 for joint and create a new lower flat tax of 5.8%.

• Education investments: through an ongoing sales tax transfer $410 million would go to Idaho education.

The Idaho House Republican Caucus sent out a statement in support of Little’s decision.

“It’s very clear that as families work to make ends meet under the pressure of rising costs of basic necessities created by an inept Biden administration, that emergency relief is absolutely necessary,” said House Speaker Scott Bedke (R-Oakley). “Idaho House Republicans are eager to help in this time of extraordinary need and look forward to convening on September 1^st, 2022.  We cannot afford to sit back and watch as continued mismanagement from the federal government threatens the prosperity of our friends and families.”

You can read more about the subject bill here.