A Conversation with Ron Nate & Tea Party Bob
Podcast Notes by Bob Neugebauer
Idaho’s Government Growth and Economic Freedom: A Critical Analysis
The rapid expansion of Idaho’s state government, coupled with increasing federal dependency, raises serious concerns about the trajectory of what many consider a conservative stronghold. An examination of budget figures and agency growth reveals a stark contrast between Idaho’s reputation for limited government and its actual governmental expansion over the past decade.
Unprecedented Government Growth
Idaho’s state budget has more than doubled in less than a decade, growing from under $7 billion in 2015 to $13.9 billion today. This represents a staggering 54% increase in government spending over just the past five years. The expansion isn’t limited to funding – the state now maintains 189 agencies and sub-agencies, with new oversight boards continually being established.
“Our State government in the last 5 years has seen a 54% increase in government spending in Idaho, and we are the conservative red State – or so I have heard,” notes Ron Nate, president of the Idaho Freedom Foundation, highlighting the contradiction between Idaho’s conservative reputation and its government’s growth trajectory.
Federal Dependency and State Autonomy
A critical aspect of Idaho’s government expansion involves its increasing reliance on federal funding, which now comprises 42% of the state budget. This federal involvement comes with approximately 58,000 memorandums of understanding (MOUs) and federal rules, significantly impacting state autonomy. This represents a substantial increase from about 30% federal funding share just nine years ago.
The implications of this federal dependency extend beyond mere financial considerations. For instance, educational policy decisions are increasingly tied to federal funding. Nate points to a specific example: “When I wanted to repeal Common Core and SBAC testing, the first question asked was, ‘Will this cost us Federal dollars?’ The answer unfortunately came out to be yes.”
Legislative Compensation and Government Efficiency
Recent developments in legislative compensation have raised additional concerns about government restraint. A 22% pay raise for legislators, followed by judicial salary increase requests, exemplifies the challenges in controlling government growth. State district judges, who currently earn over $160,000 annually, are seeking an additional $45,000 in compensation.
The Case for Economic Freedom
The relationship between economic freedom and societal prosperity emerges as a crucial consideration in this discussion. According to international freedom indices from organizations like the Heritage Foundation and Fraser Institute, countries with greater economic freedom consistently demonstrate superior outcomes across multiple metrics:
- Higher income per capita
- Greater economic growth rates
- Better income distribution, including higher shares for the poorest 10%
- Longer life expectancy (approximately 16 years longer in free versus less free countries)
- Superior educational and healthcare outcomes
- Lower overall poverty rates
Market Principles and State Policy
The fundamental principles of free markets suggest that government intervention often creates unintended consequences. This is particularly evident in areas such as international trade, where tariffs and trade restrictions can have complex ripple effects throughout the economy.
The current challenges facing Idaho’s government structure point to a critical need for reassessment of growth patterns and spending priorities. As the state continues to expand both its budget and regulatory framework, questions arise about the sustainability of this trajectory and its alignment with principles of limited government and economic freedom.
“We need to set some standards and hold to those,” Nate emphasizes, suggesting specific criteria for evaluating government growth: “If it adds State employees – no. If it adds Federal dollar spending to our government spending – no. If it adds anything above 0% – it should be rejected.”
Looking Forward
The path forward for Idaho requires careful consideration of how to balance necessary government functions with principles of limited government and economic freedom. This includes:
- Establishing clear metrics for evaluating government growth
- Implementing stronger oversight of federal funding dependencies
- Developing mechanisms for maintaining state autonomy while managing federal relationships
- Creating transparent processes for evaluating new agency creation and expansion
The challenge lies not just in implementing these measures, but in maintaining them against the constant pressure for government expansion. As Idaho continues to navigate these issues, the outcome will likely serve as a test case for how conservative states can manage growth while preserving principles of limited government and economic freedom.
