How Idaho’s Legislature Prioritizes Growth Over Tax Relief
A Conversation with IFF President Ron Nate & Tea Party Bob
Podcast Notes by Bob Neugebauer
The Idaho legislative session has entered its March sprint to the finish line with a troubling pattern that should concern every taxpayer in the state. My recent conversation with Idaho Freedom Foundation President Ron Nate revealed just how far our state has drifted from fiscal conservatism despite having one of the most Republican-dominated legislatures in the nation.
Enhancement Budgets: The Hidden Growth Mechanism
As we enter the third week of March, the Joint Finance and Appropriations Committee (JFAC) still hasn’t completed work on the state budget, with approximately 20 “enhancement budgets” yet to be approved. These enhancements represent the growth portion of agency budgets, separate from the maintenance budgets that keep basic operations running.
“It’s March madness in the Idaho legislature,” Nate explained. “It’s a mad scramble in March. They say, ‘Hurry up and get these important things done,’ and I’m thinking, where were you for the last two months?”
The separation of maintenance and enhancement budgets theoretically creates an opportunity to curb government growth by rejecting the enhancement portions. While some representatives are beginning to vote against these enhancements, the overall trajectory remains concerning – the total budget is expected to grow between 5-10% this year, pushing it over $14 billion.
The Spending Index: Republicans Voting Like Democrats
The Idaho Freedom Foundation’s spending index provides an illuminating window into which legislators consistently support spending increases. Only nine representatives have voted against every enhancement budget: Dan Foreman, Josh Cole, Christie Zito, Clint Hostetler, Lucas Kaylor, Glenita Zeiderfeld, David Levitt, Kent Marmon, and Heather Scott.
More surprising is the list of legislators with a 0% score – meaning they’ve voted for every single spending increase. While expected from Democrats like Ilana Rubel and John Gannon, it’s the Republican names that should raise eyebrows: John Weber, Mark Souter, Steve Miller, Jack Nelson, Britt Raybold, Dustin Manwaring, Wendy Horman, Dori Healy, Clay Handy, Rod Furniss, and Rick Cheatham.
“We have work to do,” Nate noted. “Either get legislators to vote better or get better legislators to do the voting.”
Tax Cuts: Symbolic Gestures vs. Meaningful Relief
Idaho’s much-touted tax cuts this year, while advertised as significant, amount to approximately $576 per year for the average Idaho family – about $48 monthly. Meanwhile, legislators awarded themselves a $5,000 annual pay increase. Looks like hey take care of the legislators first, I guess.
Even the modest property tax relief portion of the package is now being delayed. House Speaker Mike Moyle introduced legislation to pause part of the promised property tax cuts for a year, effectively reducing the already minimal tax relief.
According to the Idaho State Tax Commission’s annual reports, the state’s revenue collections have increased dramatically over the past five years, far outpacing population growth or inflation. This growing tax burden contradicts Idaho’s reputation for fiscal conservatism.
The Medicaid Beast
The single largest component of Idaho’s budget is Medicaid, consuming $5.3 billion of the $14.4 billion total. Despite this enormous expenditure, recent accountability measures resulted in only $27 million in cuts – a mere 0.5% reduction.
“They’ve done the maintenance budget, you know. They’re funding the maintenance budget which includes inflation growth for their employee salaries,” Nate explained. “They’re keeping that steady growth going and actually going to pass some enhancements on top of that. It’s outrageous.”
When Idaho voters approved of the Medicaid expansion in 2018, proponents estimated it would cost approximately $400 million. The program now costs over three times that amount, with continued growth expected.
Federal Dependency: Idaho’s Vulnerability
Idaho’s budget relies on federal funding for 42% of its total. This dependency creates a significant vulnerability should federal spending be reduced, which Nate actually welcomes: “If the Federal Government does its cuts, I say, Hallelujah, praise the Lord, we will have some of our autonomy back.”
This federal dependency contradicts Idaho’s self-image as a state of rugged individualism. As Nate observed, “Our legislators want to depend on the Federal Government for 40% of our budget. It just doesn’t square with the average Idahoan’s mentality.”
Medical Freedom: A Positive Step
One bright spot in the legislative session is Senate Bill 1023, the Medical Freedom Bill, which has passed both chambers and awaits the governor’s signature. This landmark legislation would prohibit government entities from mandating medical interventions including vaccinations as conditions for entering businesses, schools, or government buildings.
“It’s really a landmark Medical Freedom Bill that I’m not sure is equaled in any other State,” Nate said. “If he’s not signing this, he is saying that he wants the power, and he wants government to have the power to tell you to get a shot, to tell you to wear a mask.”
A Path Forward
The Idaho Freedom Foundation and several other state-based think tanks are working to restore fiscal discipline and limited government principles across the country. Nate recently attended a conference with the Atlas Network, connecting with similar organizations nationwide.
“There’s this new energy of people seeing a light in terms of freedom, less government, more focus on people and businesses, and less focus on agencies,” Nate said.
For meaningful change to occur in Idaho, citizens must become more engaged and hold their representatives accountable. Understanding who represents them and how they vote on spending bills is essential to electing true fiscal conservatives. As Nate reminded listeners, “Government is not a job service. The government is providing a limited role for the people of America. It does not exist to employ people.”
Until Idahoans elect representatives who truly understand fiscal responsibility, the pattern of growing budgets and minimal tax relief will likely continue.
