Idaho's new state tax revenue forecast is out, and it's not good news. It's down another $173 million, or 6.8 percent, from the last official forecast, which was in February. However, state officials knew in April that the state's economic situation had deteriorated, and accounted for that in the budgets they set. As a result, this is Idaho's situation: There's a $151.4 million shortfall in the current budget year, fiscal year 2010, which started July 1, but there's also $274.3 million still left in the state's various rainy-day funds. Those funds had $391 million at the start of this year's legislative session; some was spent, but the Legislature and governor also imposed deep cuts, including the state's first-ever cut in state funding for public schools and a 5 percent cut in personnel costs statewide, for all agencies, that's left state workers facing furloughs, layoffs and more.

Gov. Butch Otter could impose mid-year budget holdbacks, or he could work with legislators to tap the reserves, or there could be some combination of those, but one way or the other, the state has to balance its budget. Otter is scheduled to meet with state agency heads Sept. 10 "to discuss potential savings;" he's meeting with GOP legislative leaders on Sept. 11, and he's meeting with legislative minority leaders on Sept. 16, all before he puts forth his proposed plan.

“We have been here before," the governor said in a statement. "We have the experience, the tools and the commitment needed to address this situation while maintaining necessary public services. We are fortunate to be far better off than most other states, thanks to sound, conservative fiscal management and a strong understanding of government’s limited role in people’s lives. Our job is not to protect government, but rather to protect the people who pay for government as well as those who rely on it. These difficult economic times require that we work even more closely together toward those goals.”

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