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Eye On Boise

Wed., June 2, 2010, 10:55 a.m.

Forecast: Idaho headed for economic recovery in ‘11

Idaho is on track for an economic recovery in 2011, according to the state's latest official forecast - though state lawmakers and the governor set a pessimistic budget for 2011 that requires historic cuts in education. The newest state forecast, issued in May, says, "Idaho's economic recovery should be well established after this year, entering a period of modest growth beginning in 2011. ... It has been awhile, but it is beginning to feel like a recovery." The forecast is considerably sunnier in tone than the last official state forecast, which was issued in January; that one suggested "cautious optimism" and said, "Admittedly, risks to the economy exist, but it appears the worst is behind us."

The Legislature and Gov. Butch Otter cut their own estimates of state tax revenues far below the official forecast to be on the safe side, even though the decision meant deep cuts in government programs including schools. Public schools saw an unprecedented overall funding cut for next year of 7.5 percent - $128.5 million - along with state authorization to cut pay for teachers and administrators, a statewide declaration of financial emergency for schools, and more. "The governor has said all along that we expect there to be a recovery - it's not a matter of if, it's a matter of when," said Otter's spokesman, Jon Hanian. "We've gone through this difficult period. ... His view is we need to be very frugal, very cautious and conservative in our budgeting. Really, nothing has changed to suggest that isn't the prudent way to go. It's Idaho common sense, that's how he's built this budget." You can read my full story here at spokesman.com.




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Eye On Boise

Short takes and breaking news from the Idaho Legislature and the state capital.