Last Friday, the governor, Senate president pro-tem and House speaker sent out a letter anticipating a budget shortfall next year of as much as $185 million, including the $35 million in cuts that Gov. Butch Otter already had proposed. Now, that figure is shrinking quickly. First came the news yesterday that January tax revenues, at least from preliminary numbers, are $15 million ahead of projections - despite unexpectedly large payouts for alternative energy tax rebates in January. Today, legislation has been introduced on IRS conformity with a total price tag to the state of $20 million between fiscal years 2011 and 2012, rather than the $70 million anticipated in Friday's letter.  Here's an AP report on the new conformity bill, which not only was introduced this morning in the House Rev & Tax Committee, it also was given final approval and sent on to the full House on a 17-1 vote:

BOISE, Idaho (AP) — The House tax committee has approved a bill that matches Idaho's tax code with new federal rules allowing businesses and farmers to write off new equipment. But making Idaho tax policy conform with new federal rules carries a price. Lawmakers estimate the move will cost the budget $10 million this fiscal year and another $10 million in fiscal 2012. The House Revenue and Tax Committee approved the bill 17-1 and sent it immediately to a vote on the House floor. The provision would give businesses the option of immediately writing off up to $500,000 in new equipment rather than depreciating the value over several years. The committee opted not to conform to a separate tax code provision that would have cost another $50 million combined this year and in 2012.