Year-end state tax revenue figures announced yesterday showed that Idaho ended up with $7.2 million more than expected at the end of the fiscal year June 30, but the state actually has a significantly larger budget surplus than that. Here’s why: This year’s state budget didn’t call for spending all the tax revenue the state expected to collect. Instead, $36 million was transferred to various budget stabilization funds, and another $44.4 million was left unspent, creating a year-end balance or surplus.
The monthly Budget and Revenue Monitor from the Legislature’s budget staff lays out the figures; you can see it here. It shows the ending balance, or surplus, at the end of fiscal year 2014 at $44.4 million, $17.6 million higher than was anticipated at the close of this year’s legislative session.
Factors pushing the number higher, aside from the increased revenue collections, are year-end reversions of unspent money from various state agencies, including $6.4 million from the Catastrophic Health Care Program due to lower than anticipated costs; $5.9 million from other agencies; and $1.6 million in other year-end adjustments, all adding to the surplus. (If you’re doing the math, the Legislature’s budget figures already counted part of the $7.2 million based on revenue reports that came in before the Legislature adjourned; so by its calculation, the additional year-end boost from revenues was $3.6 million beyond expectations rather than $7.2 million.)
When lawmakers return to town in January, they’ll need to act on a series of deficiency warrants largely consisting of $17.5 million for firefighting costs; that would still leave more than $26 million from the surplus. An additional reversion from Medicaid also is expected to boost the total in August or September.