Little Delivers State of the State Address in Boise
Idaho Governor Brad Little presented his annual State of the State address at the State Capitol, outlining his priorities for education, fiscal stability, and workforce development.
He emphasized continued funding for public schools and a plan to strengthen the state’s financial position as Idaho faces a projected budget deficit.
“Enduring Idaho” Plan Targets Fiscal Years 2026 and 2027
Little introduced the “Enduring Idaho” plan as a blueprint to balance the state budget, as required by Idaho’s constitution.
State lawmakers are facing a projected budget shortfall of more than $500 million in fiscal year 2027. The governor said his recommendations for fiscal years 2026 and 2027 focus on disciplined fiscal management and protecting Idaho’s AAA credit rating.
Little described the plan as a way to plan ahead, live within the state’s means, and protect core priorities including public schools, workforce development, rural communities, and long-term financial stability.
Agency Spending Cuts and Cost Controls
The plan includes both one-time and ongoing spending reductions.
Key measures include:
- Extending 3 percent budget cuts across executive agencies under the Idaho Act order issued in August 2025
- Contract renegotiations
- Reprioritization of initiatives
- Operational efficiency measures
The governor’s office estimates these steps will save nearly $120 million.
The plan also uses cash balances and interest earnings to limit the impact on Idaho residents while avoiding deficit spending and new debt.
Education Funding Remains a Priority
Little called for maintaining current spending levels for K-12 education and the Idaho Launch program, which began in 2022.
He did not recommend the enrollment workload adjustment for universities and community colleges, which is expected to save $9.5 million in fiscal year 2027.
The governor said classrooms remain a top priority, even in a challenging budget year.
Alignment With Trump Administration and Workforce Strategy
Little highlighted Idaho’s alignment with President Donald Trump’s administration in his remarks.
He said the Idaho Launch program supports the Trump Talent Strategy for America initiative by advancing workforce training and putting workers first.
The governor noted he traveled to Washington, D.C. in late 2025 to meet with President Trump and cabinet members to discuss Idaho’s development programs.
Support for Trump Tax Cuts and Red Tape Rollback
Little also delivered his Red Tape Rollback plan to the Legislature and voiced support for the Trump tax cuts passed through the “One Big Beautiful Bill.”
He said the tax cuts would provide relief to seniors and working families by lowering the cost of living and putting more money back into household budgets.
The governor stated the tax changes would help Idaho compete for jobs and investment while preserving a tax system that is simple, fair, predictable, and competitive.
Medicaid Spending Reductions Proposed
Little’s budget proposal recommends a $45 million reduction in Medicaid spending from the state’s general fund.
The plan includes:
- Maintaining a 4 percent cut to reimbursement rates for Medicaid providers
- An estimated $23 million in general fund savings in fiscal year 2027
- An additional $22 million reduction through further service cuts
The governor’s office said the Legislature will be given options to achieve these reductions. Repealing Medicaid expansion was not included among the options.
Online Public School Funding Changes
The proposal also recommends eliminating $23 million in online public school funding while strengthening accountability and long-term sustainability.
This follows a report by Idaho’s Office of Performance Evaluations that found students in the Idaho Home Learning Academy receive about $1,800 annually in discretionary funds.
Concerns were raised about oversight of these funds, which are taxpayer-funded due to the school’s public status.
What Comes Next
The governor’s full State of the State and budget address is available through official state channels. Highlights of the Enduring Idaho plan have also been released.
The Legislature will now review the proposal as part of the 2026 and 2027 budget process.
Related Coverage
- Idaho News – https://idahonews.co/idaho-news-3/
- National News – https://idahonews.co/national-news/
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