This report examines Idaho state budgeting during 2009 and 2010. After first describing Idaho's people, politics, and budgeting process, it discusses the economic and General Fund revenue situations facing the state. The paper considers adjustments for FY 2010 proposed by Governor Otter and approved by the legislature, and budget recommendations and legislative actions for FY 2011 and their impacts on state spending. The report concludes with developments since the legislative session ended last spring.

In 2009 and 2010, when Idaho policymakers experienced major economic problems and scarcer revenues, they approved major spending reductions. More recently, as the state's economy and revenues have been improving, policymakers have sought to establish the "new normal" for Idaho state budgeting. To discern what this new normal may entail, this paper examines the governor's budget recommendations and the legislature's appropriation actions for Fiscal Year 2013. It briefly describes Idaho's people, politics, and budgeting process. After discussing developments in Idaho's economy and General Fund revenues, it reports on the governor's budget recommendations and the legislature's actions. It then considers impacts of these decisions in terms of budget shares and progress to return budgets to their spending levels before Idaho's economic and revenue problems began. It finds that General Fund revenues have improved, but the fortunes of General Fund budgets have been mixed.

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