Idaho Governor Butch Otter has called for a $40 million hold-back in this year’s state budget, and no new spending for Fiscal Year 2011. Delivering his State of the State address to a joint session of the Idaho Legislature Monday, Governor Otter proposed what he called a “responsibly conservative” budget, telling lawmakers that they must not raise taxes.
Legislators face the challenge of finding a projected $50 million in savings to fill the hole in an already-reduced $2.4 Billion state spending plan for the year ending in June.
The governor suggests holding back and additional 1.6 percent of what was appropriated last winter to all state agencies and operations for this year’s budget, including cuts to public education.
Idaho Gov. Butch Otter comments
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Otter’s plan would also cut 400 state jobs, raise state park fees, and eliminate state funding to Idaho Public Television and six more agencies by 2014 in an overhaul of government.
Additionally, the governor outlined his recommendations for a Fiscal Year 2011 budget that includes no increase in spending. He proposed drawing from state reserve accounts and the non-endowed portion of the Millennium Fund to address projected revenue shortfalls in the balance of Fiscal Year 2010 and in Fiscal Year 2011.
Otter continues on the holdbacks
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Otter called upon lawmakers to maintain some level of cash reserve against the prospect of a slow economic recovery, and strive for a shorter session than in 2009, when lawmakers stayed in Boise for a near-record 117-days.
