EDITORIAL: Idaho's economic strength is showing

Idaho’s economy is strong and headed in the right direction. 

If you want evidence of that, here it is: Moody’s Ratings, a global credit review company, recently affirmed the State of Idaho’s Aaa issuer rating and related bond ratings, maintaining a stable outlook across all programs reviewed. 

The ratings reflect Idaho’s strong credit position, supported by continued economic and population growth, healthy finances and low leverage and fixed costs.

That's deserving of praise.

“This reaffirmation highlights the strength of Idaho’s economy and the sound financial management that protects our taxpayers,” said State Treasurer Julie Ellsworth. “By keeping Idaho’s top-tier rating, we ensure continued confidence in our state’s fiscal stability and investment quality.” 

You might ask why this matters. Here’s why: It’s an indication that Idaho is making smart financial decisions, making solid investments, watching its spending, which benefits residents. 

Jason Mercier, vice president and director of research for the Mountain States Policy Center, put it well. 

“This good fiscal news is a reflection of Idaho’s sound fiscal management and helps save money for taxpayers by keeping government borrowing costs low with favorable terms,” he wrote. 

Moody’s is not the only one to see Idaho’s economic strength. 

Mercier pointed out that in May, Fitch Ratings also reaffirmed its highest credit rating for Idaho.

“Fitch believes the state is well positioned to absorb multiple rounds of recent tax cuts and dedicated spending allocations from the general fund, given Idaho's prudently managed budget with significant one-time spending that rolls off to create fiscal capacity.” 

As well, according to the Pew Charitable Trust, Idaho has about 87 days' worth of spending capacity in its rainy day reserve, the eighth-best nationally for budget savings, Mercier wrote. In comparison, Washington state has only 13 days' worth of savings for spending, which is 49th worst. The national average was 47 days. 

"Although states across the country are facing a tightening budget outlook, the continued decisive action of policymakers to right-size Idaho’s spending, combined with an $880 million general fund reserve (15%) and $1.3 billion in total reserves (22%), provides the Gem State with ample resources to weather economic changes,” Mercier said. 

We couldn’t agree more.