EDITORIAL: Budget must be legislative focus this session

North Idaho's legislators will have their work cut out for them this session that starts Monday, with a forecasted $40.3 million deficit for this fiscal year’s budget. 

While we certainly appreciate tax cuts and the desire to put more money into the pockets of Idahoans, perhaps those approved last year were a little too soon and a little too generous. We're not saying do the opposite and raise taxes, but we are saying, let's not cut them again.

When it comes to spending, however, this generally frugal government needs to be even more tightfisted and that will mean less spending. No one wants to hear that, but it should be said before financial difficulties worsen.

So where to cut? Hard to say until a clearer picture emerges of where the budget is headed. We all know there is unnecessary spending that goes on. Let's protect education. Little ordered 3% holdbacks across executive agencies in August, but they exempted K-12 education funds, which was the right call. Idaho isn't known for pouring money into public education.

Healthcare is going to be a key.

Idaho's Department of Government Efficiency committee signaled in December they would be recommending the Legislature look into a repeal of Medicaid expansion, which passed by voter initiative in 2018 to expand the program to Idahoans making 133% of the federal poverty level, as reported by Royce McCandless with the Idaho Press, who will also be covering the Legislature for The Press this year. 

When asked about whether he would support a repeal of Medicaid expansion, Little offered a simple “no," but fell short of committing to a veto on the matter, saying he doesn’t “commit to bills” until they are on his desk, McCandless reported.

Senate Minority Leader Melissa Wintrow, D-Boise, said repeal would be "one of the most expensive cuts" the state could make as each dollar put in is matched by $9 from the federal government. At present the state receives $1.03 billion from the federal government for the program, according to the Legislative Services Office, McCandless wrote.

Others expressed displeasure with the fact that the cost of expansion for the state has grown to just over $100 million and expressed a desire to seek out fraud and exploitation in the Medicaid system. 

"We literally have people that know, if they only work this many hours, they can get those benefits," said House Majority Leader Mike Moyle. "We are incentivizing a bad deal for the (state) of Idaho and the business in Idaho. We've got to look at fixing this problem."

Those concerns can't be ignored.

Legislators have ideas.

There is talk of repealing House Bill 93, which allocated $50 million for a school choice tax credit that can fund private education, and repealing House Bill 40, which provided $253 million in income tax cuts, both pieces of legislation that passed last year, McCandless reported. Lt. Gov. Scott Bedke previously floated the idea of tapping into the state’s $1.4 billion rainy day fund as a means of maintaining the state’s bottom line. 

Something to consider.

It's not like the state is drowning in red ink. There are a lot of positives. Unemployment is low 3.7%. Personal incomes are forecasted to increase. Mainstay industries like mining, recreation and tourism are strong. Overall, Idaho is a fast-growing, financially sound state.

But this should be a session of fiscal restraint to keep it that way.