Contact Representative Steve Berch:
sberch@house.idaho.gov
Capitol: 208-332-1039 Cell: 208-890-9339
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Rep. Steve Berch Newsletter: Where did the money go?

Rep. Steve Berch Newsletter 

Where did the money go?

 

The latest numbers are out and they are startling: The Idaho Legislature excluded from revenue collection over $1BILLION more than what was collected in 2026. Majority party leaders in the legislature are literally starving Idaho of the revenue it needs to meet the needs of a fast-growing state with an aging infrastructure.
 
This is not fiscal conservativism – this is fiscal irresponsibility. The legislature has to be smart and efficient with taxpayer dollars every day, but that must be balanced with smart investments for our future, otherwise we won’t have what we need for the future.
 
Here is the tax revenue and tax exclusion data for the General Fund in FY’2026. The General Fund is the source of funding for almost all state agencies (Education, Transportation, Health & Welfare, Park and Recreation, Law Enforcement, etc.): 

The problem isn’t tax exclusions or tax breaks per se. The problem is that they are never reviewed and never expire - some have been in place since the 1960’s. Idaho is one of a minority of states that has no review process for its tax breaks.
 
I continue to advocate for creating a review process. If a review process determined that 90% of the tax breaks were justified and only 10% should be retired because they were obsolete, that would add over $650 million to the General Fund every year. We’d have the money for public schools, roads, healthcare and vital services – without pushing more costs onto you in the form of increased local taxes, fees, school bonds and levies - while also reducing vital services.
 
In fact, the legislature has excluded over $19 BILLION in tax breaks just during the last three years alone (over $60 BILLION since 2012).  The dramatic change in FY’26 is due in large part to the cut in the income tax rate (H40, 2025) that reduced state revenue by over $240 million every year.
 
The impact of these tax cuts is being felt by nearly every Idahoan in one or more ways (just to name a few):
  • Increased property taxes due to school bonds and levies needed to close the funding gap created by the legislature.
  • Increased public school class sizes and elimination of academic programs due to inadequate state funding, including cutting the IDLA budget in half (which particularly hurts rural Idaho students).
  • Increases in college and university tuition and fees due to higher education budget cuts.
  • Insufficient funding for law enforcement which is needed to attract and retain enough employees to keep up with a growing population.
  • A $10 million cut to the LAUNCH scholarship program, which helps high school graduates train for in-demand careers.
  • Eliminating the child advocate home visiting program that helps prevent child abuse and neglect.
  • Eliminating the Assertive Community Treatment program, which provides services for people with severe mental illness.
  • A $22 million cut in child disability services.
  • Suspending $2.8 billion in road and bridge transportation projects.
And despite several tax cuts, life in Idaho is more unaffordable than ever. The legislature’s ideological fiscal policy of “giving money back to the people” isn’t much help – unless you’re among the wealthiest and well-connected. Majority party leaders made their intent clear: Cut budgets to keep government small – no matter who gets hurt.
 
Something to consider when deciding who to hold accountable on Election Day.