Idaho Budget Numbers Hide True Growth

Idaho Pulse

In this episode of Idaho Pulse, host Bob Neugebauer and Idaho Freedom Foundation President Ron Nate discuss the newly published Freedom Index, revealing that while Idaho legislators scored 12 points higher on freedom this year compared to previous years, they still haven’t reached 2018 levels. Ron shares concerning budget analysis showing that while official Legislative Services Office figures claim a 1.5% budget increase, the true figure is closer to 4.8% (or $669 million) when including “off-budget” continuous spending. This continues a troubling five-year trend of 55% budget growth that contradicts Idaho’s conservative reputation.

The conversation shifts to former Idaho Supreme Court Justice Jim Jones’ lawsuit challenging the state’s new school choice legislation based on the Blaine Amendment, which prohibits state funding for religious schools. Ron criticizes Jones as a “progressive” masquerading as a Republican and argues the lawsuit is meritless since the legislation provides tax credits to families rather than direct funding to religious schools. He also cites research showing school choice benefits both participating students and those remaining in public schools through increased competition.

Bob expresses concern that Idaho, despite its reputation as a conservative stronghold, is following the same pattern he’s witnessed in other states where government growth eventually transforms them from conservative to liberal. Ron emphasizes the need to build a “durable freedom infrastructure” by strengthening and connecting conservative organizations across the state to counterbalance powerful interest groups like IACI. They discuss how Idaho has fallen from 3rd to 14th place in education freedom rankings as other states have implemented universal school choice while Idaho has only recently passed modest reforms.

01:12 Freedom Index and Budget Analysis Ron shares that the Idaho Freedom Foundation’s new Freedom Index shows legislators scoring 12 points higher on freedom than previous years, though still below 2018 levels. Despite a more conservative legislature, spending index scores remain “pathetically” low. He reveals budget analysis showing the true increase isn’t the claimed 1.5% but closer to 4.8% when including “off-budget” continuous spending, continuing a troubling 55% growth trend over five years.

08:12 Property Tax Reform and State Debt Bob and Ron discuss how Idaho has failed to follow states like Mississippi and Tennessee in eliminating property taxes. Ron explains that despite Idaho’s constitutional balanced budget provision, the state uses various borrowing mechanisms including GARVEE bonds against future federal dollars and local school districts carry significant bond debt paid through property taxes. They advocate for a plan to eliminate property taxes using natural revenue growth.

16:12 Jim Jones’ School Choice Lawsuit Ron criticizes former Idaho Supreme Court Justice Jim Jones for filing what he calls a “nuisance lawsuit” against Idaho’s new school choice legislation. He explains that the Supreme Court’s Espinoza ruling effectively nullifies Idaho’s Blaine Amendment prohibition against funding religious schools, and that the legislation provides tax credits to families rather than direct funding to religious schools, making it constitutional regardless.

28:12 Building a Durable Freedom Infrastructure Bob expresses concern that Idaho is following the same pattern he’s witnessed in other states that transformed from conservative to liberal. Ron emphasizes the need to build a “durable freedom infrastructure” connecting conservative organizations across Idaho to counterbalance powerful interest groups like IACI. They discuss how improving the business climate for small businesses rather than giving special treatment to large corporations would better preserve Idaho’s conservative values