LEGISLATIVE UPDATE | WEEK FOUR
JANUARY 27 - 31, 2025
As week four of the Sixty-Eighth Idaho Legislature’s first regular session wraps up, we’re seeing the differences of lawmakers going about their business in a year without elections. We’re also watching how the changes and uncertainty on the national scene influence activity here, from President Trump’s flurry of executive orders to the swift cabinet confirmations by a GOP-led majority in the Senate. In essence, these factors have put the Idaho Legislature in an odd state of limbo. And yet, there are some remarkable achievements to note this week.
The House introduced legislation to repeal 150 sections of the obsolete Health and Welfare code, advanced a handful of new tax cut policy ideas, and introduced the second iteration of a school choice tax credit. Dozens of Gubernatorial appointments were approved by the Senate, notable because, in the past, these appointments have languished and cluttered the chamber’s floor calendar. Still, much remains to be done and we are curious how quickly the people’s business gets done in the coming weeks.
Despite ample effort and a lengthy and pithy Friday morning meeting, the Joint Finance Appropriations Committee (JFAC) has yet to settle on FY26 revenue targets, further delaying the opportunity to set budgets, specifically the “enhanced” budgets for supplementals, transfers, and one-time funding for state agencies. The ongoing haggling over pay raises for state employees (CEC) adds to the budget-setting strife. In the past, these two critical budgeting steps would have been in the rearview mirror, but with changes to rules and processes that were not agreed to by committee members, JFAC power dynamics and member discord are on full display once again. Ultimately, this uncertainty over what’s available to spend or cut prevents legislators from focusing their time and energy on new legislation.
Historically, committees finish reviewing and approving administrative rules at this stage. While some committees have met that mark, others are bogged down amid philosophical differences, including the now perennial fight over the adoption of the new electrical code, which will loom for weeks despite full support from all industry and stakeholders. So, what does this all mean in the bigger scheme of things? On one hand, leadership and veteran legislators are pushing a more deliberate approach and managing the agenda in a way that enables a reasonable and predictable end to the session. Maybe it’s the nature of things when new leadership takes over a new chamber, as is the case this year with the Senate. Then again, maybe the frenzy meter redlines next week and all bets are off.
With regard to the new policy, there are some interesting developments to highlight. House Speaker Mike Moyle continues to chip away at tax relief. The bill he introduced this week focuses on additional property tax relief by shifting $50 million into a school facilities fund and another $50 million into a homeowner property tax relief fund. Lawmakers are also looking over the longstanding fight on Idaho’s sales tax on groceries and are contemplating increasing the benefit to Idahoans with a new proposal that raises the tax credit on those purchases from $120 per person to $155. While HB 93 and its child tax credit remain the frontrunner in the debate over private school choice funding, we know other ideas and mechanisms are being discussed behind the scenes that could significantly reshape Idaho’s K-12 landscape.
While the traditional obelus marking the onset of division between factions and the House and Senate is setting in, we see what’s unique about this session and are bullish on the pragmatism and overall optimism. As January’s New Year’s resolutions give way to a steadily increasing stream of new bills introduced, and the Ides of March look to appear early in February, we also know the bulk of session pressure and work is upon us.
