Idaho’s tax revenues keep growing, driven in part by a strong economy.
The Post Register reports the state collected about $3.4 billion in tax revenue by the end of May. That’s nearly $1 billion more than the state collected during the same period in 2014, and about $300 million more than that time last year.
June typically marks one of the biggest months for tax revenue, and if that remains the case, this year the state could be on track for record tax receipts.
Overall, revenue is projected to rise nearly 10 percent above last year’s total.
Idaho’s fiscal year ends June 30. State analysts predict that Idaho will have a surplus of about $100 million by then.
That money will go toward repairs and maintenance on the state’s roads and bridges, many of which are in disrepair. Still, the funding will likely fall short of what is actually needed to fully maintain and improve safety on Idaho roads — a study completed by a governor’s tax force found Idaho needed more than $500 million more in annual funding just to keep pace with maintenance and safety upgrades.
Gov. C.L. “Butch” Otter has often described the deferred maintenance on roads and bridges as “deficit spending,” saying the eventual cost of rehabbing poorly kept infrastructure is often many times higher than the cost of regular maintenance.
Earlier this year the Legislature implemented significant cuts in both the individual and corporate tax rates, which could dampen the overall tax revenue growth rate in the coming fiscal year.