Idaho Ends Fiscal Year With Balanced Budget, Hundreds Of Millions Of Dollars On Bottom Line

Idaho’s economy improved year over year

Boise, Idaho - The Division of Financial Management published updated revenue figures for the month of June today, showing the State of Idaho closed out its fiscal year ending June 30, 2025, with a balanced budget and about $345 million on the bottom line.

“Idaho leaders have long championed responsible budgeting and conservative principles that promote economic activity. What we’re doing is working. The Legislature and I have delivered historic tax relief while making critical investments in public schools, roads, and infrastructure. In fact, state support for public education increased nearly 70% in a few short years, and we will continue to prioritize better teacher pay and classroom resources,” Governor Brad Little said.

Withholding collections – reflecting job and wage growth – are up 5.9% over last year. Gross sales tax revenues are up 3.7%, and online sales tax collections are tracking 13.2% above last year.

Idaho’s GDP has grown 150% in the last five years. Adjusting for inflation, Idaho’s real GDP is up more than 21% in the past five years alone, demonstrating exponential, resilient growth. In addition, Idaho ranks third in the nation for the largest increase in average weekly wages.

While there is some uncertainty in the market, there are still significant signs of continued growth. Construction, job postings, wages, tax withholdings, continued population growth, and higher enrollment in post-secondary education are all signs Idaho is doing well.

In June, Fitch Ratings reaffirmed Idaho’s “AAA” credit rating – the highest possible – because of our strong reserves, low debt, and responsible budgeting. The rating gives Idaho leaders the flexibility to deliver tax cuts while still making critical investments in Idaho’s future.

“Idaho’s economy is strong, resilient, and growing rapidly – fueled by smart fiscal management, a strong labor market, and record-setting gains in personal income, jobs, and GDP,” the Fitch report said. “Idaho’s economy has transformed and diversified, moving beyond agriculture and mining into fast-growing sectors like technology, healthcare, and construction.”

All indicators of Idaho’s labor market are strong. More people are working, more jobs are being created, and unemployment is low and holding steady at 3.6%. Civilian labor force and total employment are both up over 1% from last year. Job postings and hiring remain stable, showing no signs of slowdown, and layoffs are at their lowest level in three years, a clear sign of economic health.

In just the last five years, personal income is up nearly 45%, and wages have grown more than 45%, which is real income growth for Idaho households. Over the next five years, Idaho’s personal income is projected to grow 32% and wages are expected to grow 15%.