Idaho Ends Fiscal Year With $250 Million Surplus as Washington Faces Budget Gap

Idaho finished fiscal year 2026 with a $250 million surplus, nearly $1 billion in tax refunds and a balanced budget—while Washington prepares for another projected multi-billion-dollar budget gap. In this interview, Idaho Budget Director Lori Wolff explains how the state approaches budgeting, emphasizing structurally balanced budgets, one-time investments, spending discipline and predictable tax policy. She argues Idaho's approach has allowed the state to build reserves, reduce taxes and continue investing in priorities such as education, transportation, infrastructure and workforce development. The discussion also examines how Idaho's flat 5.3% income tax compares with Washington's newly enacted tax on certain high-income earners, as voters prepare to decide Initiative 645 and a legal challenge to the law continues. With Washington lawmakers launching a bipartisan effort to study the state's long-term budgeting practices, the comparison highlights two different approaches to taxes, spending and fiscal management in neighboring states.