Lawmakers align with Otter's revenue forecast

BOISE - Idaho lawmakers voted once again with Gov. Butch Otter's revenue projections, making it a third year in a row where legislators sided with a cautious optimism that more cash will flow into Idaho in the 2016 fiscal year.

The Joint Economic Outlook and Revenue Assessment Committee voted 13-3 Thursday in favor of the estimate Otter released Monday's State of the State address. The governor's forecast predicts $3.12 billion in tax revenue or 5.5 percent more than the current year. However, Otter's spending proposal calls for just a 5.2 percent increase from last year.

"We feel comfortable with what we're forecasting here," said Derek Santos, Otter's chief economist in the Division of Financial Management.

Committee members also had an opportunity to submit their own revenue projections. The committee's median was just $4 million shy of Otter's proposal. The highest proposal came from committee chairwoman Sen. Shawn Keough of Sandpoint, who estimated a 6 percent growth while Rep. Joe Palmer of Meridian predicted the lowest with a 3.7 percent growth projection.

Legislative budget analyst Keith Bybee said the slim margin between the committee's median and the governor's numbers was one of the closest he's ever seen.

"They're right in line," he said.

The committee's report now moves to the state's Joint Finance Appropriations budget committee for final approval.

Lawmakers determine forecast early during the legislative session so that they can begin hashing out if they will also approve Otter's budget priorities.