ITD announced today an $8.6 million holdback of its FY2010 budget based on revenue that is not meeting projections made this spring. The holdback is part of the department’s annual budget request due Sept. 1 of each year.
The Idaho Legislature appropriated $251 million in state funds to the department before it adjourned in May. ITD administrators, however, indicate current funding sources are about $242.4 million. That represents a shortfall of 3.4 percent, said ITD Acting Director Scott Stokes.
Gov. C.L. “Butch” Otter this morning (Sept. 25) directed all state General Fund agencies to reduce their current budgets to offset declining revenue. He called for “tiered spending holdbacks based on the nature of each agency’s mission” because income and sales tax revenue to the state’s General Fund is significantly lower than anticipated.
Although ITD is not a General Fund agency and derives most of its revenue from federal and state fuel tax receipts and vehicle registration fees, the department is not immune to declining revenue, Stokes explains.
“We recognize that our revenue is failing to meet expectations and believe that reducing our budget by $8.6 million is a prudent business decision. We will continue to monitor department revenue to determine if additional changes might be necessary.”
The budget reduction will come from the contract construction program.
“We elected not to identify construction projects based on the full appropriation until the economic forecast was complete in August,” Stokes said. “As a result, we are not cutting any projects.”
Despite severe cuts to its budget over the past three years, ITD continues to deliver important services for Idahoans, he added.
In the past two years, ITD reduced administrative costs by
more than 10 percent, including, and in addition to: personnel costs, the
building program, the state construction program, out-of-state travel and