Guest Columnist ID Senator Glenneda Zuiderveld: The Price of Dependence

Last Friday, Idaho’s Joint Finance-Appropriations Committee (JFAC) voted on the ten maintenance budgets. With the Governor’s 3 percent holdback and an additional 2 percent rescission from the Legislature, there was a 5 percent reduction in General Fund spending for maintenance. The difference between the FY2027 agency requests and JFAC’s maintenance decisions totals $308,596,300.

We will be voting on enhancement requests next week, which will increase the JFAC base figure of $13,332,534,100. Because of that, I do not expect we will see as large a gap between the FY2026 budget and the final FY2027 budget as the maintenance numbers alone might suggest.

There has been a great deal of emotion in JFAC. At times, the discussion has felt personal. But the reality is straightforward: revenues did not meet projections, and we must now appropriate within those limits. Over the past six years, Idaho’s budget has grown by approximately 60 percent. Much of that growth was fueled by COVID-era and ARPA federal funds. We knew those dollars would eventually run out, yet many projects initiated with one-time money carry ongoing maintenance and operational costs that now fall to Idaho taxpayers.

In addition, when agencies receive large appropriations with limited oversight, problems can follow. Recent audits have identified concerns that underscore why fiscal restraint and accountability are not optional, they are essential.

I have received many emails, phone calls, and text messages from constituents concerned about Medicaid funding. Let me begin by offering some clarity: Medicaid was not affected by the recent rescissions. Neither were K–12 education, the Department of Correction, or law enforcement.

Regarding Medicaid, the federal government currently covers between 70 and 90 percent of the program’s costs, depending on the eligibility category. That leaves the State of Idaho responsible for roughly 10 to 30 percent. Any decision to reduce or eliminate those federal dollars would happen at the federal level, not in the Idaho Legislature. And here is the difficult truth: Idaho’s state revenues could not come close to absorbing the full cost of Medicaid if federal funding were withdrawn.

To understand the scale, consider the numbers. In 2026, Idaho’s total Medicaid budget is approximately $5.25 billion, funded jointly by federal dollars and Idaho taxpayers. The largest and fastest-growing portion is Medicaid Expansion, costing about $1.3 billion this year alone. While the federal government covers roughly 90 percent of that expansion cost (about $1.17 billion), Idaho taxpayers still contribute around $130 million. The remaining categories, Coordinated (primarily seniors and dual-eligible individuals), Enhanced (people with disabilities and special health needs), and Basic (pregnant women, children, and families), account for the rest of the spending.

What is clear is this: Medicaid is now one of the largest components of Idaho’s entire state budget. Even when Washington pays the bigger share, Idaho families are still responsible for hundreds of millions of dollars each year, and ultimately, that obligation rests here at home.

I do not believe panic is helpful. But preparation is prudent. With the federal deficit nearing $39 trillion, it would be unwise to assume that current funding structures will remain untouched forever. I respect you too much to withhold that reality. It is always better to plan thoughtfully than to be caught off guard.

I was disappointed when the Governor’s office released a list of programs that might be eliminated. As we reviewed that list, it became clear that many of the items referenced are tied directly to Medicaid and federal requirements and therefore cannot simply be “cut” at the state level. Releasing such a list without that clarification created unnecessary fear and confusion among Idahoans who rely on these services. Clear communication matters, especially when people’s health and livelihoods are involved.

We do have the option to repeal Medicaid Expansion. However, I do not believe there is currently the political will within leadership to pursue that course. And even if such a repeal were to pass the Legislature, it is highly likely the Governor would veto it.

Below are the different Medicaid programs. The reality is straightforward: the more funding directed toward able-bodied adults, less money remains to support the elderly, severely disabled adults, and medically fragile children who rely on these services the most. In a system with finite resources, priorities matter.

COORDINATED MEDICAID PLAN: Beneficiaries covered in this plan primarily consist of those who are age 65 and older. All individuals dually eligible for Medicaid and Medicare, regardless of age, may elect to receive coverage under this plan.

ENHANCED MEDICAID PLAN: Medicaid-eligible group primarily made up of children and adults (non-elderly) with disabilities, or other individuals with special health needs, such as foster children. Individuals included in this plan may elect to remain in this plan after they turn 65 years old.

BASIC MEDICAID PLAN: Medicaid-eligible group primarily consisting of Pregnant Women and Children (PWC), Family Medicaid and Idaho’s Children Health Insurance Program (CHIP). These populations are assumed to be in average health, with average levels of disease.

EXPANSION MEDICAID PLAN: Beneficiaries covered in this plan have an income level of 138% of the federal poverty limit (FPL) or less. These populations are assumed to be in average health, with average levels of disease. Coverage for this population group started on January 1, 2020.

The chart below reflects the FY2026 appropriations by fund source and function. I encourage you to pay close attention to the proportion of federal funds, as well as the total amount allocated to Health and Welfare.

The warning signs are there. I am simply doing my best to point them out clearly and honestly.

If you would like to review the 851 page Idaho Budget Book, click HERE.

One more point worth noting: education is not suffering to the extent some would have you believe. The FY2027 request totals $4,450,152,300, representing a 4.1 percent increase over the prior year. We will see where the final appropriation ultimately lands.

In addition, there is approximately $716 million in fund balances available. Those reserves could be utilized if districts claim they are unable to operate on $4.45 billion. The full financial picture deserves to be part of the conversation.

Read more about the school fund balances HERE.

Quote of the Week:

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” ~Ronal Reagan

Bible Verse of the Week:

“The wicked borrows but does not pay back, but the righteous is generous and gives.”
— Psalm 37:21 (ESV)