Idaho revenue exceeded the state’s forecast for the month of August by $37.5 million, marking the second consecutive month in the new fiscal year where revenue beat projections, according to a new state report.

Through the first two months of fiscal year 2027, which began July 1, Idaho’s revenue collections have come in $51.2 million ahead of projections, according to the August edition of the fIscal year 2027 General Fund Budget Monitor.

For the month of August, strong individual income tax collections that exceeded the monthly projection by $40.8 million helped push overall revenue collections ahead of forecast.

Although it is still very early in the fiscal year, Idaho is projected to end the fiscal year June 30 with a positive ending balance of $657 million if state revenue collections come in as forecasted for the remainder of the fiscal year.

That would leave the state with a surplus of more than $500 million compared to the budget state legislators set.

“My reaction was its very promising report, and I’m glad to see the individual income tax is up,” said Sen. Scott Grow, a Republican from Eagle who serves as co-chairman of the Idaho Legislature’s Joint Finance-Appropriations Committee.

So far, the state budget picture in fiscal year 2027 looks different than a year ago, when Gov. Brad Little and the Idaho Legislature implemented a series of near-across-the-board, permanent budget cuts to pay for a series of federal and state tax cuts and ensure a balanced budget, the Idaho Capital Sun previously reported.

Grow said the increased revenue, so far, in fiscal year 2027 is good news, but he isn’t in a rush to spend any additional revenue.

Grow said the Idaho Legislature may have additional, unexpected expenses and bills this year related to Medicaid, wildfire suppression, health insurance costs for state employees and the state’s corrections system that may need to be addressed.

“The challenge is we always have to project a year and a half out when we are working on budgets during the legislative session, so it’s hard to know what is going to happen, which is why we try to be as conservative as we can,” Grow said.

If there is still a surplus at the end of the year, Grow said he would like to discuss restoring some of last year’s transportation budget cuts.

“With transportation, we had to cut that (budget) pretty skinny last year,” Grow said. “But with all (population) growth we continue to have in Idaho, hopefully we can get some money for transportation to help with the state highways — not just the maintenance, but to actually help with additional highways we need and expansion.”

The Idaho Legislature is not in session, but the 2027 regular legislative session begins Jan. 11 at the Idaho State Capitol in Boise.