Idaho Holds State Agency Budgets Flat for FY 2028 After 2026 Cuts
Idaho's Division of Financial Management has published state agency budget requests for fiscal year 2028 (starting July 1, 2027), with instructions to agencies to submit only baseline funding requests and not restore prior cuts. Budget director Lori Wolff told reporters that non-discretionary spending for Medicaid, prisons, and public schools will consume most projected revenue increases, leaving minimal room for new spending. The Department of Health and Welfare budget request, which includes Medicaid, has not yet been published but is expected by September 15, 2026. Governor Little typically releases his proposed state budget in January before the legislature convenes to draft final appropriations.
Idaho's budget constraint signals flat or reduced Medicaid funding for FY 2028, directly affecting managed care capitation rates, provider reimbursement, and program expansion capacity.
Finance · Managed Care
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