In his combined state of the state and budget address Tuesday, Idaho Gov. Butch Otter proposed a fiscal 2011 budget that he said includes no spending increases, and also recommended additional cuts to the state’s current year spending plan.
The current year holdbacks, as they are termed in Idaho, include public school spending.
“That is among the toughest recommendations I make today,” Otter said. “But the fact is that while other executive branch agencies have cut their spending by $499 million as a result of holdbacks over the past two years, we have used almost $318 million from reserve accounts and federal stimulus funds during that same period to reduce the impact on public schools.”
Otter, a Republican in a state with massive GOP majorities in the Legislature, said he opposes new taxes, and wants to maintain reserves, despite the revenue pressures created by the recession.
“We must continue to maintain some level of cash reserve against the prospect of our economic recovery taking longer and being less robust than we hope,” he said.