How Economic Trends Affect Idaho’s Recreational Future

The winter season is over in Idaho. It won't be long before Idahoans put up their skis for the season, replacing them with golf gear and other outside gear. 

The big question is, can Idahoans afford the recreational lifestyle so many have enjoyed in recent years? The state continues to grow, but several economic factors have many concerns that the country is heading for a recession. In the last year, once-stable companies have gone out of business and laid off workers.

Economists say consumer confidence can drive or lift an economy from a recession. The Gem State has not experienced a severe recession in many years. The last one, in 2009, saw the building industry immediately shut down.

The impact on property values was so dire that median home values in Ada County were $140,000 and $70,000 for Canyon County. The state had to delay income tax refunds because it had run out of money. Today, property values are higher, and the state has a large surplus in the rainy day fund.

However, President Trump's cutting of the federal budget will impact government and private spending in Idaho. The Gem State receives over forty percent of general fund revenue from the federal government. If the feds decided to cut the amount by as much as five to ten percent, the impact would be felt in Idaho.

Like a private family, the state government would have to raise revenues through raising taxes. During this session, the legislature passed a record amount of tax cuts for individuals and businesses.