What You Should Know About the Division of Financial Management

Background

The Division of Financial Management or DFM helps craft Idaho’s state budget and budget policies for the Governor. They’re the money people. DFM is part of the Executive Office of the Governor. It’s headed by Administrator Wayne Hammon and 18 other budget analysts and economists.

There are four bureaus within DFM: the Budget Bureau, the Management Services Bureau, Policy Bureau, and the Economic Analysis Bureau. Each, provides policy guidance and oversight on behalf of the Governor.

The Division publishes regular state economic forecasts, keeps track of the money coming in and going out of Idaho’s bank accounts and crafts an annual budget which is recommended to the Legislature as a starting point for setting Idaho’s final yearly spending plan.

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December 22, 2011

Governor Otter: Any Tax Cuts Need to be Phased In

Talk of lowering taxes has already started among Idaho lawmakers. At the Associated Taxpayers Conference earlier this month, legislative leaders said proposals to lower Idaho’s corporate tax and individual income tax rates will be part of the discussion. Sen. Brent Hill (R-Rexburg) says lowering taxes this session will be met with resistance, and will likely […]

December 7, 2011

Governor Otter Says State Budget Surplus Unlikely

As we reported earlier today, the Division of Financial Management released its monthly state revenue report, which shows November tax collections didn’t meet expectations. Collections were $5.4 million below DFM’s monthly forecast. In advance of this news, Governor C.L. “Butch” Otter sent this letter to his Cabinet, warning any projected budget surplus isn’t likely. “Unfortunately, […]

Corporate, Income and Sales Tax Collections Lower Than Expected in November

The Division of Financial Management today reported Idaho’s main bank account was $5.4 million below November’s forecast. DFM attributes the monthly shortage to weak individual income taxes and sales taxes. Idaho’s sales tax collections have missed projected targets every month this fiscal year. “This month’s performance not only missed its forecast, but it was 4.1% […]

December 2, 2011

Idaho Budget Expert Outlines Tough Choices Ahead for Legislators

Idaho’s legislative budget expert expects the state to end the fiscal year with $77 million in the bank. That’s if current projections hold. Cathy Holland-Smith manages the Budget and Policy Analysis Division at the Legislative Services Office. She unveiled budget projections to a group of lawmakers and Idaho business leaders at the Associated Taxpayers of […]

November 7, 2011

Idaho Sales Tax Collections Aren’t Meeting Expectations

The Division of Financial Management reports Idaho’s general fund balance was $1.6 million less than predicted for the month of October. “This month’s shortage was caused by the sales tax that came in $4.1 million below its target. This shortfall was partially offset by the remaining revenue categories that all came in above their predicted […]

November 1, 2011

Chance of Slipping Back into a Recession Grows

Idaho’s Division of Financial Management (DFM) released its latest economic forecast today and the news is gloomy. The probably of slipping back into a national recession is higher than it was just three months ago. “In the previous (July) forecast, the probability of the economy slipping into a recession was 25 percent,” says Derek Santos, […]

October 7, 2011

Idaho’s September Revenue Report Up Slightly from Forecast

Idaho’s Division of Financial Management released its latest revenue report today showing a slight uptick in individual income and corporate tax collections over what state economists had predicted. “Idaho General Fund collections of $229.1 million in September 2011 were $0.1 million above the forecasted amount.” – Division of Financial Management Still, Idaho sales tax collections […]

September 19, 2011

Wood Products: Looking for Growth in Old Places

Idaho’s timber industry is another example of a sector that’s been a main-stay of the area economy since the state lines were drawn. Like mining, it’s seen big declines over the last couple of decades. Idaho’s wood products industry is driven by lumber demand, which is a function of the housing market. The state Division […]

September 14, 2011

What Idaho’s Economy Looks Like…in Pie Form

The Idaho Department of Labor says the state’s economy has been growing more slowly than the nation’s. The Idaho Statesman reports the state’s total gross state product rose 3.3 percent last year to $55.4 billion. But, when adjusted for inflation, it rose 2 percent to $50.7 billion. Nationwide, the inflation-adjusted gross product for 2010 is […]

Hoping for An Economic Turnaround? Five Idaho Industries to Watch

These five industries, like construction and high-tech, hardly cover Idaho’s entire economy, but they have acted as some of the most volatile and crucial economic indicators over the last decade. State economists say Idaho’s economic turnaround will be gradual, albeit it’s headed in the right direction. Services & Trade: The services industry includes everything from […]