Tuesday, Jul 10 2012 4:31PM
While reductions to federal aid will likely have a different effect on each state, Idaho could suffer greatly if spending and employment are limited.
While reductions to federal aid will likely have a different effect on each state, Idaho could suffer greatly if spending and employment are limited.
According to The Idaho Statesman, economists predict that the state's private economy would have to greatly improve to offset the proposed 10 to 20 percent federal budget cuts. Governor Butch Otter has reportedly asked state departments to make preparations for the worst. He estimated cuts of roughly $1.2 trillion during the next nine years.
The news source notes that the government spent $148.4 billion in Idaho between 1990 and 2009 on schools, farm subsidies, federal housing grants, economic development grants and tribal health programs. While spending seems high, the government collected $124.4 billion in taxes, leaving the state with just $24.1 billion added to its gross domestic product of $53.7 billion in 2009.
Since Medicare, Medicaid, Social Security and tribal health programs aren't included in GDP, they won't be as negatively affected as education and energy, according to the paper. Those living in rural communities throughout the state are expected to be hit the hardest.
For further information, check out this source:
The Idaho Statesman