Local lawmakers discuss budget shortfall, Medicaid at Pocatello legislative preview
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POCATELLO — Idaho’s growing budget shortfall and the future of Medicaid expansion were hot topics during the League of Women Voters of Pocatello’s 2026 Legislative Preview, held Tuesday evening via Zoom.
The forum brought together five local lawmakers from Districts 28 and 29 for a wide-ranging discussion moderated by Nancy Lee Hendricks. The League pre-submitted questions that addressed several of the state’s most pressing issues lawmakers will face as the 2026 legislative session begins Monday.
Participating lawmakers included Sen. Jim Guthrie (R), McCammon; Rep. Rick Cheatum (R), Pocatello; and Rep. Dan Garner (R), Clifton, who represent District 28, covering all of Power County and portions of Bannock and Franklin counties, along with Sen. James Ruchti (D), Pocatello, and Rep. Dustin Manwaring (R), Pocatello, who represent District 29, which includes most of Pocatello.
All five lawmakers agreed that Idaho’s projected budget deficit will be a top priority this session. According to a report in the Idaho Capital Sun, the state is expected to end fiscal year 2026 with a $40.3 million shortfall. Looking ahead, the Idaho Legislative Services Office projects a much larger deficit of $555.2 million for fiscal year 2027, with revenue and expense gaps continuing into 2028.
The lawmakers were asked whether Idaho’s rainy-day fund should be used to help reduce the budget shortfall. The fund is a state savings account reserved for economic downturns or emergencies and can be tapped to stabilize finances without raising taxes or making immediate deep spending cuts, though legislative approval is typically required.
Guthrie, Cheatum, and Garner said they do not support using Idaho’s rainy-day fund to close the budget gap.
Guthrie criticized prior tax policy decisions, saying the state enacted major tax cuts without fully understanding their long-term revenue impact.
Ruchti and Manwaring cautioned that significant spending reductions may be unavoidable, including additional Medicaid cuts. Ruchti described the situation as potentially “cutting to the bone.”
Medicaid expansion, which was approved by more than 60% of Idaho voters in 2018, became a focal point of the discussion. The program currently provides health insurance to more than 85,000 Idahoans, with the federal government covering 90% of costs and the state covering the remaining 10%.
While all five lawmakers expressed some level of support for Medicaid expansion, concerns over affordability were clear. Garner and Ruchti warned that repealing expansion could leave more than 90,000 Idahoans without health coverage.
Manwaring said Medicaid now covers roughly 20% of Idaho residents, placing increasing pressure on the state budget.
Cheatum and Guthrie both questioned whether the state has truly saved money through expansion, arguing that costs have been shifted rather than eliminated.
While mental health and women and children’s services have been in the spotlight recently, Medicaid cuts have also affected hospital and clinic reimbursements, home- and community-based care for seniors and people with disabilities, nursing facilities, hospice services, school-based health programs, and rehabilitation services.
Providers say reduced payments are straining rural hospitals and safety-net clinics, often pushing patients toward emergency care.
Other issues discussed during the forum included public education funding, voting rights, allegations of sexual abuse involving female inmates in state prisons, reproductive rights, renewable energy development, and Idaho’s ongoing affordable housing shortage.
The full legislative forum is available to watch here.