Idaho's state tax revenues for April, the biggest revenue month of the year, backed a more optimistic view of Idaho's economy than lawmakers and Gov. Butch Otter used to set this year's state budget, meaning schools could get back some of the state funds that were cut and former Gov. Cecil Andrus is on track to win a $100 bet with Otter over the revenues. Andrus bet Otter $100 in early 2010 that final collections for fiscal year 2011 would be closer to a forecast of $2.43 billion by former Idaho chief economist Mike Ferguson than an austere $2.29 billion estimate approved by the governor during that year's Legislature, AP reporter John Miller writes, as part of criticism of Otter for being too dour about the likelihood of Idaho's economic recovery in 2011 — and too quick to cut budgets.

Idaho has collected $2.06 billion so far, or about $74.2 million more in general fund revenue than forecasts from just a few months ago; if the final two months of the fiscal year just meet forecasts, Andrus wins the bet. Click below for Miller's full story.

April tax revenue boosts optimism on Idaho economy
By JOHN MILLER, Associated Press

BOISE, Idaho (AP) — The state collected $377 million in tax revenue in April, topping the month's forecast by $14 million and adding to optimism among leaders that Idaho's economy is recovering from the deepest recession since the Great Depression.

It also means Republican Gov. C.L. "Butch" Otter and former Gov. Cecil Andrus, a Democrat, are closer to settling a $100 wager. Andrus bet that tax revenue for fiscal year 2011 would be better than Otter predicted in early 2010, and Andrus appears on track to win.

April is the most important month for tax collections — it's when income taxes are due — so robust receipts mean the state is on track to top forecasts for the full 2011 fiscal year that ends June 30. Idaho has collected $2.06 billion so far, or about $74.2 million more in general fund revenue than forecasts from just a few months ago.

If projections stay on track through the end of June, Idaho's K-12 public schools could receive up to $50 million more in discretionary funding under this current scenario, according to the Department of Education.

"If these strong returns continue through the end of the fiscal year, we should have some extra money for education," Otter's budget chief, Wayne Hammon, said Friday. "But we still have two months to go, so we'll continue to be prudent and watch the numbers closely."

Derek Santos, a state economist, said corporate income tax came in at $11.6 million above expectations, while personal income tax collections were particularly strong, at $9.3 million above expectations.

"This strength suggests employment growth is more robust than was previously thought," Santos said.

Idaho's unemployment rate had remained unchanged at 9.7 percent in March, but the U.S. Bureau of Labor Statistics said last month that the number of people at work grew faster than the number of people looking for work for the first time in four years, a sign of improvement.

Andrus bet Otter $100 in early 2010 that final collections for fiscal year 2011 would be closer to a forecast of $2.43 billion by former Idaho chief economist Mike Ferguson than an austere $2.29 billion estimate approved by the governor during that year's Legislature.

Andrus extended the bet as part of criticism of Otter for being too dour about the likelihood of Idaho's economic recovery in 2011 — and too quick to cut budgets.

Andrus will be $100 richer, provided Idaho hits current tax revenue forecasts for May and June, when estimates foresee the state collecting just shy of $150 million and $250 million respectively.

Otter's spokesman, Jon Hanian, said his boss will gladly pay up.

"I would refer you back to what Gov. Otter said at the time, which was 'I would take that bet, and I hope he's right. I pray he's right,'" Hanian said.

Andrus, who was governor through 1994 when Otter was lieutenant governor, didn't immediately return a phone message left at his Boise lobbying firm, Gallatin Public Affairs.

Copyright 2011 The Associated Press.