This report examines Idaho state budgeting during 2009 and 2010. After first describing Idaho’s people, politics, and budgeting process, it discusses the economic and General Fund revenue situations facing the state. The paper considers adjustments for FY 2010 proposed by Governor Otter and approved by the legislature, and budget recommendations and legislative actions for FY 2011 and their impacts on state spending. The report concludes with developments since the legislative session ended last spring.