Tax reforms are needed to let Idaho cities deal with growth | Opinion

Canyon County is one of the fastest-growing counties in Idaho. Anyone who has driven through Caldwell or anywhere in the Treasure Valley in the last five years already knows this. New neighborhoods have risen where fields used to be. Schools are filling up. Roads that were adequate a decade ago are struggling because their original design never anticipated the growth being seen.

Growth is good. But growth without the infrastructure to support it can create problems that eventually turn into crises.

For over half a year, I knocked on doors across District 11, listening to residents discuss what they need from their local government, not necessarily more government, but the expectation that the services they pay for are actually being provided. The same issues came up consistently: road maintenance, traffic, green spaces, libraries serving growing families, and law/safety services with adequate resources to protect and serve our community.

Those conversations led me to a specific problem: Idaho’s HB 389.

Created and passed in 2021, HB 389 established an 8% annual cap on local government budget growth. The bill was created to protect taxpayers from runaway municipal spending and promote fiscal discipline.

Looking specifically at Canyon County, their population growth has outpaced the 8% cap. The result is a structural mismatch between what our communities actually need and what local governments are legally permitted to fund. Infrastructure projects get deferred. Maintenance backlogs accumulate. Communities growing the fastest are, paradoxically, the most constrained in their ability to respond.

I do not believe we should eliminate the cap. This is an argument and plan for making it smarter.

For municipalities and counties facing a population growth of 10% or more over the past five years would have the option and be eligible to come and petition the Legislature’s Local Government Committee for a temporary increase in their budget growth cap, up to 18%. This option would require an itemized accounting of how exactly the additional budget capacity would be used, with an emphasis on infrastructure, local law and safety services, libraries, and general operations. The committee would hold public hearings for each petition, local representatives would testify, and the committee would approve, modify, or deny the request.

If a local government is approved for an increase, said increase would sunset after three to five years, whichever the local governments request, reverting to the 8% of the original cap without further legislative action. From a conservative viewpoint, this is exactly how we can respond to this type of growth. it’s time-limited. It is a hand up. And there is a documented need tied exactly to the data.

This plan would allow communities experiencing extraordinary growth a defined pathway that provides one possible solution to growth rather than deferring essential services indefinitely.

When connecting with community members who have been here for decades, even their whole life, they never thought that the Treasure Valley, or even Idaho, would grow as fast as it has. However, it is growing, and both the families who’ve called this State home for decades and the families newly arriving here deserve roads, public safety resources, and libraries that mirror the current needs of their communities. The folks who have been long-time residents have earned infrastructure that keeps pace and deserves nothing less. New residents choosing our communities should experience the Idaho we are fighting to keep.

I may not be on the ballot in this upcoming election, but I am still a resident of Caldwell, and I believe good policy ideas deserve to be a part of public conversation regardless of elections results. If this resonates with you, please share with your state legislators and local elected officials.

Idaho is building towards something amazing, let’s make sure our policy framework keeps up.

Carlos Hernandez is a project controller and chief of staff who ran for Idaho House District 11A in 2026. He is a Caldwell resident and holds an MPA and MBA with a background in nonprofit management, public administration and finance.