“This is the most sustainable budget in history,” Schweitzer said Thursday during a visit to Missoula. “For every buck I'm spending, I'm saving a buck.”
The governor dismissed claims by Republican leaders that the state's nearly $1 billion surplus this biennium is the result of a decade's worth of improving Montana's business environment - under GOP leadership.
“It's the national business cycle that's driving this. It will turn down again, and when it does, we'll have money in the bank.”
Montana is expected to have
$988 million in new income over the next two years from taxes on incomes, commodities and property. Of that, Schweitzer's proposed budget spends $388 million on new programs or activities. That includes $100 million to improve mental health and substance abuse treatment for the state's prisoners, $50 million to offset a tuition freeze in the state's university system and a
6 percent increase in K-12 education spending.
Another $170 million would go toward paying cash for things the state has previously borrowed money to do. That includes $20 million to build two modern computer facilities to house the state's information network and $15 million for new parks facilities and stream access sites.
Schweitzer also wants to budget $36 million for forest fire expenses and $14.5 million for a revolving fund county governments can draw on while settling property tax disputes with major landowners. Those property tax protests with railroads, utility companies and similar institutions have left many counties cash-starved even when they win the protest, Schweitzer said.
But the remaining
$600 million would go toward spending reductions or savings accounts. Schweitzer would need $150 million to fund his proposed $400 property tax rebate for homeowners.
That figure would also cover raising the threshold for business equipment taxpayers to $150,000 in inventory. That would exempt about 30,000 small-business owners from paying the tax, reducing state revenues by about $30 million.
Schweitzer also called for eliminating the state water tax, at a cost of $20 million.
Another $100 million would be set aside for an ending-fund balance, the state's contingency fund. Schweitzer wants
$80 million for a “Big Sky Savings Account.” This rainy-day fund would continue to gather money in good years, but would eventually be capped at
$180 million. Any additional revenue would go toward property tax relief.
Finally, Schweitzer proposed spending $100 million to continue offsetting the estimated $1 billion deficit in the state's employee pension fund. Spending that money now would reduce the deficit by about
$650 million over the next 30 years, he said.
“Under normal circumstances, would you call any of that spending?” Schweitzer asked. “It's either put the money back in the pension fund or raise taxes later. We have constitutional and statutory requirements to make that fund whole.”
Schweitzer acknowledged his budget is a starting point. Republicans in the Legislature have proposed more sweeping tax-cut and rebate measures. Public school leaders have objected to the education spending and plan to present a study next week showing it costs more to provide state-mandated quality education than the government has spent so far.
“My cards are on the table,” Schweitzer said of his proposals. “I'm waiting for them to send me something back in writing.”
Reporter Rob Chaney can be reached at 523-5382 or at rchaney@missoulian.com
Budget proposal audio
To listen to Gov. Brian Schweitzer's budget proposal, Click here
|
 |
 |
Add your comment now! Write your comment in the form below.
(Email address is for verification only. If you'd like to email a story, look for the link above)