Lawmakers move closer to budget deal with governor

HELENA — Gov. Steve Bullock and the Montana Legislature moved closer Tuesday to an agreement on the remaining big pieces of the state budget and eyed an early adjournment.

Bullock said a gap of only about $30 million remained between lawmakers considering the two-year, $10 billion spending plan. Both sides were working late to reach agreement on the priorities.

Bullock was asking lawmakers for more funding for child protective service, prisons, and law enforcement in booming oil fields and other areas. He said more than $6 million was needed to restore more pre-release beds and to fully fund staffing at the state prison.

The governor was also asking for more money to help an overloaded public defender's system.

House Speaker Mark Blasdel said both sides "are getting real close." He said adjournment as early as Wednesday remained a possibility.

Republican lawmakers were massaging their main tax cut measures in hopes of getting Bullock's signature.

Senate Bill 96 would exempt up to $100,000 in a company's business equipment from taxation, and cut in half the 3 percent rate for business equipment worth between $100,000 and $6 million. The rate would remain 3 percent above that ceiling.

Senate Bill 282, also from Republican state Sen. Bruce Tutvedt of Kalispell, aims to simplify Montana income tax by eliminating some credits for corporations and individuals, and reducing the number of different rates charged.

Blasdel believes Bullock would sign the tax cuts. He estimated the package of bills would bring the budget close to the structural balance sought by both sides.

Blasdel said early estimates show the budget deal being negotiated would leave a projected surplus of about $200 million at the end of the two-year budget period.

Lawmakers are also close to sending the governor a plan to fix the state pension system by asking employees and employers to pay more; give pay raises to state employees who have been working under a multi-year pay freeze; and provide money for a slate of educational and other building projects around the state.