Bullock: State budget, fire fund, in good shape

Gov. Steve Bullock said during a press conference Monday that, despite the pandemic and what looks to be a tough fire season, the state is in a relatively strong position going into the next few years.

“We’ve wrapped up the state fiscal year and have a greater understanding of how the pandemic has affected revenue and expenditures,” Bullock said. “… We headed into this pandemic in a historically strong position financially. We were careful stewards of tax-payer dollars and now Montana really is in an enviable financial situation compared to many other states weathering budget challenges.”

He said steps are being taken to make sure this trend continues as the pandemic goes on.

He said $46.7 million has been transferred into the state fire suppression fund, bringing it to $101.5 million, reaching the statutory maximum for the first time in history.

Bullock said the historic funding was made possible due in part to state agencies under the executive branch managing their money with care.

He said the state finished the fiscal year under budget and per the law the extra funds were transferred to the fire fund until it reached legal capacity, after which the rest went into the state general fund.

“At the beginning of the pandemic, I asked state agencies to tighten their belts and I’m pleased that they did so,” Bullock said. “The fire fund being filled to the brim is an important cushion to have during this time. We’re ensuring if 2020 does decide to surprise us again with a fire season like the one we saw in 2017, where we spent $65 million on the state side, we’ll be able to cover those costs and have plenty left over for the 2021 fire season.”

He said the fund is filled to the point that it could cover almost five average fire seasons, but Montanans should be prepared for an above average season in the coming year.

Bullock also said the budget stabilization reserve, often called the state’s rainy day fund, is still at its maximum of $114.2 million for the second year in a row, and it will be used to make up the difference if expenditures become unexpectedly high during the pandemic and revenues can’t keep up.

Montana will be going into the new year with $620 million in reserve, he said.

He also said the revenues from tax collection this year came in $21 million above what the Legislature predicted in 2019 even before the pandemic complicated matters further.

He said this advantageous position was made possible because the state took the right steps to expect the unexpected and leave money in the bank to deal with it.

“While we’re certainly not immune in Montana to the economic challenges … but we are resilient,” Bullock said. “We see no reason now to make cuts to essential service, especially now that they are more essential than ever as we face this pandemic and the associated economic challenges.”

He said the budget should be handled the same way as the pandemic, through science and facts rather than politics.

Bullock said Montana will likely have a difficult year in 2020-21, and the state will more than likely spend more than it takes in. But he predicted that starting in a strong position like this will allow the state to remain in the black without having to use the rainy-day fund.

He also addressed the prospect of revenue assistance from the federal government, which he said, the state is not in immediate need of.

“If Congress ever takes action on the question of revenue relief to local and state governments, we will finally know what tools we have going into the next biennium,” he said, “Unlike most states Montana can manage with or without revenue relief.”

He said assistance would go a long way towards normalizing the state’s revenue picture in the coming years.

Bullock said the state should continue to embrace conservative money management to ensure it can continue to handle the unexpected especially given predictions about the current fire season.

“This is not the time to relax the fiscal discipline that has served us so well,” he said.

Bullock said fuels have dried out across the state and frequent lightning storms have contributed to a troublesome fire season in the state and the western U.S. in general.

He said nine new fires are burning and one large uncontained fire is in Beaverhead-Deer Lodge National Forest, but with the funding now available he’s confident that the situation this year can be handled.

“Montanans can rest assured that we can handle current challenges,” he said.

Bullock also said the people of Montana need to be vigilant in watching out for and not causing fire hazards.

“Just like with COVID-19, we’re asking Montanans to take matters into their hands to keep Montana lives safe during fire season,” he said. “Just as with COVID-19 when we work together as Montanans, as one big community we can reduce risk.

“Just as with COVID-19, prevention is key,” he added.

Bullock said 60 percent of fires in the state are human caused and cited a recent example.

“The Falling Star Fire is a stark reminder of how human action can start a fire and how quickly conditions can change,” he said.

Wildfire protection agencies are continuing their increased efforts to educate Montanans about how to recreate responsibly and harvest crops safely, Bullock said, and firefighters have been engaging directly on how to make their homes and communities more fire adapted.

“Preventing a fire is the best way to protect the public and allow our available resources to focus on fighting the natural igniters,” he said.

Bullock asked Montanans to be cognizant of both the fire season and the pandemic as they recreate by fully extinguish campfires, wearing a mask when in stores, and listening to public health.

He said wildfire protection agencies across the state have excelled at initial and extended engagement with fires, keeping them as small as possible, and he thanked them for their efforts.

“They work tirelessly to prepare for this fire season, and it’s paying off,” he said.

He said the amount of smooth communication between agencies is encouraging while looking forward at the coming months with both the pandemic and the fire season.

“This year has been unlike any year before it,” he said, “but seeing the heightened levels of inter-agency collaboration and communication gives me confidence that Montanans can feel safe knowing that we are ready to protect the public.”

Bullock addressed recent reports of post boxes being removed by the postal service, which he said, he’s very concerned about.

“I’m certainly happy to hear that reportedly the postal service has put a hold on taking any more boxes away, but they still need to put them back and we still need answers about why they were taken to begin with,” he said.

Bullock said even though it’s good that the Trump administration appears to have backtracked on that particular irregularity there are many more that require explanation for Montanans especially considering how many people in the state live in rural areas and may have dire need of the service.

“Someone in rural Montana waiting on their medication, say insulin, even a day’s delay is absolutely unacceptable,” he said.

Bullock also addressed a recent directive from President Donald Trump that would require states to pay 25 percent of the cost of National Guard responses to COVID-19 related emergencies while on federal missions.

Bullock said he’s proud of the work the National Guard does, but this move is concerning and unprecedented, but he said those co-pays will be covered with funds from the CARES Act.

He said he has expressed his concern about this policy as a member of the council of governors and that conversations about it are still ongoing.

Bullock also provided a brief update on the second round of business stabilization grants that he announced would become available at last week’s press conference. He said 6,000 businesses have signed up.

Montana State University’s lab being used for COVID-19 testing is fully operational, he said, and they got 12,000 tests last Friday, all of which were done Saturday. He said the lab is expected to be doing an average 500 tests per day.

Bullock said more than 200,000 tests have been conducted in the state and Mako Medical Lab has been processing tests in one to two days.

He also said the state lab is working at capacity.

Bullock said the state is continuing to work with health care professionals to make sure they have the resources they need.

Bullock acknowledged that there have been protests about masks around the state and that they have the right to protest, but he requested that they do so while maintaining social distance and wear a mask for the sake of public safety.