Bullock releases proposed budget with no cuts, no tax increases

Gov. Steve Bullock provided details Monday about his proposed budget that includes no cuts to government services and no increase in revenue or taxes.

“I’ve always said that a budget is a reflection of out values as Montanans,” Bullock said.

He said each of the past budgets he’s worked on have focused on fiscal responsibility while making sustainable a prudent investments in things like education and the protection of health care for the people of the state for generations, and this is no exception.

“(This is) a budget that is balanced, leaves healthy reserves, and protects the services that Montanans rely on without having to make any cuts, or require any new increases in revenue,” he said.

Bullock said the proposed budget includes tools like a budget stabilization fund and a fire suppression fund — which have remained well-funded because he insisted upon their maintenance, he added, and because the state entered this trying year in a historically strong position due to the spending discipline and hard work of the budget office and agency directors.

He said state agencies have done a good job looking after their funds and hiring quality employees, saving money for the state to focus on the things that matter.

Bullock said his budget proposal features a $251 million ending balance for fiscal year 2023, including transferring $75 million from the budget stabilization fund into the general fund, leaving 40 million in reserve.

He said this transfer is to help with COVID-19-related expenses, which is just the kind of thing the fund was designed for.

He said the pandemic has had a severe impact on virtually every state, bringing death, illness and financial hardship to millions, and while Montana has certainly seen hardship it has endured better than most on the financial side.

“The circumstances of the past year have created challenges unparalleled in our lifetime” he said. “However, unlike most states in the nation, our state budget has weathered this storm with exceptional strength.”

Bullock said that while other states have needed to reduce or cut services or raise revenues to manage holes in the budget, Montana has fared very well and this budget reflects that.

“We leave for the incoming administration and Legislature a budget that does not need to raise taxes or reduce or eliminate services,” he said.

He said that after this year, $85 million will be left in the fire suppression fund which should cover four average wildfire seasons.

Bullock said the fact that the budget is as well-balanced as it is means the incoming administration will not need to cut services, and that any attempt to do so is a reflection of belief, not circumstance.

“This is a budget that does not necessitate any cuts to government programs or services relied upon by Montanans,” he said. “If the next administration and legislature choose to cut government services, it will be based on ideology, not based on necessity.”

Bullock said the budget includes investments that build on the successes of previous legislative sessions, particularly in the realm of public education, including $10 million to go toward early childhood education, which he said helps parents in the short term and the state’s workforce in the long term.

$4.6 million will go to needs-based aid for residents seeking two or four year degrees at state colleges and universities, he said, along with an $18.8 million increase to the university system in general and $5 million to the Montana Research and Economic Development Initiative.

Bullock said that in its last session, the Legislature passed a comprehensive $400 million package that worked toward long-overdue sewer, water, bridge, building and other public works projects spurring economic growth in the state.

On its heels, he said, he’s proposing, as part of this budget, a statewide infrastructure package of $499 million, including $91.5 million in bonded projects to take advantage of historically low interest rates.

He said the package includes investments through the Long-range Building Program, the Renewable Resource Grant and Loan Program, the Reclamation and Development Grant Program, Renewable Resource Loans and Coal Severance Tax Bonds, and the Treasure Statement Endowment Program.

Bullock also said the budget includes additional funding for the South-West Montana Veterans Home, a new Montana Veterinary Diagnostic and Ag Analytical Lab, and a new Forrest Conservation and Science Lab at the University of Montana.

The budget also includes increases in mental health services at the Montana Department of Corrections, suicide prevention efforts, Indian Country economic development, and language preservation, he said.

Bullock said the budget also fully funds Medicaid expansion, so hard-working Montanans can access care that may be needed now more than ever.

He said he is proud of the work he has seen done in his time as governor, not just by himself, but by the Legislature.

“I’ve been fortunate to see both Republicans and Democrats roll up their sleeves and work together to advance many aspects of budgets that are a reflection of the priorities of Montanans,” he said.

Bullock said Montana businesses and individuals have stepped up this year to help their fellow neighbors out while adapting to stay financially afloat, and the state government has done the same navigating these difficult times.

He said he is proud of leaving the state in a strong financial position despite the troubling times, and he hopes that future leaders will spend wisely and remember what can be accomplished by working together.

The full proposed budget can be found at https://www.budget.mt.gov\budgets\2023budget .

Bullock said the budget office is happy to answer any questions the incoming Gianforte Administration has, as his predecessor’s budget office did for him before he took office.

“I certainly think we’ve set the incoming governor up in a very good position,” he said.

Gov.-elect Gianforte’s transition team said he hasn’t examined this proposed budget yet but he plans to.

“With state spending increasing by 60 percent over the last 10 years, Gov.-elect Gianforte thinks it’s critical to hold the line on new state spending, “Gianforte spokesperson Brooke Stroyke said in an email. “He looks forward to reviewing the proposed budget in full.”