#MTGOV DAILY RUNDOWN: Revenues Continue Sharp Decline Under Bullock's Failed Leadership

Montana faces an increasingly serious fiscal situation. While career politician Steve Bullock continues to try and argue that Montana's economy and finances are in great shape and that he has protected a $300 million rainy day fund, the facts are continuing to show otherwise.

• For FY16, actual revenue came in $141.5 million UNDER projections. Even more disturbingly, the state took in 78.3 million LESS than it did in FY15. (LFD)

• At the beginning of FY16, the state's beginning fund balance was $455 million. At one point, the ending fund balance was projected to be $276 million. Then it was revised downward to $166 million. Now it's been revised downward again to around $100 million. Governor Bullock has squandered more than three-quarters of the rainy day fund. (LFD)

• Under Bullock, state general fund spending has increased more than 25% under Bullock, a total of more than $800 million. (HB 2)

• Montana has now experienced two consecutive quarters of negative economic growth. -Billings Gazette, 7/29/2016

Republican legislators held a press conference today in Helena bringing attention to the concerns about falling revenues.

"Thomas said last week, the panel was told revenues were off by another $44 million. He said the state could have a $100 million ending fund balance instead of the $300 million officials covet.

'This means we overspent,' he said." -Great Falls Tribune, 8/1/2016

Governor Bullock inherited a decent fiscal situation when he was elected. Yet, during his two legislative sessions as governor he failed to take meaningful action on tax relief and needed infrastructure that would have boosted our economy. Now we have declining revenues and the next governor and legislature face some tough choices.

Older projections said the fund would fall as low as $160 million by the end of the biennium despite being projected to be over $300 million.

“Montana’s general fund is nearly 4 percent behind projections, with oil and gas tax receipts down by more than half. The slowdown amounts to more than $67 million the government had counted on. What’s more, fluctuating prices at gas pumps are translating to budgetary uncertainty.” -Associated Press, 5/10/2016


Montana is already starting to feel the effects with funding for school libraries taking a notable hit.

“But as revenue directed to Montana libraries from the state’s coal severance tax loses steam, public and school libraries will lose access to EBSCO, a collection of databases. Billings’ high school librarians strongly oppose the move.

In January, the Montana State Library found out it would be losing $46,000 in expected tax revenue for the current 2015-17 budget. In mid-May, another $166,000 was cut.” -Helena Independent Record, 6/5/2016


Steve Bullock had the chance to invest in Montana’s economy while sitting on a nearly half billion dollar surplus. However, he failed to take action despite growing state spending by 20 percent during his first term.

 

Governor Steve Bullock vetoed three tax cut bills in 2015 alone.

“The state House and Senate GOP caucuses touted tax cuts as a high priority for the 2015 session, but every major tax initiative that was passed out of the Republican-controlled Legislature has been vetoed by Gov. Steve Bullock. Bullock shot down the last of three principal tax proposals from Republicans on Monday. The other two vetoes came earlier this year on proposals to cut income taxes by 0.1 percent to 0.2 percent for every bracket.” -Associated Press 5/7/2016

Bullock also failed to deliver on infrastructure. In 2013, Bullock VETOED a critical Infrastructure bill for Eastern Montana after the bill passed both chambers of the Legislature by wide bipartisan margins. In 2015, Bullock VETOED the very same Infrastructure bill he’s now campaigning on. 

"’He basically took the same plan I passed nearly one year ago – and the bill he vetoed, he’s calling his own,’ state Sen. Rick Ripley, R-Wolf Creek, said at a GOP news conference Wednesday. ‘Sounds like another campaign trick, if you ask me.’” –Sen. Ripley