#MTGov Daily Rundown: Bullock's Latest Ad Full of Falsehoods

Governor Steve Bullock's latest ad is yet another attempt to mislead Montanans about the fiscal health of the state and his record as governor. Despite very real fiscal issues faced by the state, Bullock continues to claim that everything is rosy.

Claim 1: Bullock touts his administration's fiscal responsibility and accountability.

FACT: Bullock’s Administration Made $1 Billion Worth of Accounting Errors in 2015

“Tori Hunthausen of the Legislative Audit Division told lawmakers Wednesday that an audit of the Department of Administration found financial misstatements and omissions that have the potential to affect the state's AA+ bond rating.It's a financial preparation, procedures, review and supervision problem, she said. The errors include an approximately $1 billion overstatement of accumulated depreciation related to infrastructure and in large part the state highway system. Four bond issuances totaling approximately $62 million also were omitted, and transportation expenses were overstated by approximately $220 million.” -Associated Press, 6/24/2015

The press called it a “billion dollar mistake” and questioned Montana’s state finances:“The report pegged the amount as $1.2 billion, but auditors revised downward to just over $200 million; a billion dollar mistake.” -Montana Public Radio 6/24/2016

Claim 2: Bullock worked with Republicans and Democrats to balance the budget every year.

FACT: A balanced budget is REQUIRED by the Montana Constitution

“Appropriations by the legislature shall not exceed expected revenue.” -Constitution of Montana, Article VIII, Section 9.

Claim 3: Bullock has protected a $300 million rainy day fund.

FACT: The "rainy day fund" or ending fund balance is projected to be BARELY A THIRD of of the $300 million number Bullock touts.

“At one time officials predicted that the state would have $314 million in ending fund balance as of June 2017, but lower revenue projections for 2017, such as a 34 percent dip in oil and natural gas taxes, a 37 percent drop in the metal mines tax and an 80 percent decrease in Treasury Cash Account interest earnings all contributed to the shortfall, LFD officials said.” -Great Falls Tribune, 9/7/2016

“The LFD staff, which reports to the Legislature whereas the governor relies on his state budget director, noted the lower revenue trends were expected to continue into 2017 and the new ending general fund balance for FY 2017 is projected to be $109 million, officials said.” -Great Falls Tribune, 9/7/2016

Claim: "No new taxes"

FACT: Bullock vetoes 3 tax relief 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

Claim: Bullock says he's cut down on waste to save the state money.

FACT: State spending has increased by $800 million under Bullock.

Under Governor Bullock, state general fund spending during the 2011-2013 biennium (before Bullock took office) was $3.238 billion (HB2, 2011) For the 2015-2017 biennium, state general fund spending is $4.051 billion (HB2, 2015), an increase of more than $800 million, or more than 20 percent.

FACT: Montana's economy is shrinking.

Governor Bullock also continues to argue that Montana's economy is vibrant and its fiscal situation is sound. However, the facts are beginning to paint a different picture. The Bureau of Economic Analysis reported this week that Montana has now experienced two consecutive quarters of negative economic growth.

"The Montana economy has shrunk for the second straight quarter as oil and gas, timber, mining, agriculture and transportation all reported losses.

The Billings Gazette reports that according to a Bureau of Economic Analysis report issued this week, drops in industry pulled Montana’s gross domestic product into negative figures for the last three months of 2015 as well as the first quarter of 2016." -Associated Press via the Great Falls Tribune 7/31/2016

"In the final quarter of 2015, the state's gross domestic product shrank 1 percent. It contracted 0.9 percent in the first three months of 2016." -Billings Gazette, 7/29/2016

"Iowa, Nebraska, New Mexico, Oklahoma, Montana, Wyoming, and Alaska had consecutive quarters of negative economic growth in the fourth quarter of 2015 and the first quarter of 2016." -Washington Free Beacon, 7/28/2016