Bullock's Trio of Lies Part 1: Bullock's Fiscal Ad Makes Misleading Claims

Governor Steve Bullock currently has three ads on the air. Each one makes its own variety of false claims. Part 1 dissects Bullock's ad on the state's fiscal position.

CLAIM: “I worked with Republicans and Democrats to balance the budget…

• 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: "...with a stable budget reserve,"

• FACT: Montana’s Revenues Are Declining and Ending Fund Balance Projections are Down to $100 Million

·         “The state's budget surplus is projected to shrink to $109 million by next year, according to a new legislative report, which says state tax revenues continue to fall short of expectations. The projected budget surplus for mid-2017 had been about $300 million, after the 2015 Legislature and Gov. Steve Bullock approved the two-year budget.” -MTN News, 9/28/2016

·         “Earlier this summer, Montana ended the 2016 fiscal year with $100 million less in the bank than it had projected. By next summer, the state’s cash balance could fall another $100 million more than planned and come within $1 million of the trigger for automatic agency cuts, according to a recent report by the Legislative Fiscal Division.” -Missoulian, 10/1/2016

·        “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: "...and vetoed wasteful spending to protect it"

• 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.

CLAIM: "My opponent would spend our rainy day fund..."

• FACT: Gianforte’s Tax Plan is a Practical, Common Sense Plan: The bill Gianforte has touted as a model for tax reform had a fiscal note of less than $30 million over the 2015-2017 beinnium, dramatically simplified our tax structure, and reduced taxes for 63% of Montanans that are in the highest tax bracket. The business equipment tax would be phased out over 4 years.

• FACT: Revenues nearly doubled from Montana’s last major tax cuts in 2003 until Bullock took office in 2013
• 

Source: LFD

CLAIM: "....on tax breaks for millionaires like himself.

• FACT: 63% of Montana taxpayers pay the highest income tax rate

 

Source: LFD

CLAIM: "I believe in fiscal responsibility..."

 

• 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: "....and fair taxes for all Montanans."

• FACT:  Bullock Refused to Cut Taxes, Vetoed 3 Tax Reduction Bills

·     “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