#MTGov Daily Rundown: Bullock Doesn't Even Have a Budget Plan

Governor Steve talks a good game on fiscal matters, but the fact is that Montana's financial situation looks increasingly bleak. With revenues declining and the state budget in danger of going into the red, Bullock was asked what his plan is to deal with the issue. After dodging the question, he was pressed on it and it became clear, in an awkward exchange, that Bullock has no real plan.

Mike Dennison: "So, what is your budget plan?"

Governor Bullock: "Uh...as far as which, Mike?"

The fact is that Montana’s Revenues Are Declining and Ending Fund Balance Projections are Down to $100 Million under Bullock

“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

During Governor Bullock's term, state general fund spending has increased by $800 million.

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.

Montana has also fallen from 1st in the nation in fiscal prudence to 26th. ICYMI: #MTGov Daily Rundown: Bullock Claims Disputed by New JP Morgan Findings on State Fiscal Health