#MTGov Daily Rundown: Bullock Fails to Deliver on Tax Relief Promises

Running for re-election, Governor Steve Bullock continues to insist that Montana's tax system is fair and that Montanans don't need tax relief. He also claims that tax relief would be too costly to the state. However, in 2012, Bullock promised tax relief, and then failed to deliver on that promise.

"Attorney General Steve Bullock, the Democratic nominee for governor, on Monday proposed giving one-time property tax rebates of $400 apiece to Montana homeowners by taking $100 million from the state’s general fund surplus." -Billings Gazette, 6/11/2016

As is common with Governor Bullock's proposals, the idea was unoriginal having been carried out by former Gov. Brian Schweitzer and the state legislature in 2007.

"In his first proposal since winning the Democratic nomination last week, Bullock borrowed a page out of Democratic Gov. Brian Schweitzer’s playbook. Schweitzer successfully steered $400-per-homeowner rebates through the Legislature in 2007." -Billings Gazette, 6/11/2016

Inheriting a strong state fiscal situation, Bullock claimed, then, that it was time for the state to return money to taxpayers.

"In his first proposal since winning the Democratic nomination last week, Bullock borrowed a page out of Democratic Gov. Brian Schweitzer’s playbook. Schweitzer successfully steered $400-per-homeowner rebates through the Legislature in 2007." -Billings Gazette, 6/11/2016

However, once in office, Bullock not only failed to deliver on his proposal he has also continued to veto tax relief bills, insisting that tax relief simply means "tax cuts for millionaires," even though 63% of Montana taxpayers pay the highest income tax rate.

Governor Steve Bullock vetoed three 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

Meanwhile, Montana's economy continues to suffer under Governor Bullock's failed leadership and state finances have badly deteriorated.

"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

For many other Montana workers, there is a great deal of uncertainty as job losses mount in our natural resource industries.

• Under Governor Bullock, Montana has lost nearly 700 jobs in the timber industry in the last year alone– leaving the industry reeling.
• Weyerhaeuser has closed timber mills in Columbia Falls
• Colstrip Units 1 and 2 are now slated for shutdown by 2022
• Montana mines are laying off workers
• Dozens of Montana rail workers have been laid off or furloughed
• Overall Montana has experienced a net loss of 2700 logging and mining jobs during Bullock's tenure, from 9,700 in December of 2012 to 7,000 in June of 2016 according to the Bureau of Labor Statistics.

Montana also faces steeply declining revenues and a depleted projected ending fund balance.

"State Financial Division staff will discuss the expected drop of around $140 million in the general fund balance at a Legislative Finance Committee hearing Thursday.

The last fiscal year ended with a $255 million balance. By end of fiscal year 2017 that amount is projected to drop to around $109 million." -MTPR, 9/28/2016