Special Session update from Sen. Mike Lang

Montana, and especially I, say thank you to the Montana 2017 special session House and Senate leadership for helping the legislature provide our state with $230 million to replenish the fire fund and provide dollars to shore up the budget problems.

Like many situations, there are differences of opinions, but someone must make the final and best decision at the time. I feel the legislators for the 2017 special session did that.

In times of trouble, we all must partake. The largest users of the tax dollars, DPHHS, education, and corrections, had to be reduced the most. Low revenues are projected through the biennium. SB 261 from the regular 2017 session and signed by the Governor, defined reductions to stabilize the budget. However, more reductions, which were needed for stability, were not pursued in a timely manner.

Taxes were not increased. Fire assessment of an extra $13 million (HB 4) died. We in eastern Montana will need to head up on further fire assessments. Lodging, rental car, and insurance tax increases also died.

HB 2 and HB 6 revised appropriations and directed how revenue transfers must be spent by the Governor. To me, this is just good financial management as the dollars can only be used where they are needed. Some have commented that these bills made for permanent reduction but that is incorrect. These reductions are only until the next legislative session, but they must be implemented with spending transparency.

HB 3 transferred $40 million to the fire fund. SB 9 provides a path for the Governor to use escrow dollars from Shelby prison. $15 million to fire fund and $15 million to backfill the reductions to DPHHS. We must provide for our most needy.

Other contributions to our budget came from SB 1, temporally suspend state contributions to judges retirement, $2.86M; SB2, schools block grants and transportation funds, $14.9M; SB 3, two month employer holiday contribution to state group employees, $10.4M; SB4, 3% revenue on excess over $1billion balance in state fund, $29.7M; SB 5, auction revenues on new liquor licenses, $6.3M; HB 8 was to furlough state employees, $15M, but has been vetoed. HB 5 would have let State Auditor start process of risk pool insurance feasibility, because of federal instability, was also vetoed.

Governor reductions are valued at $76.6M were not signed until the special session had started.

The special session of 2017 secured funds, as follows: $77.5M for this and next year’s fire fund; provided a lawful path for the Governor’s $76.6M cuts and $76.5M of additional transfers to cover obligations because of revenue reductions. The legislature during the special session provided the cash transfer for $161M of funding obligations to Montana K-12 schools.

We all are involved with dollars from schools, judges and public employees, businesses, corrections and health services.

While the government is a part of society, we must remember that revenues are created by taxpayers. We need to secure a positive objective and pathway to fulfilling our own needs centered around accountability.

Early in my own business, sales were expanding in a seasonal pattern, but I was short of cash and incurring high-interest charges. Therefore, I had to manage more intensively and secure some cash via long-term debt. However, I was responsible for my debts and had to spend accordingly. View the charts at this site to see why Montana also has seasonal cash problems. http://leg.mt.gov/content/Publications/fiscal/2017-COTW/cotw-cash-Nov-1.pdf.