Budget surplus disappears again
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Last session at about this same time, I wrote about the disappearing surplus. Well, this session it’s the same. Four months ago, we were looking at a $458 million surplus. Now it is gone.
I am writing this a few days before you are reading, so I can’t tell you all the results. It is not unusual for everything to happen at the end of a session. In fact, often the budget gets decided on the last day.
Also, the governor has 10 days to decide if he should sign, veto, amend, or just let a bill go into law. We have agreed with many of his amendments, but have to wait for his actions on several critical bills.
For the next two years, the state budget is $9 billion. Of that, nearly $4 billion is federal money. Federal sequestration has only removed $2.5 million in royalty payments to Montana so far, but I don’t like the reliance on federal dollars.
Looks like the pay plan will be about $114 million. The executive branch will decide how the money is to be allotted. The legislature has asked that the lower pay levels receive the largest increase, but the governor will have to negotiate with the unions.
A percentage increase always benefits the higher salary employees. For example, the Commissioner of Higher Education earns about $265,000 per year. His 5 percent increase is $13,250, while someone earning $30,000 a year would receive $1,500.
We have many hardworking state employees. I hope everyone can get a raise in salary. Over the years that unions claim to have no increases, healthcare benefits have risen more than $3,000 per year for state employees.
The loser in the entire budget process is the taxpayer, both individual and business. There are still a couple of tax relief bills alive, income tax and personal business equipment, but there may not be enough money left. The governor may veto those.
It looks like the Medicaid expansion bill died in the House. We had a reform plan, but that didn’t make it, as well. There are pension bills, both for the public employees and the teachers’ retirement plans. They include a reduction in the guaranteed increase in retirement. We will have to pay for that lawsuit.
There was a very innovative funding method that surprised me. Everyone is worried about fires this coming year, so we passed a bill that any corporate tax that comes in higher than estimated, will go to a fire suppression fund. Many of us intentionally want to keep the estimates low. So we expect to see the corporate tax dollars increase. Good use of the money, but not good method of budgeting.
I received dozens of emails asking me not to vote for an extension of the water compact between the feds, state and CSKT because it included a legislative study. That is the only way to get the necessary information to legislators from across the state. I hope negotiations can be reopened, because I do not believe that a lawsuit would benefit anyone.
Next week I can all give you a true legislative wrap-up. Until then continue to leave me a message at (406) 444-4800. My cell is (406) 253-8766 and my email address is jannataylor@montana.con. Remember that I work for you.
