Vote could return budget surplus to taxpayers
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A recent Sunday Missoulian reported that our state budget surplus may hit $426 million by the middle of next year, thanks to better-than-expected collections from your income taxes, corporate fees, oil and gas production and insurance taxes. Some sources of state income may drop, but Montana looks to be comfortably in the black.
Forecasting a nearly $4 billion budget is not exact science. The cloud over our heads last session was the fact that in 2009, 2010, and 2011, actual revenues were lower than anticipated. We also had to deal with the reality that “stimulus” funding ended in 2011. After making many hard choices about spending the people’s money, we adjourned in April expecting $150 million surplus – 4 percent of the total – to cover the next two-year period.
Using a household example, suppose your gross family income is $40,000. Based on our spending commitments, your budget surplus would be a modest $1,600.
If the budget surplus reaches $426 million, that’s 11 percent. Again, using $40,000 income, you’d retain $4,260 in the bank.
But suppose you experienced a house fire?
Or an unexpected lawsuit, and must pay to defend yourself?
You can understand our concern over the possibility of a bad forest fire season that would require more state resources, or the possibility of legal actions against Montana that absorb tens of millions of dollars. Wouldn’t you want a comfortable reserve in the bank?
As you know, our Montana Constitution requires no spending beyond revenue. We honored the Montana Constitution and managed to cut the cost of government by 6 percent, while providing a reasonable surplus for unplanned setbacks.
We also passed a Senate bill we call the “Treasure State Tax Dividend” that will appear on your November ballot as LR-123. If you approve this referendum, it provides a sensible way to return some of your hard-earned taxes to you so you can use the money at your discretion.
Wouldn’t you prefer to spend your own money?
(Editor's note: Carmine Mowbray is a Senator in Montana's Senate District 6.)
