Budget bill passes peacefully, stimulus money up next
This week the house voted in favor of House Bill 2. On a 65-35 vote HB 2 was approved in the house and now takes a turn with the Senate. House Bill 2 is the Montana State budget.
The bill contains total general fund spending of $3.3 billion through 2011. That represents an increase in spending of 2.3 percent per year - a far cry from the 40 percent growth in spending we saw last session.
This bill is fundamentally sound, however shortly after the bill came out of committee, there was an additional downward estimate from the state fiscal division, in the amount of $41 million. Because of this latest downward estimate in the revenue the bill will need to be amended in the Senate to reduce spending further. Both parties, including the Governor, are very concerned about keeping a sum in the amount of $250 million in reserve. Once again, we are one of the only states in the union that has a surplus and we intend to keep it that way. Our budget will need to be adjusted downward as our revenue continues to drop.
I have heard from many very senior legislators and senior staff that they have never seen a debate on House Bill 2 that was more civil and concise. I believe that most of us are truly concerned about the financial state of our budget and are determined to live within our means.
The appropriation committee now begins the work on HB 645, which is the Stimulus Bill of 2009. This committee has the task of distribution of the federal funds. I have received many e-mails and call from you inquiring about the process and stating your opinion. I personally am not in favor of this stimulus money. I believe that our spending in Washington has gone way too far. We have a national debt that is approaching $12 trillion dollars. Next year's federal budget is another $2 trillion in deficit spending. This spending spree has to stop!
The stimulus money will need to be rejected by both the Legislature and the Executive branches of government in order for us to send the money back. If either branch is unwilling to reject the money the money continues to flow through to the state and to the body of government that accepts it. Meaning that if the Governor accepts the money and the Legislature rejects the money, the Governor will receive the money and be able to distribute it as he desires. And vise versa.
I spoke to the Governor last week about his position on the stimulus and he is welcoming the money, and has requested from the federal government additional money from those few states that have turned it down. This means that as a Legislature we will need to accept the money in order to maintain control of how it is best used. We as a body most closely represent the people of Montana and can best determine how to most efficiently and prudently spend this money.
We would hope that we can put this money to use as quickly as possible. It is our desire to increase our work projects across the state, including project very close to home. Hopefully this will have the effect of increasing employment along with consumer confidence. Only time will tell.
Contact me at 253-3929 or sreichner@centurytel.net or follow the proceedings at www.leg.mt.gov.