New editions of the State Legislative Tracker and The Policy Tracker available now!

Montana state budget and finances

From Ballotpedia
(Redirected from Montana state budget)
Jump to: navigation, search

Montana budget and finances
Policypedia Budget Policy-logo-no background.png
General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
AA (as of 2014)
Current governor:
Steve Bullock
Financial figures
Total spending (state and federal funds):
$6.2 billion (estimated for 2014)
Per capita spending:
$6,045.45 (estimated for 2014)
Total state tax collections:
$2.6 billion (2013)
Per capita tax collections:
$2,605.88 (2013)
State debt:
$15.8 billion (as of 2014)
Per capita state debt:
$15,689 (as of 2014)
State budgets and finances
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Horizontal-Policypedia logo-color.png
Total state expendituresState debtTax policy in Montana
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total spending in Montana increased by approximately $148 million, from $6.0 billion in fiscal year 2013 to an estimated $6.2 billion in 2014. This represents a 2.5 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Montana a credit rating of AA.[1][2][3]
In 2012, approximately 39 percent of Montana's general revenues came from the federal government, the sixth-highest share in the nation.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In Montana in fiscal year 2014, total estimated government spending amounted to $6.2 billion. Estimated per capita spending was $6,045.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Montana $4,039 $2,149 $6,188 1,023,579 $6,045.45
Colorado $22,531 $7,756 $30,287 5,355,866 $5,654.92
Idaho $4,530 $2,814 $7,344 1,634,464 $4,493.22
Utah $9,263 $3,644 $12,907 2,942,902 $4,385.81
Wyoming $5,563 $2,082 $7,645 584,153 $13,087.32
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Montana can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In Montana in fiscal year 2013, transportation accounted for 11 percent of total spending, a greater share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Montana 15.5% 10.1% 0.5% 17.9% 3.2% 11.0% 41.8%
Colorado 26.0% 8.3% 0.0% 22.0% 2.6% 8.5% 32.6%
Idaho 24.2% 8.1% 0.2% 28.0% 3.8% 9.6% 25.9%
Utah 23.6% 11.5% 0.6% 17.2% 2.1% 10.4% 34.6%
Wyoming 10.9% 4.8% 0.0% 6.6% 1.4% 6.4% 70.0%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of the Montana state budget spent on Medicaid increased from 15.2 percent to 17.9 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 15.5% 10.1% 0.5% 17.9% 3.2% 11% 41.8%
2012 15.5% 9.8% 0.5% 16.8% 3.1% 12.7% 41.5%
2011 15.1% 9.8% 0.5% 15.7% 2.9% 11.4% 44.5%
2010 15.1% 9.6% 0.6% 15.4% 3.0% 11.5% 44.8%
2009 15.8% 9.9% 0.7% 15.2% 3.3% 11.5% 43.5%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

In Montana in 2013, total state tax collections equaled $2.6 billion. Per capita tax collections were $2,606.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Montana $262,313 $558,961 $320,858 $1,045,500 $170,999 $285,979 $2,644,610 1,014,864 $2,605.88
Colorado N/A $4,279,544 $637,707 $5,528,485 $652,180 $147,746 $11,245,662 5,272,086 $2,133.06
Idaho N/A $1,773,270 $306,627 $1,292,562 $200,340 $6,294 $3,579,093 1,612,843 $2,219.12
Utah N/A $2,739,916 $294,174 $2,852,088 $330,684 $112,050 $6,328,912 2,902,787 $2,180.29
Wyoming $331,899 $826,387 $155,241 N/A N/A $872,527 $2,186,054 583,223 $3,748.23
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Montana tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Montana, sales taxes and gross receipts accounted for 21 percent of total state tax collections, a smaller share than in any neighboring state.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Montana 9.92% 21.14% 12.13% 39.53% 6.47% 10.81%
Colorado N/A 38.06% 5.67% 49.16% 5.8% 1.31%
Idaho N/A 49.55% 8.57% 36.11% 5.6% 0.18%
Utah N/A 43.29% 4.65% 45.06% 5.22% 1.77%
Wyoming 15.18% 37.8% 7.1% N/A N/A 39.91%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Montana budget and finance information

Fiscal years 2014 and 2015

DocumentIcon.jpg See budget bill: HB 2

Montana state budget -- 2014-2015 (biennial)
Montana State Legislature
Text:HB 2
Legislative history
Introduced:December 17, 2012
House:March 20, 2013
Vote (lower house):97-0
Senate:April 16, 2013 (passed with amendments)
Vote (upper house):30-20
Conference:April 19, 2013 (House passed as amended by Senate)
Conference vote (lower house):59-41
Governor:Steve Bullock
Signed:May 3, 2013 (with line item vetoes)

On May 3, 2013, Governor Steve Bullock signed into law the biennial state budget for fiscal years 2014 and 2015. Using his line item veto authority, Bullock cut approximately $30 million from the budget as passed. These cuts impacted funding for health care providers, oil and gas research, agriculture experiment stations and pay increases for game wardens.[10]

Senate President Jeff Essmann (R) praised Bullock's vetoes. "Democrats, with help from a handful of Republicans, passed a bloated budget at the conclusion of the legislative session and I am happy that the governor found a way to reduce its size. Cutting $30 million out of a $11 billion budget (sic) isn't that much - but it's a start," Essmann said.[10]

The budget as vetoed by Bullock was enacted into law.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Montana had a state debt of approximately $15.8 billion. Its state debt per capita was $15,689. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Montana $15,769,183,000 $15,689 22
Colorado $86,879,414,000 $16,748 19
Idaho $15,094,322,000 $9,459 44
Utah $35,727,752,000 $12,513 37
Wyoming $9,951,523,000 $17,265 18
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Montana public pensions and Montana public employee salaries

As of 2012, Montana's pension system had an unfunded liability of approximately $3.9 billion and was 66.75 percent funded. According to the Pew Center on the States "Widening Gap Update," a report on pensions in all 50 states, Montana failed to pay its full annual pension contribution four times from 2005 to 2010. According to the report, most experts agree that a fiscally sustainable system should be at least 80 percent funded.[12]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[13][14]

The table below lists the Standard and Poor's credit ratings for Montana and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[15]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Montana AA AA AA AA AA AA AA AA- AA- AA- AA-
Colorado AA AA AA AA AA AA AA AA AA- AA- AA-
Idaho AA+ AA+ AA+ AA+ AA AA AA AA AA AA AA
Utah AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
Wyoming AAA AAA AAA AAA AA+ AA+ AA+ AA AA AA AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[16]

The table below notes what share of Montana’s general revenues came from the federal government in 2012. That year, Montana received approximately $2.2 billion in federal aid, approximately 39 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[16]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Montana $2,202,444 38.97% 6
Colorado $6,310,538 28.84% 35
Idaho $2,479,094 34.9% 16
Utah $4,481,494 31.61% 31
Wyoming $2,213,249 37.51% 8
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

Montana received $1.37 billion in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.[17]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[18][19]

  1. Budget instruction guidelines are sent to state agencies in early August of the year preceding the start of the new biennium.
  2. Agencies submit their budget requests to the governor in early September.
  3. Agency hearings are held in September.
  4. The governor submits his or her proposed budget to the state legislature in November.
  5. The legislature typically adopts a budget in April. A simple majority is required to pass a budget. The biennium begins July 1.

Montana is one of 44 states in which the governor has line item veto authority.[19]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.[19]

Agencies, offices and committees

The following standing committees in the Montana State Legislature deal with budget and finance matters:[20][21]

  1. Appropriations Committee, Montana House of Representatives
  2. Finance and Claims Committee, Montana State Senate
  3. Taxation Committee, Montana House of Representatives
  4. Taxation Committee, Montana State Senate

The Montana Legislative Auditor conducts financial and compliance, performance, and information system audits of state agencies or their programs, including the university system. These audit reports are published online. The Legislative Auditor is solely responsible to the Legislative Assembly and is appointed by and operates primarily through the Legislative Audit Committee. The term of office is for two years, beginning July 1 of each even-numbered year.[22][23]

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[24] According to the report, Montana received a grade of B and a numerical score of 86, indicating that Montana was "advancing" in terms of transparency regarding state spending.[24]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: Spending and finance on the ballot and List of Montana ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Montana.

  1. Montana Administration of Gifts, Amendment 2 (1924)
  2. Montana Big Sky Dividend, CI-63 (1992)
  3. Montana Coal Tax Trust Fund, C-3 (1976)
  4. Montana Committee for Budget Amendments, C-5 (1978)
  5. Montana Compensation Insurance Fund Asset Investment, C-34 (2000)
  6. Montana Income from Public School Funds, Amendment 1 (1944)
  7. Montana Indebtedness of High School Districts, Amendment 1 (1958)
  8. Montana Interest on School Funds, Amendment 2 (1920)
  9. Montana Invest Coal Tax, I-95 (1982)
  10. Montana Investment of Public Funds, C-17 (1988)
  11. Montana Investment of Public School Permanent Fund, Amendment 2 (1938)
  12. Montana Investment of Public and School Funds, C-10 (1982)
  13. Montana Investment of State Funds, I-8 (1914)
  14. Montana Limit State Spending, CI-7 (1976)
  15. Montana Limitation of County Indebtedness, Amendment 2 (1950)
  16. Montana Limitation of Municipal Indebtedness, Amendment 3 (1950)
  17. Montana Local Government Insurance Asset Investment, C-36 (2002)
  18. Montana Protection of Public Pension Assets, C-25 (1994)
  19. Montana Public Funds Investment, C-44 (2008)
  20. Montana Public Funds Investment in Private Corporate Stock, C-39 (2002)
  21. Montana Resource Indemnity Trust, C-1 (1974)
  22. Montana State Depository Board, Amendment 1 (1908)
  23. Montana State Highway Treasury Anticipation Debenture Act, R-35 (May 1931)
  24. Montana State Highway Treasury Anticipation Debentures Act, I-41 (1938)
  25. Montana State Highway Treasury Anticipation Debentures Act, R-49 (June 1945)
  26. Montana Treasure State Endowment Fund, LR-110 (June 1992)

Recent news

This section displays the most recent stories in a Google news search for the terms "Montana budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Montana state budget and finances - Google News Feed

  • Loading...

Contact information

Montana Office of Budget and Program Planning
P.O. Box 200802
Helena, Montana 59620
Telephone: 406-444-3616

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 10.2 KPAX.com, "Gov. Bullock signs budget," May 3, 2013
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "Widening Gap Update," accessed April 24, 2014
  13. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  14. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  15. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  16. 16.0 16.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  17. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  18. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," accessed June 2, 2014
  19. 19.0 19.1 19.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  20. The Montana Legislature, "2015 House of Representatives Committees," accessed March 20, 2015
  21. The Montana Legislature, "2015 Senate Committees," accessed March 20, 2015
  22. Legislative Audit Division, "Home page," accessed October 30, 2009
  23. Legislative Audit Division, "Audit Reports," accessed October 30, 2009
  24. 24.0 24.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014