Difference between revisions of "Montana state budget"

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==Accounting principles==
 
==Accounting principles==
 
::''See also: [[Montana government accounting principles]]''
 
::''See also: [[Montana government accounting principles]]''
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 were 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.<ref>[http://leg.mt.gov/css/audit/default.asp ''Legislative Audit Division'', "Home page," accessed October 30, 2009]</ref><ref>[http://leg.mt.gov/css/publications/audit/reports.asp ''Legislative Audit Division'', "Audit Reports," accessed October 30, 2009]</ref>
+
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.<ref>[http://leg.mt.gov/css/audit/default.asp ''Legislative Audit Division'', "Home page," accessed October 30, 2009]</ref><ref>[http://leg.mt.gov/css/publications/audit/reports.asp ''Legislative Audit Division'', "Audit Reports," accessed October 30, 2009]</ref>
  
 
==Contact information==
 
==Contact information==

Revision as of 13:19, 25 April 2014

Montana state budget

Flag of Montana.png
Budget calendar:  Biennial
Fiscal year:  2014
State credit rating:  AA (as of May 2012)
Current governor:  Steve Bullock
Financial figures
GF expenses[1]:  $1.947 billion (estimated for FY 2013)
All funds expenses:  $6.040 billion (estimated for FY 2013)
Spending % change:  Green Arrow Up Darker.svg2.04%[2]
% from federal funding:  38.46%
State debt:  $15,769,183,000
Per capita state debt:  $15,689
Other state budgets
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Montana, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Montana's total expenditures increased by approximately $0.514 billion, from $5.526 billion in 2009 to $6.040 billion in 2013. This represents a 9.30 percent increase, slightly outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  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.[6]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[7]
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[7]
  • Federal funds: "Funds received directly from the federal government."[7]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[7]

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Montana $1,947 $2,115 $1,978 $0 $6,040 $5,949.77
Colorado $7,942 $7,334 $13,203 $0 $28,479 $5,405.66
Idaho $2,699 $2,792 $1,718 $33 $7,242 $4,492.18
Utah $4,990 $3,405 $3,739 $469 $12,603 $4,344.56
Wyoming $3,709 $2,353 $2,549 $0 $8,611 $14,778.82
Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Montana can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Montana 15.5% 9.8% 0.5% 16.8% 3.1% 12.7% 41.5%
Colorado 25.3% 9.0% 0.0% 20.7% 2.7% 5.4% 36.9%
Idaho 25.7% 8.1% 0.3% 27.2% 3.7% 10.9% 24.2%
Utah 24.7% 11.9% 0.9% 17.5% 2.0% 9.2% 33.9%
Wyoming 3.9% 5.5% 0.0% 9.5% 4.6% 9.5% 66.9%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, elementary/secondary and higher education spending fell by 4.30 and two percent respectively. During the same period, spending categorized as "other" rose by eight percent. The table below details changes in expenditures from 2008 to 2012.[7][10][11][12][13] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
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%
2008 19.8% 11.8% 0.9% 16.8% 3.8% 13.4% 33.5%
Change in % -4.30% -2.00% -0.40% 0.00% -0.70% -0.70% 8.00%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Montana $62 $1,048 $177 $57 $734 $2,078 $2,046.96
Colorado $2,186 $5,642 $640 $13 $111 $8,592 $1,630.87
Idaho $1,152 $1,313 $194 $0 $140 $2,799 $1,736.21
Utah $1,633 $2,652 $313 $0 $495 $5,093 $1,755.68
Wyoming $499 $0 $0 $0 $549 $1,048 $1,798.65
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][10] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Montana ($ in millions)[7][10]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $62 $1,048 $177 $57 $734 $2,078 $2,046.96
2012 $60 $899 $128 $54 $730 $1,871 $1,860.78
2011 $65 $816 $119 $50 $733 $1,783 $1,787.29
2010 $66 $718 $88 $52 $703 $1,627 $1,642.56
2009 $57 $815 $166 $57 $712 $1,808 $1,854.38
Change in % 8.77% 28.59% 6.63% 0.00% 3.09% 14.93% 10.39%
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

State budgets by year

DocumentIcon.jpg See budget bill: HB 2

Fiscal years 2014 and 2015

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.[14]

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.[14]

The budget as vetoed by Bullock was enacted into law.[14]

Fiscal years 2012 and 2013

See also: Montana state budget (2011-2013)

Fiscal year 2011

See also: Montana state budget (2010-2011)

Fiscal year 2010

See also: Montana state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association for State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][11]

Historical state budget spending in Montana ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $1,764 29.8% $2,024 34.2% $2,131 36% $0 0% $5,919
2010-2011 $1,701 27.6% $2,083 33.8% $2,380 38.6% $0 0% $6,164
2009-2010 $1,628 26.9% $2,136 35.3% $2,285 37.8% $0 0% $6,049
Averages: $1,697.67 28% $2,081 34% $2,265.33 37% $0 0% $6,044
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Montana had a state debt of over $15 billion. Its state debt per capita was $15,689. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[15][16]

Total state debt in Montana[17]
Type Totals U.S. rank
Total state debt $15,769,183,000 44
Per capita debt $15,689 22
State and other fund expenditures $3,788,000,000 24

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.[18]

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[19]

The table below lists the Standard and Poor's credit ranking for Montana from 2001 to 2012 (grades from surrounding states are provided for additional context).[19]

S&P credit ratings from 2001 to 2012
Montana Colorado Idaho Utah Wyoming
2012 AA AA AA+ AAA AAA
2011 AA AA AA+ AAA AAA
2010 AA AA AA AAA AA+
2009 AA AA AA AAA AA+
2008 AA AA AA AAA AA+
2007 AA- AA AA AAA AA
2006 AA- AA- AA AAA AA
2005 AA- AA- AA AAA AA
2004 AA- AA- AA AAA AA
2003 AA- AA- AA AAA AA
2002 AA- AA- AA AAA AA
2001 AA- AA AA AAA AA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[20]

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.[20]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Montana 38.46% $2,202,444,000 6
Colorado 28.85% $6,310,538,000 35
Idaho 34.90% $2,479,094,000 16
Utah 31.61% $4,481,494,000 31
Wyoming 36.00% $2,213,249,000 13

Stimulus

Montana received $1.37 billion in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.[21]

Budget transparency

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Montana created a multi-measure transparency profile for Montana, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[22][23]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Montana tied for 20th in the nation with 12 other states, earning five out of eight possible points.[23]

Montana - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget Y
600px-Yes check.png
Multi-year forecasting N
600px-Red x.png
Annual cycle N
600px-Red x.png
Binding revenue forecast
{{{1}}}
Legislative revenue forecast
{{{1}}}
Non-partisan staff N
600px-Red x.png
Constitution or statutory tax/spend limitations Y
600px-Yes check.png
TOTAL 5

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[23]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

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]

Accounting principles

See also: Montana government accounting principles

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.[25][26]

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. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," accessed June 2, 2014
  6. 6.0 6.1 6.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  10. 10.0 10.1 10.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  11. 11.0 11.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  13. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  14. 14.0 14.1 14.2 KPAX.com, "Gov. Bullock signs budget," May 3, 2013
  15. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  17. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  18. Pew Center on the States, "Widening Gap Update," accessed April 24, 2014
  19. 19.0 19.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  20. 20.0 20.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  21. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  22. Institute of Government and Public Affairs at University of Montana, "Home page," accessed February 21, 2014
  23. 23.0 23.1 23.2 Institute of Government and Public Affairs at University of Montana, "Budget Transparency Profiles - All 50 States," September 2011
  24. 24.0 24.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  25. Legislative Audit Division, "Home page," accessed October 30, 2009
  26. Legislative Audit Division, "Audit Reports," accessed October 30, 2009