Billings officials have warned that new Montana property tax laws could significantly impact the city’s public safety budgets, with potential reductions in services. Billings Chief of Police Rich St. John emphasized that residents might experience decreased services. “You just may have to lower your expectations, and the citizens might have to lower their expectations, because making cuts, we’re not going to be able to do everything that we do now,” said St. John to the Montana Free Press.
The Montana Legislature approved a second-home tax policy, part of a bill package aimed at relieving homeowners from high taxes. Interim rates are set for fiscal year 2026, beginning July 1, 2025. City of Billings leaders expressed concerns that the policy could severely affect the city, which, due to its charter, cannot adjust tax rates without voter approval.
This setup forced Billings officials to choose between following a voter-approved charter and adopting an override provision meant to address the city’s unique situation, risking resident dissatisfaction over tax cuts. City Attorney Gina Dahl indicated that state law overrides city policy, preserving property tax revenue for one year. Finance Director Andy Zoeller noted that the city anticipates a $1.2 million revenue decrease in FY27 unless voters approve more mills.
Budget constraints are most pronounced for police and fire departments, which dominate the budget. Nonetheless, Chief St. John highlighted a silver lining: “The good news for us, we’re not laying anybody off.” Instead, savings will come from vacancy savings and operational adjustments. Though the department has 15 officer openings, limited budget allowances mean few will be filled without voter-approved mill increases.
Amid concerns, St. John remains focused on maintaining service levels despite challenges in handling current call volumes and the high rate of violent crimes, such as aggravated assault, rape, and murder—incidents occurring at rates significantly higher than national averages. Public safety staffing remains a critical issue as Billings continues to grow. Recommendations from a public safety study stress the importance of adding positions to ensure community safety.
Finance Director Zoeller has proposed a preliminary budget to address the $2.3 million shortfall. The plan includes keeping several city positions unfilled and reducing funding for the parks and recreation department. The Billings City Council will discuss the budget further on June 2 and 3, with a preliminary budget expected by June 23 and finalization on August 25. The proposed 2026 budget can be accessed on the city’s finance page.
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