Governor Greg Gianforte has made final decisions on Montana’s upcoming two-year budget, signing and vetoing various bills to cut hundreds of millions in spending. His actions aimed to eliminate unnecessary expenditures, impacting standalone bills and specific items within the main budget. These cuts included reductions in reimbursements for certain healthcare providers, grants for senior centers, and childcare subsidies. Both Democratic and Republican-backed provisions were affected, some having enough legislative support to potentially override a veto.
In a memo on House Bill 2, which dictates most state spending starting July 1, Gianforte explained his decision to remove $31 million from the bill and veto $349 million from other legislation passed this year. The governor’s office has not provided a detailed breakdown of these vetoes, but independent analysis verified a significant cut of at least $264 million from the General Fund.
His vetoes drew criticism from minority Democrats, who voiced concerns about prioritizing a significant income tax cut over essential public spending. House Minority Leader Katie Sullivan criticized the governor for neglecting $600,000 annually for free school meals for low-income students, stating, “[H]e wants us to believe that we can’t afford $600,000 for school meals. Taking food out of the mouths of low-income kids to finance enormous tax giveaways to the rich is disgusting.”
Democrat-backed bills, like House Bill 456, aimed to support childcare workers but were vetoed. This bill proposed expanding the state’s Best Beginnings scholarship program, costing $22 million until 2029. Gianforte reasoned in his veto memo that upcoming legislation would address childcare shortages. Concerns about the state’s financial future were echoed by House Appropriations Chair Llew Jones, who supported the cuts, citing potential impacts from federal tax changes and state revenue reductions surpassing $1 billion over two years.
Veto decisions factored in future financial stability, with Senate Republicans, including Senate President Matt Regier, backing the cuts. Proposed tax reductions and anticipated federal changes prompted careful budget scrutiny, despite potential future shortfalls identified by legislative analysts. Analysts predict that tax cuts, including a significant income tax cut, could lead to a $756 million revenue reduction by 2029, exacerbating budget pressures.
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