Montana Governor Greg Gianforte announced that his 2027 biennial budget proposal will include significant income tax cuts, increased funding for education, and measures to enhance the state’s fiscal stability. At a Capitol press conference, Gianforte highlighted his achievements during his time in office, emphasizing his commitment to reducing government intervention by cutting taxes and regulatory burdens. He reiterated his platform of promoting individual freedoms and supporting law enforcement.
Gianforte’s budget aims to continue his mission of financial stewardship, proposing a flat income tax rate of 4.7% for all Montanans and increasing the earned-income tax credit from 20% to 30% of the federal credit. The governor has simplified Montana’s income tax brackets and reduced the top tax rate from 6.9% to 5.4%. “Thanks to our strong budget reserves, Montana is able to move to a flat income tax rate,” Gianforte stated. However, this proposal faces opposition from Democrats who argue it favors the wealthy. Under current tax laws, the new rates will apply to single filers earning over $65,000 and joint filers over $130,000 starting in 2027.
The budget also proposes raising the business equipment tax exemption from $1 million to $3 million, a significant increase from the $100,000 level when Gianforte took office. This measure aims to alleviate the tax burden on small businesses. Additionally, the budget will allocate $300 million to the budget stabilization fund, increasing it to $900 million, as a safeguard against future economic downturns. Gianforte emphasized the importance of maintaining essential services during economic challenges.
Education investments are a key focus, with $13 million proposed for the school facilities trust and $1 million in incentives for schools adopting cellphone-free policies. Gianforte stressed the need to support students, parents, and teachers. The budget also seeks to boost the Big Sky Scholarship program to $24 million, expanding school-choice options for lower- and middle-income families.
One-time funding proposals include $125 million for the state highways trust, $100 million for county roads and bridges, and $40 million for emergency services and victims’ shelters. These investments align with federal matching programs, allowing Montana to leverage additional funds and avoid increasing the state’s gas tax. Gianforte concluded by emphasizing ongoing efforts to reduce regulatory barriers and maintain Montana as an attractive place to live and work.
Highlights of Gianforte’s 2029 Biennium Budget Proposal:
- Reduce the state’s top income tax rate to a 4.9% flat rate
- Raise the business equipment tax exemption to $3 million
- Invest $25 million in Behavioral Health Systems
- Expand shelter capacity with a $5 million investment
- Invest $10 million in local 911 emergency systems
- Allocate $30 million to the state health plan
- Provide $14 million in one-time bonuses for state employees
- Raise the Big Sky Scholarship cap to $24 million
- Allocate $1 million for cellphone-free policy incentives
- Invest $13 million in the school facilities trust
- Provide $100 million for county roads and bridges
- Allocate $125 million for the state highway trust
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