The primary constitutional duty of the Montana Legislature each session is to pass a balanced two-year state budget. House Bill 2 is the state budget bill and it reflects months of work by House and Senate committees to set Montana’s economy up for a strong comeback through responsible state spending and tax reductions.

The biennial budget keeps government spending well below inflation plus population growth which is what free-market think tanks recommend for a conservative budget. The $12.6 billion state budget for fiscal years 2022 and 2023 reins in state spending to the lowest amount we have seen in our years of legislative service. Montana’s projected inflation is around 2.5% each year while state spending over the next two years will grow by less than 1% each year of the biennium. The final budget came in $163 million less than the proposed executive budget. House Bill 2 responsibly funds essential state services while giving Governor Gianforte the tools that he needs to continue finding efficiencies within his departments.

Reflected in the state budget is the Republican tax reform package which puts nearly $120 million back into the hands of Montanans. The Republican approach has been comprehensive with income, property, and business taxes all being simplified and reduced. These tax cuts will jumpstart Montana’s economy by not only helping small businesses, ranches, farms, and working families but will also make Montana a more competitive state to start or relocate a business.

Not included in the state budget is the nearly $3 billion that Montana received in federal American Rescue Plan Act (ARPA) funds. The Legislature had appropriation authority over about $1 billion with the rest going directly to local governments and schools. While it was fiscally irresponsible for Congress to pass the massive ARPA debt package, if Montana didn’t take our share, it would go to another state. The Legislature was committed to investing these funds in critical infrastructure that will benefit the future generations of Montanans that have to pay the bill. House Bill 632 appropriated the ARPA funds towards water, sewage, and broadband packages as well as assistance to impacted sectors.

To complement the responsible spending and tax bills, the Legislature put additional oversite on administrative rulemaking which will result in fewer regulations and red tape on businesses and individuals. All of these measures combined are poised to set our state up for a strong economic comeback. Montanans can rest assured that their hard-earned tax dollars were respected by the 67th Legislature.

Wylie Galt (R-Martinsdale) is the Speaker of the Montana House of Representatives

Casey Knudsen (R-Malta) is the Speaker Pro Tempore

Sue Vinton (R-Lockwood) is the Majority Leader