mtpolitics.net

I tend to believe what I have been reading regarding the national and state budget deficits; despite the rosy picture put forth by the Republicans of a growing economy, many states, including Montana, will face large deficits in the next budget period. It has also been pointed out that the economys “job-less recovery” has benefited corporate profits and the wealthy class of Americans, while no real benefits from the “recovery” have trickled down to the majority of Americans - the middle and lower income classes. My family has not benefited from the so-called recovery, has yours?

In order to have a source of budget revenue, Montanans have to be working to produce Montana’s budget when it is based on income taxes and property taxes. Increased government spending logically requires increased employment, promotions and raises for those workers.

I keep a close eye on the job market and for the most part, the majority of jobs I am seeing advertised are “starvation” wage positions, but starve the worker - starve the state’s budget.

http://www.helenair.com/articles/2003/12/05/montana_top/a01120503_02.txt

Montana will face a budget deficit on the order of $235 million, if state revenues don’t grow at a faster clip than they are in the current two-year period… Revenues for this two-year budget period are trailing projections… It will take a 5 percent annual growth in personal income, far above economic forecasts, from individual income taxes to make up the $235 million potential
deficit.

In 2005, the state will no longer have $100 million available because of an income-tax cut passed this year that doesn’t take effect until Jan. 1, 2005, and the unavailability of one-time money used to craft the current budget.

The state faces $85 million more in increased spending for 2006 and 2007 than it did in 2004 and 2005 for a state employee pay plan, public school repairs and local government payments from the state. Other obligations include increased costs for human services and corrections.

Excessive spending on a bad fire season could lead to more budget cuts. The state employees retirement program has suffered major losses from investments.

Health care is driving a big share of government costs, states are facing Medicaid cuts, higher education funding needs, social service program funding needs, the list goes on.

We depend on Federal funds to provide a large portion of our budget dollars. Federal dollars that should go to the states are being siphoned to promote the bottom line for companies like Halliburton. Unless voters in every state send a message to Washington, state deficits will continue and will increase, services will be cut, taxes will be increased…that’s the current status quo.

…and what are some things you would like to do, fiscally speaking?

Here are a few ideas, I welcome additional suggestions to address the state’s fiscal responsibilities:

Return Montana’s energy resources (dams) and infrastructure to the people of Montana, lower and stabilize Montanans’ energy bills, market Montana’s excess energy from these dams and put the profits from that excess energy into the state’s budget.

Look at reducing our costs for law enforcement and the prison industry.

Look at making state government more efficient and more responsive to its customers.

Look at reducing our technology infrastructure, support, and hardware costs. State government agencies will answer the phone when you call.

Montana’s Job Service will have a priority mission and that will be putting people to work and/or getting people trained for work, as quickly as possible. Look at base-lining Montana’s billion dollar trust fund programs, and using the profits above that baseline to help fund the state’s budget.

End the outfitter set-aside license program, increase non-resident licenses for certain areas of the state, Review the Block Mgmt Program to increase ROI and quality.

Reduce our cost to fight forest fires by letting Federal funds pay for fires in National Forests.

Take Montana to the forefront on development of alternative energy technology and people skilled in implementing this technology. Increase the use of solar-power in state government buildings. Reduce the cost of state government for facilities and vehicles.

Promote Montana, work to increase tourism, work to increase film industry projects in Montana.

Review state contracts to see that they are fiscally responsible, and that contractors are employing Montana residents (6 months or longer for residency status).

End the state trooper body-guard protection for the governor.

Look into school and university funding and aggressively seek Federal funding for education needs. Investigate consolidation of staff and facilities where appropriate, increase telecourse classes, and consider satellite broadcasting tools for classes.

We need to look at budget income from sources other than personal and property taxes. If we are to allow development of our energy and mineral resources, the state must ensure that a proportionate share of the profit from development returns to the citizens of Montana. We must ensure that any development is environmentally responsible, from day one to the last day.
We don’t need any more environmental disasters like the one in Libby.

Reducing the tax-payers burden will require returning corporate profits, made from our resources, to the citizens of Montana. I don’t believe in “trickle-down economics”, our situation today reflects how well trickle-down economics doesn’t work. We need to look for ways to break the upward cycle of increased taxation. As our population increases and ages, the need for government services will only increase.