News Release

Governor Announces Budget

Budget Available at www.discoveringmontana.com

11/15/2002
Chuck Swysgood
406-444-3616
meboyer@state.mt.us

(Helena)- The cuts needed to balance Montana's budget without additional revenues are just too deep, and hurt too many people, said Governor Judy Martz, as she outlined a budget that will ask the legislature to transfer $93 million from the permanent coal trust to the general fund in order to cover for a negative ending fund balance in fiscal year 2005.

"We have proposed a budget that operates state government like families operate their budgets," said Governor Martz. "Just like families have to prioritize when the paychecks aren't covering all expenses, state government must operate in the same way."

Governor Martz completed the budget by the November 15 deadline, as required by statute, and highlighted key programs that will be maintained, despite tough economic times. The budget includes no tax increases for Montana families.

"We will not ask Montanans to pay more than they can afford, nor will we cut programs to the level that keeps food off the table for those most in need," said Governor Martz.

In recent weeks, reductions in public health and human services proposed by that department have made news across the state. Some key public health programs that the Governor required funding be restored for are:

- Breast and Cervical Cancer Treatment Program
- Children's Health Insurance Program (CHIP)
- Medicaid Pharmacy Benefits for the Medically Needy
- Services for children with developmental disabilities (also called Part C)
- Foster care services, including tribal contracts
- Funding for initially proposed provider rate reductions
- The Montana Chemical Dependency Center chemical treatment program

The $93 million transfer from the permanent coal trust will cover a $36 million negative fund balance left after restoring funding for those and other programs, as well as providing for a $50 million ending fund balance in fiscal year 2005, and addressing lost interest earnings from the coal trust based on the transfer.


In addition, revenue projections show increased revenues of $118 million over the next biennium. Fund transfers and program reductions were used to make up the remainder of the initial $250 million shortfall.

The budget is available in its entirety at www.discoveringmontana.com.

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