HELENA — Montana lawmakers are moving toward approving a mix of budget transfers and tax increases that, combined with the governor’s $76.6 million in cuts, seeks to balance the state’s budget in the face of a projected $227 million deficit.
Republican lawmakers have proposed more transfers and fewer tax increases than Gov. Steve Bullock did in calling the special session that continues Wednesday.
The Montana Senate passed five bills that would temporarily raise money for the state or prevent spending that total $65 million.
Nearly $30 million would come from temporarily charging the Montana State Fund a 3 percent management fee for its investments above $1 billion. The fund expects to invest about $1.5 billion with the Montana Board of Investments.
The Senate also passed bills to save $10.4 million by not paying into the state employee health care plan for two months; $2.7 million by not paying into the judge’s retirement program through June 2019 and $14.9 million by ending block grants for schools.
Another bill would take $7.5 million in funding from the Montana Developmental Center and put it in the state fire fund.
Those bills, which passed Wednesday afternoon, now go to the House.
A key to holding down tax increases is tapping $30 million the state has deposited in a fund in the event it decided to purchase a private prison in Shelby.
Republicans have included contingencies to prevent the governor from vetoing them.
Tax increases still on the table are an increase in hotel and rental car taxes and requiring two health insurance companies to pay a tax on premiums.