HELENA – Lawmakers were warned Wednesday that that tax collections could be dropping more than anticipated when the two-year budget was set earlier this year.
But the Legislative Fiscal Division says information is still too preliminary to say if the soft tax collections will eat away at projected budget surpluses.
Analyst Terry Johnson says tax collections for the fiscal year that ended June 30 are $200 million short of projections. But he says that the numbers won’t be final until July 22, so they could yet improve.
The two-year spending plan adopted earlier this year has reserves in excess of $300 million.
So far Montana has been spared the fate of other states — led by California — that face huge deficits and have been forced to make steep cuts in primary programs.