HELENA – Gov. Brian Schweitzer applauded the agencies in his administration that spent less money than expected, a boost he said Tuesday improves an already decent budget picture.
The so-called “reversions” total more than $40 million. The biggest portions came from the Department of Corrections, which housed fewer prisoners than expected, and the Department of Public Health and Human Services.
“You have been running the functions of government the way we run small business in Montana,” Schweitzer told his cabinet.
Schweitzer said the reverted money demonstrates good management by agency directors, members of his cabinet. The governor applauded them for showing restraint by not spending all the money allocated to them by the Legislature for the two-year budget period that ended June 30.
Montana has fared far better than other states who have dealt with steep deficits and budget cuts amid the recession. The governor said Montana’s large reserves will help cushion any blows that may come.
“I don’t know what tomorrow has in store for us. But what I know is this: we have more money in the bank than any time in history,” Schweitzer said.
Republican state Sen. Keith Bales said in an interview that the agencies were overfunded when the budget was set in 2007. He said many Republicans felt at the time they should have been given less.
“Of course there was a lot of money available in 2007, so there were a lot of people that felt we should fund it dramatically,” Bales said.
Bales said he remains “cautiously optimistic” that Montana will continue to weather the financial storm that has hit other states.
Schweitzer also highlighted the work of Corrections director Mike Ferriter, Public Health and Human Services director Anna Whiting-Sorrell, and Natural Resources director Mary Sexton for saving money. He said Revenue director Dan Bucks brought in more money than expected with a more rigorous pursuit of taxes owed the state.