HELENA – The governor is likely to get an earful this week from both lawmakers and the public as he considers budget cuts of about $40 million.
The proposal to cut spending by about 5 percent comes as recent projections show the state risks running into a deficit next year as tax collections wane in the recession.
Gov. Brian Schweitzer, who launched the budget cutting process, has the final say. But a key legislative committee first gets to offer its own suggestions.
At the same time, all lawmakers are invited to the Capitol on Wednesday for an update on the situation and training on budget details. As tensions run high, legislative leaders are making sure that the meeting doesn’t turn into a place for grandstanding.
“It is not going to be a demonstration, it is not going to be a questioning period or anything like that. That needs to be made clear pretty early in the process,” Senate President Bob Story said at a Monday meeting of a leadership council.
There will be plenty of time for demonstration.
The Tea Party group is planning a “Cut The Budget Tea Party” at the Capitol on Wednesday. The group says cuts being considered by the governor don’t go nearly far enough.
But the real work will be done Thursday and Friday by the Legislative Finance Committee, which will finalize comments on the proposal.
Schweitzer’s budget director has proposed the governor cut $40.5 million, or close to five percent.
The largest reduction calls for eliminating $6 million from the DPHHS budget by canceling planned provider rate increases for care providers, such as doctors.
Other large cuts proposed include $6.8 million from the Commissioner of Higher Education and $6.8 million from the Department of Corrections along with $3.9 million from the Department of Public Instruction.
A lengthy analysis of the plan by legislative staff said that it would be effective in meeting short-term balancing goals.
The Legislative Fiscal Division estimates the cuts, along with related transfers, have the potential to put the state back into the black by roughly $30 million at the end of the two-year budget period next year.
But only about $13 million of the cuts would come from ongoing reductions. That means the next Legislature, which convenes in January, will likely be tasked with making more cuts since revenue is not expected to improve, according to the report.
The analysis also affirms that some of the planned cuts to state money for education would trigger automatic increases in local property taxes.