The state of Montana has higher than expected revenues. At the end of the fiscal year in June of this year there is about $1.5 billion surplus. This is after an extra $800 million in fully funded reserve fund, fire fund and capital development fund. There are several legislators that have promoted their ideas on what to do with the extra money. Some want to save it for the State to use on inflation. Some want to spend it on programs like affordable housing. Some want to wait until the regular legislative session before deciding. Some want to give it back to the taxpayers. There is even the thought that the money should not be given back because it will contribute to inflation.
Inflation is real. Gas, groceries, clothes, repairs on cars and appliances, etc. are all costing more. The reality is that Montanans are worse off financially. The State may have inflation challenges, but taxpayers do as well. Giving money back to the taxpayers will not increase inflation anymore than giving workers a pay raise will. Inflation is caused by a Federal Government printing money it does not have.
The prudent thing to do with the surplus is give it back to those that paid it, and do it in a special session now. Inflation is going on now. Montanans are maxing out credit cards and stopping contributing to their retirement funds to make ends meet and, by the way, property taxes are due this November.
Sen. Keith Regier
R-Kalispell