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Guest Column

Respect Montana’s Taxpayers: Return the Surplus to the People

Local governments must operate under spending restraints. The state should do the same

By Terry Falk

When will we start respecting Montana’s taxpayers?

Across all levels of government – city, county, and state – fiscal responsibility should be a priority. Some have done a better job than others. For example, my county has managed our finances respectably. Unfortunately, our state government, under Governor Greg Gianforte, has not.

Despite his rhetoric about reducing government and protecting taxpayers, the governor’s last two budget proposals have fallen short – growing state government, increasing spending, and avoiding efficiency. In his 2023 session budget, he proposed only about one-fourth of the surplus be returned to taxpayers. While his tax relief idea was helpful, it fell far short. The legislature successfully increased rebates by about $250 million (and tried more), yet even at that over $2 billion was withheld for new programs and reserves.

Now, in 2025, with a surplus of about $2.2 billion, the governor’s proposed budget gives taxpayers nothing. Not even the $300 million in interest earned on this withheld money. That’s unacceptable.

Instead, now the administration is pushing for even more government reserves. But why? We don’t need them. Meanwhile, Montana families are struggling with persistent inflation, rising property taxes, and the elevated cost of housing and insurance. Many hardworking taxpayers are even turning to food banks to get by. The governor should be prioritizing taxpayers now – not growing state coffers.

There’s a simple economic truth here: Money in the hands of taxpayers stimulates the economy far more than when the government holds it. When Montanans keep more of their hard-earned dollars, they spend and invest in their communities, creating jobs and economic growth. That, in turn, generates even more tax revenue over time. It’s a win-win.

Local governments must operate under spending restraints. The state should do the same. Instead of gobbling taxpayer money, growing reserves, and expanding government, Montana should return more money to the people who earned it.

Instead, the state is focused on costly government building projects that burn through taxpayer money and drive inflation higher. If we must take on new projects, at least wait until a downturn when stimulation is needed. But the best course of action is clear: Return at least two-thirds of the surplus to the taxpayers. It’s their money, after all. The state is easily capable of meeting our citizen’s needs, lowering taxes, and providing rebates within this current budget.

Montanans deserve better than a government that prioritizes government growth over the people it serves. It’s time to respect our taxpayers and give them back two-thirds of surplus dollars that are rightfully theirs.

Terry Falk is a Republican state representative from Kalispell.