Montana taxpayers expect their tax dollars to be spent responsibly, transparently, and on priorities that benefit everyone – not directed to private organizations with the strongest political support. That expectation is reflected in Article V, Section 11(5) of the Montana Constitution, which states: “No appropriation shall be made for religious, charitable, industrial, educational, or benevolent purpose to any private individual, private association, or private corporation not under the control of the state.”
Yet each year, Montana spends well over $100 million on grants and appropriations to private organizations and individuals. One of the largest examples is the approximately $60 million generated annually by the state’s 4% lodging tax, much of which is distributed through the Department of Commerce to organizations that are not under the control of the state.
Many of these projects are worthwhile. That is not the issue. The real question is whether limited taxpayer dollars should be directed to private organizations when communities across Montana face pressing public needs.
A recent example illustrates the point. On March 31, 2026, the Department of Commerce announced grants of up to $1.25 million for seven projects, with recipients eligible for an additional $1.5 million, bringing total funding to as much as $2.75 million per project. Grants were awarded for projects in Butte, Libby, Polson, Sidney, Winnett, Carbon County, and to the Foundation for Montana History.
One of those projects is an ice rink in Polson, located in my Senate district. I believe it is a worthy project, and I have personally donated to it. But I also recognize the trade-offs. Imagine what $2.75 million could accomplish if it were available to the City of Polson or Lake County for essential public needs. Roads and sidewalks could be repaired, aging water and sewer systems upgraded, schools improved, and law enforcement and fire departments better equipped. Every community receiving these grants has similar needs that benefit all residents.
Supporters argue these grants promote recreation, tourism, and economic development. Those benefits may be real, but nearly every project can make a similar claim. Government’s responsibility is to establish priorities. Just as families must make difficult budgeting decisions, so must state government.
When state dollars are directed to private projects, fewer resources remain for essential public services. Local governments often must rely more heavily on property taxes to meet those obligations. At a time when Montanans are demanding property tax relief, we should carefully examine whether these spending priorities serve the public interest.
Governor Gianforte has an opportunity to lead. In his 2027 executive budget, he can recommend redirecting these funds toward infrastructure, public safety, and property tax relief. I will also work with fellow legislators to introduce legislation that returns more of the lodging tax revenue collected in our communities to local governments for essential public purposes.
Montana’s tax dollars should first meet Montana’s essential needs. I invite the Governor, legislators, local officials, and taxpayers to join me in making that our priority.
Senator Greg Hertz, R-Polson, chairs the Senate Tax Committee in the Montana Legislature.