The Montana Senate Taxation Committee unanimously passed the bill containing the state’s revenue estimate on Friday. The estimate is used as a basis for state spending. Lawmakers from a joint House/Senate Committee have been meeting to discuss the estimate provided to lawmakers from the Legislative Fiscal Division.
The revenue estimate passed by the committee is a little more than $4 billion over the next two year budget cycle. The Senate Taxation Committee also unanimously amended the estimate $30 million higher during their Friday meeting, due to adjusted figures from the Legislative Fiscal Division.
Another amendment to add an additional $30 million to the estimate failed on a party line vote. This additional $30 million would have moved the figure closer to the higher estimate provided by the Governor’s Office of Budget and Program Planning, which uses a different method for predicting revenue.
Senator Christine Kaufmann (D-Helena) says the process of coming to the revenue estimate is a good one that resulted in a good starting place, but it could be better. She thinks economic factors studied by the Governor’s Office show revenues coming in stronger than what has been previously anticipated and she thinks that will keep happening throughout the session.
“We could have added a little bit more money to the estimate, and I think that would provide us a little more room for whatever we might need in terms of investing in public education and other services for Montana,” she said.
Republican members of the Taxation Committee say the revenue estimate could be off either way, positive or negative. Senator Ron Arthun (R-Wilsall) say the more conservative estimate will lead to less spending and “if the revenue comes in at a greater amount, there will just be more in the coffers for the next session.”
The revenue estimate now moves up to the full Senate for a vote next week. If passed, it moves over to the house.