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Montana Governor Schweitzer Announces Another $18 Million in Savings

Governor Brian Schweitzer today announced another $18 million in estimated savings by cancelling the new unemployment insurance (UI) contribution computer system.

“This is a major cost savings for the taxpayers of Montana,” said Governor Schweitzer. “Just like any small business we have to make tough choices about when to update our computer systems. Now is not the time. We will continue to be accountable for every dollar.”

The current UI tax collection system is capable of meeting the system demands for the foreseeable future. It remains accurate and timely in handling UI’s day-to-day activities. The Department of Labor and Industry had planned to replace the system with updated technology this year. The computer system collects unemployment insurance from employers and keeps track of some 37,000 accounts.

“Our computer system still works. Due to the higher demand on the UI division we are focused on providing quality service, not updating computers” said Department of Labor and Industry Director Keith Kelly.

This past year the current UI contribution computer system was enhanced providing employers several self-service features at http://www.UI4Employers.mt.gov.

In addition to announcing on-going cost saving measures Governor Schweitzer is encouraging citizens to submit their cost savings ideas to the Montana Accountability Partnership at http://www.governor.mt.gov

State savings already announced by Governor Schweitzer:

* $4.5 million cancelling renovations of the unused Receiving Hospital Building on the Montana State Hospital Campus.

* $2 million in savings by state government by agreeing to suspend some wildfire-related equipment purchases and fuels reduction projects in 2010.

* $600,000 not bailing out Swank Enterprises clean up liabilities.

* $380,000 over the biennium with the elimination of the RDO positions in Commerce.

* $350,000 reducing out-of-state travel by 35 percent.

* $131,000 in savings from Department of Revenue printing less tax booklets.

* $119,000 in estimated savings by DNRC using video conferencing equipment instead of travel.

* $20,000 in estimated saving by not printing a state directory. Employees and the public will be able to use the directory online at http://www.mt.gov.

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