Montana Governor Schweitzer Announces Over $400 Million Cash in the Bank

Gives Positive Outlook going into Budgeting Process for next Biennium

Governor Brian Schweitzer today announced that Montana remains in a strong fiscal position having over $400 million in cash in various accounts that can be used for general government and fighting fires. The first drafts of agency budgets are due tomorrow to the Executive Budget Office.

Montana is one of only a few states with money in the bank. The general fund cash account has about $290 million – the fire suppression account has $26 million, Otter Creek Coal Tract payment $81 million and oil and gas bonus payments $5 million, making the total cash in the bank $402 million.

“I’ve worked hard to run the state like a business and keep our finances sound. We do face difficult budget times ahead but I’m committed in not raising taxes and living within our means. We have money to pay our bills.”

The Governor also noted that all three bond rating agencies recently affirmed Montana’s double ‘A’ bond ratings and their ‘stable’ outlook.

State savings in addition to the $40 million budget reductions already announced by Governor Schweitzer:

· $3.4 million renegotiating lease rates for commercial space rented by the state.

· $17,000 in savings from Governor and Lt. Governor salary decrease.

· $6 million in savings from cancelled building projects across the state.

· $450,000 in estimated savings through efficiency steps taken by the Department of Livestock in the implementation of the Brucellosis Action Plan.

· $400,000 by rescreening aggregate and using the surplus and obsolete material, rather than crushing new material.

· $18 million cancelling the new unemployment insurance (UI) contribution computer system.

· $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 suspending 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.

· $131,000 in savings from Department of Revenue printing fewer tax booklets.

· $20,000 in estimated saving by not printing a state phone directory. Employees and the public will be able to use the directory online at mt.gov.