Governor Gianforte Signs Historic Pro-Family, Pro-Jobs Budget

Fiscally responsible budget delivers the largest tax cut in state history

• June 14 2023

HELENA, Mont. – Delivering on his promise to hold the line on state spending well below inflation and help Montanans keep more of what they earn, Governor Greg Gianforte today signed into law a historic pro-family, pro-jobs budget.

“This budget is built for hardworking Montana families,” Gov. Gianforte said. “Not only did we deliver Montanans the largest tax cut in state history, but, like any Montana family would, we also invested to make needed repairs, saved for emergencies, and paid off our debt, making Montana debt-free in ’23.”

Gov. Gianforte introducing his Budget for Montana Families in November 2022

Introduced by the governor last fall, the biennium budget provides Montanans with over $1 billion in income and property tax relief, representing the largest tax cut in state history.

The historic budget advances many other priorities, including investing to repair state facilities and infrastructure, saving for emergencies, and paying off state debt.

Notably, the budget makes a $300 million investment to transform the delivery of behavioral health care and developmental disabilities services in Montana. It also invests nearly $200 million to repair and ultimately expand capacity at the Montana State Prison, and another $200 million to repair roads and bridges across the state, leveraging federal funds up to $1.5 billion.

Saving for emergencies, the budget doubles the state’s rainy-day fund and nearly doubles the fire suppression fund.

The governor also made Montana debt-free in 2023, paying off all general obligation debt and saving Montana taxpayers approximately $40 million over the biennium.

“Any one of these accomplishments would be historic on its own. Taken together, we’ve passed one of the most transformational budgets in state history,” the governor said, praising members of the 68th Legislature.

The biennium budget also spurs job creation, expands educational opportunities, boosts funding for law enforcement, invests to increase the supply of affordable workforce housing, raises provider rates, and increases access to child care.

First, the budget expands the business equipment tax exemption from $300,000 to $1 million, eliminating the tax burden for more than 5,000 small businesses, farms, and ranches. When the governor took office, the exemption was $100,000.

Second, the governor’s budget doubles the cap of the Big Sky Scholarship program to ensure students have access to the best education possible, and increases funding by 40 percent for the governor’s TEACH Act to increase starting teacher pay. It also invests $40 million in a new health insurance trust for teachers to reduce insurance premiums.

Third, the governor’s budget funds new highway patrol troopers, criminal investigators, and prosecutors at the Montana Department of Justice to combat drug trafficking and major crimes.

Fourth, the budget invests over $175 million to increase the supply of affordable workforce housing, including a $105 million investment in the governor’s HOMES program to extend critical water and sewer infrastructure to denser development.

Fifth, the budget delivers historic Medicaid provider rate increases, providing stability to health care providers and expanding access to services.

It also increases funding for the Best Beginnings Scholarship program, expanding access to child care for hundreds of young Montanans.

Holding the line on spending well below inflation, the governor’s budget is balanced, avoids cuts to essential services, and makes the state resilient to a financial recession.

“Montanans entrust us to be good stewards of their hard-earned dollars, and I’m proud our budget with the legislature, built for hardworking Montana families, fulfills that trust,” Gov. Gianforte concluded.

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