In 2003, the Montana legislature passed a capital gains credit that benefits a very narrow part of our population, at the expense of public programs from education to health care. Montana is one of just nine states offering a significant tax break for capital gains income.

This report explains how the capital gains credit is costing Montana valuable revenue, and why we need funding for our public structures more than ever.

Like most other states, Montana’s revenue has been dropping dramatically over the past year. A little-known contributor to the declining revenue is a federal corporate tax break that is hurting our revenue stream and was never approved by the Montana legislature.

This report explains the impacts of the Domestic Production Credit, and shows how its elimination will help Montana solve its revenue crisis.

Because of declining state revenue, Governor Schweitzer will be required to make emergency cuts to state spending. According to a new MBPC report, cuts can be limited to approximately $31 million, compared to the $47 million in reductions government agencies have analyzed. The report outlines recommendations designed to protect the already struggling state economy and Montana families working hard to make ends meet.

The 61st Legislature faced the unenviable challenge of balancing the budget during a time of economic downturn and extreme revenue uncertainty.  Despite a large influx of federal recovery act funding, some of the decisions made by the legislature may lead to cuts in vital programs like education and healthcare, either now or in the future. Many of the cuts are slated for the 2013 Biennium (July 1, 2011 to June 30, 2013) and need not occur if the 62nd Legislature is willing to fill holes created by decisions of the 61st Legislature.

Six Montana economists have joined over 200 economists from 38 states in signing a letter urging state governments to “maintain the public services that are critical to the health of the economy and the well-being of working families,” because “cutbacks at this time would further slow the economy and harm those already hardest hit by the downturn."

The $787 billion American Recovery and Reinvestment Act of 2009 (ARRA) provides many funding opportunities for tribal governments. Some of these opportunities are contained in Montana’s House Bill 645, the state appropriation of federal stimulus dollars.This brief outlines some of the funding opportunities for tribal governments in HB 645. It also outlines significant funding sources in ARRA that may be allocated directly from the federal government to Montana tribes, primarily through grant applications.

The Montana Budget and Policy Center addresses some common misconceptions surrounding appropriate use of stimulus dollars during the recession.

The American Recovery and Reinvestment Act of 2009 provides extensive relief to states, local governments, and individuals suffering from the current economic downturn. This brief outlines general principles to consider when allocating the funds, and provides information on the core components of the act with the greatest potential for providing relief to low- and moderate-income Montanans.