The Things They Never Say: Connecting Income Tax Cuts to Affordability for Working Families

Update from Interim Budget Committee Week

Everyone knows that Montana families are dealing with rising costs. Inflation rates across the country are high, and Montana families are struggling to afford groceries, gas, and housing costs. At the same time, the Governor has recently announced plans to cut the top income tax rate for the wealthiest, a move that would cost the state at least $120 million each year and the majority of Montana families would not see a single penny.

The week of September 14, lawmakers came to town for budget committees to help ensure that state agencies are meeting the needs of communities between legislative sessions. Here are a few of the issues lawmakers could address to help working Montana families, instead of cutting taxes for the wealthiest who already benefit from special tax breaks.

• Recently, the School Funding Commission acknowledged that the state is inadequately funding our public schools, putting yet more pressure on local property taxpayers. Legislators heard from education stakeholders about the importance of teacher recruitment, early literacy programs, and the importance of supporting American Indian students across all levels of the education system.

• Health care costs for state employees are rising. Hard-working state employees are getting reduced health care benefits and must foot the bill, to the tune of $49 million annually.

• Montanans need access to affordable, consistent health care. The Department of Public Health and Human Services is likely to face a $60 million budget shortfall this year and has already cut critical Medicaid provider rates for rural health providers.

• Montana’s roads and bridges keep our rural communities connected and safe, and maintenance of this infrastructure is essential. Montana Department of Transportation (MDT) recently turned down $35 million in federal funds because the state couldn’t meet the match. If something is not done to increase MDT revenues, the state expects to continue to turn down a portion of federal highway funds. Montana typically uses these funds to move approved transportation projects forward, like road construction and bridge repair.

• Child care providers continue to struggle to keep their workforce, impacting families’ ability to find child care.

• Montana has a shortage of over 16,000 homes to meet the needs of Montanans looking for affordable rental housing. The Board of Housing has committed more than two-thirds of the state’s investment for housing projects, suggesting greater investment is still needed.

• The lack of substance use disorder (SUD) treatment and mental health services continues to be an issue, and in fact Montana Department of Corrections reported that roughly 240 Montanans have been granted parole but remain in Corrections facilities, many of whom are waiting for limited SUD treatment or other prerelease supports.

There's a better way. Lawmakers have a choice. As we move toward the 2027 session, let’s prioritize affordability issues for Montana families rather than giving the wealthy yet another tax cut.