Restraint needed in state budget

Maybe it's not so surprising that a recent report from the Legislative Fiscal Division shows that state collections are running 13 percent higher than they were through April of last year.

Intuitively, one can sense that Montana's economy is cruising. There is little news about job losses and closures and much more news about construction, expansion and busy businesses through much of the state.

It all boils down to one thing for state government: a windfall of money that hadn't been anticipated when the Legislature came to a close just last month.

If economic growth continues at the same pace for the next two months - and there's no reason to think it won't - the Legislature's chief fiscal analyst says state coffers could see a whopping $180 million increase in revenue by the end of June.

That money isn't accounted for in the state's recently approved budget for the next two years. So the question becomes, what will happen to it when the Legislature reconvenes this fall for a special session?

The stated purpose of the special session is to establish a new school funding formula. But once the session is called, all it takes is a majority vote to introduce legislation of any nature.

With so much money dangling in front of them, we'll venture a guess that lawmakers will be extremely tempted to reach for it for all kinds of purposes. And the past has shown that when there's money available, special interests don't just ask for it; they start demanding it.

Lawmakers, particularly Democrats, need to resist those temptations and pressures and do what they said they would do during last year's campaign season: Deliver some property tax relief.

State spending is already set to grow by roughly 11 percent under the recently approved budget. If Democrats want to see continued expansion of the economy, and as a byproduct, continued growth in tax revenues, then providing a property tax break will certainly help. It hardly needs to be mentioned that Democrats will benefit politically by fulfilling an important promise, and it will go a long way toward revising the tax-and-spend stereotype that's often associated with Democrats.

Certainly, there will be a need to deliver an adequate and affordable sum to fill out a new school funding formula, and lawmakers will probably have to address several state retirement plans that are not actuarially sound as required by state law.

But restraint is absolutely necessary. Plowing money into state government is not a priority.