Governor's budget is good start

Inter Lake editorial

Gov. Brian Schweitzer makes a good pitch for his budget plan, but what's always interesting is how that plan will mesh with spending pitches from 150 lawmakers when the Legislature passes House Bill 2, the major general fund spending package.

Put it this way: The governor aims for a budget that looks like a work horse, but when legislators try to fatten up spending for various favorite projects, will the budget ultimately come out looking like a cow?

Schweitzer contends his plan is "sustainable" and fairly conservative, given that it designates just over a third of a nearly $1 billion surplus to new spending on education, corrections and mental health programs. It's important to remember that the "surplus" really means there is more expected revenue than previously projected. It's there because of a healthy economy, and there is no reason to expect all of that money to dry up in future years. That's why the governor feels like he is on solid ground in proposing to spend at least part of the surplus.

The balance of the surplus is directed at one-time spending that would occur over the next two years, tax cuts and "savings accounts," as Schweitzer puts it.

Perhaps the most admirable effort toward fiscal restraint is Schweitzer's proposal to set aside $100 million for an "ending fund balance" account and an additional $80 million for a "rainy day" fund.

Helena politicians have talked about establishing rainy-day funds for years, but it never comes to pass, as dollars are gobbled up by hundreds of competing bills that involve spending money. This time around may not be any different - that $80 million could be viewed as a soft target for many legislators and special interests. But we're hoping that Schweitzer can prevail in defending his rainy-day fund, which would be used to head off a future fiscal crisis when the revenue picture isn't so rosy. That day will surely come.

Schweitzer also proposes $150 million in tax cuts - the bulk in the form of a $400 rebate for Montana homeowners, and some for a further reduction in the state's business equipment tax. To say that there are competing proposals would be a huge understatement.

For Schweitzer's tax plan to be the sole survivor, he will need complete solidarity from the Democratic caucus.

The governor says he is resolute in his plans to provide K-12 education with no more than a 6 percent increase in state funding. But it's entirely predictable that he will face the usual full-court press from an education lobby that will view that increase as unsatisfactory, particularly when the state has such a whopping surplus.

Schweitzer needs to hold the line, just for the sake of fiscal responsibility. When the K-12 education budget already accounts for 65 percent of general fund spending, increases of 10 or 15 percent can hardly be recognized as "sustainable" because spending increases in the education arena typically become permanent, set in stone regardless of the state's ability to cover those costs in the future.

So hang in there, governor. Remember restraint, even when it seems there is so much extra money to shell out.