Trust funds: Investing in Montana’s future
Montana’s significant budget surplus presents us with a choice: pursue fleeting satisfaction through one-time rebates or invest in trust funds that will benefit not just today’s residents but generations to come. While some of the surplus can and should be used for meaningful, ongoing tax relief, dedicating a substantial portion to trust funds will create a legacy that strengthens Montana’s future.
Building on the Coal Trust Fund’s legacy
Montana’s Coal Severance Tax Trust Fund, created in 1975, shows how long-term thinking can secure enduring benefits. Thanks to the foresight of earlier leaders, this trust has provided funding for infrastructure, education, and economic development without placing additional burdens on taxpayers.
Now, we have an opportunity to expand on that vision. Dedicating part of this year’s surplus to new trust funds will ensure future Montanans have the tools to tackle challenges we cannot yet foresee. Imagine if our forefathers had chosen short-term spending over building the roads, dams, and bridges that form the backbone of our state today. Their investment in the future should inspire us to act with the same foresight.
Why trust funds matter
Trust funds transform temporary revenues into lasting prosperity. Conservative states like North Dakota, Wyoming, and Alaska have successfully used trust funds to create stability and growth. North Dakota’s Legacy Fund, for example, now exceeds $10 billion and provides earnings to fund infrastructure projects and reduce tax burdens.
Montana can follow their lead. A new trust fund could help maintain roads, bridges, and water systems while providing future Montanans with the resources to invest in education, workforce development, and public safety. These funds also reduce reliance on volatile revenue sources and the need for future tax increases.
Rebates and temporary tax cuts: A missed opportunity
One-time rebates or temporary tax cuts provide immediate gratification but lack staying power. Most rebate dollars are quickly spent on consumables, leaving little behind to show for them. By contrast, trust funds grow stronger over time, ensuring future Montanans benefit from today’s good fortune.
This is not to say all surplus funds should go into trust funds. Montana families and businesses deserve meaningful, ongoing tax relief. That’s why part of the surplus should be used to provide permanent reductions in property and income taxes, addressing today’s challenges while building for tomorrow.
A balanced approach for Montana
We can and must balance the needs of today with the responsibilities of tomorrow. By dedicating a significant portion of the surplus to trust funds, we invest in Montana’s future infrastructure, education, and economic resilience. At the same time, directing some of the surplus toward permanent tax relief ensures Montanans see immediate benefits without sacrificing the long-term stability trust funds provide.
Choosing the future
Our forefathers understood the importance of planning for the future. Their investments in infrastructure and the coal trust fund laid the groundwork for Montana’s prosperity. Now it’s our turn to build on that legacy.
Let’s use this surplus wisely, ensuring Montana remains strong, prosperous, and prepared for generations to come. Trust funds aren’t just an investment in our future — they’re a commitment to our children, grandchildren, and the state we love. Let’s choose to invest in them, just as our forefathers invested in us. As Appropriations Chair and the senior member of the appropriations team, I will be strongly advocating for investments in trust funds in the 2025 legislative session.
Rep. Llew Jones, R-Conrad, represents Montana House District 18.