Key Terms: The base budget is the resources necessary to cover current biennium expenses of an ongoing and non-extraordinary nature. In recent budget cycles, the base budget is built by looking at what was appropriated on an ongoing nature in the second fiscal year of the previous biennium. The base budget for this upcoming 2021 biennium budget cycle will be ongoing appropriations for fiscal year 2019. Present law (PL) is the amount of funding needed to maintain operations and services at the level set by the last legislature. Present law includes but is not limited to legally mandated workload, caseload, or enrollment changes, changes in funding requirements, inflationary or deflationary adjustments, and elimination of one-time-only appropriations. New proposals (NP) are requests to provide new non-mandated services, to continue programs previously funded one-time-only or sunsetting, to change program services, to eliminate existing services, or to change the sources of funding. |
Key Terms: General Fund (GF) is money available for the state to use for most of its function without restrictions. State special revenue (SSR) funds are kept separate from the general fund and are legally restricted for specific uses. Federal special revenue (FSR) funds (or federal funds) are funds from the federal government that are made available to the state to fulfill specific purposes. Often federal funds require a certain level of matching state funds. Ending fund balance exists when the amount of anticipated general fund revenue exceeds general fund appropriations. An ending fund balance can be used to maintain fiscal stability over a biennium when revenues collected are not as high as anticipated. |
Section A- General Government | |
Legislative Branch | Proposed 24% increase over 2019 base. Includes SWPL adjustments in personal services and operations. Approximately $3 million in new proposals include continued work on bill drafts, automated? session systems, legislator portal project, and digital vote boards. |
Governor’s Office | Proposed 9% increase over 2019 base. Includes SWPL adjustments in personal services and operations. |
Department of Revenue | Proposed 7% increase over 2019 base. Includes a reduction of $1.2 million to reflect cuts made in previous biennium (SB 261). |
Department of Administration | Proposed 8% increase over 2019 base. Includes SWPL adjustments in personal services and operations. |
Department of Commerce | Includes $4.5 million in new proposals, that includes continued funding for previously OTO funded Indian Country Economic Development grants ($1.75m) and Native language preservation ($1.5m), as well as, $1.2 million in general fund investment for Primary Business Sector Training program and $100k for upcoming Census. DOC is funded primarily outside of HB 2, through proprietary and statutory funding. |
Department of Labor and Industry | Proposed 10% increase over 2019 base. Includes SWPL adjustments in personal services and operations. |
Department of Military Affairs | Proposed 9% increase over 2019 base. Includes SWPL adjustments in personal services and operations. Executive also proposes to create a disaster recovery coordinator; GF investment will be matched by federal funds. |
Section B – Public Health and Human Services | |
Overall Department | Proposed 8.5% increase over 2019 base in general funds, and a 2% increase in total funds. Includes SWPL adjustments in personal services and operations. DPHHS is funded primarily through federal funds, with about one-fourth of the total budget coming from state general funds. |
Provider Rate Increase | Executive proposes provider rate increases of 0.91% in FY2020 and 1.83% in FY2021 for most providers of Medicaid services. Total cost of this provider rate increase is $12 million in general funds over two years. |
Medicaid Expansion Savings | Medicaid expansion, if continued by the 2019 legislature, is expected to save the state $56 million over the biennium. The state would see a $56 million increase in general fund costs to standard Medicaid, if expansion is not continued. |
Healthy Montana Kids | With a change in the federal match rate for CHIP, the state expects to see an increase cost for Healthy Montana Kids of about $35 million over two years (funded through state special revenue, with potential fund switch if proposed increase to tobacco tax passes). |
Human & Community Services | Executive proposes $8 million to continue the preschool pilot program (through Stars to Quality program, with additional funds proposed to K-12 schools, see below). Montana will see $7.8 million in increased federal funds through the federal child care block grant program. |
Child & Family Services | Present law adjustment of $34 million in general funds to address increased caseload for foster, adoption, and guardianship placements. New proposals include $1.5 million GF to add 18 FTE (transferred authority from Developmental Services Division from MDC). |
Quality Assurance | Present law adjustment of 18 FTE to provide existing services for medical marijuana program ($3.8m in state special revenue). |
Developmental Services | Proposed reduction to DSD in FY2020 (2% below 2019 base), with negative statewide present law adjustments (-$8.6m). Present law adjustments for Medicaid waiver caseload (increase) and Medicaid Core caseload (decrease). |
Senior Long-Term Care | Proposed reduction to SLTC in FY2020 (7% below 2019 base) and FY2021 (2.7% below 2019 base). Includes negative present law adjustments of $9 million in GF for Medicaid waiver and core services. Increase $3.5 million in state special revenue to operate new SW Vets home. |
Addicted & Mental Disorders | Total present law adjustment of $25 million GF to address increase caseload. Additional $3.1 million in GF to maintain existing services at MT State Hospital. |
Section C – Natural Resources and Transportation | |
Fish, Wildlife, & Parks | FWP receives no general fund dollars and is funded primarily through state special revenue derived from hunting, fishing and access fees. Total fund increase of about 10% above 2019 base. New proposals total $5.3 million in state special revenue, including drought resiliency, enhancing water recreation, fisheries, equipment replacement, and wildlife monitoring. |
Environmental Quality | DEQ funded primarily through state special revenue and federal funds, with less than 10% of its budget from general fund. Total fund increase of 4% over the 2019 base. Includes SWPLs for personal services and operations and $500k in SSR for orphan share expanded use over two years. |
Natural Resources and Conservation | DNRC funded through state special revenue and with about 41% of its budget coming from the general fund. Total fund increase of about 4% over 2019 base. Present law adjustments include increases to maintain rural water tech assistance and drinking water loan forgiveness program. New Proposals include $400k for CSKT water compact, $700k to restore stream gage program, and $1.76m for Good Neighbor Authority project for national forests. |
Agriculture | Funded primarily through federal and state special revenue, with total fund increase of 4% over 2019 base. Present law adjustments to maintain noxious weed program (SSR). |
Transportation | DOT receives no general fund dollars. Federal revenue represents over 60% of total DOT budget. State special revenue is derived from vehicle fees and gas excise tax. Present law adjustments include restoring winter maintenance and increased federal funding for bus facilities. New proposal includes additional 6.0 FTE to create rural traffic management center to handle road reports/maintenance. |
Section D – Judicial Branch, Law Enforcement, and Justice | |
Judicial Branch | Proposes GF increase of 8% over 2019 base. Continue funding for court appointed special advocates program. New proposals of $1.7 million over two years, including funding for expiring grant for drug courts, child abuse diversion project, and pretrial program (OTO). |
Department of Justice | Proposes GF increase of 8% over 2019 base. New proposals include $1.8m SSR for highway patrol salary survey; $1.4m SSR for additional 5 troopers to address increased traffic safety needs; $1m SSR for disaster recovery and Real ID efforts; $232m GF for forensic science division. |
Office of Public Defender | Proposes 20% increase over 2019 biennium. This is primarily present law adjustment to address increased caseload ($10m). New proposals include attorney pay ladder adjustments and $1m to handle death penalty cases. |
Corrections | Proposes 3.3% increase over 2019 biennium, mostly in present law adjustments. Corrections is reorganizing its youth services division into other divisions. New proposals include continuing investment in housing support and pre-sentencing investigations as passed by the 2017 legislature. |
Section E – Education | |
K-12 Education | Proposes 6.7% increase from 2019 base. Includes $81m present law adjustment for K-12, which includes BASE Aid, restoration of transportation payment, and restoration of data for achievement payments. |
New proposals include $21m to local districts to implement voluntary pre-k programs and $1.6m for MT Digital Academy ($1.6m). | |
Higher Education | Proposes 6.5% increase from 2019 base, primarily present law adjustment for university system ($17m) and community colleges ($1.1m). |
New proposals include $5 million for need-base aid for students within the university system and $700k investment for tribal colleges to provide coursework for students taking the HiSET high school equivalency test. | |
Present law adjustment of -100m in reduced federal authority in guaranteed loan program. | |
State Library | Proposes 18% increase over 2019 base (though that still puts them 17% below 2017 base). Present law adjustment includes projected increase in coal severance tax allocation to library ($121k SSR); anticipated reduction in federal library and services tech funding. |
Historical Society | Proposes 23% increase over 2019 base (thought that still puts them 7% below 2017 base). Makes permanent the $500k FTE reductions in SB 261, but increases PL adjustments. |
Agency | % in General Fund (% in Total Funds) | Agency | % in General Fund (% in Total Funds) |
Section A – General Government | Section D - Justice | ||
Legislative Branch | 0.72% (1.86%) | Judicial Branch | -4.82% (-4.57%) |
Governor’s Office | -4.16% (-4.16%) | Justice | -4.21% (-0.06%) |
Political Practices | -4.11% (-4.11%) | State Public Defender | 1,020%* (1,020%)* |
Revenue | -4.59% (-4.26%) | Corrections | 1.17% (7.43%) |
Administration | -3.56% (-5.25%) | Public Service Commission | N/A (-10.24%) |
Commerce | -10.63% (-8.92%) | ||
Labor and Industry | -7.65% (-4.20%) | ||
Military Affairs | -1.40% (-1.42%) | Section E – Education | |
Public Instruction | 0.84% (0.86%) | ||
Section B – Health and Human Services (See Appendix C) | Board of Public Education | -4.73% (1.12%) | |
Public Health and Human Services | 0.23% (-2.50%) | Commissioner of Higher Education | -2.49% (-0.33%) |
School for the Deaf and Blind | -4.06% (-2.70%) | ||
Section C – Natural Resource and Transportation | Arts Council | 0.85% (1.32%) | |
Fish, Wildlife, and Parks | N/A (6.67%) | State Library | -29.72% (-5.84%) |
Environmental Quality | -6.15% (1.15%) | Historical Society | -24.88% (-14.51%) |
Natural Resources and Conservation | -11.16% (-4.05%) | ||
Agriculture | -23.15% (-0.15%) | ||
Transportation | N/A (-0.94%) |
Division | % in General Fund (% in Total Funds) | Division | % in General Fund (% in Total Funds) |
Disability & Employment Transitions | -2.57% (-2.70%) | Technology Services | 5.86% (8.18%) |
Human & Community Services | -0.52% (1.28%) | Developmental Services | -4.55% (-3.91%) |
Child & Family Services | -1.32% (-0.62%) | Health Resources | 9.16% (-4.15%) |
Director’s Office | 27.34% (22.41%) | Medicaid & Health Services | 0.96% (-0.84%) |
Child Support Enforcement | -17.91% (-17.29%) | Management & Fair Hearings | 13.88% (12.40%) |
Business & Financial Services | 5.01% (11.47%) | Senior & Long-Term Care | -6.46% (0.92%) |
Public Health & Safety | -4.00% (-2.88%) | Addictive & Mental Disorders | -4.33% (-9.86%) |
Quality Assurance | -3.08% (-2.60%) | DPHHS (All Divisions) | 0.23% (-2.50%) |
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