Montana budget faces mid-2011 deficit, forecaster says
By CHARLES S. JOHNSON Missoulian State Bureau missoulian.com | Posted: Monday, February 8, 2010 10:30 pm
HELENA - The state's general fund budget will be in the red by mid-2011, a new revenue forecast predicted Monday.
The Montana Legislature's chief revenue forecaster, Terry Johnson, estimated the state would face a $62.5 million general fund budget deficit by June 30, 2011, as tax collections continue to fall.
It marks the first time that a forecast from either the legislative or executive branches has predicted that the state would face a budget deficit by the end of this two-year budget period.
Johnson's latest monthly forecast traced the continuing deterioration in the state's actual and projected tax collections and how the expected general fund surplus will melt away by June 30, 2011.
When legislators adjourned in April 2009, they estimated the state would have a healthy $282.4 million ending-fund balance, or surplus.
But that number has steadily shrunk as actual and projected tax collections have declined in recent months. Johnson's forecast in early December showed a $44.4 million surplus, but in early January he had lowered it to $16.9 million and now to a negative $62.5 million.
On Jan. 29, Gov. Brian Schweitzer's budget director, David Ewer, forecast a $5.6 million general fund budget balance as of mid-2011.
Why was Schweitzer just on FOX telling Cavuto that Montana has MONEY IN THE BANK, when the conversation was about the deficits other states are facing? Especially when the latest forecast in Montana is a $62.5 million DEFICIT? :? Could it be he doesn't know or doesn't think anyone watching will know he went from a $44.4 million surplus in Dec to a $62.5 Million projected DEFICIT in 6 months? :?