HELENA – Legislative leaders were solidifying plans Thursday to trim the governor’s proposed budget, even as they awaited details on the large federal stimulus money that will be funneled through the state.
The infusion of federal money promises to add new wrinkles to already complex state appropriations, although lawmakers said they will keep the spending packages separate to make it easier.
The House Appropriations Committee chairman said he expects $30 million to $60 million will be taken out of Gov. Brian Schweitzer’s spending plan in light of sour economic news. Those reductions will come in what is known as House Bill 2.
Rep. Jon Sesso of Butte said it is important that the main spending plans remain separate from the federal money to ensure core programs do not outpace state resources.
A different spending bill — coined “House Bill 2a” — will be set up for the federal money, and work will begin on that next week. many details on the federal money are still unknown, especially the extent to which strings are attached to the spending.
Lawmakers said they the federal stimulus money could free resources in such a way as to reduce the cuts to the main spending package. But the federal money itself, considered a one-time infusion, cannot be used to fund ongoing programs.
And the proposed cutbacks to the governor’s budget are preliminary. They must go to the full House Appropriations Committee, then the House floor. Before the end of next month, the whole package is sent to the Senate.
“If this was a baseball game, this is really the second inning. We are now moving into the middle innings,” Sesso said.
Lawmakers are planning a separate spending bill for the $626 million in federal money being sent to the state.
Sen. Keith Bales, R-Otter, said the federal money could reduce pressure on local property tax payers. He said money destined to upgrade school facilities may mean it is less likely that local voters will need to pay for it.
“I think if we can do that now, it will make it so that the local communities don’t have to float mill levies to get that maintenance done down the line,” he said.