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Deep Budget Cuts Announced for Montana

After revenues came in $75 million lower than projected, the state Tuesday announced severe cuts that will deeply affect the way government serves Montanans, including lost jobs and reduced or terminated programs.

After revenues came in $75 million lower than projected, the state Tuesday announced severe cuts that will deeply affect the way government serves Montanans, including lost jobs and reduced or terminated programs.

About 20 people will lose their full or part-time jobs and many unfilled posts will remain that way. Other cuts include pulling about half the money in the state fire fund out to beef up reserves and ending a contract with the insurance company that administers Medicaid expansion. The Montana State Historical Society and the state library also saw their budgets gutted, which will result in a vast drop in services.

Dan Villa, Gov. Steve Bullock’s budget director, met with reporters to discuss the cuts, which are required under a law passed during the this year’s Legislative session.

The governor has long insisted on an unofficial rainy-day fund to tap in case of emergency. Lawmakers established such a reserve fund this year, but it was designed to build up during years with faster-than-expected growth. With no money yet in the fund, budget shortfalls can only be managed with cuts.

Caroline Cournoyer is GOVERNING's senior web editor.
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