A JOINT RESOLUTION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA ESTABLISHING AN OFFICIAL ESTIMATE OF THE STATE'S ANTICIPATED REVENUE FOR EACH YEAR OF THE 2000-01 BIENNIUM FOR THE PURPOSE OF ACHIEVING A BALANCED BUDGET AS MANDATED BY ARTICLE VIII, SECTION 9, OF THE MONTANA CONSTITUTION; ACCEPTING THE JUNE 30, 1998, GENERAL FUND BALANCE THAT WAS ESTABLISHED BASED ON GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; ESTABLISHING OFFICIAL ESTIMATES OF CERTAIN NONGENERAL FUND REVENUE; AND REQUESTING THE GOVERNOR'S OFFICE OF BUDGET AND PROGRAM PLANNING TO USE THE REVENUE ESTIMATES CONTAINED IN THIS RESOLUTION AS OFFICIAL REVENUE ESTIMATES FOR FISCAL YEARS 1999-2000 AND 2000-01.

WHEREAS, Article VI, section 9, of the Montana Constitution requires the Governor to submit to the Legislature a budget for the ensuing fiscal period, containing in detail for all operating funds the proposed expenditures and estimated revenue of the state; and

WHEREAS, Article VIII, section 9, of the Montana Constitution prohibits the Legislature from appropriating funds in excess of the anticipated revenue of the state; and

WHEREAS, section 5-18-107(5), MCA, requires the Revenue Oversight Committee to estimate the amount of revenue projected to be available for legislative appropriation and to introduce legislation setting forth the Committee's current revenue estimate for the biennium; and

WHEREAS, the Legislature intends that its revenue estimates and the underlying assumptions used to derive those estimates be used by all agencies in the development of fiscal notes; and

WHEREAS, section 5-12-302(7), MCA, requires the Legislative Fiscal Analyst to assist the Revenue Oversight Committee in its revenue estimating duties; and

WHEREAS, the Revenue Oversight Committee obtains the assistance of Executive Branch agencies in the development of the revenue estimates; and

WHEREAS, the Revenue Oversight Committee has improved the process of developing its revenue estimates; and

WHEREAS, the Revenue Oversight Committee has adopted revenue estimates for specific nongeneral fund sources that are significant in the development of the state budget for the 2001 biennium; and

WHEREAS, the Revenue Oversight Committee adopted an estimate of capital gains tax revenue associated with the sale of electrical generation facilities; and

WHEREAS, the timing of the capital gains related to the sale of the electrical generation facilities and the actual tax liabilities of the electric utilities selling the generation facilities are difficult to determine with certainty; and

WHEREAS, Montana is one of 46 states to sign an agreement with tobacco companies that secures for the states a financial settlement related to illegal activities of the tobacco companies; and

WHEREAS, Montana's share of the financial settlement has been calculated to be $66.8 million over the next 3 years; and

WHEREAS, final approval of the agreement and potential federal claims on Montana's share of the settlement may affect the timing and actual amount of settlement proceeds; and

WHEREAS, the complexity of revenue forecasting and the diversity of sources from which state revenue is obtained make it difficult to project revenue in order to prepare a balanced budget for the ensuing biennium; and

WHEREAS, the amount of estimated revenue affects policy decisions of the Executive Branch and the Legislative Branch; and

WHEREAS, the revenue estimates and underlying assumptions contained in this resolution provide the basis for a comprehensive analysis of the state's financial condition; and

WHEREAS, it is in the best interests of the state that revenue estimates be discussed and arrived at in public hearings at which all interested parties may attend and participate.

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA:

That the state general fund revenue for fiscal years 1999, 2000, and 2001 be estimated to be $1,068,122,000, $1,128,363,000, and $1,125,835,000, respectively.

BE IT FURTHER RESOLVED, that the Legislature accept for budget purposes the unreserved fund balance of $44,309,000 for the general fund, prepared according to generally accepted accounting principles as published in the audited state financial statements as of June 30, 1998.

BE IT FURTHER RESOLVED, that because of the uncertainty associated with the estimated capital gains tax revenue, that estimate is shown separately in the resolution as general fund revenue available for one-time appropriation.

BE IT FURTHER RESOLVED, that because factors beyond the control of Montana may affect the timing and actual amount, the anticipated amount of tobacco settlement money available for appropriation from the general fund is shown separately.

BE IT FURTHER RESOLVED, that the Governor's Office of Budget and Program Planning use the revenue estimates and the underlying assumptions contained in this resolution as the official revenue estimates for fiscal years 1999-2000 and 2000-01.

GENERAL FUND REVENUE

The projections for total general fund revenue during the 2000-01 biennium are based on an assumption of a continuation of Montana law as it existed on January 1, 1999. The revenue estimates contained in the following tables are based on the assumptions stated previously in this resolution, the assumptions listed in the tables that follow the general fund estimates, and the assumptions contained in the revenue detail report prepared by the Legislative Fiscal Division. Actual individual tax income collections for fiscal year 1999 are currently exceeding projected collections. The adjustment to estimated individual income tax collections for fiscal year 1999 does not impact the assumptions of other projections.

Current Law

General Fund Revenue Estimates

(In Millions of Dollars)

Actual	Estimated	Estimated	Estimated

Source of Revenue	FY 1998	FY 1999	FY 2000	FY 2001

Individual Income Tax	$444 .161	$472 .703	$475 .687	$496 .634

55-Mill Property Tax	128 .709	132 .880	133 .698	138 .258

40-Mill Property Tax	72 .793	71 .592	75 .105	79 .560

Corporation Income Tax	69 .725	67 .380	65 .206	65 .739

Common School Interest & Income	41 .130	41 .437	42 .657	42 .583

Permanent Trust Interest Earnings	40 .746	40 .528	41 .022	41 .941

Insurance Premiums Tax	36 .813	37 .445	38 .629	39 .226

All Other Revenue	25 .428	31 .235	18 .067	18 .055

U.S. Federal Royalty	22 .241	19 .039	18 .492	18 .245

TCA Interest Earnings	18 .247	17 .425	14 .621	14 .733

Inheritance Tax	15 .727	17 .679	16 .733	17 .878

Video Gaming Tax	12 .256	12 .748	13 .389	14 .030

Motor Vehicle License Fee	10 .778	10 .957	11 .191	11 .406

Institution Reimbursements	10 .335	11 .314	9 .697	10 .041

Cigarette Tax	9 .544	9 .676	9 .810	9 .946

Coal Severance Tax	8 .849	8 .854	8 .480	8 .041

Oil Severance Tax	8 .146	6 .392	6 .768	7 .531

Lottery Profit	6 .564	5 .424	6 .537	6 .464

Liquor Excise Tax	6 .412	6 .517	6 .628	6 .744

Nursing Facilities Fee	6 .200	6 .090	5 .981	5 .874

Telephone License Tax	5 .773	6 .052	6 .344	6 .650

Liquor Profits	5 .400	5 .582	5 .667	5 .754

Electric Energy License Tax	4 .402	4 .564	4 .567	4 .606

Investment Licenses	4 .086	4 .393	4 .691	4 .978

Highway Patrol Fines	3 .801	3 .965	4 .136	4 .314

Driver's License Fee	2 .828	2 .846	2 .242	1 .925

Metalliferous Mines Tax	2 .307	2 .869	3 .525	3 .356

Contractor's Gross Receipts Tax	2 .291	2 .573	3 .176	3 .520

Railroad Car Tax	2 .054	2 .110	2 .130	2 .153

Tobacco Tax	1 .779	1 .882	1 .995	2 .116

Long-Range Bond Excess	1 .746	0 .456	0 .432	0 .410

Natural Gas Severance Tax	0 .974	1 .100	1 .124	1 .109

Wine Tax	0 .930	0 .982	1 .039	1 .099

1.5-Mill Property Tax	0 .849	1 .075	1 .107	1 .141

Beer Tax	0 .358	0 .358	0 .362	0 .366

Total General Fund	1,034 .382	1,053 .122	1,060 .935	1,096 .426

One-Time Capital Gains Tax on Generation Assets	0 .000	0 .000	30 .000	0 .000

Tobacco Settlement Revenue	0 .000	0 .000	37 .428	29 .409

Grand Total General Fund	$1,034 .382	$1,068 .122	$1,128 .363	$1,125 .835

SIGNIFICANT ASSUMPTIONS FOR GENERAL FUND REVENUE ESTIMATES

Revenue Oversight Committee

Year	Assumption	1998	1999	2000	2001

Individual Income Tax

CY	Taxpayer Population (Percent Change)	1 .10%	1 .50%	2 .00%	2 .00%

Income Indicators

CY	Wage and Salary (Percent Change)	4 .30%	4 .05%	4 .56%	4 .67%

CY	Net Farm Income (Percent Change)	0 .00%	0 .00%	0 .00%	0 .00%

CY	Interest Income (Percent Change)	2 .10%	1 .60%	2 .50%	3 .40%

CY	Dividend Income (Percent Change)	1 .00%	4 .00%	5 .10%	5 .10%

CY	Rent/Royalty/Partnership Income (Percent Change)	2 .70%	4 .90%	4 .30%	5 .20%

CY	Net Business Income (Percent Change)	0 .00%	0 .00%	0 .00%	0 .00%

CY	Capital Gains/Losses (Percent Change)	0 .00%	0 .00%	5 .00%	5 .00%

CY	Supplemental Gains (Percent Change)	0 .00%	0 .00%	0 .00%	0 .00%

CY	Social Security Income (Percent Change)	12 .58%	12 .58%	12 .58%	12 .58%

CY	IRA Income (Percent Change)	8 .86%	8 .86%	8 .86%	8 .86%

CY	Pension Income (Percent Change)	8 .86%	8 .86%	8 .86%	8 .86%

CY	Other Income (Percent Change)	0 .00%	0 .00%	0 .00%	0 .00%

CY	Additions to Income (Percent Change)	0 .77%	0 .85%	1 .20%	1 .36%

CY	IRA Deduction (Percent Change)	3 .44%	3 .44%	3 .44%	3 .44%

CY	Reductions to Income (Percent Change)	1 .29%	1 .46%	1 .94%	2 .13%

Deductions From Income

CY	Medical Costs (Percent Change)	5 .40%	6 .00%	6 .90%	7 .10%

CY	Property Tax (Percent Change)	8 .83%	8 .83%	8 .83%	8 .83%

CY	Motor Vehicle Tax (Percent Change)	3 .70%	-1 .80%	4 .20%	5 .40%

CY	Home Mortgage (Percent Change)	7 .65%	7 .65%	7 .65%	7 .65%

CY	Contributions (Percent Change)	7 .68%	7 .68%	7 .68%	7 .68%

Credits

CY	Home Owner/Renter Credit (Millions)	$8 .824	$9 .053	$9 .288	$9 .350

CY	Credit for Taxes Paid in Other States (Percent Change)	10 .00%	10 .00%	10 .00%	10 .00%

CY	All Other Credits (Percent Change)	1 .10%	1 .50%	2 .00%	2 .00%

Other Individual Income Tax Assumptions

FY	Penalty & Interest (Millions)	$3 .917	$4 .500	$4 .950	$4 .950

FY	Income Tax Audit Collections (Millions)	$8 .825	$10 .000	$11 .000	$11 .000

FY	Amended Returns (Millions)	$1 .359	$2 .000	$2 .000	$2 .000

FY	Federal Tax Reform (Millions)	$0 .000	$0 .000	$3 .037	$3 .745

CY	Nonresident Tax Liability (Millions)	$26 .287	$27 .132	$28 .248	$29 .571

CY	Calendar Year to Fiscal Year Conversion	52 .1%/47.9%	52 .1%/47.9%	52 .1%/47.9%	52 .1%/47.9%

FY	Fiscal Year 1998 Base (Millions)	$438 .161

Property Taxes: Taxable Value and Other Property Tax Indicators

Taxable Value--40-Mill, 55-Mill, and 1.5-Mill Levies (and 6-Mill and 9-Mill Levies)

FY	Property Class One (Millions)	$6 .862	$7 .625	$7 .677	$7 .689

FY	Property Class Two (Millions)	$9 .044	$8 .781	$8 .189	$6 .316

FY	Property Class Three (Millions)	$143 .780	$143 .007	$143 .007	$143 .007

FY	Property Class Four (Millions)	$920 .067	$952 .059	$986 .477	$1,002 .455

FY	Property Class Five (Millions)	$34 .034	$34 .068	$34 .068	$34 .068

FY	Property Class Six (Millions)	$21 .958	$23 .833	$23 .833	$23 .833

FY	Property Class Seven (Millions)	$1 .616	$1 .784	$1 .784	$1 .784

FY	Property Class Eight (Millions)	$220 .482	$203 .383	$212 .501	$222 .027

FY	Property Class Nine (Millions)	$481 .958	$494 .535	$508 .164	$521 .422

FY	Property Class Ten (Millions)	$7 .449	$7 .678	$7 .879	$8 .104

FY	Property Class Twelve (Millions)	$68 .029	$65 .266	$65 .266	$65 .266

Other 40-Mill, 55-Mill, and 1.5-Mill Levies (and 6-Mill and 9-Mill) Indicators

FY	Tax Increment Finance (Millions)	$30 .186	$48 .065	$48 .065	$48 .065

FY	Property Tax Abatement (Millions)	$10 .571	$9 .071	$9 .071	$9 .071

Other 40-Mill Levy Indicators

FY	Nonlevy Revenue (Millions)	$7 .994	$8 .731	$9 .424	$10 .181

FY	SB 417 and Other Adjustments (Millions)	($12 .201)	($13 .260)	($12 .713)	($11 .300)

Other 55-Mill Levy Indicators

FY	Nonlevy Revenue (Millions)	$23 .066	$24 .110	$23 .978	$25 .396

FY	SB 417 and Other Adjustments (Millions)	$0 .274	$1 .463	$0 .274	$0 .274

FY	Federal Forest Receipts (Millions)	$2 .190	$2 .641	$1 .654	$1 .654

FY	Volume of Timber (Millions of Board Feet)	0 .212	NA	0 .160	0 .160

FY	Timber Price (Per Board Foot)	$161 .580	NA	$161 .580	$161 .580

FY	Forest Revenue Allocation (Percentage)	25 .59%	25 .59%	25 .59%	25 .59%

Other 1.5-Mill Levy Indicators

FY	Nonlevy Revenue (Millions)	$0 .123	$0 .134	$0 .138	$0 .144

FY	SB 417 and Other Adjustments (Millions)	$0 .000	$0 .000	$0 .000	$0 .000

Other Property Tax Indicators

FY	Value of Light Vehicles (Millions)	$3,792 .655	$4,151 .286	$4,547 .867	$4,983 .633

FY	Flat Fee--Heavy Trucks and Buses (Millions)	$2 .357	$4 .700	$4 .770	$4 .842

Corporation License Tax

FY	MT Corporate Taxable Income (Millions)	$1,089 .502	$1,070 .793	$1,047 .188	$1,056 .237

FY	Penalty and Interest (Millions)	$1 .469	$1 .646	$1 .646	$1 .646

FY	Corporate Income Tax Audits (Millions)	$2 .919	$3 .084	$2 .300	$2 .300

Insurance Premiums Tax and License Fees

FY	General Fund Fee Revenue (Millions)	$2 .243	$2 .345	$2 .477	$2 .619

FY	Miscellaneous Receipts (Millions)	$0 .476	$0 .476	$0 .476	$0 .476

FY	Genetics Fee (Millions)	$0 .574	$0 .563	$0 .567	$0 .568

FY	Premiums Tax (Millions)	$37 .685	$37 .515	$37 .638	$37 .613

FY	Offsets (Millions)	$3 .030	$2 .654	$1 .729	$1 .251

FY	Refunds (Millions)	$0 .663	$0 .800	$0 .800	$0 .800

Federal Mineral Royalty

CY	Oil Production (Millions of Barrels)	2 .833	2 .802	2 .751	2 .691

CY	Coal Production (Millions of Tons)	26 .395	24 .633	23 .864	22 .512

CY	Natural Gas Production (MMCF)	11 .818	11 .845	11 .803	11 .726

CY	Oil Price (Per Barrel)	$13 .822	$13 .477	$16 .226	$17 .790

CY	Coal Price (Per Ton)	$9 .401	$9 .449	$9 .622	$9 .636

CY	Natural Gas Price (Per MCF)	$2 .383	$2 .523	$2 .508	$2 .492

CY	Oil Royalty Rate (Percentage)	11 .00%	10 .99%	11 .00%	10 .98%

CY	Coal Royalty Rate (Percentage)	12 .29%	12 .33%	12 .31%	12 .30%

CY	Natural Gas Royalty Rate (Percentage)	12 .32%	12 .35%	12 .34%	12 .35%

CY	Other Royalties (Millions)	$4 .681	$0 .352	$0 .352	$0 .352

CY	Rent & Bonus (Millions)	$2 .020	$2 .020	$2 .020	$2 .020

CY	Administration Fee (Millions)	$1 .021	$1 .034	$1 .034	$1 .034

Treasurer's Cash Account

FY	TCA Average Balance w/TRANS (Millions)	$291 .934	$300 .000	$265 .500	$265 .500

FY	TCA Average Yield (Percent)	6 .06%	5 .81%	5 .51%	5 .55%

FY	TRANS Issue Size (Millions)	$110 .700	$68 .600	$90 .000	$90 .000

Inheritance Tax

FY	Annual Change in Tax (Percent Change)	7 .99%	12 .42%	-5 .35%	6 .84%

Video Gaming Tax

FY	Video Machine Net Income (Millions)	$243 .439	$254 .964	$267 .782	$280 .601

Motor Vehicle License Fee -- General Fund Allocations

FY	Motor Vehicle Registration Fee (Millions)	$5 .864	$5 .954	$6 .094	$6 .237

FY	Recording of Liens Fee (Millions)	$0 .618	$0 .627	$0 .634	$0 .636

FY	Title Fee (Millions)	$1 .359	$1 .380	$1 .411	$1 .434

FY	Personal License Plate Fee (Millions)	$0 .657	$0 .674	$0 .702	$0 .731

FY	New License Plate Fee (Millions)	$0 .463	$0 .463	$0 .461	$0 .460

FY	Computer Fee (Millions)	$1 .244	$1 .285	$1 .307	$1 .326

FY	Highway Patrol Fee (Millions)	$0 .281	$0 .281	$0 .281	$0 .281

FY	Other Fees (Millions)	$0 .293	$0 .295	$0 .301	$0 .300

Institution Reimbursements

FY	Private Payments (Millions)	$1 .636	$1 .974	$2 .235	$2 .276

FY	Insurance Payments (Millions)	$0 .383	$0 .295	$0 .370	$0 .369

FY	Medicaid Payments (Millions)	$9 .122	$9 .829	$10 .002	$10 .308

FY	Medicare Payments (Millions)	$0 .073	$0 .088	$0 .077	$0 .077

FY	County Payments (Millions)	$0 .000	$0 .250	$0 .000	$0 .000

FY	Debt Service MT Developmental Center (Millions)	($0 .878)	($1 .078)	($1 .077)	($1 .079)

FY	Debt Service MT State Hospital (Millions)	$0 .000	$0 .000	($1 .910)	($1 .909)

Cigarette Tax

FY	Cigarette Packs (Millions)	75 .779	81 .518	82 .655	83 .795

FY	Effective Tax Rate Per Pack (Cents)	17 .48	16 .47	16 .47	16 .47

Coal Severance Tax

CY	Severance Tax Coal Production (Million Tons)	34 .605	34 .331	31 .200	29 .843

CY	Montana Contract Sales Price (Weighted CSP/Ton)	$6 .301	$6 .672	$6 .889	$6 .927

Oil Severance Tax

CY	Severance Tax Oil Production (Million Barrels)	16 .006	15 .829	15 .543	15 .207

CY	Montana Oil Price (Weighted Price/Barrel)	$12 .02	$11 .72	$14 .11	$15 .47

CY	Exempt Value of Production (Millions)	$6 .755	$7 .632	$9 .123	$9 .309

CY	Effective Tax Rate (Percentage)	11 .26%	11 .14%	11 .05%	10 .97%

Lottery Profit

FY	Total Lottery Sales (Millions)	$29 .775	$29 .843	$29 .910	$29 .978

FY	Lottery Interest Earnings (Millions)	$0 .251	$0 .247	$0 .251	$0 .256

FY	Other Revenue (Millions)	$0 .088	$0 .094	$0 .091	$0 .092

FY	Lottery Operating Budget (Millions)	$6 .510	$7 .851	$6 .718	$6 .852

FY	Lottery Prizes (Millions)	$16 .971	$16 .907	$16 .997	$17 .010

Liquor Excise Tax

FY	Liquor Units (Millions)	4 .714	4 .714	4 .714	4 .714

FY	Dollars Per Unit	$9 .858	$10 .004	$10 .176	$10 .352

FY	Liquor Discounts and Commissions (Millions)	$4 .908	$4 .981	$5 .067	$5 .154

Nursing Facilities Fee

FY	Bed Days (Millions)	2 .214	2 .175	2 .136	2 .098

Telephone License Tax

FY	Total Taxable Gross Receipts (Millions)	$320 .741	$336 .197	$352 .397	$369 .378

Liquor Profits

FY	Cost of Goods Sold (Millions)	$29 .128	$29 .863	$30 .377	$30 .903

FY	Liquor Operating Costs (Millions)	$0 .904	$0 .982	$1 .009	$1 .038

FY	Other Income (Millions)	$0 .024	$0 .024	$0 .024	$0 .024

Electric Energy Producers' License Tax

FY	Kilowatt Hours Produced (Millions)	22,727 .116	23,009 .099	22,926 .755	23,073 .843

FY	Credits for Loan Interest Rate Differential (Millions)	$0 .076	$0 .038	$0 .019	$0 .010

Investment License Fees

FY	License Registration (Percent Change)	8 .37%	7 .53%	6 .78%	6 .10%

Highway Patrol Fines

FY	Highway Patrol Fines (Percent Change)	4 .31%	4 .31%	4 .31%	4 .31%

Driver's License Fees

FY	Driver's License Fees (Millions)	$2 .401	$2 .408	$1 .887	$1 .615

FY	Duplicate License Fees (Millions)	$0 .060	$0 .060	$0 .060	$0 .060

FY	Motorcycle Endorsement Fees (Millions)	$0 .014	$0 .016	$0 .012	$0 .011

FY	Interstate Commercial Vehicle Endorsement (Millions)	$0 .290	$0 .296	$0 .232	$0 .196

FY	Intrastate Commercial Vehicle Endorsement (Millions)	$0 .065	$0 .066	$0 .051	$0 .043

Metal Mines Tax

CY	Copper Production (Million lb)	94 .073	84 .726	84 .726	84 .726

CY	Silver Production (Million oz)	1 .632	1 .502	2 .580	0 .947

CY	Gold Production (Million oz)	0 .278	0 .269	0 .221	0 .209

CY	Lead Production (Million lb)	15 .732	15 .992	7 .576	0 .000

CY	Zinc Production (Million lb)	47 .486	54 .438	12 .708	0 .000

CY	Molybdenum Production (Million lb)	10 .209	9 .252	9 .252	9 .252

CY	Palladium Production (Million oz)	0 .357	0 .505	0 .532	0 .874

CY	Platinum Production (Million oz)	0 .113	0 .159	0 .168	0 .276

CY	Nickel Production (Million lb)	0 .000	0 .000	0 .000	0 .000

CY	Rhodium Production (Million oz)	0 .002	0 .002	0 .002	0 .002

CY	Sapphire Production (Million oz)	1 .235	1 .235	1 .235	1 .235

CY	Iron Oxide Production (Million lb)	0 .010	0 .010	0 .010	0 .010

CY	Copper Price (Per lb)	$0 .730	$0 .750	$0 .770	$0 .790

CY	Silver Price (Per oz)	$4 .950	$5 .000	$5 .110	$5 .190

CY	Gold Price (Per oz)	$290 .000	$298 .000	$306 .000	$316 .000

CY	Lead Price (Per lb)	$0 .340	$0 .340	$0 .340	$0 .340

CY	Zinc Price (Per lb)	$0 .470	$0 .470	$0 .470	$0 .470

CY	Molybdenum Price (Per lb)	$3 .680	$3 .680	$3 .680	$3 .680

CY	Palladium Price (Per oz)	$145 .000	$225 .000	$225 .000	$225 .000

CY	Platinum Price (Per oz)	$360 .000	$360 .000	$360 .000	$360 .000

CY	Nickel Price (Per lb)	$3 .800	$3 .800	$3 .800	$3 .800

CY	Rhodium Price (Per oz)	$550 .000	$550 .000	$550 .000	$550 .000

CY	Sapphire Price (Per oz)	$0 .500	$0 .500	$0 .500	$0 .500

CY	Iron Oxide Price (Per lb)	$34 .000	$34 .000	$34 .000	$34 .000

FY	Effective Tax Rate (Percent)	1 .56%	1 .56%	1 .56%	1 .56%

Contractor's Gross Receipts Tax

FY	Tax Before Credits (Millions)	$4 .967	$5 .332	$6 .312	$6 .733

FY	Net to General Fund After Credits (Percentage)	53 .89%	51 .74%	49 .68%	47 .70%

Railroad Car Tax

CY	Total MT Market Value of Fleets (Millions)	$94 .051	$94 .022	$94 .094	$94 .123

CY	Taxable Percentage	6 .17%	6 .17%	6 .17%	6 .17%

CY	95% of Industrial & Commercial Mill Levy	363 .539	367 .174	370 .846	374 .554

Tobacco Products Tax

FY	Value of Tobacco Products	$14 .409	$15 .230	$16 .145	$17 .117

Natural Gas Severance Tax

CY	Severance Tax Natural Gas Production (MMCF)	51 .087	51 .203	51 .022	50 .690

CY	Montana Natural Gas Price (Weighted Price/MCF)	$1 .636	$1 .732	$1 .721	$1 .710

CY	Exempt Value of Production (Millions)	$4 .536	$4 .808	$4 .760	$4 .698

CY	Effective Tax Rate (Percentage)	13 .13%	13 .10%	13 .08%	13 .07%

Wine Tax

FY	Wine Liters (Millions)	5 .942	6 .285	6 .648	7 .032

Beer Tax

FY	Beer Barrels (Millions)	0 .773	0 .780	0 .788	0 .795

SELECTED NONGENERAL FUND REVENUE

The projections for selected nongeneral fund revenue during the 2000-01 biennium are based on an assumption of a continuation of Montana law as it existed on January 1, 1999. The revenue estimates contained in the following table are based on the assumptions stated previously in this resolution, the assumptions listed in the tables that follow the nongeneral fund estimates, and the assumptions contained in the revenue detail report prepared by the Legislative Fiscal Division.

Current Law

Selected Nongeneral Fund Revenue Estimates

(In Millions of Dollars)

1998	1999	2000	2001

Source of Revenue	Actual	Estimated	Estimated	Estimated

Diesel Tax	$47 .889	$48 .094	$48 .301	$48 .509

Diesel Storage Tank Fee	2 .092	1 .449	1 .455	1 .461

Gas Tax	123 .597	124 .766	125 .948	125 .641

Gas Storage Tank Fee	3 .915	3 .720	3 .754	3 .788

Nongeneral Fund GVW Fees	30 .038	31 .418	32 .479	33 .300

Resource Indemnity Trust Tax	2 .667	2 .216	2 .327	2 .382

Arts Trust Interest Earnings	0 .308	0 .308	0 .315	0 .329

Capitol Land Grant Interest and Income	0 .916	0 .700	0 .928	0 .894

Deaf and Blind Trust Interest and Income	0 .226	0 .229	0 .238	0 .247

Parks Trust Interest Earnings	1 .066	1 .096	1 .124	1 .152

Pine Hills Interest and Income	0 .273	0 .291	0 .300	0 .310

Resource Indemnity Trust Earnings	7 .556	7 .617	7 .675	7 .737

Treasure State Endowment Interest Earnings	4 .250	4 .907	5 .456	5 .989

6-Mill Property Tax	14 .702	14 .660	14 .809	15 .280

9-Mill Property Tax	7 .510	7 .502	7 .728	7 .960

SELECTED ASSUMPTIONS FOR NONGENERAL FUND REVENUE ESTIMATES

Revenue Oversight Committee

Year	Assumption	1998	1999	2000	2001

Diesel Tax

FY	Gallons of Diesel (Millions)	192 .323	193 .150	193 .980	194 .814

FY	Refunds (Millions)	($4 .947)	($4 .969)	($4 .990)	($5 .011)

Gasoline Tax

FY	Gallons of Gasoline (Millions)	491 .421	495 .942	500 .505	505 .109

FY	Refunds (Millions)	$4 .012	$4 .049	$4 .086	$4 .124

FY	Tribal Distribution	$3 .748	$3 .751	$3 .751	$3 .751

FY	Alcohol Incentive (Millions)	$0 .000	$0 .000	$0 .000	$1 .500

GVW Fees

FY	GVW Fees (Millions)	$7 .568	$8 .182	$8 .182	$8 .182

FY	Form 3 GVW Fees (Millions)	$0 .890	$1 .018	$0 .998	$0 .983

FY	Trip Permit Fees (Millions)	$0 .558	$0 .558	$0 .558	$0 .558

FY	County GVW Fees (Millions)	$6 .921	$7 .159	$7 .326	$7 .384

FY	County New Car Sales Tax (Millions)	$10 .814	$11 .410	$12 .297	$13 .073

FY	Overweight Trip Permit Fees (Millions)	$1 .452	$1 .385	$1 .418	$1 .435

FY	Special Permit Fees (Millions)	$0 .886	$0 .852	$0 .855	$0 .859

FY	Temporary Fuel Permits (Millions)	$0 .106	$0 .106	$0 .106	$0 .106

FY	Other Fees (Millions)	$0 .672	$0 .748	$0 .738	$0 .720

Other 6-Mill Levy Indicators (See General Fund Property Tax Assumptions for Other Detail)

FY	Nonlevy Revenue (Millions)	$2 .731	$2 .824	$2 .761	$2 .890

FY	SB 417 and Other Adjustments (Millions)	$0 .000	$0 .129	$0 .000	$0 .000

Other 9-Mill Levy Indicators (See General Fund Property Tax Assumptions for Other Detail)

FY	Nonlevy Revenue (Millions)	$0 .874	$0 .953	$0 .983	$1 .019

FY	SB 417 and Other Adjustments (Millions)	$0 .000	$0 .000	$0 .000	$0 .000

- END -

I hereby certify that the within joint resolution,

HJ 0002, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE JOINT RESOLUTION NO. 2

INTRODUCED BY B. STORY

BY REQUEST OF THE REVENUE OVERSIGHT COMMITTEE

A JOINT RESOLUTION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA ESTABLISHING AN OFFICIAL ESTIMATE OF THE STATE'S ANTICIPATED REVENUE FOR EACH YEAR OF THE 2000-01 BIENNIUM FOR THE PURPOSE OF ACHIEVING A BALANCED BUDGET AS MANDATED BY ARTICLE VIII, SECTION 9, OF THE MONTANA CONSTITUTION; ACCEPTING THE JUNE 30, 1998, GENERAL FUND BALANCE THAT WAS ESTABLISHED BASED ON GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; ESTABLISHING OFFICIAL ESTIMATES OF CERTAIN NONGENERAL FUND REVENUE; AND REQUESTING THE GOVERNOR'S OFFICE OF BUDGET AND PROGRAM PLANNING TO USE THE REVENUE ESTIMATES CONTAINED IN THIS RESOLUTION AS OFFICIAL REVENUE ESTIMATES FOR FISCAL YEARS 1999-2000 AND 2000-01.