HOUSE JOINT RESOLUTION NO. 1
INTRODUCED BY B. STORY
A JOINT RESOLUTION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA REVISING THE OFFICIAL ESTIMATE, CONTAINED IN HOUSE JOINT RESOLUTION NO. 2, LAWS OF 1999, 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, 1999, GENERAL FUND BALANCE THAT WAS ESTABLISHED BASED ON GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; AND REQUESTING THE GOVERNOR'S OFFICE OF BUDGET AND PROGRAM PLANNING TO USE THE REVENUE ESTIMATES CONTAINED IN THIS RESOLUTION AS OFFICIAL REVISED REVENUE ESTIMATES FOR FISCAL YEAR 2000 AND FOR FISCAL YEAR 2001.
WHEREAS, House Bill No. 260 (Chapter 563, Laws of 1999) created a coal producer's license tax; and
WHEREAS, revenue from the coal producer's license tax was intended to be used, in part, for investing in research and commercialization projects and economic development programs in Montana; and
WHEREAS, the Montana Supreme Court declared the coal producer's license tax an unconstitutional diversion of the coal severance tax; and
WHEREAS, the research and commercialization projects and economic development programs contained in Chapter 563, Laws of 1999, are unfunded because of the Supreme Court decision; and
WHEREAS, the Governor issued a call for a special session to begin May 8, 2000, for the purpose of appropriating from the general fund amounts necessary to fund research and commercialization projects and certain economic development programs; and
WHEREAS, at the end of the 1999 Legislative Session, the ending general fund balance for the 2000-01 biennium budget was projected to be $51.5 million; and
WHEREAS, fiscal year 1999 general fund revenue collections have exceeded the amount estimated by the Legislature in House Joint Resolution No. 2, Laws of 1999; and
WHEREAS, general fund revenue collections for the 2000-01 biennium are expected to exceed the revenue estimates contained in House Joint Resolution No. 2; and
WHEREAS, the revised ending fund balance for the 2000-01 biennium is estimated to be $137.7 million; and
WHEREAS, the Governor is proposing to use general fund money to provide resources for research and commercialization projects and for certain economic development programs; and
WHEREAS, the amount of estimated revenue affects policy decisions of the Executive Branch and the Legislative Branch; and
WHEREAS, the revenue estimates contained in this resolution and the underlying assumptions provide the basis for a comprehensive analysis of the state's financial condition; and
WHEREAS, given the magnitude of the anticipated 2000-01 biennium surplus and given the Legislature's responsibility to balance the budget under Article VIII, section 9, of the Montana Constitution, it is in the best interest of the state that the official revenue estimates for the 2000-01 biennium be revised.
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 2000 and 2001 be estimated to be $1,156,942,000 and $1,140,613,000, respectively.
BE IT FURTHER RESOLVED, that the Legislature accept for budget purposes the unreserved fund balance of $109,674,000 for the general fund, prepared according to generally accepted accounting principles as published in the audited state financial statements as of June 30, 1999.
BE IT FURTHER RESOLVED, that the Governor's Office of Budget and Program Planning use, as contemplated in 5-18-107(2), the revenue estimates contained in this resolution as the official revenue estimates for fiscal year 2000 and for fiscal year 2001.
GENERAL FUND REVENUE
The revised estimates for total general fund revenue for the 2000-01 biennium are based on an assumption of a continuation of Montana law as it existed on May 1, 2000. The general fund revenue estimates contained in the following table are also based on assumptions adopted by the Legislature in House Joint Resolution No. 2 during the 1999 Legislative Session, statutory changes affecting general fund revenue that were enacted during the 1999 Legislative Session, and revisions to certain assumptions, including those related to wage and salary income and capital gains income and to oil prices.
Current Law
General Fund Revenue Estimates
(In Millions of Dollars)
Actual Estimated Estimated Estimated
Source of Revenue FY 1999 FY 2000 FY 2001 FY 2000 and FY 2001
Individual Income Tax $483.032 $511.099 $531.786 $1,042.885
Property Tax 201.759 191.893 173.193 365.086
Corporation Income Tax 80.142 91.939 72.730 164.669
Common School Interest & Income 41.433 42.506 42.215 84.721
Permanent Trust Interest Earnings 16.698 41.115 41.453 82.568
Insurance Premiums Tax 38.137 38.629 36.646 75.275
Tobacco Settlement 0.000 34.805 25.325 60.130
All Other Revenue 35.115 19.264 18.098 37.362
U.S. Federal Royalty 17.650 19.827 19.735 39.562
TCA Interest Earnings 17.920 14.478 14.490 28.968
Inheritance Tax 18.302 16.733 17.587 34.320
Video Gaming Tax 12.559 13.389 14.124 27.513
Motor Vehicle License Fee 11.053 12.391 12.606 24.997
Institution Reimbursements 11.136 9.697 10.041 19.738
Cigarette Tax 8.823 9.810 9.946 19.756
Coal Severance Tax 9.284 8.309 7.787 16.096
Oil Severance Tax 6.481 9.373 10.305 19.678
Lottery Profit 6.780 6.537 6.464 13.001
Liquor Excise Tax 6.666 6.628 6.744 13.372
Nursing Facilities Fee 5.713 5.981 5.874 11.855
Telephone License Tax 6.037 3.167 0.000 3.167
Telecommunications Excise Tax 0.000 12.372 23.936 36.308
Liquor Profits 6.000 5.667 5.754 11.421
Electric Energy License Tax 4.618 4.567 4.606 9.173
Wholesale Energy Tax 0.000 1.701 3.425 5.126
Investment Licenses 4.413 4.691 4.978 9.669
Highway Patrol Fines 3.755 4.657 5.009 9.666
Driver's License Fee 3.234 2.242 1.925 4.167
Metalliferous Mines Tax 3.306 3.388 3.225 6.613
Contractor's Gross Receipts Tax 3.320 3.176 3.520 6.696
Railroad Car Tax 2.074 2.130 2.153 4.283
Tobacco Tax 1.791 1.995 2.116 4.111
Long-Range Bond Excess 0.386 0.261 0.243 0.504
Natural Gas Severance Tax 1.024 1.124 1.109 2.233
Wine Tax 0.965 1.039 1.099 2.138
Beer Tax 0.374 0.362 0.366 0.728
Total General Fund $1,069.980 $1,156.942 $1,140.613 $2,297.555
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