Legislative Finance Committee

First Meeting of LFC Since the November Special Session

Committee: Legislative Finance Committee
Author: Susie Lindsay
Posted on December 19, 2017

Abstgract Iluustration of finance concepts

The Legislative Finance Committee had its first meeting since the November Special Session on Dec. 11, 2017, in Helena.

The LFC heard updates and reports including:

  • 2017 November Special Session Fiscal Report: After several days of negotiation between legislators and the executive in November, lawmakers adopted legislation that totaled $230.8 million in additional resources to address the special session call. Legislative Fiscal Division staff provided legislators with a summary of the results of the 2017 special session including the executive general fund balance sheet adjusted for legislation, an HB 2 summary, and an update on the fire suppression fund
  • 2019 Biennium Budget Update: ¬†Staff reported FY 2018 general fund revenue through the end of November is $92.6 million or 12.1% ahead of FY 2017 revenue through the same period; the increase is primarily due to legislatively authorized transfers of $55.9 million currently posted to All Other Revenue. Without the transfers, YTD growth would be 4.8% compared to HJ 2 of 11.0%. Individual income tax collections through the end of November are $27.9 million or 5.0% above the year-to-date collections in FY 2017. The update also included a detailed analysis of CY 2016 forecasting error for both individual income tax
  • Healthcare Costs, Health Outcomes and International Comparisons by Josh Poulette, fiscal analyst provided a series of charts that showed how the United States compares to other developed countries for healthcare costs, life expectancy, and other health outcomes
  • Required information technology reports by State Information Technology Services
  • An information technology update by Joe Triem, LFD fiscal manager
  • Pension updates by the Public Employees Retirement System and the Teachers Retirement System
  • An update on the HB 639 Study: Results First and Child Protective Study
  • An updated work plan for the Legislative Fiscal Division by Amy Carlson, legislative fiscal analyst.¬† The committee discussed updating the work plan to include work on a joint subcommittee with RTIC on the Changing Economy Impact to the Long-term Viability of Montana’s Tax Structure
  • Acting on the request of the Revenue and Transportation Interim Committee to jointly develop a study on the changing economy’s impact on the state’s tax structure, LFC members decided to instead request the RTIC join the LFC in developing a joint subcommittee to develop policy change recommendations for the 2019 legislature. The LFC members include Senators Sesso, Jones, Wolken and Moore. The RTIC is in the process of appointing its members. The Joint Subcommittee on the Changing Economy and the Impact to the Long-term Viability of Montana’s Tax Structure will hold its first meeting in Helena on Jan. 17.

The LFC will next meet March 12-13 in Helena.