Montana Public Radio

Sam Schaefer

Individual income tax revenue forecast for the 2023 biennium as of March 19, 2021. Income tax is the state's largest revenue source.
Legislative Fiscal Division

Forecasters say Montana’s state revenues are getting a major boost from federal stimulus, and the health of state coffers is easier to estimate now than in the early days of the COVID-19 pandemic. Legislative fiscal analysts gave that update to lawmakers Friday

Montana lawmakers in the Revenue Interim Committee reviewed revenue forecasts Thursday that will help guide state budget decisions during the 2021 legislative session.

In a year filled with economic uncertainty and a recession due to the coronavirus pandemic, state financial experts warn that some impacts to the state budget remain to be seen.

Montana Capitol building.
Nick Mott / MTPR

The state’s budget has healthy reserves to make up for revenue shortfalls amid economic fallout due to the coronavirus pandemic, according to state finance experts.

On Wednesday, Legislative Fiscal Division staff presented a report predicting the state’s reserves can cover projected losses through the next fiscal year, but that the rainy day fund will be weaker by the 2023 biennium.