“Trump Bump” Driving Montana Revenue?
Are we seeing a "Trump Bump" with state revenues?
"I do believe we are," State Sen. Llew Jones (R-Conrad) said Monday as he joined Aaron Flint on the "Montana Talks" radio show. This, after February revenue estimates came in low, but stronger than previously expected.
Reduced revenues under Democratic Governor Steve Bullock were so low that Bullock called a special session last Fall, forcing cuts to state programs. Ironically, the Bullock administration lobbied against the very Trump tax cuts that may end up helping Montana's economy and revenue situation.
The Bullock administration once argued that federal tax cuts would cause an even larger revenue gap for the State of Montana. "So far they've had to walk back their dire predictions substantially," remarked Jones.
As Phil Drake reported over the weekend:
A recent update on Fiscal Year 2018 state general fund revenues offers a mixed report with funds coming in at a $7 million potential shortfall, but 15 percent above FY 2017 revenues collected for the same time period.
Jones said many GOP lawmakers believed that once there was certainty on Trump’s tax reform package, there would be increased tax response, and this “seems to be proving true.”
Given all of the positive news coming out following the Trump tax cuts, it is no wonder Democratic Senator Jon Tester (D-MT) is now telling The Bozeman Daily Chronicle that his re-election is "going to be painful." Tester voted against the tax cuts in the US Senate.