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Thursday, November 7, 2024

Grand Falls mayor seeks solutions to Montana's financial difficulties

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HELENA – Great Falls Mayor Bob Kelly and other city and county officials addressed Montana’s financial struggles with the current tax structure before a state revenue interim committee panel during a meeting Oct. 2.

The Great Falls Tribune initially reported that Kelly, along with Roundup Mayor Sandra Jones, Prairie County Commissioner Todd Devlin and Beaverhead County Commissioner Mike McGinley, called to review House Joint Resolution 35, which outlines the state and local communities’ tax policies.

Kelly described how Great Falls has a total revenue of $114 million but is projected to spend $128 million on projects through the rest of the year. In addition, Kelly requested $500,000 for a police department expansion. The $114 million already collected is partially derived from utility services, taxes and eternal services.

The committee panel consisted of House and Senate lawmakers and staff members of Montana Budget and Policy Center, the Montana Association of Counties, Montana League of Cities and Towns, the Montana Taxpayers Association and Montana State University.

Kelly stressed to the panel that a new tax system must be implemented in the state so all counties can financially afford their new projects.

“The current model that exists is not sustainable,” Kelly told the panelists. “When we need things in our community, we need to go constantly to the same well.”

Jones also noted to the panel that Roundup County holds $3.4 million in operating capital. House Bill 124, a 2001 measure aimed at paying cities and counties for lost property tax revenue, contributes 70 percent of the nontax revenue in the county's general fund.

Jones has been seeking local consumer tax options for all community residents.

“From a small city’s perspective, you can see how we as cities and counties alike rely heavily on the state entitlement share to meet the many needs of the constituents in our communities,” Jones said.

The panel is responsible for producing a review of all tax system options by Sept. 15, 2020, for state Legislature review in 2021.

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