Living Within Our Means—And Why It Matters

House Bill 2 faces the Committee of the Whole today on the House Floor - here’s my take.

Montana’s entire state government is funded through one comprehensive measure: House Bill 2. This bill isn’t just a fiscal tool—it’s a reflection of values. Like the families across Montana who make tough choices to live within their means, pay their bills, and set aside savings, the state is constitutionally required to do the same.

Across Montana, households balance budgets not because it’s easy, but because it’s necessary. Families cut costs, prioritize needs over wants, and avoid debt to ensure stability. State government should operate no differently. Under Article VIII, Section 9 of the Montana Constitution, the legislature is prohibited from appropriating more than the state expects to receive in revenue. That balanced budget requirement helps protect taxpayers from unchecked growth in government and ensures accountability in every budget cycle.

Montana isn’t alone in this standard—as of 2021, 44 states require legislatures to pass a balanced budget, and 35 require those budgets to remain balanced through year-end. But Montana’s constitutional mandate underscores a deeper principle: public dollars must be handled with the same care that families give their own.

That stands in stark contrast to the federal government, where spending has ballooned, and the national debt now exceeds $34 trillion. With no binding requirement to balance the federal budget, Washington has borrowed against future generations for decades—undermining economic stability and shifting burdens downward.

House Bill 2: Montana’s fiscal discipline is more than a legal requirement; it’s a promise to taxpayers that the state will not spend more than it earns.

This mandate is the foundation of work for the 2025 Legislative Session. Five appropriation subcommittees met with state agencies to examine every budget request, requiring justification for spending and identifying opportunities to reduce waste. Republican legislators led efforts to eliminate inefficiencies and hold programs accountable. Following subcommittee approvals, the House Appropriations Committee refined House Bill 2 further, ensuring every expenditure served a purpose.

House Bill 2, now approved by the House and advancing to the Senate, reflects that work. The budget comes in approximately 6% higher than the previous biennium—an increase reflective of a growing population, rising infrastructure and labor costs, and inflationary pressures felt nationwide. Even with these demands, the budget remains balanced, disciplined, and aligned with core priorities.

But balancing the budget is only one part of the solution. Creating a strong, stable future for Montana families and businesses also requires tax reform. Public feedback has made one thing clear: taxes are too high. In response, lawmakers have advanced meaningful proposals that provide relief and promote long-term economic growth.

Tax Relief Proposals

Among these is House Bill 337, sponsored by Speaker Brandon Ler, which reduces income tax rates by 0.5% for higher earners and 1.2% for lower earners—returning money to working Montanans and supporting financial independence. Additional measures—including HB 483 (“Right Back Act,” Sprunger), HB 231 (“Homestead Act,” Jones) SB 322 (Kassmier), and SB 90 (Glimm), HB 528 (Byrne), among others—are proposals to reshape the tax code in ways that are responsive to evolving needs.

Montana’s approach—balancing the budget, prioritizing taxpayers, and refusing to spend beyond its means—offers a stark and needed contrast to national trends. In a time of economic uncertainty, Montana continues to lead with a model of governance that reflects the values of the people it serves: responsibility, transparency, and trust.