Fiscal Accountability Press Release

Press Release

Lawmakers Asked to Target Stimulus Spending

With Montana on tap to receive around $600 million in federal stimulus dollars, a nonprofit Bozeman policy watchdog is asking lawmakers to pledge that one-time federal stimulus dollars will only be used on one-time spending projects.

“The danger,” according to Montana Policy Institute (MPI) president Carl Graham “is that these one-time stimulus dollars will come into the state budget and be used to create spending requirements that won’t end when the initial federal money has dried up.” He cited several potential examples, including hiring new full time employees, creating new subsidy or entitlement programs, or even permanent tax relief – something the fiscally conservative organization would normally applaud. If any of these things happen, according to Graham, future lawmakers will be put in a position of either having to raise taxes to support the new spending or making painful cuts to people and programs; something that MPI says is an unfair burden for current legislators to place on future generations.

MPI mailed the pledge, which can be found at www.montanapolicy.org, to lawmakers on February 10th. It notes that if this one-time money is spent wisely on one-time projects within the state it has the potential to address serious maintenance and infrastructure backlogs while injecting jobs and money into our economy. However, according to a letter accompanying the pledge, if the one-time dollars are spent in ways that create ongoing programs and obligations or in ways that don’t create jobs or increase productivity, it will just create hard decisions down the road without helping Montanans who are truly in need today. “That’s not fair to our citizens, to our children, or to our future lawmakers.” according to Graham.

MPI hopes to gain broad bipartisan support for the pledge and will publish results in early March.

 

 

The Montana Policy Institute is a nonprofit, nonpartisan policy research center based in Bozeman. To find out more visit us on the web at www.montanapolicy.org.

 

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