I disagree with the claim that the State budget was balanced last session without tax increases. 

HB 22, which passed in the House on third reading 97-2, was a $31 million tax increase over ten years or $3.1 million per year.  This bill placed the fee on water right certificates.  Fees are legally recognized as taxes, according to an Attorney General opinion.

HB 35 increased the car registration fee by $5 per vehicle, a $6.7 million dollar tax increase annually.

Hunting and fishing license fees also were increased to the tune of just over $3 million per year.

The 2005 regular session approved budget increases of over $821 million for the biennium.  The Dec. special session added another $200 million, making the biennial increase over $1 billion.  Our total state budget now sits at approximately $8 billion for two years (biennium).  Broken down, this amounts to over $10,000 annually per household in Montana. 

The LFD estimates a projected budget surplus of up to $900 million.  I do not support applying the current projected budget surplus to additional spending.  With high property taxes causing such a hardship on so many property owners, we have a great opportunity to reduce those taxes by applying this surplus to long-term property tax reduction.  Also, the water fee created by HB 22 should be repealed entirely.  I will introduce legislation to accomplish both of these goals.