News
Montana Gov. Martz vows rosy financial climate
Gov. Judy Martz, beginning her fourth and final year in office, promised business leaders from around Montana on Wednesday that she will leave the state in better financial health than she found it.
Associated Press
The Republican painted a rosy picture of conditions in Montana, saying the economy is set to grow and recounting efforts by her administration over the past year to improve everything from taxes and education to energy and natural resource development.
Martz’s remarks came in her "Report to the People" address given to an annual gathering of business leaders sponsored by the Montana Chamber of Commerce. This was the second such speech given by Martz, who inaugurated it in 2002 as a less formal State of the State address for years when the Legislature is not in session.
Martz rejected reports by legislative staff that the next Legislature could be short as much as $235 million unless revenue grows at a 5 percent annual rate in the next two-year budget period.
She said this is too early to be guessing what will happen, and the forecast fails to take into account any growth in the economy.
However, Martz didn’t mention that her own budget office acknowledged late last year that lawmakers are likely to face a $100 million deficit a year from now.
Martz said those talking about a $200 million financial hole are skeptics and pessimists and added, "Skepticism is a major reason why it has taken a generation to get our economy primed for expansion.
"There is one thing I want you to know for sure," she said in remarks prepared for delivery Wednesday night. "When I leave office, Montana will be in much better shape financially and our economy will be in much better shape than when I came into office three years ago."
Various economic information offers mixed support for that prediction.
While the economy is beginning to rebound from months of stagnation last summer, annual job growth remains about a fourth of what it was when Martz began her term in early 2000. On the other hand, average job earnings and personal income are rising faster, and about 2,500 fewer Montanans are unemployed.
The state budget picture, however, may be more gloomy than three years ago. While the next Legislature could face at least a $100 million shortage even with robust economic growth of 2.5 percent a year, the 2001 Legislature actually began its session with a $40 million surplus.
Martz, who announced in August she would not run for re-election in order to devote more time to her family, said she has fulfilled promises she made when running for governor in 2000.
The administration made economic development a priority and supported income tax reductions that will take effect a year from now, she said. Martz recalled her push for federal legislation that will thin national forests to reduce fire danger and reiterated her support for development of Montana coal and coal-bed methane.
She mentioned committees that she created to figure out ways of protecting Montanans from rising power rates, study school funding and improve Medicaid. The governor said she promoted Montana beef in Argentina, backed tougher drunken-driving laws, lobbied for keeping Amtrak passenger train service, and fought a ban on snowmobiles in Yellowstone National Park.
Copyright © 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Copyright © The Billings Gazette, a division of Lee Enterprises.
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