Gov. Gianforte focuses on state budget, education and affordability in State of the State

HELENA - From tax relief to programs that foster "prosperity" and "self-sufficiency," Montana Republican Gov. Greg Gianforte laid out his plan to grow Montana's economy and address what he called "the affordability crisis" during his State of the State address Monday Jan. 13, one week into the 69th legislative session.

One of the plans he touted is the 1% decrease in the income tax rate he has built into the budget he has proposed to the legislature, a change he said would provide over $850 million in permanent relief.

" To help Montanans navigate the affordability crisis, we propose the largest income tax cut in state history so they can keep more of their money," Gianforte said. "I've heard from many of you that this is a priority."

A "homestead exemption" was another focal point of the speech, which the governor said would bring with it an estimated 15% decrease in property taxes for Montanans on their primary homes.

In his third State of the State address, Gianforte also focused on education, both in funding institutions and supporting students. He said his proposed budget would invest $100 million in teacher salaries through the TEACH act.

He also announced a $1 million incentive to school districts that implement cell-phone free policies, among other general calls to limit childrens' screen time and social media use.

Gianforte praised the state's conservative 2023 budget, criticizing D.C. politicians for not sharing the same prudence and blaming national leaders for higher prices. Meanwhile, he said, Montana's economy has grown in the last four years. 

"This success is the result of our commitment to creating an environment where hard working Montanans prosper and businesses flourish," Gianforte said. "And we've done all this despite strong national headwinds from failed leadership in Washington."

Gianforte did not address Medicaid expansion, which promises to be one of the big debates of the 2025 session.

Sen. Shane Morigeau, D-Missoula, gave a rebuttal in a separate hearing room after the governor's speech. He pledged, in part, his party's support of maintaining Medicaid expansion.

" Renewing Medicaid is critical to keeping Montana's healthy and for ensuring that we have adequate health care coverage, not only in urban areas, but also in rural Montana and in Indian Country," Morigeau said.

The Montana Freedom Caucus, a select group of conservative legislators, also responded to the speech and noted their desire to stop Medicaid expansion.

 "The Montana Freedom Caucus believes that those who can work, should work," said Rep. Jane Gillette, R-Three Forks. "To that extent, the current Medicaid expansion framework has failed Montana taxpayers, and most importantly, the people who the program purports to help."

Gianforte also touched on supporting law enforcement, transparency in the judiciary through House Bill 39, the need to secure the southern border, energy and infrastructure, as well as gender-focused legislation, which drew divided applause down the House floor.

Clayton Murphy is a reporter with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. Murphy can be reached at clayton.murphy@umconnect.umt.edu.