On Thursday, Gov. Greg Gianforte (R-MT) held a press briefing.
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NewsTranscript
00:00Well, welcome back once again. It's been a busy week here in Helena. On Friday, I joined
00:11Americans for Prosperity to rally in support of our historic tax cuts for Montanans at
00:18every income level. Montanans from every background showed up in support. A single mother trying
00:25to make ends meet. Retirees. Small business owners. College students trying to pay tuition.
00:33And even some conservative legislators who understand the importance of broad-based tax
00:39cuts. Because they know our proposal, like our past tax cuts, will return money to the
00:47pockets of Montanans. And we must. Because even with the tax reforms we've done already,
00:55the rate most Montanans pay today is the highest in the region. Later that afternoon, we received
01:04support for our conservative proposal from Donald Trump Jr. He compared our tax cut to
01:12the 2017 Trump tax cuts I was proud to vote for when I was a member of Congress. Don Jr.
01:20said our tax cut is just like the one that was pushed by the president. It lowers the
01:27rate that most Montanans pay and provides relief to income taxpayers at every single
01:36income level. Because I know, like President Trump does, when you lower income taxes, folks
01:44keep more of what they earn, small businesses invest, and they create jobs. Now there's
01:51a lot of proposals out there in the legislature about how to reduce income taxes this session.
01:58Some only benefit some taxpayers, and that's just not right. Our proposal benefits Montanans
02:06at every income level, just like our past proposals that Senator Greg Hertz carried
02:14in 2021 and Senator Becky Beard carried in 2023. Our tax cuts have led to record low
02:24unemployment in Montana and record wage growth in Montana, even outpacing inflation. Also
02:33record job creation, record business creation. Our policies have worked. This is not a time
02:42to slow down. While I join all Montanans in being disappointed with the Senate's vote
02:51yesterday, I am optimistic that by working together, we can get it done for the Montanans
02:58who sent us here. And we must. Montanans are counting on us. While we continue to promote
03:06our agenda, I've been proud to sign several bills into law to protect the privacy and
03:12security of women and girls in spaces like bathrooms, shower rooms, changing rooms and
03:20other public places, and to continue funding Montana's public schools at historic levels.
03:27Most recently, on Tuesday, I signed House Bill 15 into law to support our public schools,
03:35our teachers, our students and their parents. I'd like to thank Representative David Beattie
03:41and the legislature for once again providing funding to ensure every public school student
03:47has access to a first class education. As we continue to advocate for our priorities,
03:54we are working to shore up Montana's foundation, securing a brighter future for our families
04:00and our communities. I said when I unveiled our budget proposal that the path to security
04:07and prosperity, that the strong foundation of a prosperous society is made up of three
04:13pillars. First, economic freedom. Secondly, access to opportunity and thirdly, safe communities.
04:22Our tax proposals are aimed at expanding economic freedom and access to the American dream,
04:30creating an environment that supports businesses to create more good paying jobs. Our educational
04:35priorities that aimed at supporting our public schools and expanding parental choice in education,
04:42making sure every child has the opportunity to reach his or her full outstanding potential.
04:49And our public safety priorities are aimed at protecting our communities. As governor,
04:54I'm committed to ensuring that every Montanan feel safe at home, at school, at work and
05:02in their neighborhood. One of government's chief responsibilities is keeping citizens
05:08safe. And here in Helena, we have a duty to confront our state's public safety challenges
05:15head on. We must have the resources we need to lock up violent criminals and hold them
05:23accountable for their actions. We must support victims and back the men and women in uniform
05:30who keep us safe. The problem are jails and prisons are overcrowded. Our correctional
05:38officers and Montana Highway Patrol troopers aren't paid what they deserve. And we should
05:45invest in long term, a long term plan to address the safety needs of all Montanans. Unfortunately,
05:53under Joe Biden, we saw a massive increase in the number of illegal immigrants entering
05:59our country, including violent transnational gang members right here in Montana. I'm relieved
06:08to see President Trump and his administration securing our border and deporting violent
06:14criminals. Here in Montana, we propose our proposal included historic investments to
06:22fix what is broken, get criminals off the street and keep Montanans safe. The reality
06:29is we can't arrest and prosecute criminals if we don't have a place to put them. In fact,
06:36I'm told there are thousands of unserved warrants in Montana due to a lack of space to lock
06:43up violent criminals. In my budget, we invest $150 million of one time only funding for
06:53an additional 500 beds at the Montana State Prison because too many criminals who should
07:00be housed at the state prison are taking up space in county detention centers. And when
07:06it comes to pay for the men and women who serve in our correctional system and those
07:12who wear the uniform of the Montana Highway Patrol, they should be paid what they deserve
07:18to keep us safe. That's why I also proposed investing $6.5 million in our correctional
07:26officers, providing them in a pay increase, more training and better resources. And I
07:33call for an additional $7 million to increase pay for men and women of the Montana Highway
07:38Patrol. Let's be crystal clear. Our law enforcement officers are heroes. Our heroes deserve hero
07:49pay. And while I believe games are won with three to five yard plays when it comes to
07:56public safety, it's time to think big. For far too long, the state has neglected the
08:03problems played plaguing our public safety system. No more. By using $250 million again
08:13of one time only funding, we can develop and execute a long term plan to improve public
08:19safety and keep criminals off the street to expand capacity of our correction system to
08:26alleviate overcrowding in our jails and to keep offenders in our correctional facilities
08:32in Montana. Yesterday, I visited with law enforcement officers and Billings in Yellowstone
08:38County as well as federal law enforcement. And you know what I heard? They need help.
08:46They need more resources to get their job done. And they need us here in Helena to put
08:52our money where our mouth is to keep Montana and safe. I was honored to be joined by Yellowstone
08:58County Sheriff Mike Lender, Billings Police Chief Rich St. John, County Attorney Scott
09:06Twigle, correction officers, including Warden Katie Weston from the women's prison, troopers
09:14of the Montana Highway Patrol, how the state can do a better job of making Montana safe.
09:22Sheriff Lender said, and I quote, Our county jails are busting at the seams, end quote.
09:29He went on to say that the problem has a lot to do with capacity at the state prison because
09:36many of the people in our county detention facilities would otherwise be at the state
09:42prison. And he's right. Billings Police Chief Rich St. John said the ripple effect of our
09:49investments will help keep Montanans safe. He told me that 60% of the arrests in Billings
09:58are repeat offenders and increased capacity will benefit our communities. County Attorney
10:05Scott Twigle praised our bold investments, saying it's frustrating for the boots on the
10:11ground when they make an arrest and there's no place to put them. By making these investments,
10:18we can ensure our law enforcement officers are supported and Montanans are safe. I fundamentally
10:25believe Montanans sent policymakers to Helena to address the challenges that Montanans face.
10:33Our focus remains on delivering meaningful solutions for those challenges. Cutting property
10:41taxes without further burdening income taxpayers, cutting the income tax rate most Montanans
10:49pay, creating a high quality education system and standing up for the most fundamental responsibilities
10:57of government to keep our people safe. With that, be happy to open it up for questions
11:02and who wants to be first? Yes,
11:08there's some discussion yesterday about public safety, about overcrowding in jails and our
11:19prison. Somewhat interesting concerns that the contract for civic to have inmates out of state
11:28to help ease this capacity issue will be ongoing, continue to grow. Others say extending the prison will be able to bring those inmates back. Do you have a sense of how long it'll take to peel back that contract for civic or do you see it in place for a lot longer?
11:48So it's good point. We'd like to house inmates here in the state. That's why we made it a
11:55priority to expand the facilities at Deer Lodge at the Montana State Prison. But even
12:01these additional 500 beds, it's not going to be enough long term. So having an ability
12:07to flex capacity using third parties is probably going to be part of the mix for a while. But
12:16we're behind the eight ball because we have not made these investments for decades and
12:21decades. So upgrading existing facilities in Deer Lodge is what we did last session.
12:27This actually adds 500 additional beds, another $250 million to look at the entire correction
12:33system and find out where else we need capacity and what else we need to change is going to
12:38help us reduce the reliance on out-of-state resources. Yes.
12:55So the question is, the income tax proposal that we've made to lower the rate that most
13:03Montanans pay from 5.9 to 4.9. Does that jeopardize the state budget in some way? We
13:10do not believe it does. We've done the calculations. We have a structural surplus. We allocated
13:17just over $800 million over the next two years. I believe because we've overcharged the people
13:24of Montana, we ought to let them keep more of what they earn. There's can be honest debate
13:30about how much to reduce the top rate. We've proposed going from 5.9 to 4.9. Reasonable
13:37people can debate this, but at the end of the day, we must have an income tax reform
13:43proposal that lowers the rate that most Montanans pay. Carving out special groups and giving
13:49special breaks to special interests or special groups of Montanans, just not fair.
13:55I think those folks are looking at a legislative fiscal budget report that is looking at, I believe, the 2028-2029 budget. So not the next two years, but the subsequent two years. If those income tax cuts pass as you propose them, would the state be looking at spending cuts coming into session?
14:14We do not anticipate spending cuts. We've been very fiscally responsible. And understand,
14:19this is the third chapter of our fiscal policies. We've reduced income tax rates in 2021, and
14:26the economy boomed. We lowered income tax rates in 2023, and the economy boomed. We've had
14:33record low unemployment, more people working than ever before. Let me just say the strategy
14:38that we've laid out and have been implementing is working. It's time to do the next step,
14:44which is to bring down the rate that most Montanans pay for income taxes. I think there
14:49can be honest debate about how much to lower it. If there's concern in the legislature,
14:54let's have a discussion. None of those legislators have come to me to talk to me about an alternative
14:58proposal. So I would welcome the discussion. Let's get around the table and figure this
15:02out for the people of Montana. Yes?
15:19Yeah, so the question is about 231 and homestead rate reductions. Let me be really clear. I
15:38think the legislature and our office, all of us in elected office, have been given a
15:44mandate by the people of Montana to implement permanent property tax relief in this session.
15:51We put together a group of folks. It included legislative leadership from both parties,
15:58state officials, local officials. We spent almost a year canvassing all the best ideas,
16:04and the best idea that collective group came up with was the homestead rate reduction.
16:09And as we've discussed many times, it would lower taxes for Montana homeowners by about
16:1415%. It would lower property taxes for small business by 18%. It would benefit renters.
16:22It's the fairest approach that will deliver permanent tax relief. And I was disappointed
16:28as Montanans were disappointed in the bill getting tabled. Yes, yesterday. You're right.
16:34It's not over till it's over. But we collectively, I include myself and the legislature, we can't
16:40leave here without implementing permanent property tax relief for the people of Montana.
16:46And we can't do it. We won't do it by further burdening income taxpayers by taking money
16:53out of the general fund because we already have the highest income tax rate in the region.
16:59And we need to bring that rate down as well. Yeah, Jonathan, you're stuck behind the light.
17:05So I didn't see your hand.
17:06Yes, Governor, Jonathan and Gary from Montana Television Network. You said a couple of times
17:10that some of the other tax proposals floating around are not touching all groups in the
17:16same way. And I wonder if you could elaborate further on what you, where you feel that some
17:21of the other proposals are falling short.
17:23Yeah. So our, the question is about fairness of these various proposals. And I'm open to
17:28alternative proposals, but I think particularly on income tax reductions, most Montanans,
17:34anybody making more than $20,000 per year pays the highest rate, the 5.9% rate. Our
17:41proposal would bring that rate down for all Montanans and Montanans at every income level
17:47would benefit. There are other proposals that would only benefit a portion of Montanans
17:53by let's say, expanding the lower bracket. Let's be clear. That's a very progressive
17:59approach that is not a conservative approach to tax reform. This is why we've been such
18:06a strong advocate for bringing that top rate down.
18:09Yeah.
18:10So I think we should, I believe that we should be moving towards a flat tax, which is one
18:29rate for everybody. People that make more money pay more taxes. People that make less
18:33money pay less taxes. I think we need to give some extra relief for low income folks. That's
18:39why we've advocated for the earned income, expanding the earned income tax credit. But
18:47having a progressive tax structure is, as I mentioned, a very progressive approach to
18:54tax policy. When I came into office, we had seven tax brackets of increasing rates, depending
18:59on how much money you made. We've been moving away from that for four years. We need to
19:05take the last step and get to a flat tax.
19:07Why is a progressive tax structure bad?
19:12A progressive structure, I think we need to help people at the lower end of the income
19:17tax structure. This is why I've been an advocate for an earned income tax credit. But I think
19:23it's just basically fair. We heard this from Grover Norquist when he was out here. He's
19:28been working on tax policy for 40 years. When you get to a flat tax, as many other states
19:35have done, or eliminated income tax entirely, you have a fairer system because everyone
19:42shares the burden based on their income level. And that's what we're advocating for.
19:46Yes.
19:47I'm always interested in pulling back the curtain a little bit on how these legislative
19:48negotiations happen. If 231 is on the table, you want to get it back off the table, you
20:02lost it. You want to get property tax relief this session. Where do you see that you can
20:08put pressure on lawmakers? What leverage do you have right now in these negotiations?
20:13Well, I don't think it's so much me having leverage. I think the issue is Montana sent
20:18us here with a mandate to lower property taxes. They're too high. We spent a year putting
20:24a proposal together, which included legislative leadership from both parties. We have a proposal.
20:30It's called a homestead rate reduction. I'm open to other proposals. The one thing I will
20:34not do is put additional burden on income taxpayers to fund property tax relief. If
20:42there's other proposals, I would invite the legislature to bring them forward. Let's have
20:46a discussion. But the homestead rate reduction has already passed the House. We just need
20:52the Senate to pass it. And Montanans, not so much me, but Montanans are expecting action
20:59on this issue. We need permanent property tax relief in this session. Frankly, none
21:06of us can leave here until we do that.
21:08Yeah.
21:09And we talked before about sort of, you know, about the sales tax, having to shift tax burdens,
21:15basically having to do it in some regard. When you're talking about not wanting to put
21:19it on income taxpayers, does that signal that there has to be some property taxpayer that
21:25is going to have to hold that burden, be it industrial or big commercial? I mean, obviously
21:31the Homestead Act kind of put it more towards them. But what's your philosophy on that now
21:35if you're on day 65 here?
21:37Yeah, well, the homestead rate reduction does shift it to people with second homes, but
21:42that's how it's done. And understand that the state doesn't get any property tax. It
21:46pays for local services. And we've had significant spending increases at the local level.
21:53Inflation has averaged a little over 2% for the last 20 years, but local spending has
22:00averaged over 6%. And we're seeing that bird come home to roost in high property taxes.
22:07I think that the homestead rate reduction is a program that's been implemented by a
22:11number of other states very successfully. The collective wisdom of the bipartisan group
22:17we put together was that that would be a good idea for Montana. Again, it's passed the
22:21House. It's under consideration in the Senate, although it's taking a circuitous route.
22:27It's time to pass it and get it to my desk.
22:31When you say we can't live here without property tax relief, if 231 does not pass
22:42the Senate, could you see yourself calling a special session to do property tax relief
22:46in the summer?
22:48It's premature, but I think we have a mandate. Myself and the legislature, Montanans expect
22:54us to pass permanent property tax relief. And because we already have the highest income
23:01tax rate in the region, we can't lower property taxes by further burdening income taxpayers.
23:08So those are the boundaries on the box that I'm willing to negotiate with the legislature.
23:13We need to get to the table and figure this out.
23:15One last, you get the last question, Jonathan.
23:18Thank you, Governor. Do you think with the, as long as it's taken for property tax bills
23:25to move their way through, do you think now that there will be something for some kind
23:30of rebate? Because we saw the first kind of rebate proposal bill earlier this week in
23:35the Senate side. So do you think that, is that something that you think may now be needed
23:40for the short term?
23:42It's possible. I think it's one of the ingredients in the stew. We'd certainly consider it.
23:50We were clear we needed property tax release by February 15th to roll it out this year.
23:57I still think permanent, we have to get permanent property tax relief done. If we miss the window
24:04for this year, a rebate might be a stopgap to get us to permanent relief. But we can't
24:09leave here without doing permanent property tax relief that benefits Montana homeowners.
24:14We have a proposal. It's passed the House. It was the result of a year-long process
24:19with legislative leadership from both sides. It's under consideration in the Senate.
24:26I urge them to get it to my desk. Thank you, everybody.