State General Fund Where It Comes From and Where It Goes Where Does - - PowerPoint PPT Presentation

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Aug 16, 2023 350 likes •454 views

State General Fund Where It Comes From and Where It Goes Where Does the What is General Money Come From? Fund? Main checking account of state General Fund Revenues Come from Taxes government and May be Used for Any Lawful Purpose

SLIDE 1

State General Fund

Where It Comes From and Where It Goes

SLIDE 2

What is General Fund?

Main “checking account” of state government

Not set aside for specific

purpose, available for all government purposes

Legislature prioritizes both

revenues and expenditures

General Fund Revenues Come from Taxes and May be Used for Any Lawful Purpose

Where Does the Money Come From?

SLIDE 3

Individual Income Tax Collections – Largest General Fund Source

Individual income taxes paid by

Montana residents make up about 54% of total general fund revenue collections

Individual income tax collections

can be difficult to predict with changes in non-wage income (like capital gains income) being the primary reason for the volatility

SLIDE 4

Deep Dive: Individual Income Volatility

1,000 1,500 2,000 2,500 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

...it is the Primary Source of Income Volatility

SLIDE 5

Other Large General Fund Revenues by Sector Property, Corporation, & Vehicle Taxes

Property taxes are paid by

property owners

Corporation taxes come

from corporations doing business in Montana. This source can be difficult to predict as the complexities

f different business

choices contribute to the volatility

Vehicle tax collections are

constant due to flat registration fees and permanent registration

SLIDE 6

Where Do General Fund Revenues Go? General Fund Appropriations – FY 2019

Many of the

largest programs and services are funded by the general fund

K-12 Education

is the largest general fund appropriation

SLIDE 7

FY 2018 Actual General Fund Expenses by Type

Local assistance to K-12

schools and local governments is the largest general fund expenditure

Benefits and claims are

mostly medical benefits provided to citizens

Transfers out include

transfers to the university system, capital infrastructure accounts and more.

SLIDE 8

Questions?

Please contact the Legislative Fiscal Division: https://leg.mt.gov/lfd/staff/