The Latest: Republican pan governor’s budget plan

HELENA, Mont. – The Latest on Montana Gov. Steve Bullock’s proposed budget (all times local):

1:55 p.m.

Republican legislative leaders are calling Montana Gov. Steve Bullock’s proposed budget unrealistic in a time of declining revenues.

The Democratic governor on Tuesday released his two-year budget plan that calls for increasing overall spending $35 million, giving state workers pay raises, increasing education spending and a $292 million infrastructure package.

Bullock also wants to build back up the state’s rainy day fund to $300 million by mid-2019.

Republicans have majorities in both the House and Senate. Their leaders say the state will be in a deficit when the next budget cycle starts next year, and the only way to fund Bullock’s proposals is through raising taxes.

Bullock is calling for raising taxes on the wealthy and a new tax on medical marijuana.

Both House Speaker Austin Knudsen and Senate President-elect Scott Sales say they oppose any tax hikes.

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12:30 p.m.

Montana Gov. Steve Bullock is proposing a budget that would increase spending by 1.4 per cent over two years and look to bolster flagging revenues by taxing medical marijuana and raising taxes on the rich.

The two-year budget plan released Tuesday also seeks to build Montana’s rainy day fund back to $300 million.

The Democratic governor’s plan would cut state spending by nearly $8.8 million the first year, then increasing it $44 million the second, a reflection of lower-than-expected revenues from tax collections.

The proposal also calls for a new 6 per cent tax on medical marijuana.

People would be taxed at a 7.9 per cent rate instead of 6.9 per cent for income over $500,000 a year.

Bullock is proposing to spend $292 million on infrastructure, $157 million of which would come from bonds.

Lawmakers take up the proposal in January.