Gianforte proposes 4.7% flat income tax, $300M to reserves in final budget

Summary

The KXLH segment reports on Governor Greg Gianforte’s unveiling of highlights from his final biennial budget proposal ahead of the 2027 legislative session. It emphasizes completing 2021 goals through a shift to a 4.7% flat income tax rate (eliminating the 5.4% top bracket), increasing the earned income tax credit to offset impacts on lower earners, and using strong revenues for one-time investments without growing permanent government spending. Additional items include hundreds of millions in infrastructure, behavioral health, school facilities, 911 systems, state health plan support, and boosting the budget stabilization (“rainy day”) fund by $300M to a record ~$900M.

Sourcing is primarily the governor’s press conference and prepared remarks, with quotes from Republican Senate President Matt Regier (supportive but questioning structure and property tax priorities) and Democratic minority leader opposing the flat tax as favoring the wealthy. Full budget details are due Monday; the segment notes legislative negotiations ahead.

Editorial Assessment

The broadcast accurately conveys the governor’s stated priorities and the current two-bracket system (4.7% up to income thresholds, 5.4% above in 2027). Claims about sustained strong revenues despite prior cuts and the ability to both cut taxes and bolster reserves align with official releases and fiscal health rankings that have improved under Gianforte. Viewers miss independent fiscal analysis: the flat-tax change is projected to reduce annual revenue by roughly $130 million once fully effective, potentially pressuring the structural balance. Distributional effects are also absent—most savings accrue to higher earners above the current brackets, while the EITC boost provides modest relief to lower-income families. The positive “comeback” framing and emphasis on one-time spending obscure longer-term tradeoffs between repeated tax cuts and future spending pressures or service needs. Overall a straightforward summary of the executive proposal with limited scrutiny.