Montana has vaulted from 22nd to 8th in national fiscal health rankings over the past four years, according to a new report from Truth in Accounting, a nonpartisan think tank that annually evaluates the financial condition of all 50 states.
The 2025 Financial State of the States report credited Montana’s rise in part to revenues outpacing expenses in 2024 and the state’s decision to retire its remaining bond obligations. Gov. Greg Gianforte signed legislation in 2023 to eliminate the state’s general obligation debt entirely, a move his office said saved Montanans $40 million over two years and left the state debt-free.
“Since taking office, we’ve gotten our fiscal house in order and created an environment that encourages investment, innovation, and opportunity,” Gianforte said. “Through our responsible budgeting and fiscally conservative policies, we’ve been able to pay off the state debt, save for a rainy day, and return money back to the hardworking Montanans who earn it.”
The improvement in Montana’s fiscal standing has coincided with a series of tax cuts the governor has championed since taking office. In 2023, Gianforte signed what his office described as the largest tax cut in state history, delivering $500 million in permanent income tax relief along with rebates of up to $1,250 per taxpayer and $280 million in property tax relief. In 2025, the governor followed with more than $750 million in additional permanent income tax reductions spanning all income levels. Since 2021, the state’s top individual income tax rate has been cut by nearly 20 percent.
At the same time, Gianforte has held growth in state spending to less than one percent in the most recent legislative session, keeping expenditure increases below the rate of inflation.
Montana has also moved to build a financial cushion against future downturns. The state’s Budget Stabilization Fund, commonly referred to as a rainy day fund, has grown from 4.5 percent of expenditures in 2023 to 16 percent in the current biennium, giving the state significantly more flexibility to weather potential revenue shortfalls.
Truth in Accounting, founded in 2022 to promote transparency in government financial reporting, bases its rankings on an analysis of each state’s assets, liabilities, and overall financial position as reported in official documents.
By: DNU staff