During a recent House Appropriations meeting, lawmakers discussed Senate Bill 104, which aims to raise the cap on the Montana Facility Finance Authority (MFFA) bond insurances. This change is expected to enhance opportunities for bond financing, ultimately generating more revenue for the state’s general fund and supporting various community projects.

The MFFA, which operates as a self-supported enterprise fund under the Montana Department of Commerce, has a long history of facilitating bond issuances without costing the general fund. Over the past 40 years, the authority has issued approximately $4 billion in bonds without a single borrower default. The proposed bill would allow for an increase in the number and size of bonds issued, thereby enabling funding for a wider range of projects, including schools, hospitals, and potentially workforce housing.

Representative Adam Gill, an expert witness at the meeting, explained that the MFFA serves as a bridge between borrowers and lenders, making it easier for businesses and institutions to access financing for large-scale projects. He noted that the authority has about $1.2 billion in projects waiting for funding, indicating a strong demand for the program.

The bill also stipulates that for every new bond issued, the state will receive a fee of 30 cents per $1,000, contributing to the general fund. Projections suggest that this could yield approximately $178,000 in fiscal year 2026, with incremental increases expected in subsequent years.

Lawmakers expressed support for the bill, recognizing its potential to stimulate economic development and address community needs. The proposed changes are seen as a necessary step to keep pace with inflation and the growing demand for financing in Montana.

In conclusion, the discussions surrounding Senate Bill 104 highlight a proactive approach by Montana legislators to enhance funding mechanisms for essential community projects, ultimately benefiting residents through improved infrastructure and services. The next steps will involve further deliberation and potential approval of the bill, paving the way for increased economic growth in the state.