The governor’s proposal includes rural infrastructure projects across the state. Examples include a $479,000 grant to help the town of Hot Springs drill new water wells and $725,000 to help the town of Baker revamp its water mains. When it comes to buildings, though, most of the work is slated for the state capital of Helena and the fast-growing Montana State University campus in Bozeman.

In addition to $5 million in maintenance for the state Capitol complex and a $1.9 million renovation of the governor’s residence after Bullock leaves office in 2021, the proposal includes $32.1 million for a long-planned Montana Heritage Center Museum in Helena. That project would give the Montana Historical Society new space to store and showcase its collections.

In Bozeman, Bullock has endorsed Montana State University’s $32 million request for a legislative appropriation to renovate its historic Romney Hall into additional classroom space — a request lawmakers have denied the past four legislative sessions. The university also wants legislators to authorize $37.5 million in Bozeman projects it plans to fund with money it has raised from other sources, including upgrades to the campus library and a planned $12 million American Indian Hall. That spending requires approval from the Legislature even though it doesn’t involve a request for state money.

Where the money comes from

Slightly more than half of Bullock’s $440 million proposal would be funded with cash: $232 million in banked state money, separately held university funds, or federal funds. The state would issue bonds for the remaining $208 million.

The sources of infrastructure cash vary, though much of it would come from accounts filled directly or indirectly with revenue from Montana coal tax collections. For example, the state’s Long-Range Building Program, used to build and upgrade state buildings, received $7.2 million in coal tax revenues in 2018, according to the Legislative Fiscal Division.

Another infrastructure program, the Treasure State Endowment Program, is supported by interest earned from coal tax revenues that have been invested in the state’s coal trust fund. That interest is used to help towns and counties pay for projects that include water system upgrades and bridge replacements.

Where the state doesn’t have enough available cash to cover the governor’s projects, Bullock proposes borrowing, meaning the state would issue bonds to be repaid over time. Big-ticket projects such as Romney Hall and the Montana Heritage Center Museum are proposed as bonded items. Bullock is also proposing to take on debt for a new $44.2 million Delivering Local Assistance Grant Program, which would make money available to small towns trying to cope with growing or declining natural resource activity.

The bulk of the debt proposed in the governor’s infrastructure plan would be structured as general obligation bonds, to be repaid from a variety of sources including the state General Fund.