Montana oil output drops but high prices soften blow

MATTHEW BROWN Associated Press Writer BILLINGS

Oil production in Montana is off by about 30 percent from its high three years ago, but state officials said rebounding energy prices have staved off a sharp hit to the state's budget. That's a rare bit of good news or at least not-so-bad news for state revenue officials tracking a steady decline in corporate and income taxes caused by the recession. Legislative fiscal analyst Terry Johnson said oil and gas revenues are projected to come in $14 million higher than previously expected, at about $80 million during the current fiscal year. Those reve...