Governor says coal money could reduce cuts

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By The Associated Press

Story Published: Mar 17, 2010 at 10:23 AM MDT

Story Updated: Mar 17, 2010 at 10:23 AM MDT

HELENA - Gov. Brian Schweitzer says if the Land Board approves an $86 million bid for state coal leases, the money could be used to reduce pending state budget cuts.

The governor says he is particularly concerned about proposed cuts to state services for the disabled. He says those would be the first cuts he would stop if the Land Board approves the bid Arch Coal Inc. offered Tuesday for the right to mine a half-billion tons of state-owned coal in southeastern Montana.

The governor is currently mulling a $40 million cut to the state budget to make sure the state doesn't face a budget deficit next year.

Schweitzer says the coal money may also let him fund some local stimulus projects, funds the administration froze. That move became controversial and drew the ire of some Republican lawmakers and local officials.

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