HELENA - The next state budget was finally balanced Saturday when lawmakers agreed to roll back state agencies another $7.4 million over fiscal 2004 and 2005.

By and large, state agencies' funding levels in the next budget are close to the spending levels recommended last fall by Gov. Judy Martz, plus $46 million in reserves as of mid-2005.

But that means the budget falls about $105 million short of current levels of general fund spending.

''I don't think we have any reason to be ashamed of this budget,'' said House Speaker Doug Mood, R-Seeley Lake. ''I don't think we have any reason to be proud of it.''

Saturday's final committee action on the general fund budget left the Department of Public Health and Human Services about $2.5 million below the governor's recommended budget and $48 million below current levels of spending.

The Office of Public Instruction is $6 million above the governor's plan but $1 million below current levels. The university system is $16 million below current spending and the Department of Corrections is $9 million below current spending levels.

But these figures don't tell the whole story. State agencies - especially human services - are receiving increased federal and special state revenue to fill some gaps left by the general fund.

For example, $8 million in state special revenue was put into the Department of Justice that was previously financed through the general fund. And human services will receive $30 million in tobacco settlement money and millions more from other funds.

The $2.3 billion general fund budget for fiscal 2004 and 2005 passed the House of Representatives 53-47 and the Senate 27-23.

''There are things in here I don't like,'' said House Appropriations Chairman Dave Lewis, R-Helena. ''There are things I think are very good. I think it's a very credible product.''

Lewis was one of six lawmakers who served on the free conference committee charged with finally balancing House Bill 2, the state's major budget bill. He sponsored the last amendment that rolls back agency spending by about one-half of 1 percent to achieve $7.4 million in general fund savings.

''I think it's a reasonable compromise,'' Lewis said of the rollback.

About $2 million of the $7.4 million saved was used to pay for a 25-cent per hour raises for state employees in the last six months of the next biennium. State employees will continue to receive the wage they do now until January 2005, when they will get $260 more that year.

While the $7.4 million rollback was the biggest change the free conference committee made to HB2, the committee made other changes Saturday.

The committee gave the governor's office an additional $500,000 above the protest of the two Democrats who sat on the six-member, Republican-led committee.

''I feel like this is the wrong thing to do at this time,'' said Sen. Linda Nelson, D-Medicine Lake.

The Legislative Services Division got another $230,000.

Reductions the committee made include $100,000 to the state Arts Council and $3 million in Temporary Aid to Needy Families.

Families that receive welfare will see an average $20 per month reduction in their benefits. Those savings will be used to help fund childcare programs for the working poor.

''We're taking from the poorest, the hungriest kids in the state, to pay for the childcare of people who are one notch above,'' said Rep. Christine Kaufmann, D-Helena. ''It's immoral.''

A proposal by Rep. Monica Lindeen, D-Huntley, to give more money for Meals on Wheels for seniors failed, while an amendment that will increase the pay of state employees working in nursing homes and other community services passed.

An amendment that would have prohibited the spending of some federal funds for non-abortion services at clinics that happen to provide abortions wasn't offered by its sponsor, Rep. Jeff Pattison, R-Glasgow, when he told the committee he didn't have enough support for it.

In education, the committee gave $10,000 to the Board of Regents to study the feasibility of using Philipsburg as a community college satellite.

Democrats blasted Republicans for not supporting human services and education to the levels they wanted.

''We don't support the continuing defunding of education,'' said Rep. Holly Raser, D-Missoula. ''We don't support the decimation of human services.''

Some Republicans voted against the bill, as well. Sen. John Bohlinger, R-Billings, said the budget fails to fill some gaps in human services.

Republicans repeatedly said the budget could have had anywhere from $20 million to $90 million additional dollars if Democrats had agreed to take money from the state's coal tax trust fund.

The measure went nowhere, since 75 percent of the legislators from each house need to approve taking money from the fund. Democrats refused to take money from the principal of the trust fund, which generates millions of dollars in interest for the state.

All lawmakers agree they didn't get everything they wanted.