State government agencies have submitted requests to raise their general fund spending by a total $413 million over the next two years and to hire 245 new employees.

The requests, submitted to the governor's budget office, included a number of new proposals.

The wish-lists represent just the first stage in the lengthy budget process that ends next spring, when the 2009 Legislature will pass a budget for the next two years and the governor will sign it into law.

The proposed budget increase figures do not include the currently authorized appropriations for state programs or the base.

Nor do these numbers include the cost of a pay raise for state workers or a proposed long-range building program.

"It's a first draft," said Budget Director David Ewer. "It's a combination of the budget office trying to give guidance about what to expect, at the same time recognizing the budget needs to be built from the bottom up."

These requests are certain to be trimmed back by Ewer and his staff as Gov. Brian Schweitzer sets his general budget priorities for the next two years. General fund money comes from state income, corporate and other taxes.

"Those are new dollars," Ewer said. "But the state budget is not unlike a household budget. We need to budget more dollars to pay for more heating. We see our income go up, but we may have to pay a lot more. That's what we're seeing with our budget.

"The state has to buy fuel (for its vehicles) and food for inmates. It takes quite a bit more money to have the same amount of government goods and services."

For months, both Schweitzer and Ewer have been issuing warnings to government agencies.

"We've said publicly and to our directors, the next (legislative) session will feel like a belt-tightening session," Ewer said Monday. "The challenge is that the costs are going to be such that much of the governor's budget is going to have to cover the increased costs of the goods and services we deliver, such as our share of public education, public health and public safety."

He estimates state revenues will grow 3 to 3.5 percent in each of the next two years, down considerably from the double-digit growth rates in the fiscal 2005 and 2006.

The budget office will pore through the requests, seek more information and very likely cut them back.

On Nov. 15, Schweitzer is required to submit a proposed balanced state budget. If he is defeated in the General Election, the new governor can modify his budget request.

"The governor gets to make the first pitch and the last out," Ewer said.

Ewer noted some agencies have submitted many requests for new proposals, led by the Department of Public Health and Human Services, with nine pages of new ones.

His first priority, Ewer said, is to make sure existing government programs get funded before adding any new proposals.

"Some agencies get to say yes to a lot of new proposals," Ewer said. "I have to say no to a lot of new proposals. That's why they call me Dr. No."

Ewer said it appears to him that a number of the new public health and human services proposals really fall in the category of provider rate increases and shouldn't be so categorized.

The Department of Public Health and Human Services asked for $113 million in new general fund spending and more than 40 new state employees for the largest increase sought by agencies under Schweitzer.

Some of the largest budget increases came from agencies headed by other executive-branch elected officials and the judicial branch. These made up $235 million - or 57 percent - of the proposed new spending.

"We don't control what they submit," Ewer said.

Those would include the Office of Public Instruction, headed by Superintendent Linda McCulloch, who requested $172 million for new general-fund spending. The OPI requests include $65.3 million for new K-12 base aid and a proposed special education funding increase, and $71.7 million for current K-12 base funding and special education.

The Justice Department, under Attorney General Mike McGrath, wants $11.5 million in new spending, including $2 million for a new statewide county attorney caseload managing system and $2 million for the Montana Meth Project.

State Auditor John Morrison is seeking $9 million to expand the Insure Montana program, which helps business provide health insurance for their employees.

In addition, Ewer said the budget requests don't include two initiatives that would add to the general-fund obligations if they pass. Morrison's initiative to expand the Children's Health Care Plan has a general-fund pricetag of $20 million annually, and involving home health care workers would cost up to $10 million over two years.

State budget requests detailed

Here are the total requested general fund budget increases sought by most state agencies for the next two years and the number of new employees requested:

Agencies under Gov. Brian Schweitzer:

- Public Health and Human Services: Wants $113 million in additional general-fund spending, plus more than 40 new employees. The largest new general-fund requests are $24 million for the caseload for Medicaid, the federal-state program health program for the poor, and $6.4 million for the Medicaid caseload for children's mental health.

- Corrections: Seeking a $45 million general-fund increase, with 14 new employees. The largest increase are $7.3 million for increased costs for contracted beds; $5.7 million for paying for a full two years for the costs of a sexual-offender facility; and $2.6 million for maintaining current prerelease center beds. The new employees are spread through the department.

- Public Defender: Seeking about $9 million in new general-fund money, plus 25 new employees, 23 of them related to an increased caseload.

- Commerce: Asking for $5.8 million in additional general funds, including three new employees. A total of $3.7 million is for the agency's research and commercialization program, which is due to be eliminated in mid-2010, and $1.1 million for its economic-development business-research division, slated to close in mid-2011. If the governor and Legislature want to continue the programs, they have to be put back in the budget.

- Natural Resources and Conservation: Looking for $1.3 million in new funding and more than 13 new employees, including workers for engine-crew extension, aviation-crew coverage extension and implantation of reserved water rights.

- Agriculture: Wants $1.2 million in increased general funds and one additional employee. The largest request is $1.3 million for continuing the Growth Through Agriculture program.

- Revenue: The tax-collection department wants $921,280 in new general-fund money and six new employees. Four of the employees are for a new program dubbed "keeping taxes fair and low for Montanans,'' and two for a new program for citizen and small-business education and service.

- Administration: Wants $230,868 in new general-fund money and four new employees, including three for its workers' compensation program.

- Military Affairs: Seeking $185,996 in new general funds and six new employees, most of which are paid for by other sources.

- Governor's office: Seeking $115,000, including $80,000 in aircraft maintenance. No new employees.

- Labor and Industry: Asking for $77,930 in additional general-fund money and 5.5 new employees, including two cashiers, a judicial clerk and a prosecuting attorney.

- Livestock: Seeking $13,784 in new general-fund spending and two new employees paid for by sources other than the general fund.

- Fish, Wildlife and Parks: With most of its money coming from fishing and hunting licenses and federal money, the department is seeking no increase in state general funds. It requesting authorization for slightly more than five new full-time employees for various programs.

- Environmental Quality: It is seeking no new general fund money, but is asking for three new employees, all funded by sources of money other than the general fund.

- Transportation: Wants no additional general-fund money; nearly all of its budget comes from federal gas-tax revenue. The department wants nine more employees, eight of them for a "maximization weigh station'' on the Interstate 90 corridor.

Agencies not under the governor

These agencies, most headed by other executive-branch elected officials or representing another branch of government, aren't under the governor and can submit their own budget requests:

- Office of Public Instruction: Superintendent Linda McCulloch is requesting $172 million in new general-fund spending and 11.5 new employees. Of the requested money, $44.8 million is for a new proposal for base aid, $21.3 million is for a proposed special-education funding increase, $69.3 million is for the current K-12 base aid, and $2.4 million is to maintain the current special-education spending effort. The office wants 8.5 of its new employees for its federal grant award program adjustment, which would be paid for by federal funds.

- Commissioner of Higher Education: More of a "placeholder'' request at this time, with more detail to be added later by the state Board of Regents, who are appointed by the governor. It now is seeking $36.5 million in new general funds and two new employees in the areas of information resources, planning and communication. Most of the funding is for inflationary adjustments to budgets, although it also includes $5.3 million for the governor's post-secondary college program

- Department of Justice: Attorney General Mike McGrath is seeking $11.5 million in new general-fund spending and 38 new employees. Big-ticket items include $2 million for a statewide county-attorney case-management system, $2 million to the Montana Meth Project for its anti-meth advertising campaign and $1.2 million for the production costs of new drivers' licenses. Among the 38 new employees sought are 11 Motor Vehicle Division employees, five radio technicians, two crime lab employees and two additional Highway Patrol officers for executive protection.

- State Auditor's Office: Auditor John Morrison is seeking $9 million in additional general-fund spending over the next two years and nine new employees. All of the general-fund increases would go to expand the Insure Montana program, which helps small businesses provide health insurance to their employees.

- Judicial branch: $6.8 million in additional general fund spending over the next two years is sought, including 37.5 new full-time employees. A major request is to create five new district judgeships in fiscal year 2010 in Districts 1 (Lewis and Clark and Broadwater counties), 8 (Cascade), 11 (Flathead), 13 (Yellowstone) and 18 (Gallatin) and one new district judgeship in 2011 (Yellowstone), and the accompanying staff for 21 new employees.

- Public Service Commission: Seeks no additional general-fund money but is asking for two new employees, whose roles are not defined, with costs covered by a tax on regulated utilities.