Big Sky Fire Department Faces $2.3M Budget Shortfall After Tax Miscalculation

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The Big Sky Fire Department (BSFD) and Gallatin County officials held a public meeting to address a significant tax miscalculation that resulted in BSFD receiving over $8.3 million in extra fire tax revenue over the past four years. The error was caused by a formula mistake in a Gallatin County spreadsheet that double-counted voter-approved mills for Big Sky's fire tax. While the mistake was obscured by rising property values in the region, BSFD leadership is now facing a $2.3 million budget shortfall and must make difficult decisions to reduce costs and preserve services.

Why it matters

This tax miscalculation highlights the complexities of local government finance and the importance of thorough oversight and auditing processes. The situation also underscores the challenges facing growing communities like Big Sky, where rapid development and population increases have strained public services and budgets. The resolution of this issue will have significant impacts on the fire department's ability to maintain emergency response standards, fund critical programs, and plan for the future.

The details

Gallatin County Commissioner Zach Brown and Big Sky Fire Chief Dustin Tetrault explained that the error occurred due to a formula mistake in a county spreadsheet that double-counted voter-approved mills for the Big Sky fire tax. This led to over $8.3 million in extra revenue being allocated to BSFD over four fiscal years, all of which has already been spent. To address the shortfall, BSFD has reduced its operating budget by $542,000 and capital projects by $900,000, while also negotiating with its firefighter union to reduce salaries, wages, and benefits by $800,000 to $1 million. The department has also chosen not to fill four planned firefighter positions and will not expand to serve its new Spanish Peaks station. BSFD leadership has stated that job preservation is the top priority and layoffs would be a last resort.

• The tax miscalculation began in fiscal year 2022 and continued for four years through fiscal year 2025.
• The public meeting to address the issue was held on February 3, 2026.

What they’re saying

What’s next

The Big Sky Fire Department will explore long-term revenue options and pursue expanded funding from the Resort Tax to address the budget shortfall. Gallatin County does not have the authority to issue an emergency mill levy to provide additional funding.