This report examines the current economic situation in Montana and the adequacy of its State Unemployment Insurance (UI) trust fund. The trust fund is currently in good financial condition due both to a favorable unemployment situation and to prudent policies affecting the trust fund balance. This situation allows Montana to consider policy options not available to many other states. It could contemplate a one-time drawdown of reserves of some $10-$15 million without causing a measurable increase on the threat of insolvency.