In the end, sides come together on budget

Looks like there is a solution to the budget debate. I am writing this on Sunday so it will have time to get into the newspaper, but the conference committee came to an agreement last Saturday.

The end game always gets strange. I've seen this three times now. The current economic downturn may impede our efforts to balance the state budget the next two years.

As I've said many times, our revenues are decreasing. As of April 23, revenues are $62 million below last year. That's significant because April is Montana's biggest money month. Our individual income taxes are paid on the 15th.

The price of coal, natural gas and Montana oil is down. If our economy doesn't pick up soon, our state budget will need to be reduced. No one wants a special session to cut programs.

Education funding is always a problem. Much of the facilities improvement dollars are moved into the stimulus funding bill for the first year of the biennium. The state budget bill will have a smaller increase, but overall it looks like 3 percent each year.

Looks like the healthy Montana kids initiative that we passed last November will be fully funded. Many people voted for this because we were looking at a billion dollar surplus. That's gone.

Right now our children's health insurance program, CHIPS, covers families up to 175 percent of the federal poverty level. That's $38,588 for a family of four.

Now this will increase to 250 percent of the federal poverty level, or $55,125 for a family of four. Montana is 41st in average income per person, $33,145. In Lake County our average income is below $30,000.

In 2007 Hawaii passed a children's health care program to cover any child that does not have insurance regardless of family income. This program was bankrupt in seven months. Montana needs to move forward with care.

The re-appraisal bill, HB 658, got stalled in the conference committee composed of House and Senate members. Representative Mark Blasdel from Somers is on that committee.

He reports that the six year phase in still exists as does the homestead deduction. The holdup seems to be the amount of money available for mitigation programs.

Half of the homes in Lake and Flathead Counties will see an increase in property taxes and half will see a decrease. One positive in the bill is a two year look back to see if home values decrease.

Almost all bills that cost money failed this session, but so far, the invasive species bill has made it through. The funding is not enough but this is a good start at keeping our waters clean. I was pleased to carry this bill through the House.

Even though the end of the session is getting frustrating, it is still an honor to work for the citizens of House District 11. I'm looking forward to being home and also to working on my interim committee.

Please continue to contact me. My home phone is 849-6096, write me at PO Box 233, Dayton, MT 59914 or email jannataylor@montana.com.