Some programs in danger of losing funding

Well, the 61st legislative session kicked off in Helena in the midst of a snow storm on Jan. 5. The results of the fall election formed a 27-23 Republican majority in the Senate and a 50-50 split in the House. The key issues during this legislative session are shaping up to be the state budget, stabilizing the economy, and working to mitigate the property tax reappraisals.

As late as last summer, Montana forecasted a $1.2 billion surplus. Since that time, the surplus has continued to dwindle, due to reduced revenues from dropping oil prices, reduced payroll and lower corporate profits. Based on Democratic Gov. Brian Schweitzer’s most recent budget proposal, the estimated “surplus” has fallen to $277 million.

Looking at the economy of the Flathead and the recent job losses at Plum Creek, Semitool, CFAC and others, I believe even a small surplus may be optimistic. What is absolutely certain, however, is that expenditures exceed revenues, and the governor’s proposed budget is unsustainable in the long term unless revenues rise.

The bottom line is that any new proposals in this session are at risk of not being funded. The voter-approved Healthy Kids Initiative 155, with an estimated $60 million to $120 million price tag, is among the new programs that are at risk.

Stabilizing the economy is likely to take many forms, to include a possible injection of billions of dollars from President-elect Barack Obama’s still-to-be-defined stimulus package. As with the Wall Street and Detroit bailouts, many are asking if borrowing more money is smarter than just living within our means. For Montana, we will just have to wait and see what Washington does.

State initiatives will include working to provide relief to small businesses by reducing workers compensation rates and cutting back the Montana business equipment tax. On the topic of workers compensation, I have drafted a bill that provides reduced rates for businesses that have an approved safety plan and preventing rates from rising in those businesses should an accident occur. Basically, the bill provides rate incentives for businesses that practice good safety.

A second bill reduces the business equipment tax by raising the exemption from the current $20,000 to $200,000 and gradually phases in the full 3 percent amount. While it provides some relief for all businesses, the big winner is small businesses.

Rep. Mike Jopek, D- Whitefish, also has drafted a business equipment tax bill, but it differs in the exception amount and phasing plan. I am confident many bills that address similar issues will be merged together into a single bipartisan effort.

It is far better to compromise and move forward than to bicker and not get anything done at all. In the words of Sen. Jim Peterson, R-Buffalo, the Senate Majority Leader, “All of us in both houses are looking forward to cooperative dialogue with the other side of the aisle, and with the governor. We’re confident about getting this done.”

Lastly, the old phrase “all politics are local” can be applied to a few smaller bills aimed at correcting a few local problems. I am working with the Montana Department of Transportation and cities to grant authority to municipalities to lower the speed limit and install traffic control devices on state highways within their city limits.

In Whitefish, this would effect Wisconsin Avenue and Second Street, and to allow the installation of a left-turn signal at the intersection of Second and Baker. I am amazed that it will require a bill to do what appears to be common sense, but this is an example why some decisions are best left to local communities.

Another bill drafted by Rep. Bill Beck, R-Whitefish, and myself will raise the population limit for the resort tax under current law to protect Whitefish from being noncompliant in the future.

In summary, the first week seems to be one of sincere cooperation and bipartisanship. I am confident that the Legislature is up to the challenge and understands the importance of the task that lies ahead. For more information on current bills, hearing dates and how to contact your local legislator, visit online at http://mt.gov or  http://leg.mt.gov.

Republican Sen. Ryan Zinke represents Senate District 2, which includes Columbia Falls and Whitefish.