Schweitzer budget would expand programs

Billings Gazette ^ | December 29, 2004 | CHARLES S. JOHNSON and ALLISON FARRELL

[BigSkyFreeper]

HELENA - Gov.-elect Brian Schweitzer proposed a state general fund budget Tuesday that calls for spending more on economic development, public schools and the University System and low-income families through expanded energy assistance and health insurance for their children.

The Democrat, who takes over as Montana's governor on Monday, called for no general fund tax increase in his budget over the next two years. He was able to take advantage of growing state general fund revenues, which are projected to be 4.78 percent higher than they were two years ago, thanks primarily to higher individual income, corporate income and natural resource taxes.

Schweitzer proposed spending $2.96 billion on his general fund budget over the next two years, for an increase of $45 million over the total general fund budget proposed by departing Republican Gov. Judy Martz. The general fund is like the state's checking account, with most of money coming from taxes and state investment income.

Schweitzer proposes nearly $80 million in new general fund spending over the next two years and the rest of the current fiscal year, which ends June 30, 2005. His recommendations will go to the 2005 Legislature for consideration.

Martz's recommended surplus was $163 million by mid-2007.

Schweitzer's budget calls for leaving a projected $80 million general fund surplus as of mid-2007, although it is now $94 million. Schweitzer proposes to spend down the surplus to $80 million through a pay increase for state employees that is yet to be negotiated, more money for water adjudication and other unidentified programs.

Continuing on his "New Day in Montana" theme, Schweitzer said, "This New Day budget reflects my vision as we begin to move Montana forward. Good-paying jobs, quality public education and stronger families are my priorities for the state."

His budget director, David Ewer, added, "We're putting our money where the campaign promises are, and I really do think it's a new day."

The incoming governor's plan drew praise from House Democratic Leader Dave Wanzenried, D-Missoula.

"This proposal puts real money exactly where it's needed in education and job training and job retraining because we're going to have to retool our work force to match the kind of jobs that are going to be here in the next five, 10 and 15 years," Wanzenried said. "Like it or not, we're part of an international economy, and we're going to have to be more focused in how we educate and train our populations."

Speaking for Senate Republicans, Sen.-elect Dave Lewis of Helena praised Schweitzer for not calling for any general fund tax increase. However, Lewis, a former state budget director under four governors from both political parties, criticized the Schweitzer budget for exceeding an expenditure limitation passed in the early 1980s that limits growth of state spending to the growth of personal income in the state.

Lewis said he would oppose the Schweitzer budget suggestion that the expenditure limitation law be changed so as not to count $93 million in Department of Transportation bonds proceeds and expenditures directed by Initiative 149, the ballot measure approved by voters in November to raise the state tax on tobacco products. If the new administration tries to repeal or change the law, it may require efforts to put a similar tax expenditure limitation in the Montana Constitution, Lewis said. Ewer said he opposes such a constitutional restriction.

Proposed State Budget Details:

• STATE PAY PLAN

.The 2003 Legislature froze state employees' pay for 18 months, and most employees will get a 25-cent an hour increase, starting Saturday, for the final six months of the two-year budget period. The Martz administration proposed matching 3 percent raises in each of the next two years. State employee unions, which backed Schweitzer for governor, want to resume negotiations after the Democrat takes office. Ewer said the administration wants to offer more than the 3 and 3 percent raises, but that will be up to negotiations.

• LOW-INCOME ENERGY ASSISTANCE PROGRAM

. Schweitzer plugged $1.7 million into the Low Income Energy Assistance Program for the remainder of this fiscal year. He also plans to increase state spending on energy assistance programs by $8.4 million over the next two years. The money will be spent on energy assistance and home weatherization and will pay up to 50 percent of the utility bills for people in poverty.

"Montana is getting a fair amount of money because of high energy prices," Ewer said, referring to oil and natural gas taxes. "It's coming in and we think some of it ought to go out to people who are suffering from the high prices."

• HUMAN SERVICES

. The Schweitzer administration did not cut any programs from Martz's annual $1.2 billion all-funds budget for the state Department of Public Health and Human Services. Instead, it added more money. Schweitzer left the budget increases that Martz recently made in the welfare program.

Schweitzer gave $40,000 to the foster care program to restore the cuts the department made to the clothing budgets of foster care children, and allocated $2 million over the next biennium for foster care programs

Schweitzer also allocated the $38 million in new money the state will realize from the $1 per pack cigarette tax increase, slated to take effect Jan. 1. In accordance with the will of Montana voters, Schweitzer called for spending the money the following way:

Children's Health Insurance Program expansion: $3.5 million annually to cover 3,000 more children; a new prescription drug program for the needy: $8.7 million annually; Medicaid, $5.25 million annually; Medicaid provider rates and service: $6 million a year; new insurance tax credits for small business to buy health insurance: $11.5 million per year; and reserve account: $26 million over biennium.

He also restored the $43 million in biennial tobacco settlement funds to the programs voters approved in 2000. The 2003 Legislature raided the fund during its $232 million budget crises. Schweitzer restored $13.7 million for tobacco use prevention programs, $6.1 million for the Children's Health Insurance Program, $1.1 million for a subsidized health insurance program for adults, $17.1 million to the tobacco trust fund and $4.7 million to the general fund.

• GOVERNOR'S OFFICE

. Schweitzer's budget calls for boosting the office's budget by $189,000 a year, including increasing travel costs of $70,000 a year. It also calls for reestablishing a federal relations office in Washington, D.C., at a cost of $250,000 a year. Schweitzer proposed spending $25,000 more on the governor's mansion in anticipation of hosting more functions and public events there, often requiring additional security.

• GOVERNOR'S AIRPLANE

. The new governor wants to spend $150,000 more over the next two years to hire an additional half-time pilot and increase of flight time and maintenance downtime for the plane. Schweitzer wants to set aside $380,000 in case testing shows the engines need to be overhauled.

• ECONOMIC DEVELOPMENT

. The new governor would set up an economic development trust fund within the current coal tax trust fund, starting with a $20 million balance. It would raise about $3 million over the next two years to fund economic development activities. Schweitzer wants to spend $1 million over the next two years for national and international marketing of Montana and reinstating the Made in Montana program terminated by the Martz administration.

• FILM INDUSTRY INCENTIVES

. As he pledged in his campaign, Schweitzer wants to offer $750,000 in tax incentives to the movie industry to lure them here to make movies. They would be eligible for tax breaks if they meet certain criteria to be determined.

• INCREASED TAX COMPLIANCE

. The budget calls for the Revenue Department to spend $500,000 more a year to hire and train six more auditors, another attorney and one support person who will go after businesses and individuals suspected of illegally evading taxes. The department anticipates the effort eventually will recover 10 times its cost.

• COURT TECHNOLOGY

. Schweitzer called for continuing the $10 surcharge on court filings and not ending it and would deposit the money in the general fund and it would be spent on court computer and technology systems. He recommends spending $1.6 million annually for the technology for the court system. The budget also calls for spending $300,000 more a year in general fund money on the program, Ewer said.

• LAW ENFORCEMENT

. Schweitzer went along with Martz's recommendation to add four forensic specialists at the Missoula-based state Crime Lab, but moved the forensic toxicologist hiring to fiscal 2006 instead of 2007. He also included in his budget money to settle an $8.5 million lawsuit filed by the some Montana Highway Patrol officers against the Justice Department over uncompensated overtime.

[Brian328i]

And more taxes!

[BigSkyFreeper]

Conservative my lily-white butt, this guy is a freakin' Liberal.

[goldstategop]

How many are ranchers wearin' cowboy hats?

[BigSkyFreeper]

He certainly doesn't wear one, if that's what you mean.

[Brian328i]

He'll wear one if he thinks it will get him votes!

[BigSkyFreeper]

True, just like that Conservative label he was wearing all summer long.

[drt1]

"He was able to take advantage of growing state general fund revenues, which are projected to be 4.78 percent higher than they were two years ago, thanks primarily to higher individual income, corporate income and natural resource taxes."

Take advantage of the taxpayer and use this advantage to expand the scope and costs of Gov't. Every time there is a "Surplus" these jerks see it as an opportunity to increase spending and if there is not a surplus taxes are raised until there is one and the cycle begins anew.

This is a trait shared by both political parties.

[sergeantdave]

How did a rat take the governor's chair in Montana? I thought it was a conservative state.

[BigSkyFreeper]

His opponent Bob Brown (Secretary Of State) couldn't run an effective campaign, yet Bob Brown came up short in the end, after trailing Schweitzer in the polls all summer long by huge margins. Which demonstrates that Schweitzer can be beat if run against an effective candidate. Bob Brown wasn't effective. Hell, Brown didn't even run any ads.