All sides determined not to repeat 2013, 2015 failure to address state’s public works' projects
NFIB/Montana State Director Riley Johnson reports from Helena on the small-business agenda for the legislative week ending April 14.
It was a quiet week for small business in Helena. Most of the business-type bills have either been advanced or killed. It was what some pundits are calling it the “closed door” session. The legislative powers on both sides of the aisle, along with the powers within the governor’s office are crowded into rooms with closed doors to see if compromises can be worked out to get enough votes to pass the final, critical bills like the budget and infrastructure proposals.
The Legislature took a five-day Easter break early Thursday, returning to work April 18.
The state budget must be balanced before the Legislature can go home permanently, but it is the infrastructure proposal that is causing the most angst. Montana’s Legislature failed to pass infrastructure bills in both the 2013 and 2015 sessions. All sides are determined that will not happen again in 2017.
Lawmakers are planning to adjourn by the end of next week. This would be an early adjournment. Technically, the 90-day legal limit on the Legislature would not be until about May 1, depending on the number of days the two houses are counted as being in session. So, the window is closing on two major stumbling blocks: the budget and an infrastructure bill.
Agreement on State Budget Near
The budget is fairly close to an agreement with the legislators. The real problem is whom you believe is more accurate on the revenue estimates for the next two years. Democrats and Gov. Steve Bullock’s office are jockeying with one figure, while Republicans are estimating more revenue will be filling the state’s coffers.
Then there is the question of what “rainy day fund” balance will exist at the end of 2018. The governor’s office wants $300 million, and the Republicans are saying $200 million is enough.
Window to Act on Public Works’ Projects Closing
There is a maximum of two weeks left to pass an infrastructure plan that would issue bonds to pay for tens of millions of dollars’ worth of public works and building projects across Montana. They include road and bridge repair projects, water and wastewater system upgrades that rural communities cannot pay for themselves and construction projects at schools and colleges that have been needed for years.
The choking point is in the House, as it was in 2013 and again in 2015. The majority Republicans are at odds with each other when it means going into bonding (debt) to pay for infrastructure. Therefore you have the Republicans that don’t want to issue bonds and those who want to bond at a time of low-interest rates. To get a bill passed that holds bonding as a way to raise needed money requires 67 votes in the House.
And then there are those legislators that say some bonding is OK, but only if it goes toward essential infrastructure like pipes and roads. To this faction, the building projects favored by Democrats and Governor Bullock, such as a $25 million renovation to Montana State University’s Romney Hall, are “pork” that should not be included in any general bonding bill, and the debate goes on.
Senate Reduces Per-Gallon Gas Tax Price
Then we had the gas tax bill, House Bill 473, which originally would have raised the gas tax by 8 cents per gallon. On April 13 in the Senate, lawmakers reduced the tax increase to 4.5 cents with an incremental increase to six cents by 2023. It also reduced money going to the Highway Patrol and the Motor Vehicle Division within the Department of Justice. They passed the amended bill 28-22, as a handful of Republicans jumped over with the Democrats to gain the needed majority. It now goes to the House for consideration of the amendments made by the Senate next week.
Tax Credit Killed
About the only truly NFIB/Montana bill of interest was the tabling of HB 187 in the Senate Finance Committee April 12. This was the bill that passed the House 63-37 that would give a tax credit to Montana investors who put seed money into small Montana businesses.
It was called the “Angel Investor Bill.” The bill passed out of the Senate Business Committee 11-1 and passed in the Senate on second reading 30-20. Then a deal was made to kill HB 187. On a vote of 50-0, the bill was pulled off second reading and put back into the Senate Business Committee where it was promptly tabled.
That’s what happens when you get down to two weeks left in the session; deals are made. So, we will see what happens next week, as the lawmakers try to target April 21 as a day to adjourn. If successful, it would leave about another week to be in session, if anything needs to be rectified over the next 18 months, like problems with the Affordable Care Act, or if state revenue estimates fall below expectations, or anything else that might come up that would require the return of the Legislature without calling a special session.
Previous Legislative Reports
April 7 Report—Tempers Shortening as Montana Legislature Nears Adjournment
March 31 Report—Attempt to Abolish Montana State Fund Defeated
March 24 Report—“I Get The Picture. Shut The Emails Down.”
March 17 Report—Local Property Tax Levy Coming up for Hearing
March 10 Report—NFIB to Fight 4 Percent Local Options Tax Proposal
March 3 Report—Montana Legislators Getting Down to Dollars and Cents
February 24 Report—Income Tax Proposals Stall; Gas Tax Increase Revving
February 17 Report—Slowest Session in 16 Years Has Not Slowed NFIB
February 10 Report—NFIB Helps Defeat Costly Workers’ Compensation Proposal
February 3 Report—Skirmish Over Funding Montana Legislature
January 27 Report—Montana Legislature Ponders Tax Credits for Startups
January 20 Report—NFIB Helps Defeat Montana Minimum-Wage Bill
January 13 Report—NFIB Readies Opposition to Montana Minimum-Wage Bill
January 6 Report—Montana Legislature Opens Biennial Session
[Tile photo: Sen. Pat Connell is one of a group of legislators explaining why he is serving in the Legislature in this video on the Montana Legislature website.]
