Schweitzer says new taxes not needed

Montana Gov. Brian Schweitzer says he's bound to veto any tax increases that come out of the Legislature, just as he's certain to reject an income-tax cut proposed by Republicans this week.

During an interview with the Inter Lake's editorial board on Friday, the Democratic governor also said he supports the notion of local control over impact fees and local-option taxes.

"We don't need the money right now," he said, referring to a series of tax proposals, most of them sponsored by fellow Democrats. "You bet there will be a showdown. Not only do I have a veto pen, but I have a line-item veto."

Schweitzer said some lawmakers are starting to pay attention to his often-repeated position on taxes. The Senate Taxation Committee this week derailed two proposals aimed at increasing beer and video-gaming taxes to raise more than $110 million.

"There's no wiggle room here," he said. "I do not support new taxes and I do not believe we need more revenue."

Legislative Republicans on Friday unveiled a proposal to provide $40 million in one-time tax relief. They proposed that the money be "returned" to income taxpayers out of a $300 million budget surplus.

Schweitzer said the surplus will not be that much, and he is sticking with his budget. The Republican proposal "is dead on arrival," he said.

A major part of Schweitzer's budget is an $80 million infusion to K-12 education, largely aimed at satisfying a court ruling that required the Legislature to define and deliver a constitutionally required "basic system of quality education."

The Legislature has yet to define a quality education or revise the state's school funding formula to deliver it. So the overall cost remains unknown.

But Schweitzer said his budget proposal will have to be enough.

"We're going to make do with $80 million," he said, calling it one of the largest and most significant funding increases ever delivered to the state education system. "If the court says we're going to need more, they're going to have to wait a couple years."

Schweitzer said he will continue to push the Legislature to meet its education tasks before the end of the session.

"They've got five committees working on this," he said. "I mean, just do it … They've got the horsepower to get it done."

Schweitzer said he will support any legislation that gives cities and counties the authority to propose and pass local option taxes or special impact fees.

Those sources of revenue can be critical in places like the Flathead Valley, where growth in outlying areas can have costly impacts on local governments.

"It worked for Whitefish," he said, referring to the town's 2 percent resort tax.

On another local issue, Schweitzer said he favors measures that would encourage more effective development planning in the Flathead.

"What I'm concerned about is there is no plan," said Schweitzer, who has a ranch and home southwest of Whitefish. "We've got ranchettes growing knapweed all over the place."

Schweitzer said he would like to see Flathead County develop an effective master plan.

"I think my property gains value with a master plan rather than without one," he said. "You need predictability."

But the planning issue is one that will be addressed, or not, by the Flathead County commissioners.

Schweitzer also discussed his disagreement with the Bush administration over two particular issues: drug and cattle-related imports from Canada.

The governor scoffs at the administration's recent claims that prescription drugs cannot be imported from Canada because they are not reliably safe. Meanwhile, he said, Canadian cattle feed that includes animal parts is still allowed to cross the border, creating an unacceptable risk of introducing "mad cow" disease to Montana livestock.

Several cases of the disease have been documented in Canadian provinces recently, and Schweitzer contends the state should be doing more to protect Montana consumers and the state's beef industry.

"We're going to do something about it," he said. "I think we're going to close the border to Canadian feed in the next month."

Schweitzer said his administration will pursue different avenues to make prescription drugs available through Montana pharmacies at "world prices."

He said the federal Food and Drug Administration has lost credibility in contending that drugs available in Canada and other countries, at far cheaper prices, are less safe than those sold in the U.S.

"They can't even say it with a straight face anymore," he said. "I don't trust the FDA. I don't have any reason to trust the FDA."

Reporter Jim Mann may be reached at 758-4407 or by e-mail at jmann@dailyinterlake.com