Governor pleased agenda is advancing in Legislature

HELENA - Gov. Brian Schweitzer says his agenda is advancing in the state Legislature, and that he will comply with a 1981 law that limits spending growth, even thought the caps were apparently ignored in the 2001 session.

In a Friday interview with his border collie Jag at his side, Schweitzer reiterated his position that the state budget will be balanced without new or increased taxes and within the mandates of the 1981 law.

He also predicts success for his main initiatives. A bill banning open containers; a bill to provide tax credits to encourage the film industry; increased funding for college scholarships, community colleges and technical schools; and a bill to encourage an ethanol industry appear to be on track, along with other important measures, Schweitzer said.

"The things I'm most passionate about, they're moving along," Schweitzer said.

The governor expressed frustration, however, at how the spending limitation, aimed at keeping state budgets in line with taxpayer income growth, has gotten so much attention this year when it has not been a concern in recent years when Republicans controlled the Statehouse.

Schweitzer believes that the 2001 Legislature "blew right through the caps and they didn't even talk about it." He expects the Legislative Fiscal Division to confirm his position on the 2001 session soon.

"The same legislators who controlled this entire building didn't even look at the caps back then," he said. "No one said a word."

Senate Minority Leader Bob Keenan, R-Bigfork, acknowledges that the cap may have been exceeded during the 2001 session, but only because no one was aware of or called attention to the 1981 law at the time.

"I didn't even know about the cap until last November," Keenan said.

Even if the cap has been exceeded in the past, legislators and the governor have an obligation to comply with it now that they and the public are aware of it, said Keenan, who supports the principle of keeping government spending in line with the state's economy.

"We just want a lawful budget," Keenan said.

Keeping track of an evolving budget, and how it's fitting in with the spending cap, has been difficult for lawmakers and Schweitzer's office.

"It's a moving target, what you will include in the caps," Schweitzer said.

The Legislative Fiscal Division produces frequent reports showing how much spending must be cut in order to comply with the cap, but those reports are quickly outdated as the House makes changes to House Bill 2, the state's largest spending bill.

Further complicating matters is a series of separate spending bills that are cycling their way through the legislative process, said Rep. Verdell Jackson, R-Kalispell.

Most of those bills are being killed off to keep spending in line with the cap, Jackson said, even though some may arguably have a higher priority than spending that's already been approved. Those that eventually survive have yet to be included in spending limitation calculations.

Republican lawmakers have expressed concern about moves to exclude certain types of expenditures from the spending cap. There were motions this week to exempt a $43 million bill that would create an insurance pool for classified school employees from the spending limits. While those proposals were soundly defeated, Jackson said there may be more just like them.

Meanwhile, there are still multiple tax measures under consideration in the Legislature, despite Schweitzer's repeated statements that he will veto any new or increased taxes.

"Republicans and Democrats alike, I don't know what they are thinking with these bills," Schweitzer said, adding that any tax bill has one outcome if it reaches his desk: "DOA."

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