Anxiety grows over unresolved issues

HELENA - A sense of urgency was building in the Capitol on Monday, with Republicans and Democrats expressing the same frustrations they have since January, but now with only four days remaining in the legislation session.

The tussle over spending and tax relief remains the dominant topic on the floors of the House and Senate, in committees and behind closed office doors.

"We've been working with the House majority leader," said Senate Majority Leader Mike Cooney, D-Helena, referring to recent discussions about tax relief.

Cooney said those discussions have not yielded an agreement on a topic that has proven to be particularly sticky. Throughout the session, Republicans have openly declared "permanent tax relief" to be their singular priority, and that remains their position now.

They say the counter-offers from Democrats have not gone beyond Gov. Brian Schweitzer's initial proposal to provide $400 rebates to residential property owners, a package that's worth about $100 million. Democrats have added other provisions, such as a reduction in business equipment taxes, an unemployment benefit for transferring military families, one-time rebates for home renters, and infusing cash into state retirement programs.

Although Democrats have referred to their package as "savings" for Montana that include returning money to taxpayers, Republicans say the rebate doesn't qualify as genuine tax relief.

The rebate cannot be considered a tax cut, said Sen. Greg Barkus, R-Kalispell. "That is a return of income taxes to property taxpayers," he said.

Senate Minority Leader Cory Stapleton, R-Billings, said the Legislature needs to deliver permanent tax relief in the form of tax-rate cuts to match the permanent spending increases that are taking shape.

The governor initially proposed a 23 percent increase in overall state spending, but after additions made to budget bills in the Senate, it appears spending increases could rise to 24 or 25 percent. In past legislative sessions, under tighter fiscal constraints, that kind of increase would be considered politically "preposterous," Stapleton said.

"It's my sense that House Republicans have had to compromise everything in order to get permanent property tax relief, and you guys haven't had to compromise anything," Stapleton said on the Senate floor Monday.

Democrats expressed anxiety and criticism over the Republican House leadership's decision to not work Saturday and most of Monday, when dozens of bills have yet to be acted on.

"There are huge issues to be settled yet," said Rep. Mike Jopek, D-Whitefish. "There are about 30 bills that just aren't getting acted on."

He cited major energy bills and legislation that would expand the state Child Health Insurance Program, all still hung up in committee.

Rep. Mary Caferro, D-Helena, is leading the way for the CHIP legislation in the House, saying it would increase the number of children covered by the program from about 13,000 to 16,000. She believes the bill is being held back as "a bargaining chip" for Republicans to advance their priorities.

She marvels that the bill, first sponsored by Sen. Dan Weinberg, D-Whitefish, is being held up when it costs less than $1 million in state funding, with a $4 million match in federal funds. Lawmakers would never treat a similar arrangement for highway funding in the same way, she said.

Caferro expressed frustration that the House didn't go into session Saturday and waited until 5 p.m. Monday to do so. "It's kind of weird to take a break when you have many bills to act on," she said.

Keeping true to the Republican priority for the session, Speaker of the House Scott Sales, R-Bozeman, declared last week that the House would not take action on four major spending bills until the governor signs a bill providing property tax relief.

In response, the governor threatened to call the Legislature into special session.

But lawmakers on both sides of the aisle said that's not likely. Jopek, for one, predicts there will be an 11th-hour compromise.

"My guess is no one wants to go down that road, so there's going to be a lot of pressure to get things done in the last couple of days," he said.

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