Next session starts Thursday

Gov. Brian Schweitzer is calling for a legislative special session to begin Thursday morning, acknowledging recent "positive conversations" among legislators to end a deadlock over the state budget.

Schweitzer declared that the special session would be limited to seven areas of discussion, including "tax legislation that provides both permanent and one-time-only tax reductions and rebates for Montanans."

Permanent property-tax rate cuts had been a priority for House Republicans during the regular session that ended April 27 without a budget, the major constitutional task for lawmakers.

"I am encouraged by the positive conversations among the legislators and pleased with the leadership and initiative to get work done on budget, education, energy and tax issues," Schweitzer said Monday.

Legislative leaders from both parties met Monday in Billings.

However, House Speaker Scott Sales, R-Bozeman, said in an interview after the meeting that "nothing of substance" was discussed.

"It was a total waste of time," he said. "It was a press event for Democrats."

Sales said that a meeting of greater of consequence was held among Democratic legislators, Schweitzer administration staffers and about 15 Republican lawmakers in Helena on Saturday.

The governor, Sales said, "apparently found some willing partners in the Republican caucus to broker a deal."

Schweitzer said Monday that his latest tax-cut proposal will reflect "a consensus for something that will work."

He said the proposal will involve reducing the business-equipment tax, eliminating a water-adjudication fee, providing homeowners with $400 tax rebates, a renter tax credit and "a possibility for property-tax rate cuts."

Throughout the regular session, Republican House members stuck together for many party-line votes on the budget, holding out for cuts in property-tax rates. Schweitzer told The Associated Press last week that he was appealing to moderate Republicans for a compromise.

Sales said he understands that compromise negotiations included talk of property-tax rate cuts.

"But in my opinion, it's not meaningful," he said. "It's minor when you consider the amount of surplus we have. I'm hearing it's about $40 [million] to $50 million over the biennium."

Republicans initially sought $300 million in rate cuts, but later compromise offers were as low as $140 million.

A $50 million tax rate cut over two years is "chump change" considering the state has a surplus that is projected to be roughly $1.3 billion over the biennium, Sales said. "That's not a lot when you consider how much government is going to grow."

Schweitzer predicts lawmakers will approve a budget reflecting a "broad path that runs through the middle of Montana."

"I'm not sure that all the voices of the middle part of the Legislature were being heard" during the regular session, he added.

Schweitzer called the special session to begin at 8 a.m. Thursday. He said he is confident that lawmakers can finish the budget business within three days.

"They will be home for Mother's Day," he said.

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