Area lawmakers give session mixed review

By JIM MANNThe Daily Inter Lake

The 60th Montana Legislature came to a close Tuesday with some Flathead Republicans expressing disappointment and Democrats saying they are satisfied with a budget based on compromise.

The House adjourned in the morning, and the Senate followed several hours later. The end product was a budget that spends $3.2 billion in state money and $7.8 billion overall. The state spending for the coming biennium amounts to an increase of more than 22 percent during the past two years.

The House passed a stripped-down tax package Monday night, offering a $400 rebate for every Montana household, and an increased exemption on business-equipment tax. The Senate adopted the rebate, but rejected the business-equipment-tax change.

"I think nobody got everything they wanted, but on balance, I'm pleased," said Sen. Dan Weinberg, D-Whitefish. "I think schools did well. I think health and human services, especially mental-health services, did extremely well."

Weinberg said he regrets that it took "a few days longer" for the Legislature to complete its business. "But that's the process. It's a messy process, but ultimately it does work."

The Associated Press reported that the business-equipment tax-exemption increase was rejected because the state's $1.3 billion projected surplus had been appropriated to other uses. Weinberg said that was "an oversimplistic view."

The Schweitzer administration, he said, wanted policies to accompany that tax change to ensure that out-of-state corporations and business owners paid "their fair share."

Democrats did not get all that they were seeking, said Rep. Mike Jopek, D-Whitefish.

"It's a compromise budget. It's a compromise energy plan. It's a compromise tax plan," he said.

Rep. Jon Sonju, R-Kalispell, said House Republicans stripped a series of "revenue enhancement" features out of another House Bill that included the homeowner rebate and the increased business-equipment-tax exemption. Those two elements were salvaged and passed Monday night, while the governor's policy changes were scrapped.

"I think we held the line on some key policy issues in tax," said Sonju, who was among many in the GOP who regarded those policy changes as unnecessary "empire building" measures for the Department of Revenue. A bill that would have imposed new taxes on Plum Creek Timber Co. was killed in committee Monday night.

"That was another victory," Sonju said. "But I think it's disappointing that the taxpayers didn't get more money back."

Sonju said state government is expected to grow by more than 500 full-time jobs as a result of the new budget, and taxpayers are getting a "measly" $400 one-time rebate.

Sen. Greg Barkus, R-Kalispell, had a similar view. "We had a $1.3 billion surplus and no meaningful property-tax relief," he said. "Not a dime was given in meaningful, permanent property tax relief."

Barkus said that the 22 percent increase, on top of a 16.5 percent spending increase authorized by the 2005 Legislature, is "virtually untenable" for the state economy to maintain.

"It was basically a spending session," he said. "That's all it was."

Rep. Bill Jones, R-Bigfork, said House Republicans also had a hand in backing several spending increases, most notably for education and health and human services.

"The hypocrisy I see is they turn around and bawl their heads off about the increased cost of government," Jones said. "Everyone can take some blame for the increased cost of government."

Jones was infuriated that the House Republican caucus ousted Majority Leader Mike Lange, R-Billings, on the last day of the special session, replacing him with Rep. Dennis Himmelberger, R-Billings.

"They didn't even tell [Lange] what they were up to. I kept asking them not to do it, because they are destroying the party," Jones said, referring specifically to Flathead Republicans who participated in Lange's ouster. "They just want the Constitutional Republican right-wing party with a platform of no taxes, no government, no mercy."

Sonju said that he and other Flathead Republicans did back the move against Lange.

"I think the damage was done with the backroom deal-making," Sonju said. He was referring to resentment about Lange's participation in negotiating a resolution to the session with a dozen Republicans and Schweitzer administration officials a week before the special session got under way.

And Sonju referred to Lange's profane outburst against the governor during the regular session. "I think his outburst and his language hurt the party in the end," Sonju said.

But Jones said Lange was highly successful at articulating the party platform on the House floor, and he managed to hold 51 votes together on crucial bills during the session.

Jones outlined several areas that will improve because of the Legislature's actions. Nursing-home care will improve, and people with mental-health problems "will have a greater likelihood of being taken care of."

Schools will benefit, he said, particularly small schools, and the state's Child Health Insurance Program was expanded.

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