Hope for a productive session

Inter Lake editorial

Well, at least there seems to be some starting agreement among Republicans and Democrats in the Montana Legislature that they are heading into a "belt-tightening" session in January.

They seem to be aware of crumbling economic conditions that prompted the Legislative Fiscal Division on Friday to chop a projected "surplus" for the coming biennium from $787 million down to about $287 million.

Republicans and Democrats are saying they expect a different, more cordial, tone this time compared to the combative 2007 session that ended with the Legislature not passing a budget for the first time in its history. And that was with a $1 billion surplus!

With a 50-50 House and Republicans taking a 27-23 majority in the Senate, maybe there will be a bit more harmony, balance and compromise with Democratic Gov. Brian Schweitzer. But there are certain to be the predictable battles over just how much belt tightening is needed and as usual, skirmishes over how the fiscal pie is divided.

Some persistent challenges are likely to return. Most notably, there is a pending lawsuit over the adequacy of school funding, an issue that has confronted lawmakers over the last two sessions. Even without a court order helping make their case, the education community has the most powerful lobby in Helena and it will be pressing hard for increased funding.

At the same time, there will be a strong push - possibly led by the Flathead Valley's Republican-dominated delegation - to provide property-tax relief and most importantly, an elimination of the archaic, unjust tax on business equipment.

The main intent of these measures will be to provide some economic stimulus for Montana property owners and businesses during the downturn. But there will be the usual arguments that state government needs the money more.

For companies that have recently gone through layoffs, such as Semitool and Plum Creek Timber Co., being required to pay a tax on manufacturing equipment when profits are tumbling can be difficult. Indeed, it's not hard to view the tax, which doesn't exist in neighboring states, as a cold-water disincentive for investing in new equipment and expansion.

The Legislature should be looking for ways to help Montana businesses, and it should concentrate on the basics for state government.