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A productive session ahead?

by Daily Inter Lake
| January 2, 2011 2:00 AM

So far, the rhetoric is matching up between Democratic Gov. Brian Schweitzer and many Republican lawmakers, particularly those from the Flathead Valley.

They are all talking the talk about pursuing state policies that will lead to more and better jobs as well as an overall improved economy. As usual, it will come down to the details and the relative differences in expectations among those who will be passing and signing legislation into law.

The all-Republican Flathead delegation appears to be on the same page when it comes to a variety of policies with an underlying theme of improving the state’s business climate for job creation and economic growth. Whether it be eliminating the business equipment tax, reforms for the state workers’ compensation system, encouraging natural resource and energy development or supporting innovations in education, the Flathead delegation is on board.

For his part, Gov. Schweitzer insists that all legislation must lead to job creation. “Does it create higher-paying jobs in Montana? If it doesn’t create higher paying jobs, then why are you proposing this?” he said last week. “If they don’t have an answer for me, I’m probably not going to be supportive.”

Well, there you have it. It seems as if everybody’s singing the same tune, but make no mistake, they are not.

Take the business equipment tax, for instance. Republicans, who now hold a 68-32 majority in the House and a 28-22 majority in the Senate, have long called for a complete elimination of the 3 percent tax on business equipment.

Schweitzer’s position is harder to discern, with recent news reports saying that he proposes additional businesses being exempted from the business equipment tax, but not necessarily a complete end to the tax.

The governor also says he intends to vigorously defend the budget he advanced last month, particularly its provisions for K-12 and higher education spending. Republicans, meanwhile, are making noises about cutting education bureaucracy in areas such as the state Office of Public Instruction.

Another source of predictable disagreement: The governor’s plans to use a variety of fund transfers for balancing the budget.

Republican lawmakers say these one-time transfers create a structural imbalance in the budget, leaving the state with spending that can’t be sustained in the future. Sen. Bruce Tutvedt, R-Kalispell, also believes some of the transfers will be met with political opposition from fund constituencies.

There will be other fiscal disagreements. But overall, our take is that there will be less disagreement than we’ve seen in past sessions, because the new legislative majorities and the governor are at least talking the same language going into the coming session.