Governor candidate wants work-comp reform

When Gov. Brian Schweitzer suggested that it may be better for workers’ compensation reform to be deferred to the next legislation session, it got Rick Hill’s attention.

Hill, a former Montana congressman and a Republican front-runner in the next governor’s race, views that as another example of Schweitzer “punting” important matters downfield for the next governor to deal with.

“He could be in the hall of fame of punters,” Hill said during an interview in Kalispell on Friday.

At a meeting with Republican legislative leaders Thursday, Schweitzer said, “Is it necessary to move on this bill during this session?” He then asked if it’s possible that the state actually has “a fairly efficient workman’s comp system.”

The workers’ compensation bill sponsored by Rep. Scott Reichner, R-Bigfork, is a major priority for Republican legislators. Montana has the highest workers’ compensation rates in the country and they believe that is a serious impediment to creating jobs and higher wages.

Hill, who played a lead role in workers’ compensation reforms in the 1990s as chairman of the state workers’ compensation board, sees it the same way. He said deferring on an important effort to reduce rates will hinder the state’s economic recovery.

“I’m running because I like to do things. I like to fix problems. That’s my wheelhouse,” Hill said. “I’d hate to see us wait another two years to start building things back.”

Hill said he is concerned that Schweitzer’s budget relies on one-time fund transfers to support ongoing expenditures, leaving a “structural imbalance” of about $200 million in the state budget.

“The next governor inherits that hole plus inflation and everything else,” he said.

He noted that state workers get a 1 percent pay increase this year, but they are also slated to get a 3 percent pay increase on Jan. 1, 2013, when Schweitzer leaves office.

He’s also concerned that there currently are no measures to address state employee retirement fund imbalances that have grown to about $2 billion overall. He estimates the Legislature should be pitching at least $70 million toward those liabilities this biennium.

“There’s no attempt to deal with those liabilities,” Hill said. “That’s just going to be punted to the next governor ... Whether that’s me or someone else, it’s going to be a problem.”

Hill had high praise for Schweitzer’s efforts in backing development of the state’s Otter Creek coal tracts in Eastern Montana, which Hill played a part in acquiring as the state’s congressman in 1996.

The state got about 8,000 acres of coal-rich land as compensation for a federal deal that ended a gold mining project near Yellowstone National Park.

Hill said that over the last few years, Montana has endured the most stagnant job growth periods in the last quarter century, and the state ranks near the bottom compared to other states in per capita income.

To reverse those trends, he said he believes Montana first needs to capitalize on its “comparative advantage” in natural resources. And to do that, the state must put forth a far more predictable and efficient regulatory environment, similar to what neighboring states have.

The state has a lease arrangement for the Otter Creek tracts that generated $86 million in revenue, but that deal has been challenged in court. A Miles City judge has not ruled on the matter yet, but his preliminary findings suggest that the lease agreement may not be valid without an environmental impact statement, Hill said.

And that is an example of how the state’s regulatory environment hinders resource development, he added.

Including Hill, there are currently five Republican candidates in the gubernatorial race and two Democrats. Hill said he anticipates Montana Attorney General Steve Bullock, a Democrat, will announce his candidacy soon.

Hill said his campaign is not in full swing yet, but as of the end of last year, he had raised more campaign money than the other candidates combined.

“That’s always a good indicator of the energy level that’s out there,” he said.

After serving two terms in Congress, Hill did not seek re-election in 2000 mainly because he was having severe problems with his eyes.

Since then, he has had 13 corrective surgeries, the last of which involved an experimental cancer treatment drug to prevent scar tissue from forming on his corneas. He said his vision has been stable for the last six years.

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