SAFER Act offers big return for Montana
Jan. 27 was likely the most significant day to date of the 68th Montana Legislative session. Late in the afternoon, the House Appropriations passed a package of six tax bills, which comprise a substantial portion of Gov. Greg Gianforte’s and the Republican majority’s plan to return $1 billion of the surplus to taxpayers.
The first two are taxpayer returns in the form of state income tax rebates of up to $1,250 for 2021 (House Bill 192) and property tax rebates of up to $500 per homeowner in 2022 and 2023 (House Bill 222). Other elements of the six-bill package included House Bill 213, which raises the business equipment tax exemption from $300,000 to $1 million and House Bill 221, which will redefine and lower capital gains taxes. House Bill 251, the fifth bill in the package dubbed, “Debt Free in 2023,” will pay off $150 million in existing state debt.
The last of the six is House Bill 267, The SAFER Act, which passed unanimously out of Appropriations. It establishes a $100 million fund to take advantage of existing federal highway funds without raising taxes for Montanans. In fact, it may even help stave off a future raise of the gas tax.
As the sponsor of The SAFER Act, I believe this critical legislation is necessary to help tackle the growing backlog of road, bridge, and transportation safety projects across Montana.
The SAFER Act will provide state match dollars required to secure federal one-time-only (OTO) transportation grants and August redistribution dollars for transportation projects. August redistribution is an annual process where budgeted dollars that go unused by other states are up for grabs.
How could these dollars be used if Montana can secure them? Let’s take a look at a local project.
Imagine it will require $50 million to complete the second phase of improvements on West Reserve Drive from Whitefish Stage east to U.S. 2. If identified as a top priority by the Transportation Commission and Montana Department of Transportation, dollars secured through the redistribution process could go to expedite an upgrade for this part of West Reserve Drive. Without a federal grant or redistribution dollars, it might take five to 10 years to save up enough capital to complete a project of this size.
In this hypothetical case, Montana would need to have a $6.5 million match to complement $43.5 million in federal redistribution dollars; the state match would come from the SAFER fund. This means Montana taxpayers only carry 13% of the financial burden of the project, allowing us to do much more with less.
This is just one example of many; in fact, there are an estimated 50 projects across the state on MDT’s list that are considered “shovel-worthy” and “shovel-ready,” if we can find the funds — and that list is growing.
The SAFER Act is a smart way to make more of our money. It will empower Montana to leverage $100 million to complete an estimated $750 to $800 million of work — few investments offer this kind of return.
In the Flathead alone, we have tens of millions of dollars in deferred maintenance and infrastructure upgrades that could be addressed through federal redistribution dollars and grants. Without significant improvements to major roadways, the congestion we see today on West Reserve Drive will be only the start of our challenges.
The SAFER Act is a significant step in ensuring Montanans can get where we need to go safely and efficiently.
Rep. Courtenay Sprunger, R-Kalispell