Questions remain on budget details
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We still don’t know all the final details in the $10 billion budget. There are several bills still on the governor’s desk. Some of them spend a lot of money, so they may get vetoed.
The latest balance sheet still has all the spending bills listed, so the bottom line looks bad: negative $7.2 million for fiscal year 2014 and negative $20.9 million for 2015.
At the end of the session, the governor negotiated $13.5 more spending in the big budget bill. Many of us wanted to see some of the surplus returned to the taxpayers.
There are two tax bills still waiting on the governor. One bill, SB 282, simplifies Montana taxes, making our tax forms more like the federal tax forms. We had dozens of credits and exemptions. Pension, annuity and interest credits still are there for seniors. SB 282 also lowers our top tax bracket to 6 percent from 6.9 percent.
These changes are expected to save a lot of Department of Revenue staff time and the CPA Association said it will make filing Montana taxes much simpler.
The other tax reform is SB 96, to lower the business equipment taxes. I believe that the first $100,000 in equipment will be exempt, and then there is a 1.5-percent tax up to $3 million and 3 percent after that. This should help almost all of our small businesses and farmers and ranchers. Important to Lake County, there is a payback for any lost revenue. This change will help Montana attract businesses but most of our neighbors do not have equipment taxes.
I am very disappointed that the property tax bill did not pass. We worked for many weeks to get the two-year cycle perfected. Some agricultural landowners wanted to remain on the six-year plan. This time real estate values have still not fully recovered, so the six-year appraisals will benefit most of us.
If the governor doesn’t veto or sign a bill, it will become law without his signature. Governor Bullock said that he would let the bill to require parental approval for a minor to obtain an abortion become law because he expects a lawsuit.
So in Montana, a minor needs parental approval for body piercing or tattoos, but not for an abortion. Doesn’t seem logical. Of course, there is a judicial override if a minor must avoid her parents.
The pension reform bills had a reduction in the yearly guaranteed benefit increase. Here’s another lawsuit. Employee benefits are contractual. But some cities and counties have been able to reduce benefit packages as part of bankruptcy. Because of our balanced budget requirement, Montana is a long way from that problem. Still, the unfunded liability is $4.2 billion.
It is great to be home. I’m watching the final disposition of bills and waiting for interim committee assignments. Looks like I’ll be on revenue and transportation as well as one or two other committees.
I’d like to thank everyone for the comments and opinions throughout the session. You can reach me on my cell at (406) 253-8766 or my email at jannataylor@montana.com. Remember that I work for you during the interim as well as the session.
