Budget projections raise concerns
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I hope you had a great Easter. I got to see my wonderful new granddaughter in Billings. But I am worried about our state budget.
The governor would like $300 million left over. There is no chance of that. The federal government will reduce mineral payments to the state by $2.5 million this year. Oil tax estimates are down from projections. Income tax is coming in as expected, and corporate taxes are as well. Still, corporations often average money and need refunds on estimates.
Montana does not have enough money to fund employee raises, Medicaid expansion, education increases, any tax reductions and our pension shortfall. Half of state employees did receive raises the past few years. Our pay plan, broadband, compares salaries with the private sector and our surrounding state government’s pay.
On the average, Montana government pay is higher than that of our neighbors, but not quite as high as the private sector. The comparison problem is that many private sector jobs do not have good healthcare and retirement like state employees.
There are several bills to help the unfunded liability in our pension plans. One calls for a reduction of the GABA, the guaranteed annual benefit adjustment. The current public employee retirement yearly increase of 3 percent, and the teachers’ GABA of 1.5 percent would be cut in half until the retirement plans are actuarially sound.
And the taxpayer contribution, state, county and city, would increase to 11.7 percent, again, until the plans are sound. The public employee unions have promised to sue if the GABA is reduced, even temporarily.
That leads me to one of my continuing concerns – legislation by threat of lawsuit. You do realize that we end up paying for both sides of these cases? Here’s a partial list of lawsuit threats I’ve heard in the past month: reduction of the GABA, negotiated pay plan increases, environmental natural resource issues, quality school funding, the water compact with the CSKT, rules for political campaigns, and property tax appraisal.
That last one is actually in court now. Property values must be reduced as values decline more often than the six-year cycle. The six-year cycle hit many local residents hard in 2009, but it would be beneficial this next time.
I am in favor of a water compact between the Confederated Salish and Kootenai Tribes, the state and the feds — one that is as fair as possible for everyone. This needs to be done as it has been for the other reservations and federal lands. But this current compact will not pass the legislature.
Last week, I added my name to the list of more than 110 people that opposed the compact bill, HB 629. The compact was passed by the commission on Feb. 13. Locally, we have been following this process for years. The rest of the state, especially legislators from the 11 counties affected, need time to review.
One more month to finish all our work — it always comes down to the crunch time. Please continue to leave me a message at (406) 444-4800; my cell is (406) 253-8766; and my email is jannataylor@montana.com. Never forget that I work for you.
