GOP making its mark on Schweitzer’s budget

By MIKE DENNISON - IR State Bureau - 02/04/07

HELENA — As the lawmaking wheels grind away at the Legislature, Democratic Gov. Brian Schweitzer’s proposed state budget is being put through the wringer — or is it?

Five weeks into the process, budget panels examining this $7.7 billion behemoth have sliced, diced and pureed more than a few proposals set forth by the governor.

Public schools, environmental regulation, the Revenue Department and the governor’s office are among those whose spending increases haven’t been endorsed.

In other areas, such as the Corrections Department and the university system, the first draft of the budget looks quite generous, accepting all but a few dollars in proposed spending increases.

Rep. John Sinrud, R-Bozeman and chairman of the House Appropriations Committee, is already hearing the howls of protest from some whose spending increases haven’t been endorsed in this first round.

But Sinrud said Saturday he doesn’t see why Democrats would be pushing the panic button.

While the Republican-controlled House may craft a budget substantially less than what Schweitzer wants to spend on state government the next two years in Montana, the political reality is that it won’t be the last word on the budget, he says.

The Democrat-controlled Senate gets the final say on the budget, Sinrud says — and there’s nothing he or the budget panels crafting this first draft can do about it.

“This is the Democrats’ budget,’’ he said. “It’s not the Republicans’ budget. ... When the Senate stacks the deck in the (session-ending) conference committee, they’ve already spoken.’’

Still, the six- or eight-person panels that make initial recommendations on the budget are completing their work on the rough draft of the budget that goes to the House Appropriations Committee early next month.

It’s likely to be much less than proposed by Schweitzer, who wants a 21 percent increase in state general fund spending over the next two years.

The administration points out that nearly half that $700 million increase is “one-time’’ spending on needs such as building construction and maintenance and shoring up public-employee pension funds.

“We have to fill in the fiscal potholes left by previous administration,’’ says David Ewer, the governor’s budget director. “We’re trying to restore (spending) levels needs to meet Montanans’ needs in public education, public safety and public health. ...

“I would admit that it’s early (in the Legislature), but the early signs are an apparent willingness by Republicans that it’s OK to lave a lot of unfinished needs for Montana.’’

Here’s a snapshot of the action that’s occurred so far, and what’s on tap in the coming week:

HEALTH & HUMAN SERVICES: Most of the big-money decisions in this area, which is one-third of the entire state budget, are due this week. The budget panel here has yet to recommend funding on Medicaid, a proposed new mental health program at the State Hospital in Warm Springs, welfare, home-heating assistance, the Children’s Health Insurance Program and developmentally disabled programs.

The panel has endorsed money for 37 new positions at the State Hospital for the mentally ill and 20 new “field workers’’ for foster care.

Rep. Edith Clark, R-Sweetgrass and chair of the panel, says whatever recommendations are made this week won’t be the last word on this huge budget.

“We have a lot of work to do yet, and everything changes,’’ she said Saturday.

EDUCATION: All but $1 million of the proposed 7 percent, two-year increase for the university system won endorsement by the education budget panel.

But last week the panel denied about two-thirds of the proposed $100 million increase in state funding for public schools and the state Office of Public Instruction (OPI).

Linda McCulloch, state superintendent of public instruction and head of OPI, said the panel wouldn’t endorse money that pays for some existing programs in her office and sustains pay increases that some employees received last year.

“With the state having a billion-dollar surplus, I did not expect them to be so punitive on schools,’’ she said. “These are not good education decisions. These are just punishing schools.’’

Rep. Bill Glaser, R-Huntley, who sits on the panel, said Saturday that Republican members want to understand how the budget picture will fit together before they endorse certain funding increases.

“It doesn’t mean anything at this particular time,’’ he said Saturday. “There was no message sent out (by those decisions). ... We’re just trying to put together a good budget.’’

CORRECTIONS & PUBLIC SAFETY: The panel here endorsed all but $4 million of a proposed $75 million, 27 percent increase for the two-year budget of the Corrections Department. Its only major change was to tilt more money toward payments to regional prisons and the private prison in Shelby.

The state judiciary system’s budget also has a 15 percent increase in this first go-round.

ENVIRONMENT: About two-thirds of the Department of Environmental Quality’s requested increase has been rejected, including 16 of the 19 new personnel it is seeking.

DEQ: Director Richard Opper says the personnel and funding are needed to help his agency process permits and other actions regarding two major economic drivers in the state: Housing construction in new subdivisions and energy projects.

“We’re obviously disappointed,’’ he said of the initial budget decisions. “The important thing here is DEQ wants to facilitate economic development in the two economic engines of the state.’’

BUILDING PROJECTS: Decisions are expected this week on the Schweitzer administration’s major building proposals. The panel examining this budget is still holding hearings on House Bill 5, which contains most of those projects.

They include $24 million for a new building to house the state computer center, $28.5 million to renovate Gaines Hall at Montana State University, $26 million for reconstruction of U.S. Highway 93 in western Montana, $10 million for renovations at Montana State Hospital in Warm Springs and $15 million to buy new state parks and fishing access sites.

OTHER: Gov. Schweitzer’s office has won endorsement of only half the $2 million, 20 percent increase he sought, as the panel denied a request to create a federal relations function within his office.

Decisions began Friday on the budget for the Revenue Department, which is seeking a $34 million, 43 percent increase. The agency wants to create free electronic tax filing, beef up some collections efforts and add personnel to do statewide reappraisal of property for tax purposes.


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Reader Comments:

edgegroove wrote on Feb 4, 2007 9:04 AM:

" The spending crowd in the legislature likes to play the one-time-spending game. It goes like this. The rationalization for spending one time money in the current legislative session is that it is one-time. Two years from now, any attempt to take it out of the budget will bring forth gut-wrenching and headline-grabbing howls of protest because by then, you see, it is part of the base budget. The entire budgeting process is designed to maximize the chances that the budget will grow unabated. "


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