Legislature cruising toward special session

By CHARLES S. JOHNSON and MIKE DENNISON - IR State Bureau 04/26/07

HELENA — Prospects of the Legislature finishing its work by Friday’s scheduled adjournment appeared bleak Wednesday after a top Republican leader angrily denounced as a bribe a compromise offered by Democratic Gov. Brian Schweitzer.

Friday is the Legislature’s 90th and final day authorized by law.

Yet lawmakers have not yet resolved major differences between the Republican-led House and Democrat-controlled Senate over a trio of critical, complex issues — the state budget for the next two years, tax relief and school funding.

If they don’t wrap up their work by Friday, Schweitzer has vowed to call them into a special session immediately — without pay.

The two political parties have battled for weeks without resolution of these three issues, which essentially means agreeing on a plan on how to divvy up the projected record $1 billion state general fund surplus.

House Speaker Scott Sales, R-Bozeman, has refused for more than a week to schedule House votes on several major budget bills.

He said he won’t do so until Democrats give some indication they’re willing to consider spending reductions that could make way for long-term property tax cuts, and that they have yet to do so.

“We need to get some agreement out of them that they’re willing to work with us,’’ Sales said.

An exasperated Senate President Mike Cooney, D-Helena, said Democrats have never rejected the possibility of spending reductions — but that it can’t happen until the House votes on the bills and sends them to conference committees.

“I don’t know how he (Sales) can make that statement,’’ he said. “Get (the bills) into conference committee, and we’ll take a look at it. We’ve not been given the opportunity.’’

Property tax cuts have been both political parties’ chief campaign issue since last year.

Legislative Republicans have pushed hard for across-the-board, long-term property tax cuts for Montana individuals and businesses.

Democrats, however, have backed Schweitzer’s one-time, $400-per-household property tax rebate and advocated spending more money on education, human services and corrections.

On Wednesday, it appeared early in the morning that Schweitzer had struck a tentative deal with House Majority Leader Michael Lange, R-Billings. The deal included raising the per-household rebate to $600 this year and another $30 million annual increase in state funding for schools starting in 2009.

It blew to smithereens 90 minutes later when Lange, speaking to fellow House Republicans, called Schweitzer an “S.O.B.’’ and accused Schweitzer of bribing him.

Lange said Schweitzer asked him that morning if he would support House Bill 833, a 14-bill Democratic omnibus tax relief and loophole-closing package, in exchange for Democrats supporting a version of Lange’s House Bill 678, a school-funding and property tax-reduction plan.

Such horse-trading over bills is commonplace during the closing days of any Legislature.

What Lange considered a bribe was Schweitzer’s offer to give Lange personal credit for the surviving tax cuts, which were for the most part Democratic bills, and to add his name as a sponsor of key bills.

At his caucus, Lange said, “The governor attempted to bribe me. It made me sick to my stomach.’’

Schweitzer, interviewed later, turned the other cheek. When he and Lange met, along with other people earlier in the day, Lange was “a perfect gentleman,’’ Schweitzer said.

“I think that Representative Lange is a great representative,’’ Schweitzer told reporters. “He’s been a very good legislator. He’s a great family man.’’

David Ewer, the governor’s budget director, said the meeting between Schweitzer and Lange was “cordial’’ and that Lange indicated that an agreement could be reached.

For Lange to say Schweitzer had pressured him or offered some sort of bribe is “a gross distortion of reality,’’ said Ewer, who was at the meeting.

Schweitzer said he and Lange had agreed they would like to cut taxes in a historic way.

Asked if he offered a bribe to Lange, Schweitzer said, “The offer I made to him: Let’s do the people’s work.’’

Sales said Schweitzer’s offer was no deal at all because it included no permanent property tax relief. Sales said the Schweitzer plan included a tax increase by changing how real estate investment trusts are taxed and used the higher revenue to give more money to schools.

“I didn’t feel that there was any permanent property tax relief in that offer,’’ Sales said.

The speaker said he’d like to see Senate Democrats and Schweitzer come up with a specific number, such as $200 million in across-the-board property tax cuts and $100 million in one-time rebates.

“House Republicans are prepared to make the necessary reductions in spending,’’ Sales said. “We stand ready, willing and able to make our friends in the Senate and the governor’s office make those hard decisions.’’

Cooney said Democrats are more than willing to consider possible spending reductions, but that the bills need to move to conference committees so negotiations can start.

The Senate has been looking at options, such as Lange’s proposals for House Bill 678, he said, and spending cuts could help pencil it out.

Cooney was optimistic that a special session won’t be needed.

“We just have to put aside some of these differences,’’ he said “There’s no need for a special session.’’

House Minority Leader John Parker, D-Great Falls, was pessimistic.

“We’re still straight on track for a special session, and that’s unacceptable,’’ he said. “We need to finish our work, get the budget done and reach consensus on tax relief.’’

Lange told reporters, “Nobody wants a special session.’’

He said Republicans have not changed their demands since the first day of the Legislature nearly four months ago.

“We want permanent property tax relief,’’ he said. Republicans also favor adequate funding for schools, he said.


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