It’s time to trim the budget. What gets cut?

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HELENA -- With one week left at the Montana Legislature, the budget doesn't balance. Time to get out the hedge trimmers.

What will end up on the cutting-room floor? The $2 million for drug treatment courts? A quarter-million for after-school programs? Maybe $400,000 for satellite public TV? Several million bucks for coal-development impact costs?

Or how about all of the above -- and quite a bit more.

Such are the choices for lawmakers and Democratic Gov. Brian Schweitzer as they enter the final week of the 2007 session, in search of budget clarity and tax relief.

Yes, the state treasury has a projected $1 billion surplus for the next two years. But if you add up the spending and tax-cut measures still alive before the Legislature, the total tab eats up the surplus and then some.

That means it's time for lawmakers and the governor to start picking what will survive and what must go.

"Anyone who's paying attention knows that Governor Schweitzer has laid down a spending limit,'' said David Ewer, the governor's budget director. "Anything that's outside the governor's budget is at risk for our lack of support.''

Republicans, who control the House by a single vote, also want to whack the budget, so the Legislature will have more money to hand out in tax relief.

"I want permanent property tax relief for the citizens of the state,'' says Rep. John Sinrud, R-Bozeman, who chairs the House Appropriations Committee. "That could be anywhere from $300 million to $400 million. And that's what's important.''

The cutting can occur two ways: The Legislature will make changes in budget bills in six-member conference committees, which will start meeting soon, or Schweitzer will veto spending or tax-relief bills or both.

Schweitzer said this week he wants to wait for lawmakers to do their work on spending and tax-relief bills, and then decide whether they fit into the budget pie, and act accordingly.

How far must they go in scaling back the spending? That depends on the final desired outcome.

As of Thursday, about $160 million was available for tax relief, according to legislative analysts.

That figure does not include the "rainy day fund'' that Schweitzer desires -- but it could cover the governor's entire tax-relief package, which includes a $400-per-homeowner rebate and elimination of some business-equipment property taxes.

Schweitzer, however, would still like his $100 million rainy day fund, which has been tabled by Republicans in the House.

Of course, the money available right now doesn't come close to the ''$300 million to $400 million'' in tax relief desired by Republican legislative leaders.

To get to that level, some serious surgery on spending bills must occur.

Senate President Mike Cooney, D-Helena, says he fully expects the Legislature to start shaving down spending proposals that are still alive.

"We understand that some of the budget bills are a little higher than what the governor has recommended,'' he says.

Yet Democrats, who control the Senate, also believe the public has many pressing needs, and that much of the spending addresses those needs, in education, health care and corrections, Cooney says.

So, what are the likely targets? For starters, the major budget bills are as much as $50 million over spending recommended by Gov. Schweitzer.

These additions include many things, such as $10 million for community mental-health programs, $500,000 for agricultural experiment stations, $2 million for drug treatment courts, $1.5 million for local aging service agencies and more money for public schools.

Also alive are at least a dozen ''cat and dog'' spending bills, which contain money for pet programs of legislators or groups of legislators. Most are not in the governor's proposed budget and are possible targets for a veto.

These alone total at least $30 million.

Ewer says Schweitzer won't sign or veto any of these spending bills until every one has reached his desk, so the governor can evaluate their total impact and decide whether they can be funded for the next two years.

Last but not least are the tax-relief proposals -- none of which has even come close to resolution.

Ewer says if one looks at the budget with a pragmatic eye, the numbers just don't add up for $300 million to $400 million in tax relief. That level would require scaling back increases for schools, the university system, corrections and human services. Ewer says he doesn't believe the political support exists to do that.

The best hope for Republicans to achieve on-going tax relief is to find a way to pay for it, say Ewer and Cooney -- and that could mean accepting the Schweitzer administration's proposal to beef up tax-collection activities.

The Revenue Department believes it can rustle up as much as $60 million in additional, on-going funds, if its proposals for more scrutiny of out-of-state taxpayers and tax shelters are approved.

"We're saying if you're going to have permanent property tax relief, you have to have the money to pay for it,'' Cooney says.

The savings could start here

HELENA -- Scores of spending proposals that may bust the state budget are still alive at the Legislature and could end up getting killed.

Here's a snapshot look at some proposals that are outside the governor's budget and could be on the chopping block:

Energy development impact funds: House Bill 798, which allows grants to local governments impacted by energy development, takes $20 million out of the state treasury.

Bed tax reallocation: Senate Bill 284 transfers about $8 million in bed-tax and rental car-tax revenue from the state treasury and earmarks it for tourism promotion.

Health clinics: HB406 spends $1.3 million to help start or expand community health clinics, which serve low-income and uninsured Montanans.

Oil-and-gas money to counties: HB823 would redistribute about $5 million of oil-and-gas tax revenues from the state treasury to counties where development occurs.

Health insurance for Medicaid-funded workers: About $4 million is in the budget to pay for health insurance for home health-care workers with Medicaid money.

Drug treatment courts: A one-time, $2 million appropriation is in the budget to help fund drug-treatment courts that already exist in several places around the state. The courts help keep drug offenders out of prison.

After-school programs: HB677 has $250,000 to fund after-school programs for ''at risk'' youth.

Aging service agencies: The Senate added $1.5 million to help fund these agencies in cities across the state.

Ag experiment stations: The Senate added $500,000 to the budget to help fund these stations operated by Montana State University.

Satellite public TV: Another budget addition of $400,000 to finance satellite TV transmission of Montana Public Television.

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