HELENA
A const i tut ional amendment that would allow up to 25 percent of certain state trust funds to be invested in the stock market will probably fail because of the current stock market turbulence, a key supporter said. Sen. Dave Lewis, R-Helena, said with the recent decline in the stock market, he doesn't expect people to vote for Constitutional Amendment 44 on Nov. 4. "Look, from an intellectual standpoint, it makes sense," said Lewis, a former state budget director and former executive director for the Montana Board of Investments. "But let's be real here. With the market in chaos, people aren't going to vote for it. I'd be utterly amazed if it passes." A fiscal note said the ballot measure would affect seven trust funds totaling $1.3 billion, including the coal tax trust fund valued at nearly $532 million in June 2007. The money is currently invested in corporate and government bonds and earn an average of 5. 5 percent in income annually. Two state-run funds already are allowed to be invested in stocks: state and local pension funds and workers' compensation funds. Backers of CA-44 say that over time, stocks yield a higher return than bonds. Sen. Jerry O'Neil, R-Columbia Falls, said investing in stocks puts the money at greater risk. Montana voters have twice rejected similar constitutional amendments in 1988 and 2002, although they did vote in 2000 to allow workers' compensation funds to be invested in stocks. (AP)
