Northern building, K-12 funding still in the works

Some local legislators have commented on actions in the Legislature Wednesday that could have significant impacts in north-central Montana. Most think bills cut or stalled could still move forward.

Wednesday, a Senate committee tabled House Bill 5, the bill to erect state buildings, including a new automotive-diesel technologies building at Montana State University-Northern. The House Education Committee made significant cuts and eliminated a property-tax reduction proposal, from a Senate K-12 education funding bill.

Sen. Greg Jergeson, D-Chinook, said he talked to members of the Senate Finance and Claims Committee that tabled HB 5, which proposes using the state's ending fund balance to pay for construction of the buildings.

Gov. Steve Bullock had requested the projects be included in House Bill 14, the bonding bill, to use the sale of state bonds to fund their construction. Lt. Gov. John Walsh said in an interview Wednesday that, with historically low interest rates and the opportunity to strengthen the state's credit rating, he and the governor would not support paying cash rather than bonding for the projects.

Jergeson said Thursday in an emailed reply to the Havre Daily's questions that, after talking to committee members, he believes the tabling of the bill "is just part of the dance. There are good reasons to fund these projects in HB 14, the bonding bill, but we'll have to see how this plays out."

Rep. Kris Hansen, R-Havre, said Thursday that she had just heard of the tabling.

"I have no idea what is happening there," she emailed the Havre Daily. "When I know more, I will let you know.

"The frenzy is apparently on to spend the money elsewhere, but I will do my best to keep the cash for MSUN's project," Hansen added.

Rep. Wendy Warburton, R-Chinook, emailed the Havre Daily that the bill could come back.

"No bill is ever dead until the Legislature adjourns for the session," Warburton said. "There is widespread support for the buildings, and particularly for MSU-Northern's building. The Legislature has great respect for what Northern accomplishes.

"There seems to be some back-and-forth about whether to pay for the projects with cash, as we voted to do in the House with the passage of HB 5 recently, or with bonding," she added. "Conservatives, of course, prefer to support the cash plan. We have money in the bank, so why go into debt? However, there are others who would like to take on debt for the building projects, so that they can spend the cash on other things."

Walsh said Wednesday, as Sen. Jonathan Windy Boy, D-Box Elder said in a telephone interview Thursday, that the problem is that the Legislature is trying to spend more in cash than is available.

Walsh said Bullock's desire, and his proposed budget, kept a $300 million cash reserve through the biennium. The proposals on the table Wednesday would have spent all but $60 million.

Windy Boy took it further. He said once Senate Finance and Claims was done marking up the House budget bill, HB 2, the spending would put the state in the red.

Jergeson also commented on the cuts made in the House Education Committee, chaired by Hansen, to the education funding bill sponsored by Sen. Llew Jones, R-Conrad, Senate Bill 175. He called the cuts made by the committee "unfortunate" and likely to push up local property taxes.

"As I understand it, these cuts, engineered by Rep. Kris Hansen, removed the property tax relief in the bill and removed the additional state money for our schools," Jergeson emailed the Havre Daily. "The loss of the additional money for our schools will put upward pressure on local levies in order to maintain our educational programs.

"I expect this bill will go to conference committee, where the wisdom of the Senate, hopefully, will prevail," Jergeson added.

Windy Boy Thursday characterized the actions on SB 175 as the bill being hijacked, which he said is common this late in the session as negotiations go on about various bills.

Hansen had not responded by printing deadline this morning to the questions submitted Thursday about her committee's actions on SB 175.