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De-funding TSEP would harm Montanans, Hill County
When you hear the phrase "TSEP" or "Treasure State Endowment Program" what does this mean to you? If you are not part of a local government then the phrase may have little significance.
You may not know, but funding for TSEP was derived from the coal severance tax trust fund established under Article IX, Section 5, of the Montana Constitution. TSEP was authorized by Montana voters through the passage of referendum 110 on June 2, 1992, and can be found as law under Sections 90-6-701 through 90-6-710, Montana Code Annotated.
Each year on July 1, the state treasurer determines the obligations required for the next 12 months of principal and interest payments for bonds payable from the coal tax severance fund. Until June 30, 2016, one-half of the remaining coal tax severance funds are transferred quarterly to the Treasure State Endowment Program. Funds from this program are used to assist local governments in funding infrastructure projects.
Approximately 60 local governments throughout Montana have submitted infrastructure project applications to fund drinking water systems, wastewater systems and bridges. These local governments have to meet certain criteria in order for their project to be given consideration by the Legislature to receive part of the $18.5 million available.
Under Montana statute, local governments receiving funding are expected to do the following:
1. Create jobs for Montana residents;
2. Promote economic growth;
3. Encourage local public facility improvements;
4 Create a partnership between state and local governments to make projects affordable;
5. Support long-term, stable economic growth in Montana;
6. Protect future generations from undue fiscal burdens caused by financing necessary public works;
7. Coordinate and improve infrastructure financing by federal, state, local government and private sources;
8. Enhance the quality of life to protect the health, safety and welfare of Montana citizens.
The Hill County Water District District has applied for $625,000 in TSEP funds for system improvements to assist in the preparation for the connection to the North Central Regional Water system, as directed by the Department of Environmental Quality's administrative order.
The district consists of individual systems in the town of Hingham and the unincorporated towns of Kremlin, Gildford, Rudyard, Inverness and Joplin. The district maintains a distribution line spanning approximately 500 miles and serves a population of more than 1,700 people. These communities consist primarily of low to moderate income households.
Since 1995, the District and its individual systems have secured $1,858,950 in TSEP funding through planning and construction grants. Because TSEP funds must be matched dollar-for-dollar with local funds, there has been, at a minimum, a $3.7 million positive impact on the physical infrastructure of our area.
The executive budget recommendation to the Montana Legislature for the 2013 biennium includes a transfer of $18.5 million from the Treasure State Endowment Program to the general fund, which, by some estimates, could have an overall negative impact of 1,000 jobs lost and $92 million not being invested in the Montana economy. This recommendation is known as House Bill 11.
If TSEP is de-funded, this may ultimately have a negative impact on the district as well as its individual systems. The District may not be able to fund its project without raising the user rates. Given the fact our communities are made up of low to moderate income households, raising rates may be particularly hard for these families.
Please join us in opposing House Bill 11 by expressing your opposition to our local legislators and any effort to transfer TSEP funding to the general fund. The TSEP is a program that has worked well for many years in assisting local governments to build their communities and make them more livable at a reasonable cost.
(Dave Jones is president of the Hill County Water District.)
When you hear the phrase "TSEP" or "Treasure State Endowment Program" what does this mean to you? If you are not part of a local government then the phrase may have little significance.
You may not know, but funding for TSEP was derived from the coal severance tax trust fund established under Article IX, Section 5, of the Montana Constitution. TSEP was authorized by Montana voters through the passage of referendum 110 on June 2, 1992, and can be found as law under Sections 90-6-701 through 90-6-710, Montana Code Annotated.
Each year on July 1, the state treasurer determines the obligations required for the next 12 months of principal and interest payments for bonds payable from the coal tax severance fund. Until June 30, 2016, one-half of the remaining coal tax severance funds are transferred quarterly to the Treasure State Endowment Program. Funds from this program are used to assist local governments in funding infrastructure projects.
Approximately 60 local governments throughout Montana have submitted infrastructure project applications to fund drinking water systems, wastewater systems and bridges. These local governments have to meet certain criteria in order for their project to be given consideration by the Legislature to receive part of the $18.5 million available.
Under Montana statute, local governments receiving funding are expected to do the following:
The Hill County Water District District has applied for $625,000 in TSEP funds for system improvements to assist in the preparation for the connection to the North Central Regional Water system, as directed by the Department of Environmental Quality's administrative order.
The district consists of individual systems in the town of Hingham and the unincorporated towns of Kremlin, Gildford, Rudyard, Inverness and Joplin. The district maintains a distribution line spanning approximately 500 miles and serves a population of more than 1,700 people. These communities consist primarily of low to moderate income households.
Since 1995, the District and its individual systems have secured $1,858,950 in TSEP funding through planning and construction grants. Because TSEP funds must be matched dollar-for-dollar with local funds, there has been, at a minimum, a $3.7 million positive impact on the physical infrastructure of our area.
The executive budget recommendation to the Montana Legislature for the 2013 biennium includes a transfer of $18.5 million from the Treasure State Endowment Program to the general fund, which, by some estimates, could have an overall negative impact of 1,000 jobs lost and $92 million not being invested in the Montana economy. This recommendation is known as House Bill 11.
If TSEP is de-funded, this may ultimately have a negative impact on the district as well as its individual systems. The District may not be able to fund its project without raising the user rates. Given the fact our communities are made up of low to moderate income households, raising rates may be particularly hard for these families.
Please join us in opposing House Bill 11 by expressing your opposition to our local legislators and any effort to transfer TSEP funding to the general fund. The TSEP is a program that has worked well for many years in assisting local governments to build their communities and make them more livable at a reasonable cost.
Dave Jones is president of the Hill County Water District.
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