Month: July 2018

I can’t have a bill written until I’m re-elected. I did have a bill written on behalf of the Local Government Interim Committee, a fireworks tax with proceeds going to workers comp for those volunteer fire fighters who are not covered and for grants to emergency medical and trauma services. That bill passed the bipartisan committee 7-1 on July 10. The bill can’t technically be assigned to me as I am not unopposed in the general election. Hopefully, I’ll have that opportunity to sponsor the bill in 2019.

Potential Bills (Part 1)

Tobacco 21: This would  initially be a state constitutional amendment to allow nicotine delivery systems to  be included with alcohol as a product (potentially), not available to 18 year olds for sale or consumption. If passed by voters subsequent to legislative action, the legislature could consider raising the age of access to nicotine products.

Local Option Taxes: Potentially the Gateway Local Option Tax as presented by Park County, affording counties bordering our two national parks (or municipalities within the county), the option of a selective sales tax by permission of electors. Areas in question must be in tourist impact areas using criteria developed by the Department of Commerce.

Bike/Pedestrian trails on state highway right of way: A bill to assure that maintenance of right of way, non vehicular amenities are financially maintained by the state, including reimbursement of counties or cities for such maintenance.

An affordable Housing Bill: As previously posted, the interim committee I served on, passed three bills to increase the stock of affordable housing for low and middle income Montanans. Final assignment of the bills occur after the election.

 

A few years ago the legislature accepted a deal from the federal government: We’ll pay for expanded coverage of your low income citizens, not eligible for the Affordable Healthcare Act and we pay until about 2020. At the point says the federal government, you, Montana, pay 10% of the bill. And then Initiative 185 comes along and it says, you the Montana voter approve a tax on nicotine and the sum of that minus administrative costs will assist the funding of the 10% AND by voting for this initiative you will instruct the legislature to implement the renewal of Medicaid coverage for the people left out of the Federal solution to health care coverage.

On Friday the 13th, several legislators met with the best and brightest from the Montana Legislative Fiscal Division. These are the folks that predict revenues and present one of two (The executive branch being the other), revenue estimates for the legislature. Among many weighty issues regarding the continuance or expansion of statewide services, Medicaid renewal was one “pressure” (a term used in budgeting to quantify a line item not included in present law expenditures for the next biannium but likely to be a contested priority). The point: Even with the assistance from a passage of 185, the legislature will have to fund the remainder; possibly 100 million dollars per 2 year period. We are predicted to cap out at about 100,000 Montana’s being eligible for the coverage (138% above the poverty level). There are many other “pressures” including a simple pay raise for state employees and demands to meet our obligations with the public defenders system.

We probably can’t deliver Medicaid renewal and the various pressures facing us without new revenues. Maybe this will come through many long overdue fee increases, maybe, but unlikely, we’ll examine the efficacy of the 2% discount for cap-gains income within the state income tax. Even more unlikely, we’ll examine a select sales tax and retain the income tax.

Our numbers don’t look bad beyond 2020, with growth pegged at about 4% by the smart folks at the Fiscal Division. Not enough though. Folks are driving through and leaving money on the table, and e-commerce is tax free. We’re a low income state, an aging population, an abundance of real estate, and 100,000 citizens projected to be eligible for the HELP Act, medicaid expansion. On Friday the 13th, the challenges of the next session was presented to us. Theses are the hard prognostications that face the 2019 legislature.

 

The Local Government Interim Committee (I’m one of eight on the committee), passed out three bills addressing the affordable housing shortage in Montana. These bills are assigned to committee members for the 2019 MT. Legislature.

1. A bill for an Act providing for workforce housing tax credits. This is an act that would establish  state credits better known as 4 percent LIHTC credits which make the state eligible to receive 4 percent federal LIHTC credits. Technical stuff but very simply said, the credits are sold (syndicated) to private entities who use them to offset tax liability,  with the proceeds going to the developer. The developer has strict obligations to build units, primarily geared towards people earning 60% or less of Area Median Income (AMI).
2. A bill for an Act allowing the Big Sky Economic Development program funds, and Treasure State Endowment Program (From the Coal Trust Fund), to include infrastructure expenses for housing development for low income and moderate income households.
3. A bill for an Act providing funding for low and moderate income housing from the permanent Coal Severance Tax trust fund for low interest loans. This adds 15 million dollars to the fund expanding the current 40 million dollar fund used for the Montana veteran loan mortgage program. The former funding will now be available to all income income eligible  residents.