Legislative Report

3-18-23

It was a privilege this morning, Saturday March 18, to attend the Governor’s Prayer Breakfast. It wasn’t held last legislative session because of Covid. The organizers were especially excited because it was the first time since Governor Judy Martz, that a Governor has attended. Neither Schweitzer or Bullock chose to be a part of this great event during their tenures. This year former NFL player Phil Olson was the guest speaker and was very inspiring. Representative Greg Kmetz, Senator Mike Lang and I had the opportunity to meet after the event, with representatives of the Hope House organization in Clancy about some legislation important to them. They provide a bridge between rehab centers and back into the world for individuals struggling with substance abuse. They are part of a national faith-based network that provides a greater opportunity for a successful path back to no dependence.

This past Friday marked the 53rd of a possible 90 legislative days of the 68th session. It was a big week in the appropriations committee. Wednesday, we passed House Bill 2 out of committee. HB2 is of course the main budget bill for the state for the next two years. During the hours of hearings, especially regarding the Department of Health and Human Services and Department of Corrections, it was hard to not think about how much money the taxpayers of Montana and our nation must pay for the poor decisions of so many. It would otherwise be a relatively easy task to care for those who are unable to take care of themselves. HB2 totals about $14 billion for the next 2 years with roughly ½ of that federal taxpayer $.

Medicaid is a huge recipient of federal $ and has seen a significant increase in the current biennium as a result of the declared and extended state of emergency in our country due to covid. The federal contribution to Medicaid increased substantially as a result of this declaration and will decline by a significant amount when it finally expires next month, if it does. The declaration also made it difficult to remove people from the Medicaid rolls even if no longer eligible. This of course led to much higher expenditures and a bigger load on taxpayers. It will be a challenge to remove ineligible people from the rolls at a fast enough pace to keep an even heavier burden from falling on Montana taxpayers as the emergency federal dollars abruptly end. Currently over 35% of Montanans are on some form of Medicaid.

Wednesday the 22nd we the subcommittee chairs of appropriations will present HB2 on the Floor to the whole House. This is likely an all day event where we present each major section of the budget and hope our colleagues agree to pass it on to the Senate where it will face scrutiny and likely some revision by the Finance and Claims Committee, their version of Appropriations.

We also heard a number of bills outside of the main budget, coming out of Subcommittee F that deals with construction and maintenance of State infrastructure, grants and loans to local governments, as well as some local nonprofit organizations. All in all it was a big week that involved a lot of YOUR money. Unfortunately, that seems to be a hard concept for a lot of folks to grasp.

You may have heard about the Governor’s bill signing ceremony held this past Monday where he signed a number of tax rebates, reform and tax cut bills. Two bills will return a total of about $750 million in income and property taxes, about 25% of the amount collected in excess of what we budgeted in the last Session. We conservatives are still battling for bigger rebates, otherwise it will be a historic tax increase that we did not vote for. Unfortunately, many in our own party think they know better than you do how to spend your money.

The Governor also signed a business equipment tax exemption increase from $300,000 to $1,000,000, that will help lower that tax on small businesses. A major income tax reduction in the top rate from 6.5% to 5.9% was also signed into law. We are making significant improvements to not feed an excess of your tax $ into state government. These cuts come on top of significant cuts made last session. It is abundantly clear that taxes paid more than that required to fulfill basic functions of government, are extremely difficult to get back out.

To top off a great week this afternoon, Carol and I got to help Grandson Jett celebrate his 3rd birthday! His one year old brother Kip had a big time too.

I’m looking forward to greeting the Pulse Crop Committee from around the state this week as they hold their winter meeting in Helena. Vida farmers, my neighbors, Ryan and Leslie Bogar will be among those in attendance. I’m also looking forward to greeting the civics class from Garfield County on Wednesday.

For Freedom, Representative Jerry Schillinger, (406) 974-2478, Jerry.Schillinger@legmt.gov, P.O. 200400 Helena 59620, or leg.mt.gov where you can look up bills, contact legislators or zoom in to committee hearings to testify or just keep an eye on us!