Montana Main Street Blog

New Year, New Start, New Perspectives

A new calendar year can be fairly insignificant if you think about it. I mean, so you change a number at the end of the year and people make some new goals and resolutions that most will fail to live up to by the end of the month. So what, right?

But a new year is much more than that - especially this new year. Politically, we have a whole new crop of people starting from President on down to the Montana legislature. These new public servants will be bringing new perspectives and new ideas to the table. You may not agree that all these new ideas are necessarily good ones, but there's just something about fresh starts that are, well, refreshing.

I know many liberals and moderates that have been counting the days until the end of the Bush presidency. On the other hand, I also know many conservatives that have been counting the days as well so they can open a new chapter and look for new leadership.

As I've already posted, at least a full third of the state House will be brand new this session. I'm anxious to meet these new folks and learn more about them. New legislators often bring quite a few new ideas to the table.

So overall, this new year brings more than just a different number for the year; it offers a new start for our state and our country.

Happy New Year!

Second Congressional Seat for Montana Unlikely

Due to population declines in the 1980's, Montana lost its second congressional seat in 1992. Ever since then, many have wondered if the growth in Montana's population would be enough to get that seat back.

A new study by Election Data Services estimates that Montana is probably not in the running to regain the second seat based on population growth estimates. These reports are just estimates, and the actual census will be done in 2010. Based on these estimates, some Northeastern and Midwestern states stand to lose at least one congressional seat. On the other hand, many Southern states and Southwestern states will continue to see their congressional delegations grow.

If you go through the whole report, you'll also see that Montana has, by far, the largest congressional district when you look at population.  

Test Your Knowledge: Good Government Reforms

Test your knowledge on good government/sunshine issues that are likely to come up this session. The questions are in true/false format. The answers are in the comment section:

1. All local and state government officials who lobby at the legislature are required to report those expenses to the Office of Political Practices.

2. A person may serve in the state house for eight years, then in the state senate for eight years, and then come back and do it all over again under the current laws on term limits.

3. A judicial candidate can benefit from an unlimited amount of money from an individual and then preside over a case involving that individual.

4. A legislator is limited to 25 bill draft requests per session.

5. In most states, a state agency must consider the impacts of a new rule or law on small businesses before being implemented.

P-base Poll Results Are In

The results of the Montana Chamber's 2008 Legislative Power-base poll are in, and they show the strongest support yet from voters for business in the history of the poll.

The Power Base (P-Base) is an annual scientific poll of 600 Montana voters on a variety of business and political issues with a 4.1% margin of error. The poll has been commissioned by the Montana Chamber of Commerce since 1991 to determine what regular Montanans think about important economic issues facing our state. This poll was conducted November 11-14, 2008.

ECONOMY & LEGISLATURE

Voters are very positive about the direction of Montana’s economy. 55% of voters believe the state’s economy is on the right track, as opposed to 31% who think we are on the wrong track. These numbers are very similar to the last two years, which means most Montanans are optimistic about our state. That may change in the coming months, but for now that's good news. Conversely, they are very negative about the direction of the nation. 81% said the national economy is on the wrong track.

The P-Base is also good opportunity to see what financial concerns are on the minds of voters. For the third straight year, health care costs continue to be a top concern at 24% and higher energy costs come in second at 15%. Additionally, job creation and increased wages are the top priority for the next legislative session at 31%. Put this together with the 19% who cited development and business growth and you get a full 50% of those surveyed who mention economic issues as their top legislative priority. All other concerns were in the single digits.

ENERGY & NATURAL RESOURCE DEVELOPMENT

As in prior surveys, the P-Base shows Montanans want to see more business growth, especially in high-wage businesses like the natural resource industries. For example, a record 75% of Montana voters want the state to encourage more timber, mining, oil & gas development while only 14% are opposed. 63% believe Montana’s environment is currently well protected with existing laws. Additionally, a strong 76% favor new development of coal-powered electrical generation to provide more long-term, low-cost energy for the state.

LABOR ISSUES

Strong majorities of voters believe businesses can be trusted to make important decisions in treating workers fairly when it comes to benefits, hiring & firing employees 63% to 23%.

Additionally, the poll asked about an issue that’s bound to be very controversial in 2009. When asked if they would support Congressional action to take away a worker’s right to a secret ballot in a union election (a provision in the so-called “Employee Free Choice Act”), an overwhelming 77% of Montana voters said no, while only 14% supported it.

GOOD GOVERNMENT REFORMS

The P-Base also regularly tests opinions on a variety of good government issues. This time, the Montana Chamber asked whether state government should be required by law to analyze the impacts of new laws and rules to small businesses. An overwhelming 70% said “yes.” In addition, a decisive 94% believe that all state and local government officials should be required to report all of their lobbying expenses just like other lobbyists.

I will share more results of the poll over the next month leading up to the legislative session. Stay tuned.

R.I.P. Representative George Groesbeck

I was shocked this morning to read about the early passing of Representative George Groesbeck of Butte. Much to soon for a guy that had so much ahead of him. Our thoughts and prayers go out to his family.

I didn't get to know him that well until after the last regular session when our paths crossed during the interim. He was a very down-to-earth guy who was well respected on both sides of the aisle. We were planning on working with him on a compromise bill for background checks on home health care workers this session.

Although local officials will have to meet soon to name a replacement for his seat, I think its safe to say that you can never truly replace a guy like George. He will be missed.

Governor's Budget: The Good and the Bad

A few weeks ago, Governor Schweitzer released his budget for the next biennium. Overall, I think the budget will be a good starting point. Here are a few of my thoughts on the budget:

1. Spending - There are some positives and negatives here. One-time spending is cut significantly and the overall budget has almost the same price tag as last time. The one drawback may be a bit too much on-going spending. I believe the increase in these appropriations is between 9-10%. In a time of economic uncertainty, I don't know of too many businesses that are looking to grow that much. And government depends on the private sector for revenues. I'm not saying all on-going spending increases are bad, just that they may be a tad too high for a time where revenues may plateau or decline. I need a little more time to see who's getting these increases and for what reasons.

2. Education - The education community may not think it's enough, and some may think it's too much, but I think the Governor has put forward a reasonable increase in education funding during a time of economic uncertainty. Like I said above, not all on-going spending is bad. Let's just hope that the education community supports development and business efforts that will provide more money for education down the road as well. You can't be pro-education and be anti-business unless you're willing to keep increasing people's property taxes.

3. Housing - Affordable workforce housing is a big issue for Montana families and the business community. One good part of the budget is a small portion for manufactured housing. One disappointment was the lack of any funds for a state affordable housing fund. I believe Montana is only one of three or four states without one. Some one-time money to get this fund going would be helpful.

4. Workforce Training - The budget does include a good chuck of change for workforce training. This training helps workers get the education they need to get better-paying jobs. It also helps businesses with productivity and quality of their workforce. Good news.

5. Workers' Compensation- The Old Fund is in the hole. The Legislature took out some of the Old Fund money back in 2003 to balance the budget. At the time, it looked like there was a surplus, but now it's in the red. Since then, legislators have tried to pay it back in the last two sessions, but there was never bipartisan support to fund it. The current deficit is around $30 million, and if the Montana Supreme Court overturns the Work Comp Court's ruling in the Satterlee case, the deficit would rise to around $125 million. It's time to pay the Old Fund back. Much easier to do this now while we still have a bit of a surplus rather than some future time when we may or may not have the money.

6. Health Care - Included in the Governor's budget is an investment in Health Information Technology. I am told that our federal delegation is trying to secure the other half of the funding necessary to put this into place. Improved Health Information Technology will help reduce costs to the health care system and improve quality.

7. Taxes - Kudos to the Governor for not proposing any new tax increases. And so far, his Department of Revenue has not actively proposed the famous bad tax bills from the last two sessions. We'll wait and see if his administration lobbies for any of those bad tax bills as legislators bring them forward. During the campaign, he signaled support for a business equipment tax reduction bill, and we hope he sticks to that. There should be a number of bills out there, including changing the $20,000 threshold to a higher true exemption, reducing the rate down from 3%, and/or some kind of business equipment tax holiday to provide some economic stimulus and to encourage businesses to invest in newer, safer, greener and more productive equipment.

Like I said before, a good starting point to get some debate going. I'm sure I forgot a few things, so I may follow up on this down the road.

Although there have been some early spats already over control issues in the state House, I'm still encouraged that this session will probably have more civil discussion and negotiating than the last couple.