Budget crisis forcing tough decisions

This past week was a very long and difficult struggle to table bills with little or no substance. Most of the bills that didn’t make it out of committee were tabled by party-line votes.

This included House Bill 603, which would authorize labor requirements in public works contracts. If this bill had passed, it would have eliminated small business contractors and competition. The unions would have had complete advantage in securing public works projects.

Another was HB 507, which would have required a market conduct study and financial exams by the Insurance Commissioner of the State Fund. Much of what was being requested is already being accomplished by the Legislative Audit Division. It was nothing more than duplication of existing programs.

The market conduct study was a new program, but with a price tag of approximately $600,000, and with declining state revenues, it was felt by the Republicans on the Business and Labor Committee that this concern would be better managed as it is currently.

It appears that the Legislature and the governor, after much discussion, have tentatively settled on a revenue reduction of $251 million. I feel that the estimates will continue to drop another $30 million to $40 million more, but that remains to be seen. At least this gives the Legislature a tentative basis on which to start releasing general fund revenue bills out of House Appropriations.

Even with the congressional stimulus package of $612 million, which is designated for certain state projects, the executive budget may still have to be adjusted to reflect the downturn from the original projected revenue estimates.

We also worked to keep government accountable to the people. A bill called the Clean Government Act would prevent businesses and organizations who get “sole source” government contracts from making political donations. It’s just wrong — and provides too great a risk for corruption. Passing this bill will help protect Montana from the kinds of scandals we’ve seen in Illinois and elsewhere.

Some of my fellow Republicans made a hard decision this week about the budget. Passed by initiative last fall, Healthy Kids creates a new state program. It establishes a level of 250 percent of the poverty guidelines to get free health insurance for children. A family of four could get benefits while earning more than $55,000 per year. For larger families, the amount is even more.

When the initiative was passed, Montana was expecting a billion-dollar surplus. Since then, the economy is in a free fall, and we’re already more than $250 million short of being able to pay for the governor’s proposed budget.

Either taxes had to be raised by hundreds of dollars for every Montana family, services for our poorest Medicaid patients had to be compromised or even eliminated, or the new program for families making $55,000, $60,000 or even $70,000 had to be delayed until the budget crisis subsides.

The decision was to delay implementing the Healthy Kids Program for two years. It was a tough choice, but it had to be done.

In closing, the Legislature must continues to be accountable and transparent to the public.

Rep. Bill Beck, R-Whitefish, represents House District 6, rural Whitefish.