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Montana Republicans have caught the D.C. measles

by Rep. Chuck Hunter
| February 6, 2015 2:26 PM

Tax decisions have taken a turn for the worse in the 2015 Montana Legislative session. The conservative House Republican leadership is churning out tax-cut bills without regard to their consequences on necessary services and on people. Tax policy is being determined in the appropriations committee rather than the taxation committee. Our rainy day fund is threatened. And the reason for all of this reckless behavior? To try to unseat Gov. Steve Bullock in 2016.

The Republican leadership wants to send a pile of tax cut bills to the governor’s desk, and soon, just to force him to veto the bills — which he will have to do as a responsible and prudent manager of the state’s finances. Republican leadership has caught the Washington, D.C. measles — focusing on the next election rather than taking care of state legislative business.

Republicans have already proposed $440 million of tax cuts and we haven’t even finalized the state’s revenue estimate, which will tell legislators how much we expect to have in the checkbook. And more tax-cut proposals show up every day. So far, Republicans have passed every tax cut proposal they have heard.

These bills will put the state upside down. We should be focusing on ensuring stable funding for the basic services of government, not undermining our ability to provide those services.

And let’s tell the truth — these tax cuts are far from equitable. One of the property tax bills, for example, gives only $11 to the average Montana homeowner — about the cost of a pizza — but treats an out-of-state utility to more than $200,000. We don’t need to give a feast to corporations while we leave Montana families with the crumbs.

Huge tax cuts also threaten one of the key components of our prudent fiscal management — the $300 million ending-fund balance that enables us to weather unexpected ups and downs in our economy. In a recent reader survey by the Great Falls Tribune, readers overwhelmingly supported a $300 million rainy day fund. But $440 million in tax cuts swallows the entire rainy day fund in one gulp.

Kansas, Wisconsin and New Jersey have gone down similar paths, passing big tax cuts without paying attention to the consequences. They are now reaping what they sowed and are trying to get back to financial stability by re-enacting those taxes. We in Montana have no reason to careen down the same path of volatility.

We have been the state of fiscal prudence for the last decade, due to two governors who were both fiscally conservative and deft in managing our state budget. Our tax system is recognized nationwide for being fair and offering one of the nation’s best tax climates for both business and our families. We don’t need to reinvent what we already have.

Democrats believe we need to be smart about managing our state’s finances. Let’s define the services we need to fund. Let’s agree on the revenues that are available before we pass tax cuts we can’t afford. Let’s keep our $300 million ending-fund balance as a hedge against hard times and unexpected events. Let’s keep our tax policy prudent and equitable. Montanans want stability and security in our finances. Let’s give it to them.

Rep. Chuck Hunter, D-Helena is the Montana House Minority Leader.