Schweitzer sees hope amid economic hardships

HELENA – Gov. Brian Schweitzer’s optimistic State of the State address was met with applause from Democrats and hesitation from Republicans on Wednesday night as he outlined his hopes for education, energy development and the federal stimulus package.

“We can accomplish more working together to build than we can tearing each other down,” Schweitzer told Senate and House lawmakers.

Before going into his plans for the current legislative session, Schweitzer detailed his list of Montana’s accomplishments in the last four years, including the implementation of full-time kindergarten, heightened oil production and the creation of more jobs.

Each point was applauded by Democratic lawmakers, but Republican leaders were not as impressed.

House Minority Leader Scott Sales, R-Bozeman, said Schweitzer’s portrayal of increased oil production in the state was inaccurate. “He plays really fast and loose with the figures,” Sales said. “I’m not sure where he gets his numbers.”

In his speech, Schweitzer assured Montanans that "help is on the way" with the federal stimulus money that will provide jobs, access to health care and money for education. The governor also promised his administration's "rapid response team" would help Montanans who have lost jobs and families in need of health care and unemployment benefits.

Senate President Robert Story, R-Park City, who delivered the Republican response, promised that the Legislature will create an oversight commission to monitor how those federal dollars are spent.

Schweitzer drew bipartisan applause when promised the state would collect “not one new dollar" in property taxes due to the recent statewide reappraisal of property, which reported an average increase in residential values of more than 40 percent.

In touting Montana's gains on the energy front, Schweitzer urged Senate Republicans to advance stalled legislation that would set standards for coal-sequestration, a process by which the greenhouse gas carbon dioxide is removed from coal and stored underground. He said Montana could be a leader in the industry.

He also urged legislators to pass House Bill 388, which would tax oil and gas production to provide raises for teachers. He said the idea comes from Wyoming but added that Montana will still tax oil and gas at a lower rate than that state.

But Sen. Roy Brown, R-Billings, said the bill would in fact be a new tax on oil and gas production, creating a disincentive for business development in the state. “He doesn’t always let the facts get in the way of a good story,” Brown said.

Sales agreed, saying the governor could not promise no new taxes and support HB 388 at the same time. “If you’re going to take a dollar from one person and give it to another, that’s considered tax,” Sales said.

Senate Minority Leader Carol Williams, D-Missoula, said she thought the governor “hit all the right notes” when he discussed education, economic development, health care and energy.

Williams also said she appreciated Schweitzer’s acknowledgment that the Legislature had an equal voice in the lawmaking process. “It was helpful, given the potential of having really divisive things that could’ve been said,” she said.

In his televised response to the governor's address, Story promised to keep a close eye on spending and to keep the budget process open and transparent to the public. He offered few specifics, however, on Republican plans to deal with what both he and Schweitzer acknowledge were tough economic times.

-by CNS correspondent Molly Priddy