Committee backs changes in stimulus spending

By MOLLY PRIDDY
Community News Service
UM School of Journalism

HELENA – A key House panel voted 18-2 Tuesday to spend some of the state’s $870 million in federal stimulus money on cities, counties and public education instead of investing in the teacher’s retirement fund and new license plates.

The House Appropriations Committee decided to reallocate $75 million of Gov. Brian Schweitzer’s original proposal but left the rest of House Bill 645 intact.

Committee Chairman Jon Sesso, D-Butte, said the amendments to House Bill 645 were based on a level of unparalleled bipartisanship and cooperation with the state administration.

“This was truly a team effort,” Sesso said.

Sesso said the committee endorsed a “lion’s share” of Schweitzer’s proposal, and the amendments should be taken in proper perspective.

“We rearranged the deck chairs on $75 million out of $800 million,” Sesso said.

Lawmakers had no say over nearly $600 million of the stimulus money because it was allotted for specific programs by the federal government.

The $75 million reallocation included removing $43 million from the Teacher’s Retirement System, $3.5 million from the Southwest Montana Veteran’s Home, $3 million for new license plates, $2 million from the Ruby Dam restoration and $4 million for updating the secretary of state’s computer system.

The money was given to programs on a committee priority list, Sesso said.

One of the top priorities was a $20 million boost for city and county public works projects and $3 million for tribal governments. Legislators also set aside $3 million for historical restoration projects, including Traveler’s Rest near Missoula and the Daly Mansion in Hamilton.

In education, lawmakers decided to move $15 million to K-12 education and $13 million for tuition mitigation in the University System and community colleges. Community colleges will also get over $1 million for infrastructure projects.

Human services received $2 million for food banks, rescue and homeless shelters, as well as $3 million for aging services.

Rep. Walt McNutt, R-Sidney, said the committee kept the next legislative session in mind and tried to avoid creating fiscal sinkholes in the budget. He also said the committee was not contentious in the process.

“I didn’t get elected to come argue,” McNutt said.

But Rep. Dave Kasten, R-Brockway, said he voted against the stimulus bill because it creates a more bloated government.

“We are just spending way, way, way too much money,” Kasten said. “I’ve got six grandkids and we’re spending their money right here.”

Much of Schweitzer’s original proposal for the stimulus money remained intact, including the $60 million to cushion increases in the Medicaid caseload and $43 million for school facilities and infrastructure. Sesso said $35 million of that money is expected to be “on the street” upon passage of the bill.

Lawmakers expect a full House for HB 645 vote on Thursday. The bill works in coordination with the state budget bill, which is currently being considered in the Senate.