GOP rejects pleas to restore money for CHIP, K-12

By MOLLY PRIDDY
Community News Service
UM School of Journalism

HELENA – State senators debated a proposed state budget of nearly $8 billion Thursday, with Democrats trying and failing to insert more money for schools and for children’s health insurance.

Democrats brought amendments to change state funding in the two largest sections of House Bill 2 – health and human services and education.

Senate Minority Leader Carol Williams, D-Missoula, brought the first attempt to fully fund the Healthy Montana Kids Plan. The voter-approved children’s health insurance program expansion was reduced by Republicans who insisted on reaching “structural balance,” meaning the state should not spend more money than it earns in revenue during the next two years.

“I would like to just submit that the kids of Montana are getting sacrificed on the altar of structural balance,” Williams said. “We’re about to say on partisan vote, we don’t care what the voters said.”

Williams also said fully funding the program would provide coverage for 30,000 uninsured children. The GOP plan would cut that number in half.

But Republicans defended their position, saying they are expanding health care coverage for uninsured children from low- and moderate-income families, though not to the threshold the voters approved.

“We are not turning our back on the needy in our state,” said Sen. Dave Lewis, R-Helena. “We’re adding 15,000 children.”

The amendment failed mostly on party lines, 24-26. Sen. John Brueggeman, R-Polson, was the only Republican to vote for the full expansion.

In education, Sen. Bob Hawks, D-Bozeman, proposed raising K-12 funding to offer a 3 percent increase in schools' base budgets and 3 percent increase in per-student support. The Senate's budget committee voted earlier to limit state funding to 1 percent and 1 percent, and to use federal stimulus funds to make up the difference.

Democrats argued that the reduction would be permanent in the next biennium because stimulus dollars are one-time-only funds. Republicans said the school system needs to tighten its belt along with all other state agencies. The amendment failed, 23-27.

Democrats also failed to pass an amendment to exempt the Montana School for the Deaf and Blind from the previously agreed upon 2 percent cut across all state agencies. Sen. Mitch Tropila, D-Great Falls, asked lawmakers to consider the unique challenges these children face.

“I implore you today, please vote with your heart,” Tropila said. “Think of these kids.”

But Republicans said it would be unfair to allow one program to escape the cut.

“I realized that this is a very good school and everything. However, I think that there’s lots of other places that have good arguments too,” said Sen. Keith Bales, R-Otter. “I don’t think we can make any exceptions.”

The amendment died on party lines, 23-27. Tropila later tried similar amendments, but all failed.

Since the budget was amended and passed by the Senate, the House must agree on the amendments before it can go to the governor. However, the budget will most likely be sent to a conference committee consisting of representatives and senators charged with hashing out differences.

Senate Republicans look to trim House budget

HELENA –The House had barely approved its $8.1 billion version of the state budget yesterday when key Senate Republican leaders began talking about ways to cut it.

“(The budget) is not structurally balanced,” said Sen. Keith Bales, R-Otter and chairman of the powerful Senate Finance and Claims Committee. “It was my hope it would’ve come out of there more balanced.”

Bales, whose committee is scheduled to hold hearings on the budget next week, said the House budget doesn’t account for about $41 million in project revenue shortfalls. The money will have to be cut from somewhere, he added.

“It will come from multiple places,” Bales said. “There is not one place that we can easily reach out and grab that money.”

Bales said Senate Republicans don’t have specific plans for budget cuts but he has a few ideas of his own. He said the committee will consider trimming the base funding for education, human services, corrections and general government. That would help the next Legislature build a balanced budget if revenues don’t improve.

“I certainly do not want to build government in the face of a recession,” he said.

Bales said he expects cuts across the board, but that it is premature to talk about specific cuts when he hasn’t vetted his ideas yet.

However, his vice chairman, Sen. Dave Lewis, R-Helena, said he wants to consider cutting $35 million in funding for the Healthy Montana Kids Plan, a voter-approved plan to offer health insurance to some 30,000 uninsured children.

Republicans tried but failed to cut that money earlier in the House. Lewis said he would like to remove it again because implementing any large new program right now is a bad decision.

“I’m not done looking at it,” Lewis said. “I’ll be bringing it up again.”

Lewis also said he would like to spread some of the stimulus money for infrastructure projects to rural areas. “I think there’s a concentration in the highly populated areas,” Lewis said.

Both Lewis and Bales said the Legislature needs to get the stimulus money out to Montanans quickly to create jobs and help right the economy.

However, Lewis also conceded that any budget decisions the GOP-controlled Senate makes will have to be made without alienating the Democratic administration.

“We’ve always got to be thinking of how we can package this so the governor will sign it,” Lewis said.

-by CNS correspondent Molly Priddy