Lawmakers inch closer to session-ending deal

By MOLLY PRIDDY
Community News Service
UM School of Journalism

HELENA – Shadowy negotiations between Democrats and Republicans on children’s health insurance and school funding came to light on Friday, hinting at a possible break in the state budget stalemate as the 61st Montana Legislature winds down.

Both parties said it was time to compromise, saying they completed more work in three or four hours than they had since Monday. Leaders said they were optimistic about the negotiations, despite a petition for special session requested by Senate President Bob Story, R-Park City.

“At least everybody is talking,” said Senate Majority Leader Jim Peterson, R-Buffalo. “That’s a good sign.”

At a meeting before noon Friday, both Republican and Democratic budget chairmen explained the deals they had been attempting to make with the other side over the highly contentious Healthy Montana Kids Plan and K-12 education.

Senate Finance and Claims Chairman Keith Bales, R-Otter, said the Senate had proposed raising state funding for education and allowing a gradual implementation of the voter-approved expansion of programs that offer health insurance for children from low- and moderate-income families.

Earlier this session, the House agreed to 3 percent increases in state funding for K-12 schools. Senate Republicans cut the state funding to 1 percent, backfilling the difference with one-time-only federal stimulus dollars.

Bales said the Senate GOP sent a proposal to House leaders Thursday night that would fund K-12 education at a 2 percent increase, using stimulus money to make up the final 1 percent. The proposal also contained a gradual implementation of the Healthy Montana Kids Plan, which would cover an estimated 30,000 uninsured children by July 1, 2010.

Bales said as state revenue estimates keep falling, expensive programs should be taken in stride. “If we’re going to err we need to err on the side of fiscal caution,” he said.

But House Democrats countered with a proposal of their own Friday morning, asking for a 2 percent raise for schools but demanding an immediate, full expansion of health coverage for uninsured children.

House Appropriations Chairman Jon Sesso, D-Butte, said a 2 percent increase for K-12 schools is a fiscal reality during a recession, backing off of previous statements that a 3 percent increase should be the minimum.

“(Schools have to be willing to also cut a little bit and prepare to cut in the future,” Sesso said.

Sesso also said the Healthy Montana Kids expansion would not require all the funds currently reserved in its bank account because it would just be starting up. So, Sesso said, there could be $10 million per year transferred to the state checkbook to balance out the 2 percent across the board cut Senate Republicans gave to all state agencies earlier in the session and bolster health programs for the poor.

But Bales said going full bore with the health insurance expansion could lead to fiscal potholes down the road.

“I don’t think anybody knows how fast it will ramp up or what the cost actually may be,” Bales said.

Republicans eventually responded with another proposal, which Democratic leaders said was headed in a positive direction but did not elaborate on details.

The House and Senate budgeting committees agreed to work through the weekend to hammer out the details on education and children’s health care in hopes of passing a budget before the final legislative day on Tuesday.

House, Senate wrestle over $8 billion budget bill

HELENA – The House today overwhelmingly rejected Senate amendments to the state budget bill, sending the budget into a special joint committee of lawmakers from both houses.

House Bill 2, the state budget bill, was heavily amended by the GOP-controlled Senate after it was approved by the House. Some of the most controversial changes included reducing the expansion for the Healthy Montana Kids Plan and decreasing the amount of state money spent on education.

Since the houses could not come to agreement on the budget, it will be sent to a free conference committee, which is a joint panel of senators and representatives charged with ironing out differences. The committee has the power to change any part of HB2.

House Speaker Bob Bergren, D-Havre, along with House Minority Leader Scott Sales, R-Bozeman, appointed four representatives to the committee: Reps. Jon Sesso, D-Butte; Cynthia Hiner, D-Deer Lodge; Llew Jones, R-Conrad; Ray Hawk, R-Florence.

The Senate members of the committee have yet to be chosen by Senate President Bob Story, R-Park City.

-by CNS correspondent Molly Priddy

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.