Governor urges fast action on stimulus spending

HELENA – Gov. Brian Schweitzer outlined his plan for the state’s share of the stimulus money today, saying lawmakers need to move quickly and appropriate the money to jump start the timber industry, freeze tuition and rebuild highways.

“The Montana Reinvestment Act will put Montana back to work,” Schweitzer said at a press conference.

Schweitzer asked lawmakers to have the stimulus bill ready to go by April 3, a deadline, he said, was put on the money by the federal government.

“They have said use it or lose it,” Schweitzer said.

House Appropriations Committee Chairman Jon Sesso, D-Butte, said it would be tight but the Legislature will be able to get the bill out in time.

“We’ll adjust as necessary,” Sesso said. “If the federal government can get it done in 45 days, we’ll get it done in 22.”

If legislators follow through with Schweitzer’s demand, they would only have 22 legislative days to complete the task.

Schweitzer’s plan for the stimulus money includes $42 million for a two-year tuition freeze at Montana colleges, $43 million to stabilize teacher retirement funds and $10 million for the struggling timber industry.

“Unemployment rates in Montana are relatively low until you get to northwest Montana, where the timber industry is hurting,” Schweitzer said.

The money would be used to buy new equipment for sawmills to help them deal with the thousands of acres of trees that have been killed by beetles, Schweitzer said.

Sesso said the schedule for the stimulus bill has been moved up, and plans on introducing the bill on Saturday. It will still work in tandem with the state budget, Sesso said.

-by CNS correspondent Molly Priddy

Officials start to unwrap federal stimulus package

HELENA – State officials responsible for roads, education and health care urged lawmakers Tuesday to move quickly but carefully to approve the spending of Montana’s $800 million share of federal stimulus money.

“Recovery dollars don’t wait for projects,” said Transportation Director Jim Lynch. “If we don’t use this money in the time frames in which we are given to spend it, we will lose it.”

Lynch said half of the projects must be obligated within 120 days of receiving the money. If the state fails to obligate the money in that time, it will be redistributed to states that can, he added.

Lynch said the Department of Transportation has a $234 million list of projects that have already been approved by the Highway Commission and may just need minor tweaking. He said these projects would put 6,000 Montanans to work quickly.

“There’s quite a bit of construction activity that’s going to take place with the stimulus money,” Lynch said.

DOT expects the first project to be ready for bidding within the month.

Directors from other state agencies most affected by the federal money gave a Senate budget committee estimates about how the money will be used in their departments but could not give exact details.

Superintendent of Public Instruction Denise Juneau said the first half of the $149 million in federal assistance for Montana schools is expected in the next two months. Juneau said she hopes any state money freed up by federal money will stay in education.

The Office of Public Instruction expects some federal guidance on the rules, regulations and other specifics on education's share of stimulus money by the end of this week, Juneau said.

Mick Robinson of the Montana University System asked that federal money be appropriated to mitigate modernization costs and tuition increases across Montana campuses.

Anna Whiting Sorrell, director of the Department of Public Health and Human Services, said she was still waiting for federal guidance but urged continued funding because her department could be needed more than ever as economic problems hit home.

Whiting Sorrell said more Montanans will be eligible for public health services but may not come forward immediately.

“This will be the first time that they have accessed our services,” Whiting Sorrell said. “It is something they will not be comfortable doing.”

On the brighter side, Department of Revenue Director Dan Bucks said Montanans can look forward to several tax cuts within months.

“These cuts are huge and the dollars are focused on the middle class,” Bucks said.

Bucks said 97 percent of individual income-tax payers will benefit from a $400 tax credit or an $800 tax credit for married couples. He also stressed the importance of home renovations for energy conservation because many projects are eligible for tax credits.

Representatives from the governor’s office asked lawmakers to be as expeditious as possible when appropriating money so projects can get going.

Other testimony at the lengthy hearing came from various counties, which asked for specific projects or concerns to be considered when the Legislature appropriates the federal money.

Lawmakers were also told there would be around $200 million available in federal discretionary funds, but it is still unclear how that might be used to replace state dollars in the budget.

- by CNS correspondent Molly Priddy

Juneau: OPI is studying stimulus aid to schools

HELENA -Superintendent of Public Instruction Denise Juneau asked state lawmakers today for continued education funding and said the Office of Public Instruction would give recommendations on the federal stimulus package soon.

"Public education is the only specific institution that the legislative body has a constitutional duty to fund," Juneau said.

The superintendent acknowledged the constant struggle to adequately fund education and finding solutions that do not involve court decisions.

"We must develop a solution that will outlast all of our political lives and agendas," Juneau said.

Juneau said OPI is still working on understanding specific requirements laid out by the federal government in the stimulus package, and said appropriation recommendations would be available soon.

Juneau also stressed the importance of graduating from high school, especially in today's competitive workforce. She endorsed bills that would increase the compulsory school age from 16 to 17 and efforts to increase distance learning opportunities.

-by CNS correspondent Molly Priddy

Baucus plugs stimulus plan, children's health care

HELENA – U.S. Sen. Max Baucus reassured state lawmakers today that the federal stimulus package would boost Montana’s economy through shovel-ready projects that will employ 11,000 people.

“One thing is clear,” Baucus said. “The economic recovery and jobs bill provide the jolt our economy needs.”

As chairman of the Senate Finance Committee, Baucus (pictured) said he worked to make the money in the American Recovery and Relief Act available as quickly as possible to Americans.

“Not everyone agreed on the final package,” Baucus said. “Negotiations were tense at times.”

Montana will receive $626 million of the nearly $800 billion bill for education, healthcare and infrastructure projects across the state.

“It’s not perfect, but it’s necessary,” Baucus said.

Baucus also stressed the importance of the Children’s Health Insurance Plan. Earlier that day, Republican members of a key budget committee voted against a bill to fund a voter-approved expansion of the popular CHIP program.

“Children’s health insurance is not a partisan issue,” Baucus told legislators.

A CHIP expansion was approved by Montana voters this fall.

- Story by CNS correspondent Molly Priddy

Photo by Alison Smith