U-system officials warn against freezing tuition

HELENA – Higher education officials said Thursday that the governor’s spending plan for federal stimulus dollars falls at least $8 million short, and his demands for no tuition increases are out of line.

“We don’t have to be told that doing everything we can do to mitigate tuition (increases) is job number one,” said Steve Barrett, chairman for the Board of Regents. “We know it’s our priority.”

Officials voiced their frustration at House Bill 645, which says the state will give the university system $10 million in federal stimulus funds but only if it agrees not to increase tuition over the next two years.

The governor’s budget director, David Ewer, said Wednesday that the university system will just have to cut costs, because the governor will not raise taxes.

Commissioner of Higher Education Sheila Stearns said the U-System needs at least another $8.2 million on top of the $10 million already in the bill. She said this request is “almost unforgivably conservative.”

Initially, the university system asked for over $30 million for price and wage adjustments in the next two years. That request has dwindled with the economy, but Stearns warned that capping tuition may hurt the university system rather than help it.

She said another two years without tuition increases could mean double-digit percentage increases in the following biennium as campuses try to catch up.

The $10 million in HB 645 would be used to dampen tuition increases, but tuition could go up regardless. “If it means that it’s 4 percent instead of 8 percent (increase), that’s great,” Stearns said.

Stearns warned that cutting funds at schools means cutting staff and courses students need. “You might save (students) $100 this year, but you might cost them another year (in school),” Stearns said.

University of Montana President George Dennison said college needs to be affordable but funding problems could arise if tuition is capped as it was in 2007. “We need to be careful about making no tuition increases,” he said.

Dennison said the University of Montana has already had to make reductions in some departments to ensure that other departments can survive. Currently, the campus is facing a $4 million shortage, Dennison said. This equals about 30 faculty members, he said.

If UM doesn’t get enough funding, Dennison said class sizes will increase, and students will have limited access to education. “Not by money, but by not being able to provide the courses students need,” Dennison said.

Representatives from other campuses across Montana offered similar concerns about funding, especially the two-year colleges. They said enrollment has skyrocketed and double-digit tuition increases would deter people from getting workforce training.

But Rep. Dan Villa, D-Anaconda and chairman of the subcommittee that oversees higher education budgets, said even though the university system is worried, effects of the economic downturn still apply.

“This is a recession time, it is tough,” Villa said. “We need to understand that from a governmental perspective as well as a personal perspective.”

Villa said his goal is to work closely with the Board of Regents for a tuition freeze. “We’re going to freeze tuition, but not on the backs of students and the programs that support them.”

-by CNS correspondent Molly Priddy

Ewer pans GOP bill to oversee stimulus spending

HELENA – A Republican plan to monitor Montana's use of nearly $800 million in federal stimulus money drew fire Wednesday from Gov. Brian's Schweitzer's budget director, David Ewer, (pictured) who called it unnecessary.

Senate Bill 460, sponsored by Senate President Robert Story, R-Park City, would establish a 13-person committee to monitor and check the progress of stimulus work in Montana. Voting members would include four legislators chosen by legislative leadership and four members of the public.

Non-voting members would include three chosen by Montana’s congressional delegation and two chosen by Schweitzer.

“All I think we need is an active oversight committee,” Story told the Senate Finance and Claims Committee today.

Story said the current oversight is too passive because the governor depends on people to report on their use of government money after the fact.

Though the committee has voting power, Story said it would rarely have to vote on anything. Its purpose would be to oversee federally funded projects and give voice to any discrepancies they see.

Several senators were concerned about legislators being in the minority on the new committee, but Story said he would not be opposed to changing the numbers.

But Ewer stood as the bill’s only opponent at the hearing. He said an oversight committee is unnecessary given the legislative interim committees already in place.

“We believe that the process you have to consider the (stimulus) bill is appropriate and accurate,” Ewer said.

Ewer also said the amount of stimulus money, nearly $800 million, should easily be handled by the same committees that deal with the $8 billion state budget. Most of the money will be funneled into existing programs anyway, he said.

Ewer also expressed concern that having public members on this committee would convolute the process.

“That’s an interesting filter,” Ewer said. “Who’s to say they’re going to get it right? Who’s to say they’re going to be transparent?”

Ewer said the governor is in an active oversight position, because the administration has the duty to carry out the decisions made by the Legislature.

“We’re where the rubber meets the road,” Ewer said. “You tell us what the rubber is, and we’re responsible for getting it out there.”

The bill also provides $100,000 over three years to hire consultants to help the committee understand stimulus projects. Sen. Dave Wanzenried, D-Missoula, asked if that was necessary because the citizens on the committee should be able to offer this expertise.

Story said staff members rarely evaluate projects, so other expertise would be necessary.

The oversight effort would cost nearly $160,000. Story said the federal government expects heightened transparency on stimulus money, so some of the funds could help pay the committee’s cost. Otherwise, the money would come from the general fund.

Tori Hunthausen of the Legislative Audit Division told lawmakers that the federal oversight process is still being crafted, but federal auditors will choose 15 or 16 states to audit monthly. Those states will be chosen by early next week, she said.

-by CNS correspondent Molly Priddy

Senate Demos vow to support federal stimulus bill

HELENA – Democrats in Montana's Senate promised today to help the new Obama administration enact a $825 billion federal stimulus package, much of which is expected to be funneled through the states.

“Getting Montanans back to work is the Senate Democrats' top priority,” said Sen. Mike Cooney of Helena, who added that the Legislature needs to put regulations in place to allow some of the federal money to be used in Montana.

Senate Minority Leader Carol Williams, D-Missoula, said Montana needs to have a “healthy, well-trained workforce” when the recovery package comes to the state. She promised legislation to spur economic recovery, but said the bills will not be ready until the federal bills are passed. Williams said they should be ready within 10 days.

Williams said lawmakers are working with Montana's congressional delegation to figure out how much federal money the state would get and when it would arrive. If the money comes after the Legislature ends, Williams said interim committees should be capable of handling it and a special session should not be warranted.

The Democrats said the recovery package will spur the infrastructure industry, creating new jobs for Montanans.

Williams also said Republicans and Democrats will need to work together with the federal government. Her comments were directed at House Minority Leader Scott Sales, R-Bozeman, who said earlier this week in a televised interview that Montana should not accept help from the federal government.

Gov. Brian Schweitzer submitted a $3.1 billion list of “shovel-ready” projects to the Obama administration earlier this month. Obama's stimulus plan has been introduced in the U.S. House of Representives.

-by CNS correspondent Molly Priddy