Special session comes up short

The special legislative session was a lost opportunity to me. Republicans and Democrats alike brought their petitions to try and expand the session call to make the special session as effective as possible.

Although it was a "given" that the governor's funding priorities for K-12 schools ($71.5 million) and the state pension funds ($125 million) would pass, hopes were high that a few other priorities could be considered. The school law suit and the retirement systems both presented policy issues that could have been addressed.

Also, this was a good opportunity to provide some homeowner taxpayer-relief ($63 million) and to lift a financial burden from the people who own water rights. A fee will be collected from each person who owns a water right to raise $30 million to facilitate the Department of Natural Resources and Conservation's efforts to finish the adjudication of water rights within Montana.

It would be nice if taxpayers received a notice that the state would pick up the tab because of the excess tax revenue. Trust has to be earned. These two actions would total $93 million out of the $450 million projected ending fund balance by mid-2007.

The governor's bill, HB 1, went quickly to the House floor in the capital, where I expected to see a 50-50 tie vote. Unfortunately, the bill passed 51-49, with one local Republican voting with the Democrats. That vote destroyed any opportunity to address any amendments to HB 1 or any other bills.

My major disappointment was that we were unable to lessen the tax burden on homeowners — a $250 tax refund for each homeowner would have been a nice Christmas present, given to the people responsible for the surplus.

Although the ending fund-balance is called a surplus, it is more accurately described as excess tax revenue. It is the money that is left over after the budget has been funded.

Normally, the amount of money is small and provides a cushion in case the revenue projection is off, or there are emergencies such as fires, for which we have not planned. If the cushion is large and is used to grow government, a structural imbalance is created, and a deficit occurs in the future when there is a slight downturn in the economy.

My preference is to minimize growing government and use the cushion for one-time expenditures and give most of it back to the taxpayers. It is easy for government to continue to ratchet up property taxes when more money is needed, but seldom are taxes decreased if the need is met.

Taxpayers would have much more trust in government if they saw more efficiency and experienced a refund when things go better than planned. It is very disappointing to see government spend the so-called surplus and then raise taxes when there is a down-turn in the economy.

Taxpayers are hit when things are tough for them as well. I know of people who have lost their homes because they could no longer pay the taxes. I believe that the best use for a surplus dollar can be found by putting it back into the taxpayer's pocket. We could have and should have done better for the kids and taxpayers during the session.

I was pleased to carry HB 2, which passed, for the State Administration and Veterans' Affairs Interim Committee. This bill expanded the committee's role to review proposed pension system legislation before the next regular session and recommend solutions to problems within the retirement systems.

As a member of this committee, I am hopeful that LC2005-3, which is also a committee bill, will never see the light of day. This bill places the $1.46 billion unfunded pension liability burden on the employers (30 percent increase in contributions), who then will pass it on to commercial and residential property owners.

The Democratic chair of the regular House State Administration Committee was quoted in the Dec. 16 issue of the Helena Independent Record saying he had received a commitment from the governor's office that LC2005-3 would be given serious consideration in the 2007 session.

Next term, I plan to run for Senate District 5, which includes the Somers and Bigfork areas. I want to be there to make sure other options are considered rather than putting this huge tax increase on property owners.

Verdell Jackson is the Republican representative from House District 6, and is a member of the House Appropriations Committee and t he State Administration and Veteran's Affairs Interim Committee.