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State budget is not sustainable

| June 28, 2007 11:00 PM

By Verdell Jackson

Senate District 5

I have been asked by many for a brief report on the recent legislative session. There were many good bills passed, but most of the focus was on the budget process. In past sessions, there was more compromise on the budget. Republicans, Democrats and the Governor all came away with some of their priorities.

This time it was different: Governor Schweitzer and the Democrats in the legislature were on the one hand spending the largest ($1.2 billion dollar) tax surplus in Montana's history, while with the other they were attempting to raise taxes.

The Governor and Democrats successfully thwarted Republican efforts to return the excess tax revenue to the taxpayers. They also prevented the Republicans in the legislature from implementing permanent property tax relief and eliminating the business equipment tax.

As I write this letter, properties are being reappraised. Many home owners, especially in western Montana, have experienced dramatic increases in property valuation.

Some properties have doubled in value. Although this is a boon for speculators, the current reassessment could have devastating affects on people who wish to live in family homes they have worked long and hard to acquire. We must not allow a repeat of the recent insanity which spent almost the entire tax revenue surplus. This money must be returned to the taxpayers. With a population of 935,670 and an average income of $29,000, which ranks 47th in the nation, Montana taxpayers simply cannot afford the tax burden imposed by Governor Schweitzer's runaway spending. With the increase of 15 percent in the 2005 biennium and the 23 percent in this biennium (2007), the state general fund is on track to double in 7.5 years (2012).

A razor-thin Republican majority in the House of Representatives was successful in preventing the Democrats from passing several anti-business tax proposals promoted by the Schweitzer administration. We have already learned that unfair business taxes in Montana have caused the loss of well-paid jobs. We have in the past seen many major businesses move operations to other states with more businessfriendly environments, such as Wyoming.

The Governor was successful in getting a budget of about $8 billion passed. Without good-paying jobs Montanans cannot ante up the $8,500 average for every man, woman and child, which his biennial budget demands.

Republicans fought hard for their principles of a small, efficient government that takes care of the truly needy, a government that protects family values, individual freedom and rights, especially property rights, gun rights and the right to have access to our public lands and a government that increases revenue by increasing productivity, not by raising taxes. Republicans believe that the primary purpose of government is to be a protector of rights, not a provider of things. Democrats have a different philosophy.

Montana has been noted for its self-reliance, rugged individualism, independence and neighbor helping neighbor. Unfortunately, now many people think that the government is their provider rather than their protector which may well be the beginning of our demise as a world leader.