Jopek tied up in budget and property tax issues

By RICHARD HANNERS

Whitefish Pilot

This year marks Rep. Mike Jopek’s third term in the legislature, and with the 2009 Legislature halfway over, the Democrat from Whitefish has noticed a remarkable difference from past sessions.

“Hats off to Bob Story (R-Park City), the Senate president, and Bob Bergren (D-Havre), the House speaker — they really set the tone,” Jopek told a gathering at the Whitefish library Feb. 27. “This is the first time I’ve seen the legislature act like it should, after talking with old-timers who should know.”

Jopek attributed the civil tone, which was often missing during the contentious 2007 Legislature, to “middle-roaders flexing their muscles” as well as the tough economic times. The billion-dollar surplus disappeared long ago, and revenue projections dropped by $251 million since November, he said.

“Montana is one of four states with a budget surplus,” Jopek said, noting that the legislature hopes to end up with $250 million in reserves. “We’re concerned about the long-term effects of the economy — we need to not only get through this biennium but also the next.”

Jopek said he usually carries half a dozen bills to the legislature, but this session he’s keeping busy with the two committees writing the budget and studying property tax reappraisals. He also sits on the House’s Agriculture Committee and Federal Relations, Energy and Telecommunications Committee.

Montana could see between $600 million and $700 million in federal stimulus money, he said, which “makes revenue forecasts unpredictable.” That money will be treated as “one-time only” money, he said, and a companion bill will be drawn up to go with the budget bill to keep the money separate.

That may sound like a lot of money, but it’s less than 10 percent of the state’s expected $8 billion budget. About 80 percent of the money is earmarked, he noted, but legislators could still have some say in how it’s spent.

While the recession is making budget-writing difficult, only half the legislators have ever been through a traditional budget-process, he said. Term limits eliminated experienced legislators, and the 2007 Legislature’s approach to budget-writing was far from typical.

Lack of experience is also a problem with the property-tax reappraisal process, which takes place every six years. In the past, “a handful of people” got together to decide on formulas for property taxes, he said, but this year a joint select committee with four senators and four representatives has been actively working on the problem.

The state has seen a remarkable increase in property values from 2002 through 2008, as a result of new construction and rising land costs, especially in areas like Whitefish, where some property values quadrupled. High growth areas could end up paying a disproportionately higher share of taxes, Jopek noted.

“The question we need to ask, which hasn’t been asked before, is what is a reasonable rate for property taxes to increase?” he said.

He said Democrats and Republicans have had “good conversations” on the reappraisal issue, and some good strategies have emerged. He pointed out that Sen. Bruce Tutvedt, R-Kalispell, also sits Joint Select Committee on Reappraisal, and while the two might not share opinions on some issues, they’re “on the same page” when it comes to mitigating property taxes for Flathead property owners.

“We all need to get on the same boat, which might be uncomfortable at first, but if someone rocks the boat, it will turn over,” he said.

Jopek said he agreed to carry one bill for the local Young Democrats — if it wasn’t too “spooky.” Several Whitefish High School students brought him the Sudan Divestment Act, which Jopek is carrying as House Bill 619.

The bill would require the Montana Board of Investments to no longer invest in companies that conduct business in Sudan, which many believe is behind genocidal warfare in the Darfur region. Typically, the state invests to make money and not political statements, Jopek said, but the Board of Investments has lost $2 billion by making high-risk investments, he noted.

“Personally, I’m a conservative investor,” he said. “I don’t like a roller coaster ride.”

Jopek didn’t have high expectations for the success of HB 619, but “the discussion is worthwhile.”

For more information on the Montana Legislature, visit online at http://laws.leg.mt.gov.