Lawmakers scrutinize plan for stimulus spending

HELENA – Legislators got a look last week at the bill to spend $800 million in federal stimulus dollars and learned what the state can and can't do with the cash. They also heard the governor's ideas for spending the money.

The House Appropriations Committee heard two presentations on House Bill 645: one from Gov. Brian Schweitzer's budget director, David Ewer, and one from the Legislature's own fiscal analysts.

Legislative Fiscal Division staffers said most of the money is headed to programs already determined by the federal government, such as rebuilding roads and bridges, but lawmakers will still have some say in the spending.

"You essentially have $275 million for your particular priorities with the stabilization funds," said Taryn Purdy of the Legislative Fiscal Division. She said that money could be used however legislators choose.

There will also be $575 million in tax cuts for Montanans, but these cuts will have almost zero impact on the general fund, according to state financial forecasters.

David Ewer, the governor's budget director, gave the committee the governor's recommendations on how to spend the $275 million in discretionary funds.

Many of the projects involved various infrastructure projects that are 'ready to go," Ewer said. The list also contains $43 million for school infrastructure projects, $1 million for anti-meth programs and over $3 million for license plate re-issues.

Ewer said the governor's top priorities are a $250 million ending-fund balance, $43 million to bolster sagging teacher retirement accounts, and $60 million for an expected increase in the state's Medicaid caseloads.

U-system officials warn against freezing tuition

Higher education officials said last week that the governor's plan for spending federal stimulus dollars on state colleges is at least $8 million too low 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 includes $10 million in federal stimulus funds for the university system but only if it agrees not to increase tuition over the next two years. Administration officials have urged the system to cut costs to keep tuition from rising.

Commissioner of Higher Education Sheila Stearns said the university 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."

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.

But 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.

Representatives from 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.

Tribal leaders seek stable economy, cooperation

Montana tribal leaders stressed the importance of economic stability and progress on the American Indian reservations as they addressed lawmakers during the State of the Tribal Nations Address last week at the capitol.

James Steele Jr., chairman of the Confederated Salish and Kootenai Tribes and the Montana-Wyoming Tribal Leaders Council, gave the address, representing Montana's tribes.

"I believe that Indian reservations are good for Montana and can, in fact, significantly aid Montana in the area of economic development," Steele said.

He gave examples of each tribe's economic successes, including the future purchase of the Kerr Dam by the Confederated Salish and Kootenai Tribes and the Many Stars Coal-to-Liquids Project on the Crow reservation.

"Even with high rates of unemployment, the seven Indian reservations of Montana and the state-recognized Little Shell Band of Chippewa contribute a combined total of $1 billion annually to the Montana economy," Steele said.

Steele asserted the importance of developing water compacts and treaties between the tribes and the state and exempting tribally owned lands from state taxes.

Representatives from the Blackfeet, Chippewa Cree, Northern Cheyenne and Little Shell Band of Chippewa were present, as were representatives from the Fort Belknap and Fort Peck reservations.

Bill would decriminalize possession of marijuana

In what supporters say is an attempt to refocus law enforcement on more serious crimes, lawmakers heard a bill last week that would reduce penalties for possessing 30 grams or less of marijuana.

House Bill 541, sponsored by Rep. Brady Wiseman, D-Bozeman, would make possession of 30 grams or less of marijuana a civil infraction instead of a misdemeanor crime. The fine would be up to $100. Currently, marijuana possession can garner a $500 fine and six months in jail.

Wiseman said if the bill passes, it will allow law enforcement to focus time and resources on more dangerous crimes, such as assault and rape.

Supporters said current marijuana laws are outdated and cause more damage than good.

"We are not talking about drug kingpins here," said John Masterson, an advocate from Missoula.

But opponents said any lax measures on marijuana would undo the progress law enforcement has made with its anti-drug programs.

"The decriminalization of marijuana in possession of any amount sends a message statewide that marijuana is not considered to be a harmful drug," said Jeff Jergens of the Montana Narcotics Officers Association.

Jesse Slaughter of the Montana Police Protective Association said records of marijuana arrests can be helpful to law enforcement further down the road when those same offenders are charged with more serious crimes.

Several lawmakers on the House Judiciary Committee voiced concern over the bill's lack of language concerning how teenagers should be charged. Wiseman said he intended the bill to only apply to legal adults, and that he would be open to amending it.