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Governor: Education spending can't include tax increase
By ROB CHANEY of the Missoulian

Montana public education spending can be boosted and improved without a tax increase in next week's special legislative session, Gov. Brian Schweitzer said during a visit to Missoula on Wednesday.

In an interview at the Missoulian, Schweitzer claimed his proposal would also reach the goals of last year's Supreme Court order to create a funding system that was adequate, equitable and delivered on the state constitution's promise of Indian Education for All. It will cost $33.6 million to do that.

Schweitzer wants another $125 million to shore up troubled retirement funds and

$33.5 million in one-time funding for Indian education startup costs, school building maintenance and energy cost relief.

“I think we've got something that's got bipartisan support,” Schweitzer said. “I will not support something that will increase taxes. If they (legislators) bring me something that costs more, they better bring enough votes to override me because I'm not going to support it. We've checked all the boxes (of the court order). If they rearrange that so it puts the state in legal jeopardy, I'm not going to support that.”

The Quality Schools Interim Committee put together a 186-page proposal to reform Montana education spending, but voted 7-1 earlier this week against releasing it as a formal bill. Schweitzer said his staff took its pertinent points and boiled it down to a bill that should be drafted by Thursday. He has called for a four-day special legislative session to start next Wednesday.

The governor had said earlier this fall he wasn't inclined to call a special session without a bill from the committee. On Wednesday, he said the committee had produced enough work and there was enough momentum from education advocates and other state leaders to bring the Legislature into session this December. He added he preferred to stick to the original December schedule with his own proposal than wait until January, when state Republicans have suggested a special session on an education plan of their own.

Missoula County Public Schools Superintendent Jim Clark said Tuesday he welcomed the governor's move invoking a special session next week. But he added it did not change the Missoula school trustees' vote that backs a more expensive proposal. Two weeks ago, the trustees unanimously supported a resolution requesting the special session to consider the “Montana's Promise” plan developed by the Montana Quality Education Coalition. That's the group that initially sued the state over inadequate education funding, resulting in last year's Supreme Court decision.

The Montana's Promise plan calls for providing $4,000 per educator, which works out to a 5.4 percent boost to Missoula's roughly $50 million K-12 budget. The governor's plan would offer $2,000 per educator. That comes out to $1.35 million, or a 2.7 percent increase in Missoula.

However, it's unclear how that money would be used. Clark pointed out that teacher pay is determined by contract, and Missoula's teachers go back to the negotiating table next July. The money could also go toward more books, equipment, field trips and other classroom discretionary spending.

“Teachers should not be viewing this formula as a $2,000 raise,” Schweitzer said. “That's for local school boards to decide.”

Schweitzer's education policy adviser Jan Lombardi said the $2,000 figure was supported by the interim committee's salary research as an effective amount to encourage teachers to stay in Montana. That will cost $22.6 million and cover 11,325 educators. There's an additional $2,000 allocation per educator in districts with less than 41 students. The administration estimates there are 216 such teachers in the state.

In addition, Schweitzer's proposal offers $7 million in one-time funding for laying the foundation of Indian Education for All programs, followed up by $3 million in annual funding. Such programs would have to be reported to the Office of Public Instruction to ensure they qualify as Indian education, Lombardi said.

Buildings and maintenance would get $23 million in one-time funding, along with $2.5 million to study weatherization improvements and $1 million for energy cost relief.

The big ticket in Schweitzer's proposal is $100 million to fill gaps in the state Teachers' Retirement System and $25 million for Public Employees' Retirement System shortfalls. Schweitzer called those “non-discretionary” spending, saying the state had a fiduciary duty to make them solvent.

Those numbers don't add up, according to Montana School Boards Association President Lance Melton. By his calculations, $10 million of the teachers' retirement money is going to someone other than teachers, while just $2.1 million of the PERS money will help education workers. The rest will go to other state employees covered by those programs, Melton said.

Schweitzer said he was amused by critics who say he is not offering enough money for Montana education. By his calculations, this biennium's spending will be the largest increase in education spending in state history.

“We're already spending $600 million or $700 million on education - this is $30 million more,” Schweitzer said. “Based on my legal counsel, we've addressed the relevant factors in a legal way.”

Reporter Rob Chaney can be reached at 523-5382 or at rchaney@missoulian.com

 

GOP promises alternative school funding plan

By MIKE DENNISON of the Missoulian State Bureau

HELENA - Minority Republicans said Wednesday they'll introduce an alternative school funding plan next week that reduces local property taxes, but didn't yet have details of the proposal.

They also called Democratic Gov. Brian Schweitzer's school funding plan “ill-advised” and predicted that Democrats will try to block consideration of any alternative proposals at next week's special session of the Legislature.

“The Democrats will do whatever they can to keep us from bringing in any other issues,” said House Republican Leader Roy Brown of Billings.

Yet the House Democratic leader said he thinks Republican proposals won't be simply rejected out of hand.

“What we will do, with the greatest dispatch possible, is take a look at their ideas, put them side-by-side with the governor's proposal and choose the very best,” said Rep. Dave Wanzenried of Missoula. “The way we'll get the best work done is like the last session, by working together.”

The House is split 50-50 between the two parties, while Democrats hold a 27-23 edge in the Senate.

The Legislature is scheduled to convene next Wednesday in special session to consider Schweitzer's school funding proposal and a $125 million infusion of cash into debt-ridden public employee pension funds.

Schweitzer's school proposal spends an additional $65 million in state funds on public schools next year, including four new payments targeted at funding problems identified by the Montana Supreme Court.

The school funding package represents a 5 percent increase in on-going state funds for schools next year, on top of a 6 percent increase this year.

The governor's proposal also may lead to property tax increases up to $2.5 million statewide next year.

Brown said Republicans will propose a plan that uses some of the state's budget surplus to lower local property taxes. They also want some “accountability” from schools, requiring them to show results for getting extra money, he added.

Brown said Rep. Pat Wagman, R-Livingston, is working on the GOP proposal.

Wagman couldn't be reached for comment Wednesday, but earlier this week outlined some of his accountability ideas, such as requiring schools to publicly post test scores of students before asking voters to approve local property tax levies.

When a governor calls a special session of the Legislature, he or she limits the subjects that can be considered.

Schweitzer's “call” on Monday limited the session to school funding proposals that address the November 2004 Supreme Court ruling on the issue, and to the $125 million pension funds deposit. The high court said state funding of public school is unconstitutionally inadequate, and gave the Legislature until Oct. 1 of this year to fix it.

The call appears to allow Republicans to propose some type of alternative school funding plan, but may prohibit any other proposals on fixing the pension funds.

Rep. John Sinrud, R-Bozeman, plans to offer alternatives to the Schweitzer pension fund proposal, but said he expects he'll have to expand the call of the session to do so.

Expanding the call requires approval from at least 76 of the 150 legislators.

When asked if he thought 76 lawmakers would agree to expand it, Sinrud said it will be “really tight.”

“The governor does not want to be upstaged, and he's going to want to control and stage everything that takes place, and not work on a bipartisan way to solve these problems,” Sinrud said.

Brown and Senate Minority Leader Bob Keenan, R-Bigfork, said Schweitzer and fellow Democrats are proposing to spend $200 million in the special session without any real overhauls of the public school system or pension fund management.

“Do you think the taxpayers of Montana wanted that when they voted Democrats into the majority?” Keenan asked.


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