For example, a portion of proposed higher state funding for schools depends on the passage of a contentious bill to tax real estate investment trusts, said David Ewer, the governor's budget director.
Ewer also said some tax cuts may be tied to a budget “trigger,” meaning they won't take effect unless incoming tax revenue surpasses a certain amount.
Lawmakers are returning to Helena on Thursday for a special session, where they're hoping to approve a state budget, a package of tax rebates and reductions, and tax incentives for energy development.
The Montana Legislature's regular session adjourned April 27 without approving a state budget for the next two years, despite having a projected $1 billion surplus at its disposal.
Gov. Brian Schweitzer issued the official “call” for the session Monday, two days after a dozen or so House Republicans and Schweitzer administration officials hammered out a potential tax-and-budget deal they hope will be approved by the assembled legislators.
Republicans hold a 50-49 majority in the House and Schweitzer, a Democrat, needs their help if he hopes to get anything passed. Anywhere from 12 to 20 House Republicans may be supporting the agreements reached Saturday, according to members who attended the weekend meetings.
House Speaker Scott Sales,
R-Bozeman, was not part of the discussions and has said he won't support the proposals unless they have more tax cuts.
If Republican leadership succeeds in bottling up bills in committee, 60 votes would be needed to bring the bills to the floor for a vote.
At Tuesday's Cabinet meeting, Ewer outlined the tax-and-budget agenda that will be introduced at the special session on Thursday:
n A single bill authorizing state agency budgets for the next two years, focused on capping spending at $1.8 billion for 2009. Some leftover revenue could be set aside for future needs, he said.
n A bill authorizing one-time spending on building and information technology projects in state government and the university system.
n An omnibus tax bill that will include Schweitzer's proposed $400-per-homeowner rebate, a tax credit for renters, a higher exemption for business equipment subject to property taxes, and some new tax-compliance measures, such as requiring withholding payments on profits from Montana land sales by nonresidents.
n A school-policy bill that will increase overall state funding for schools, fund full-day kindergarten and cut some local school property taxes.
n A bill creating a new state “entitlement” payment for schools, but only if it is accompanied by a new tax on REITs. The Schweitzer administration says corporations organized as REITs, such as Plum Creek Timber Co., pay no state corporate income taxes under current law.
Ewer did not provide details Tuesday on state agency spending levels that will be in the budget bill, saying those items are still being worked out.
However, he did say the bill will include funding for expanding the Children's Health Insurance Plan, which currently provides insurance for 13,200 kids in low- and middle-income families.
Lawmakers already have authorized an expansion of CHIP that could add 2,000 to 3,000 children to its rolls.
Hal Harper, the governor's chief policy adviser, said joint House-Senate hearings on the bills will begin Thursday. If all goes as planned, the bills will be approved by one house of the Legislature on Thursday and the next house on Friday, he said.
Saturday will be reserved for any loose ends or House-Senate conference committees that may be needed to resolve differences between the House and Senate, Harper said.
“We think that by Mother's Day (Sunday), they can be on their way home,” he said of lawmakers. “At least, that's our hope. We know that things can go wrong.”
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