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Montana Senate Endorses $10.3B State Budget for 2018-2019

Legislature is seeking to shore up a budget shortfall and leave at least $200 million in reserve

By Matt Volz, Associated Press

HELENA — The Montana Senate endorsed its version of the 2018-2019 state budget on Monday, with lawmakers in the Republican majority calling it the best spending plan possible after the state’s income fell during the crunch in the energy industry.

Relatively few additions to the budget bill were made during a daylong floor debate, despite attempts by Democratic lawmakers to insert money for home health caregivers, child protection service workers, higher education and a pre-school grant program.

“This is a pretty austere budget,” said Senate Finance and Claims chairman Llew Jones, R-Conrad.

The Legislature is seeking to shore up a budget shortfall and leave at least $200 million in reserve in 2019, the end of the two-year budget cycle. Lawmakers are doing so mainly through spending cuts, while Democratic Gov. Steve Bullock is urging lesser cuts plus tax hikes to leave a $300 million ending fund balance.

Sen. Mary Caferro, D-Helena, said a lot of people were left out of the budget that passed Monday, particularly the elderly and disabled and those who care for them.

“We have to recognize there are a lot of things, a lot of people left on the table that are not going to get their needs met,” Caferro said.

Sen. Al Olszewski, R-Kalispell, blamed expanding Medicaid expansion to 70,000 people for the tough budget decisions that lawmakers must make in funding health programs.

“Medicaid expansion comes up for review next session,” he said. “Just remember the frustration that you feel voting against the poor, against the blind, against the elderly, the young, the disabled.”

The approximately $10.3 billion budget bill that passed with an initial 29-20 vote Monday is higher than the bill passed by the House. That means once it passes a final Senate vote, negotiators from the House and Senate will have to meet in a conference committee if the House does not agree with the Senate’s changes.

A few notable items were added to the budget on the Senate floor:

— A provision to bar internet providers who use or sell customer data without consent from state contracts.

— $11,386 that will trigger federal funding for a total of $1.2 million for services for children with autism.

— $450,000 to allow the Department of Public Health and Human Services to finance additional audits if examinations already being conducted uncover fraud, waste and abuse. Democratic legislators noted little fraud has been uncovered by existing audits.

— $210,000 for state Food and Agricultural Development centers to help businesses that produce and sell food, agricultural and renewable energy products.

Among the amendments that were rejected:

— $21.6 million in state and federal money to give a raise to direct care workers who serve Medicaid patients in senior and long term care, in case a separate bill to fund the raises with a tobacco tax hike fails.

— $12 million for a preschool grant program that Bullock has identified as one of his top priorities.

— $8 million to the Office of the Commissioner of Higher Education. Democratic lawmakers say without this funding, tuition will increase 15-20 percent at some colleges and universities.

— $2.4 million to increase the daily rate foster families are paid by $1 a day.

— $1.5 million for services for people caring for the elderly at home.

— $983K to fill open positions in Child and Family Services division.

— $900,000 for in-home services for people who are eligible for nursing homes.

— $896,000 to give child protection specialists a raise.

— A proposal by Sen. Mike Phillips, to cut $2 million from the budget to fix a county road that leads to Hell Creek State Park. Republicans from eastern Montana fought to keep that money in the budget.