HELENA – A judge says there is sufficient reason to hear arguments from public employee unions that a tax rebate initiative should be blocked from going on the November ballot.
The attorney general’s office had been asking District Judge Jeffrey Sherlock to dismiss the case. The state argues voters need to first decide to make the measure law before its constitutionality can be tested in court.
But Sherlock said in a Wednesday ruling that there are enough questions about the measure to hear full arguments from opponents.
The Republican-led 2011 Legislature placed the measure directly on the ballot. It proposes that a portion of tax collections exceeding original budget estimates be returned with tax credits and rebates.
The unions argue it unconstitutionally grants too much power to agencies in determining how much to refund.
Legislative staffers and executive branch personnel would be charged with estimating how much money will be coming in, and how much would be going out as part of the calculation proposed in the initiative. The credits would be triggered if the state’s general fund balance exceeds 125 percent of the original projections.
Opponents to the initiative say that it unconstitutionally grants legislative authority to the workers. They point out that a revenue estimate from the Legislative Fiscal Division required as part of the calculation has been a political hot potato even before it was linked to potential tax refunds.
District Judge Jeffrey Sherlock disagreed with the first argument from opponents that the measure grants appropriation authority. But he said there could be merit in the rest of the argument dealing with the unconstitutional delegation of authority to other agencies, and said he will hold another hearing to make a final determination.
Both sides expect a hearing to be set soon so there is ample time to reach a conclusion, including likely appeal to the Montana Supreme Court, prior to the November elections.
Another initiative from the legislature is under court challenge as well. In that one, a judge said Thursday he agrees portions of a plan to establish regional districts for the election of Montana Supreme Court justices likely is unconstitutional by adding new eligibility requirements for candidates.
The Republican-led Legislature put three other initiatives straight to the ballot, bypassing the potential veto pen of Gov. Brian Schweitzer and creating issues that could help drive up turnout of conservative voters.
One would require parental notification prior to an abortion for those under 18, another would deny some state services to illegal aliens, and a third takes at federal health care reform by attempting to prohibit the state or federal government from mandating the purchase of health insurance.