HELENA — The Legislature, somewhat predictably, isn’t rushing to embrace Gov. Brian Schweitzer’s proposed pension system fix.
In April, Schweitzer proposed an aggressive fix that asked both employees and their state and local government employers to pay more into the system. The projected shortfall for the state’s government worker pension system exceeds $3 billion in 30 years.
A legislative interim panel charged with coming up with pension proposals for the next Legislature made it clear Wednesday it will be hard to find enough support for Schweitzer’s proposal. Democrats on the Republican-led State Administration and Veterans’ Affairs committee said there isn’t much time left for the panel to endorse the plan and propose it to the full Legislature.
“We are literally out of time here. That is why the governor made this proposal back in April, so we would have this decision made,” Schweitzer budget director Dan Villa told the panel.
Schweitzer, a Democrat facing term limits, criticized Republicans for not advancing his proposal.
“Inaction means they are acting like Congress and they are taking a pension system that could easily be made whole with current revenue,” Schweitzer said. “If you kick it down the road, it increases the liability and increases the instability and makes the problem worse.”
The pension proposal, like the governor’s upcoming budget plan, will be left to lawmakers next year after he leaves office. Schweitzer’s successor is free to pursue his own priorities.
Republicans hold a large majority in the Legislature, and very possibly could control it again after November’s elections.
Rick Hill, the GOP candidate for governor, has already said he disagrees with the portion of Schweitzer’s plan that earmarks increased revenue from natural resource development to fix the problem. He has said the money should be used as part of a plan that aims to reduce local property taxes.
Hill wants to switch new employees to a defined contribution plan, such as a 401K. Such a switch has its own difficulties, since stopping the influx of new contributions into the current system would speed up the timetable for a cash infusion to make the system whole.
Republicans are looking for ways to overcome those issues. State Sen. Dave Lewis, a Republican from Helena who is on the administration and veterans’ affairs committee, asked the panel Wednesday to further investigate such a system.
Not even Attorney General Steve Bullock, the Democratic nominee to replace Schweitzer, has committed to Schweitzer’s offering. Bullock said in April that he plans to review the plan further but has not yet announced support.