Speech
Legislative Package Announcement for Education, Economic Development and Tax Reform
Remarks of Governor Judy Martz
State Capitol
12/10/2002
Good morning. Thank you all for joining me today. When Karl and I ran for office, we ran on three key priorities – economic development, tax reform and education.
Throughout the past 2 years, we’ve stayed the course, and today, I am pleased to have Lt. Governor Karl Ohs, Chief Business Officer Dave Gibson and Revenue Director Kurt Alme join me as we unveil our legislative packages for these three areas.
Economic development is the cornerstone of my administration. In a recent poll, Montanans said the top two problems facing this state are good jobs and the overall state of the economy.
We share that belief with Montanans. In these tough economic times, when budgets are tight, creating good paying jobs becomes even more crucial.
My economic development package reflects the responsibility of government to foster an environment for the creation of good paying jobs… so our kids can live and raise their families here.
My Chief Business Officer, Dave Gibson, will provide the details shortly, but here are a few highlights of our plan.
First, we will enhance the ability of businesses to fund workforce-training programs. Then, we will extend key state economic development programs… creating the mechanism to support economic growth for the long term.
We will provide better access to capital for small businesses. And we move to establish a truly regional approach to our state’s economic development efforts.
We are taking the measures needed to build the state’s business image.
We are also taking the measures needed to fix one of the biggest barriers to economic development – our current tax structure.
Based on the recommendations of the three tax advisory councils I established in April, Kurt will outline today the details of the tax reform plan we will carry forward to the state legislature.
I am often asked why we place such a high priority on taxes.
Simply put, businesses can pick to locate anywhere in the country – anywhere in the world, for that matter.
We want our tax structure to help bring them here.
But our current tax structure just doesn’t cut it, in fact, it drives them away.
Right now, we have the one of the highest capital gains tax rates and the highest stated income tax rates in the nation.
Our plan will lower capital gains rates to encourage businesses and entrepreneurs to locate in Montana, and will lower capital gains rates to encourage more investment in Montana.
Our plan will lower personal income taxes an average of ten percent for all Montanans – so you can keep more of what you earn.
Ninety-three percent of our income tax is paid by Montanans, versus only seven percent paid by non-residents. We need to share more of our tax burden out of state, like other states do.
Our plan will do just that… with a sales tax limited to certain items. A limited sales tax won’t impact our tourism industry. When was the last time a state’s sales tax influenced your decision to go on a vacation?
By sharing the burden with nonresidents, we will lower taxes on hardworking Montana families – without lowering the amount of money that goes into the state bank account.
And, our plan will provide the opportunity for communities to relieve the property tax burden on their local residents, while addressing infrastructure and economic development needs through a voter-approved local-option tax.
Our plan is about more than change. It’s about restoring hope.
It’s about keeping our kids and grandkids here. It’s about good-paying Montana jobs and a better future for Montana families.
And that’s something we can all support.
We have put in place our economic development plans to ensure good-paying jobs for our children in the future, but we must also ensure they have access to quality education now.
It is easier to maintain and strengthen a good education system than it is to build one.
As evidenced by how well our students achieve compared with other states, our educators do an outstanding job of teaching our students. Our job is to keep it that way.
Lieutenant Governor Karl Ohs and Kris Goss have taken the lead in coordinating educational efforts from our office.
Working with the legislature, our proposals will provide hope to our students and educators… hope that during these difficult economic times, we will continue to maintain a strong education system.
Our education proposals will help us to retain and recruit top quality educators in Montana, and will offer them increased opportunities for professional development.
Our proposals will help Montanan’s schools by ensuring that districts continue to provide a quality education in times of decreasing enrollment.
Our children are the future of this state. We are well recognized for providing a top quality educational system for our children. And our administration is committed to keeping it that way.
At this time, I’d like to turn the podium to Karl, who will highlight the specifics of our education legislative package. Dave Gibson will then outline our economic development package, and Kurt will provide details of the tax reform proposal.
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Link to Legislative Packages for Education,
Economic Development and Tax Reform
