Speech
Montana Stockgrowers Association
Remarks of Governor Judy Martz
Billings, MT
12/12/2002
Good afternoon. I can’t tell you how great it is to be here at the annual convention of the Montana Stockgrowers Association!
I just returned last week from the winter meeting of the Western Governors Association, and along with that, had the great opportunity to take in some outstanding parts of the National Finals Rodeo in Las Vegas.
Now, rodeo in Las Vegas is great, but I still say, nothing beats the rodeo we’ve got right here in Montana – and I don’t mean the legislative rodeo we’ve got coming up in January…
Speaking of the legislature, would those legislators here today please stand and be recognized?
Thanks to each of you for all you do.
As you can see, the Montana Stockgrowers Association is well represented, not only by your lobbyists, Steve Pilcher and John Bloomquist, but also by a number of top quality legislators who I know have your interests at heart.
I commit to work with each and every one of them to ensure that the livestock industry in Montana remains strong.
Folks, I want you to know that each and every one of us is fully in support of your organization. I know that times are tough and money is tight… we’re facing the same situation in Helena… but working together, we will get through these tough economic times with an eye toward better things to come.
It’s not easy right now, but we will stand by you and work for you to ensure that your industry remains the powerful part of our state that it is today. I am confident you will do the same for us.
The livestock industry, and generally all of agriculture, is facing some challenging policy issues. I want to talk to you about some of those today, so you know where we stand. I’m also going to share with you some of the initiatives that we are moving forward with, despite our current budget situation.
First, let’s talk about the upcoming land reappraisal. Some of you may have seen stories that ran last week highlighting the increase in land values that has occurred over the last six years.
Depending on where you live in the state, this increase in value can be pretty tough to swallow. It’s great when you’re selling your land, but not so great when you consider being taxed on that value.
Let me make this point perfectly clear – our administration is committed – no ifs, ands or buts about it – to mitigating the impact of property increases as much as possible. We’ll have to work with the legislature to get the job done, but I know I can count on the support of those legislators in this room and others to ensure that property tax increases impact your bottom line as little as possible.
We simply will not tax you out of your homes and ranches. Not on my watch.
I also want you to know that our administration is committed to maintaining the productivity valuation for ag land to lessen any potential impacts of property reappraisal for ag producers.
As part of that commitment, we have created an advisory council to review the results of the current reappraisal.
They will study the new property values established by the reappraisal, and will offer its recommendation on how to address and mitigate any impact on Montana’s property owners statewide.
I firmly believe that we must do everything possible to ensure that Montana continues to be a great place for all of our families to live out their dreams. By working diligently to address any tax impacts resulting from the reappraisal, I am confident that we will continue to strengthen opportunities for every Montana community and every Montana family.
On the subject of taxes, I want to outline for you today the tax plan our administration is proposing to the legislature.
This plan has been discussed for months, as the three advisory councils I appointed in April met throughout the summer and fall.
We are confident this plan it provides the best opportunity to create an environment where real economic growth can occur in our state.
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 local-option tax. That option MUST be voter-approved, and we won’t support it if it doesn’t also return dollars to the rural counties who shop, eat and sleep in the community where the tax exists.
Tax reform is critical for good-paying Montana jobs and a better future for Montana families.
Our plan is about more than change. It’s about restoring hope. It’s about keeping our kids and grandkids here. It’s about a better future for Montana families. And that’s something we can all support.
I want you to know that our tax plan does not impact our current budget situation. As most of you know, state government budgets are tight right now… not just in Montana, but throughout the entire United States.
As I said earlier, I just got done meeting with a number of other governors in Las Vegas who are facing the same budget challenges we are, if not more severe.
Our state is facing an approximate two hundred forty million dollar budget deficit. Just for comparison, Alaska is facing a seven hundred and seventy-seven million dollar deficit. Minnesota is facing a four point six BILLION dollar deficit.
Still, in Montana, this is the most challenging budget crisis our state has faced in sixteen years.
So, why are revenues down? Just like the rest of the nation, in the 1990’s we saw stable, modest economic growth in Montana. However, across the nation, economic storm clouds began rolling in around the summer of 2001, as our nation entered a recession.
While Montana was not as hard hit as other neighboring states like Idaho and Washington, we still felt that recession, and we continue to feel its impacts today.
It is projected, and it is our sincere hope, that the economy will turn in the next 2 to 3 years. However we must build our budget based on current revenue projections.
Regardless of our financial condition, as Governor, I am required by law to present a balanced budget to the state’s legislature. Our budget is balanced.
In addition, our budget DOES NOT raise taxes on Montanans who are already 46th in per capita income. Our residents cannot afford higher taxes. Our economy cannot afford higher taxes.
Many think I have made this decision because of a pledge I signed. They are wrong.
I made this decision because I believe it is right in my heart. I do not believe that we should raise taxes on Montana families when many families aren’t making ends meet.
They are struggling already, and many still cannot afford health insurance, let alone pay higher taxes.
I believe that when times are tough, we all have to tighten our belts. Just like you prioritize on the ranch when the sales checks aren’t covering all expenses, state government must operate in the same way.
The reductions that are proposed are not reductions we would like to propose. It was our goal to reduce those impacts to the greatest extent possible.
Our work is not complete. I commit that we will work closely with the both sides of the aisle to pass a budget that provides services to those most in need while not living outside our means.
At the same time, we will continue to work tirelessly to see our economy bring more and better-paying jobs, tax reform and a strong education system for our kids.
Now, I want to share with you where we stand on a few key natural resources decisions.
First, lets talk about the Bean Lake decision by our state’s supreme court. If a case like this doesn’t make you look more closely at the political races for Supreme Court justice, I don’t know what will.
As you know, this case is about water rights – about your rights versus in-stream water rights. Although it’s hard right now to gauge the future ramifications of such a decision, I will tell you where I stand.
This administration recognizes the importance of existing water rights. We recognize the importance of prior appropriation doctrine. We’re talking about valuable property rights here.
I commit to you that this administration WILL NOT take actions that jeopardize those rights. We recognize that your livelihoods depend on water rights, and we intend to protect them.
I appreciate the opinions expressed in this by Jim Rice and Karla Gray.
We need more justices like those two individuals. Gray and Rice recognize that this case ‘rewrites history’, and they understand that the Supreme Court has taken a step too far in this case.
Conservative Montanans have long needed to keep a closer eye on and provide stronger support for Supreme Court races. When justices start re-writing our state’s laws, not taking into consideration the authority and the intent of the legislature and the executive branch, we’ve got major issues.
Finally, today, let’s talk about brucellosis in Yellowstone. I can’t count the number of years I’ve been coming to this convention, and I can’t think of a time that brucellosis wasn’t a key topic of conservation.
I’d sure like to take this issue off the table by eradicating brucellosis in the park, so your organization can focus more time on the things that really matter – prices, markets and water right, to name a few.
Many of you lived through that time in Montana’s history when our cattle herds were destroyed because of the disease.
You know that it took thirty-five years and more that thirty million dollars to earn our disease-free status. That certification was hard-won, and, as long as I am Governor, we will not turn our backs on those efforts – for the health of our animals and the health of our citizens.
We WILL NOT negotiate away our state’s brucellosis free status. {pause}
Granted, there is nothing simple in this issue. If it were simple, it would have been solved in 1956 when Montana started working with the Park Service to eradicate brucellosis from the Yellowstone bison herd. If it were simple, it would have been solved in 1995 when Montana filed a lawsuit against the Federal agencies.
Well, I might be a little optimistic, but after all we’ve been through, I think the time is finally right to eradicate brucellosis from Yellowstone National Park.
I’m confident that we’ve finally got an administration at the federal level, and a Park Superintendent at Yellowstone who will help us do just that. Thank God for President Bush.
My office and the Department of Livestock met last week with representatives from USDA-APHIS, the Department of Interior and other states to start down the path of eradicating brucellosis from the park.
And this time, the federal officials were serious. You know what I say to that? IT’S ABOUT TIME.
It’s about time that someone besides our Department of Livestock takes some responsibility for managing Yellowstone Park Bison.
It’s about time that someone understands the real threat to both livestock… and human populations.
It’s about time that someone listened to you. And we’re going to keep pushing.
We’re going to find new tools for the bison management tool chest. Tools like supporting the re-establishment of a managed bison hunt. Tools like vaccination programs. Tools like sharing the management burden between state and federal agencies.
In brucellosis, in water rights, in our tax policy and in our budget, we’re going to keep fighting for your industry… because your industry represents all that is right about Montana.
We’re going to keep fighting for you… because you’ve made our state what it is today.
We’re going to keep fighting for you… because, quite simply, it’s the right thing to do.
I hope you’ll fight with us.
Good afternoon, and may God Bless each and every one of you.
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