Montana State of the state address- Gov. Judy Martz

HELENA — Gov. Judy Martz told legislators and a statewide audience Tuesday that Montana’s economy is improving, but it but could do much better if lawmakers adopt a series of her proposals aimed at creating jobs and producing higher incomes.

By CHARLES S. JOHNSON, IR State Bureau

In her State of the State address from the House chambers, Martz spent much of her speech focusing on the Montana economy. She said state unemployment figures hit a 30-year low in November and wages rose to more than 4 percent or twice the rate of inflation.

"We will move our economy forward," she said. "We’re making progress, and why? Because we have a workforce that is prepared for the jobs of the future. Because we have the foresight and commitment of individuals in this room who know we need to create an environment for business to grow and for individuals to prosper. Because we have a can-do attitude. Montanans can beat the odds and turn that attitude into action."

Her goal, Martz said, is excellent schools, quality health care, higher-paying jobs, a clean environment and the rich diversity of Montana’s people.

Martz saved a couple of surprises for her speech, which was broadcast by television and radio to much of the state.

She announced that International Malting Co. of Milwaukee will begin construction in June on a $75 million, 16-million bushel malting plant on the north side of Great Falls. It ultimately will employ 34 people and require the production of 20 million bushels of malting barley from Montana, the Dakotas, Wyoming and Idaho.

In addition, the Republican governor announced she would put the full support of her office behind the removal of the Milltown Dam at Bonner because "it’s simply the right thing to do." Environmental groups have been calling for the removal of the deteriorating dam, which now holds back vast quantities of accumulated wastes from decades of mining and smelting upstream in Butte and Anaconda.

Martz pushed her legislative agenda, but was conciliatory, telling Democrats: "And let me add that nothing is off the table."

She touted her plan to take $93 million from the state’s coal tax permanent trust fund to help balance the budget and pay it back over time as the state’s financial picture improves. Montanans support this idea, she said, referring to polls. Democrats, however, have pronounced her plan dead on arrival because taking money from the coal tax trust fund takes a three-quarters vote in both the House and Senate.

"Just as I am asking all of you to address the coal fund transfer, I will look closely at every idea that you bring forward," the governor said. "I am confident that, at the end of the day, we will come to a solution that is best for the people we serve."

"Much has been entrusted to us, and much is expected," Martz added. "Let us reach across the aisle and do what is best for all Montanans. Let’s cooperate."

Her speech was interrupted frequently by applause.

Martz mentioned other statewide executive branch elected officials by name and cited a number of legislators from each party by name as she praised their bills.

To help spur economic development, Martz discussed her proposed 10 percent across-the-board cut in state income taxes, including a lowering of the rates and a reduction of capital gains taxes. To pay for this reduction, she has proposed a 4 percent statewide sales tax on restaurant meals and drinks, a rental car tax, doubling the 4 percent lodging tax and other items.

"Our plan reduces personal income taxes by an average of 10 percent for all classes of Montana taxpayers so hard-working Montana families can keep more of what they earn," she said, noting that the sales tax will shift some of the tax burden to out-of-state tourists, even though Montanans also would pay it.

"I stand firm in my resolve," Martz said. "I want permanent tax reform that creates an environment for higher-paying jobs that will be a welcome relief for Montanans. We rank 46th in per capita income, and if we don’t reform our tax structure, we will still be there— or lower— a decade from now."

Martz said she wants to move the state’s economy forward by focusing on industries that bring a competitive advantage to the state, provide workers with training to be even more productive workers who will earn higher wages, focus on strengthening relationships between private industry, the university system and state government and create a competitive tax and regulatory structure.

The governor also vowed to support Montana’s traditional industries, logging, mining and agriculture. She said she is working closely with President Bush to "bring common sense back to forest management."

Martz said her administration supports the responsible development of coalbed natural gas or methane, power plants and the Otter Creek coal tracts.

She called for doing everything possible to maintaining a quality K-12 education system, calling it a top priority. Martz’s proposed budget for public schools would actually provide them with about $20 million less than they are receiving for the current two-year budget period because of declining school enrollments.

She praised teachers and urged support of a bill that would repay student loans of teachers who commit to teach in certain parts of the state where teaching jobs are hard to fill or for which certain subject areas are difficult to recruit teachers.

She thanked Republican legislative leaders for restoring $27.4 million in K-12 budgets that they had cut the previous week as part of $160 million budget rollback to fiscal 2000 spending levels. Martz said she "will accept nothing less."

On health care, Martz called for consideration of a bill to implement a senior discount plan for prescription drugs and called on lawmakers to make wise use of Medicaid funds.

"We simply must not falter in our efforts to make health care more affordable for Montana families, and to provide for those most in need," she said. "Our efforts must also extend to those with mental illnesses."

When times are tough, she said, Montana must care first for those most in need. That, she said, is why she proposed the coal tax fund transfer.

Martz said she cannot support cuts so deep that programs like the Children’s Health Insurance Program or CHIP are eliminated. She called for maintaining funding for foster-care programs, breast and cervical cancer programs, the Montana Chemical Dependency Center, Medicaid pharmacy benefits for the medically needy and services for children with developmental disabilities.

"I have faith that everything I have outlined tonight is achievable based on our combined will and fortitude and taking into consideration our current budget challenges," Martz said. "I will do everything in my power to work with each of you, and I am confident that you will do the same, because we all have the same vision for our state — one that includes family, faith, freedom and a prosperous future for all Montanans."

http://helenair.com/articles/2003/01/22/montana/a01012203_03.txt

*************

High hopes for more good barley malt news

Call us crazy, but we’re optimistic that plans for a barley malting plant here are the real deal.

Gov. Judy Martz announced Tuesday in her State of the State speech that Great Falls was selected as the site for a $75 million malt plant.

An executive with International Malting Co., who joined Martz for the speech, said construction would begin in May and the facility eventually would employ 34 people and use 16 million bushels of barley a year.

It’s hard to see much of a downside to such a project.

It was disconcerting the next morning, however, when three other company officials told a Tribune reporter that the announcement was premature.

Martz later spoke with company President Damien Lesaffre, who confirmed the plant would be built.

That exchange was nerve racking for all of us who’ve been through the highs and lows of other economic development proclamations.

Most recently were announcements that Great Falls could be home to a new wind energy facility and a separate electric generating plant using natural gas.

Both projects are on hold.

And most everyone is familiar with the 15-year-plus effort to build a grain-based ethanol plant here. We’re beyond counting how many times company officials assured us the plant was a go.

While the malting company says the Great Falls plant will happen, it’s also clear that much work needs to be done to make that happen.

Two state officials — Agriculture Director Ralph Peck and economic development czar David Gibson — were in Great Falls Thursday to discuss the project.

Gibson noted that while he believes the company "fully intends to go" with the plant, "there are 150 important steps that have to occur."

Those range from financing, to rail contracts, to state permits, to water and sewer issues, to state and local tax packages.

A problem in any one of those areas potentially could derail the project.

So why be optimistic?

Because there’s a growing demand, here and abroad, for barley malt. It’s used in manufacturing both food and beverages.

The industry is small and competitive. To grow it has three basic needs: good barley, good water and good transportation.

Great Falls fills that bill.

It also was encouraging to learn that at least one other malting company is scouting this area for a plant.

We’re grateful that city, county and local economic development officials are working together to lure such companies, and that state agencies are willing to help out.

We’re confident Great Falls has the natural and human resources to handle a barley malting plant.

(OK, and an ethanol plant, and a wind-generating facility.)

We look forward to more good news from this project.

http://www.greatfallstribune.com/news/stories/20030124/opinion/841439.html