(dramatic music) - [Announcer] Montana PBS Reports, the Governor's State of the State Address.

Production support was provided by the Greater Montana Foundation and by viewers like you who are friends of Montana PBS.

Thank you.

(dramatic music) - Good evening, and welcome to Montana PBS Reports, the Governor's State of the State Address.

I'm John Twiggs.

We'd also like to welcome listeners joining us on Montana Public Radio and Yellowstone Public Radio.

Let's get you to the state capitol inside where a joint session of the 68th Montana legislature is convening.

They're wrapping up the pre-speech ceremonies.

They just had the presentation of the colors.

In just a few minutes, Governor Greg Gianforte will be formally invited into the chamber to deliver his second State of the State Address.

It's all part of our coverage tonight.

That includes the governor's speech in its entirety.

That will be followed by the Democrats' response and that will be delivered by Senate Minority Whip Shannon O'Brien from Missoula.

Also, Montana PBS's Anna Rau will have interviews with Republican leadership about the rest of the upcoming session.

Let's bring in our analysts for this evening, MSU and Caroll College, Dr. Jessi Bennion, political science professor.

Jessi, welcome.

Great to have you here.

And of course, this is a big night about setting expectations.

What are you expecting to hear from Governor Gianforte?

- Well, first of all, thanks for having me.

This is an exciting night.

This is the governor's chance to not only speak to the legislature and the people in attendance there, but to the Montana public.

And I'm interested to see what kind of policy proposals he brings up.

I think he's going to talk a lot about the economy and the budget, but we'll have to see what unfolds.

But it's just a very exciting evening.

- Well, it should be interesting to witness what happens inside the chamber.

There's always a big study on these nights of body language and reaction and those types of things.

We're awaiting the governor to be formally escorted into the chamber to deliver to this joint session.

The 100 representatives and the 50 state senators are there, along with other dignitaries and guests.

It's a big night for Republicans and when you think of the super majority that we've been talking a lot about here in the last few weeks, 2/3 majority in both chambers, you would think that it would be a unified front, but there still might be some reactions to pay attention to.

- Yeah, you know, 102 Montana Republicans were elected in the midterms or in office and it is really interesting to see how those different factions and the caucuses in the Republican party, how they get along, how they don't get along, what they care about.

So I will also be interested to see how they react to the governor's speech and to see maybe what the more conservative Freedom Caucus wing thinks and maybe what the moderates think.

So that's what I have my eye on.

- We'll be watching that.

And of course, it's been 14 years now straight that the Republicans have had a majority in the state legislature.

Seven sessions in a row that they've had that, but this is the first time since before they rewrote the state constitution in 1972 that they've had this super majority.

So it's kind of uncharted territory here for more than 50 years.

So that's also going to be interesting to see as far as that goes in terms of just reaction and what they send from that.

Any other thoughts about, you know, just Governor Gianforte and what he might try and cover here in this speech?

- Yeah, you know, it's a friendly crowd.

My take on the governor is that he's always been motivated primarily by fiscal issues.

So in his speech, I expect him to talk a lot about the economy, probably about jobs, and of course the budget.

There is going to be a big discussion over what to do with our big budget surplus.

And then again, just watching to see what the Republicans, how they react.

Then of course, the Democrats, how are they going to react to what he says?

And so it will be interesting to watch unfold.

- That's right.

I think they're making that formal announcement now as we look into the chamber.

I think the governor is just about set to come in and make his way down the aisle and head up to the rostrum as we can see there through the doorway.

And he comes in and I'm expecting a very warm round of applause for Governor Gianforte and I have to mark it.

It's such a vast difference from the first speech when we were still on the edge of the pandemic at that point and there was a whole talk about mask protocol and how that was gonna work and all of that.

And it's a different environment right now.

- [Jessi] Yeah, I had to actually go back and look to see if it was actually held with people there.

So this is a different environment.

You can see everyone is jovial, excited to be there, shaking hands.

I see a lot of familiar faces.

I know your viewers are probably trying to see who represents them, if they can spot them in the crowd.

This is a really fun night for the state of Montana to see our government in action.

- [John] He's made his way up to the rostrum, shaking hands with leadership there.

As you can see, Matt Regier of Kalispell as the Speaker of the House, Jason Ellsworth of Hamilton, the Senate President.

So now let's listen in.

They're going to introduce him.

Let's listen in to the Governor's 2023 State of the State Address.

- Lieutenant Governor, Mister President, Mister Speaker, members of the 68th Legislature, fellow statewide officials, tribal leaders, members of the judiciary, members of our Cabinet, the First Lady of Montana, my dear wife Susan, and finally, my fellow Montanans.

I really appreciate you're giving me a standing ovation through the whole thing, but you can be seated if you want.

(audience laughing) My fellow Montanans, serving you, the people of Montana, as your 25th governor is the greatest honor of my life.

Thank you for the confidence you've placed in me.

In my last State of the State, I told Montanans we owe it to them to be bold as we lead the Montana comeback.

We laid out an ambitious plan with our sights set on building a place where more Montanans can realize the American dream, working hard, earning a good living, and raising their family.

I'm proud to report we are succeeding in that mission.

But we know our journey is far from over.

We still face challenges, but with each challenge comes an opportunity, an opportunity to grow together and to grow stronger.

For too long, Montana hasn't been living up to our full, outstanding potential.

Our biggest exports have been beef, grain, and, tragically, our kids and grandkids.

We've seen jobs and opportunities grow and they haven't grown here.

As a result, our kids and grandkids have left the place they love and the people they love for better jobs, higher pay, and greater opportunities elsewhere.

Too many choose to leave, but they shouldn't have to face that choice.

Over the past two years, we've made it easier for Montanans to stay and some have come back home.

I meet with them, and other inspiring Montanans, when I'm on the road.

Each year, I visit all 56 counties.

It's a priority for me.

Getting out of the Helena bubble and sitting down with Montanans is the only way I know how to do this job.

Montanans want greater opportunity, good-paying jobs, tax relief, the best education possible for their kids, affordable, accessible, high-quality health care, safe communities, attainable housing, stronger families, and responsible, effective government.

I share their priorities.

And together, we must deliver on them.

Montanans are on counting on us.

Let's get to it.

Our key focus has always been, and remains, creating greater opportunity for more Montanans and protecting the Montana way of life.

Together, we're opening doors of greater opportunity so more folks can prosper and achieve the American dream.

We're unleashing the engine of economic growth, business development, and job creation that, for too long, has sputtered.

In 2021, Montana's economy grew at the seventh fastest pace in America.

I'm proud of that.

We did that together.

(audience applauding) Thanks to the hard work of Montanans, we saw record business creation in 2021 and again in 2022.

Together, with these hard-working Montanans, we created more than 31,000 new jobs in the state, just in the last two years.

That's 31,000 jobs.

That's making a difference in so many lives.

Never before have this many jobs been created in any two year period in the state's history.

We've hit record-low unemployment.

Working with the legislature in 2021, I'm proud also that we delivered one of the largest tax cuts in Montana's history.

(audience applauding) We reformed and simplified our tax code to help small businesses, family farms, and ranches thrive again.

And as a result, more Montanans are working today than ever before in our history.

Friends, the state of our state is strong, and it is much stronger than it was two years ago.

(audience applauding) As much as our tax cuts and reforms help hardworking Montanans, we recognize our state's regulatory on job creation and business development.

That's why on my second day in office, I created the Red Tape Relief Task Force.

Led by Lieutenant Governor Juras, they've left no stone unturned.

And ladies and gentlemen, I can tell you, the Lieutenant Governor doesn't cut ribbons, she cuts red tape.

Thank you, Lieutenant Governor.

(audience applauding) And Lieutenant Governor, I just want to say thank you for your partnership in leading the Montana Comeback.

Thank you.

(audience applauding) The results of the Lieutenant Governor's work are clear.

Right now, there are more than 160 Red Tape Relief bills.

Many have already passed the House or the Senate.

To our legislative partners, thank you for helping more Montanans prosper by removing unnecessary, burdensome regulations.

Thank you.

Montanans... (audience applauding) Montanans have spoken loud and clear.

They want a government that works for them, not the other way around.

That's why serving our customers, the is our top priority.

We're putting customer service first and changing the way state government does business.

We're listening to our bosses, the people of Montana.

We're fixing what doesn't work.

We're modernizing state government.

We're streamlining permitting.

As an example, in 2020, the Department of Environmental Quality was receiving a record number of requests for subdivision permits, and the requests kept coming.

The department faced a backlog of nearly 500 overdue subdivision permits.

This prevented builders and developers from doing their job.

So, Director Chris Dorrington quickly changed the way DEQ operated.

And in just months, they eliminated the backlog entirely, subdivision permits are now being issued on time, and more homes are being built in Montana as a result.

Thank you, Director Dorrington.

(audience applauding) We're also being better stewards of taxpayer dollars, making government more efficient.

The Department of Labor and Industry developed a new, improved unemployment benefits system.

This new system saved taxpayers over $35 million and can now better serve those who have lost a job.

The Department of Administration renegotiated our state health plan.

That renegotiation is saving taxpayers $28 million per year while improving benefits.

And with our historic surplus, we're going to make Montana debt-free in '23.

(audience applauding) With your help, we'll pay off all the general obligation debt, and we'll save taxpayers $40 million over the next two years.

I urge you to make Montana debt-free in '23 and save Montanans that $40 million.

Please get the bill to my desk.

These are real efficiencies, real improvements, real savings, all to better serve the people of Montana.

As we lead Montana's comeback, we're creating an environment where businesses can thrive, create more good-paying jobs, and increase opportunities for all Montanans.

And don't just take it from me.

Take it from companies like Hyundai that decided to come to Montana and invest in our people, creating 50 Montana jobs.

Or NextEra Energy, supporting our all-of-the-above energy strategy and creating 300 Montana jobs.

Or Tonix Pharmaceuticals, adding to a growing hotspot of cutting-edge innovation in the Bitterroot, and in the process created 120 high-paying Montana jobs.

All told, over the last two years, 15 businesses have relocated to Montana and are creating more than 900 good-paying Montana jobs.

(audience applauding) These companies see Montana's clear value.

They see Montanans' unparalleled work ethic and our pro-business, pro-jobs policies.

There's no doubt about it, Montana is open for business.

(audience applauding) We've made Montana more attractive to innovative job creators, and they're investing in our state and our people.

But we have a long way to go.

And just for the record, friends, we're just getting started.

We're going to keep making Montana a sanctuary for freedom and free enterprise.

Together, we will make Montana an even better place to live, work, raise a family, and pursue the American Dream.

Because that's what Montanans sent all of us here to do, to focus on their priorities.

As I meet with Montanans in every corner of our state, I hear loud and clear that tax relief is a priority.

That's why we're cutting taxes again this session.

Working with the Legislature, we're moving forward with the largest tax cut in Montana's state history.

(audience applauding) With inflation taking a bite out of every Montana family budget, from gas to groceries, providing meaningful tax relief is critical.

For the people of Montana, that's why we're going to cut your taxes by over $1 billion.

All of the tax proposals are rooted in a simple philosophy.

Hardworking Montanans should keep more of what they earn, because ultimately, it's not the government's money.

It's the money of hardworking Montanans who earn it.

That's why we're going to put money back in Montanans' pockets, through immediate rebates and permanent, long-term tax relief.

The fact of the matter is Montanans overpaid.

We need to give it back.

(audience applauding) Our plan, the one we're working on together, delivers Montanans the largest income tax cut ever.

Our plan provides relief to Montana taxpayers at every income level, because even after our historic cut in 2021, we still have the highest income tax rate in the Rocky Mountain West and one of the highest in the nation.

It's a drag on our economy, a disincentive for job creation, and a burden on Montana families.

Other states understood this and they are cutting their income tax rates.

To stay competitive, we must do the same.

We must permanently cut the tax rate most Montanans pay and encourage Montanans to get back into the workforce.

As I travel the state, I see help wanted signs on every Main Street.

It's why we proudly led as the first state in the nation to end federal supplemental unemployment benefits in 2021.

(audience applauding) And it's why we're expanding the earned income tax credit to help lower-income, working Montanans, incentivize work, and build a stronger workforce.

(audience applauding) I want to take a minute to thank Senator Becky Beard who introduced legislation to cut income tax rates for Montana taxpayers at every single income level.

Where is Becky?

(audience applauding) Thank you, Becky.

(audience applauding) And I want to thank Representative Tom Welch for bringing legislation to provide Montana homeowners with meaningful property tax relief.

Thank you, Tom.

(audience applauding) And while the state receives only a small fraction of property taxes, we believe Montanans deserve substantial property tax relief.

Like a retired couple in the Flathead who, because they can't afford their rising property taxes, are thinking about selling their home that they raised their kids in.

We must provide them with significant property tax relief so they can stay in their home and in their community.

We must also make it easier for small business owners, family farms, and family ranchers to thrive by further reforming the business equipment tax.

(audience applauding) For too long, owning the equipment needed to operate has come with a heavy, unnecessary tax burden.

That's why we tripled the business equipment tax exemption in 2021.

And it's why we're working with the legislature this year, to raise the business equipment tax exemption to $1 million for every single small business in the state of Montana.

(audience applauding) Taken together, these two changes will eliminate more than 5,000 small businesses from having to even pay business equipment tax.

(audience applauding) I want to thank Representative Josh Kassmier for leading this charge in 2021 and then leading the charge again here in the 2023 session.

Where's Josh?

(audience applauding) Thank you.

(audience applauding) Working together, we're providing the largest tax cut in state history, creating greater opportunities for Montanans to prosper, thrive, and achieve the American dream.

We must also ensure that our kids receive the best education possible.

Too often throughout our country, we've seen education bureaucrats fighting to keep parents out of their kid's education.

Let's be clear, government should never stand between parents and their kid's education.

(audience applauding) Let's empower Montana parents to choose what's best for their family and their kids.

Let's protect parental rights.

(audience applauding) I urge you to send me Majority Leader Sue Vinton's bill that ensures students and parents are put first in education.

Thank you for carrying that, Sue.

(audience applauding) Every parent knows that each child is unique.

Let's ensure each child's education best meets his or her individual needs.

Let's support individualized learning, allowing students to progress at their own pace, regardless of age or class.

Let's pass the Individualized Education Act, sponsored by Senator Shannon O'Brien.

(audience applauding) Thank you, Shannon.

Let's also support work-based learning, allowing students to get on-the-job experience and apply that experience to their high school graduation requirements.

Friends, we can't continue doing the same thing over and over again and expect different results.

We need to bring innovation back to education.

We need fresh, new thinking and bold leaders to deliver the best education possible for our kids.

Ron Slinger, the president of Miles Community College, is doing that, and he's here with us tonight.

Miles Community College is equipping Montanans with the skills they need to thrive in good-paying, in-demand careers, from truck drivers to meat cutters to certified nursing assistants.

The college has also developed partnerships with the private sector, including Stockman Bank and Sidney Health Center, to create business-specific micro-credentials.

Miles Community College is breaking the traditional mold.

They're transforming how education is delivered.

They're thinking outside the box, not confining themselves, or their students, to the limits of their college's brick and mortar.

And under Ron's leadership, they're delivering results.

Because of their innovation, Miles Community College's full-time enrollment has grown at three times the rate of the entire Montana University System just in the last year.

Ron, would you please stand up?

(audience applauding) Ron, thank you for your innovative work on behalf of Montana students.

My challenge tonight to education leaders at every college, at every university, and every school district in the state?

Follow Ron's lead.

Be innovative, be transformative, develop partnerships with the private sector, don't be constrained by brick and mortar, and improve educational opportunities for all Montana students.

We can also transform how we deliver traditional K through 12 education.

Imagine a student who lives in rural Montana.

She excels at math, but her school doesn't offer advanced calculus or other STEM courses.

Wouldn't she benefit from taking calculus online?

Geographic boundaries are no longer a constraint.

We must modernize our way of thinking about education beyond traditional geographic boundaries.

We can do that through Representative Llew Jones' bill to transform the Montana Digital Academy.

I ask you to pass that bill and get it to my desk.

(audience applauding) Let's also double the cap on the Big Sky Scholarship to expand parental choice in K through 12 education.

(audience applauding) Let's do all this, and let's also take better care of those who help our kids reach their full potential, our Montana teachers.

(audience applauding) Teaching is a calling.

My mom was a high school math teacher, and now my daughter is teaching high school math.

For too long, teachers who answer the call and start their careers haven't earned enough.

That's why we enacted the TEACH Act in 2021, to provide incentives to school districts to increase starting teacher pay, and it's working.

In its first year, the TEACH Act helped nearly 500 new teachers here in Montana.

Kylee Urie is one of those young teachers, and she's with us tonight.

Kylee is in her second year at Harlem High School, where she teaches agriculture and coaches cheerleading.

She told me she found her life's calling in teaching.

Her husband, Nathan, teaches agriculture and coaches wrestling at Turner Public School.

They knew they wanted to start their careers teaching ag in rural Montana, but it didn't add up financially, with the state's low starting teacher pay.

Thankfully the TEACH Act made a big difference.

Kylee told me the boost from the TEACH Act was her deciding factor in moving to Harlem to teach.

Thanks to the TEACH Act, we have Kylee and Nathan, two new young teachers educating our students.

They're making our future a little brighter every day.

Kylee and Nathan, thank you for your dedication to our kids and Montana's future.

Please, stand up.

(audience applauding) Friends, a four-year college degree is not the best option for everyone.

Many new good-paying jobs require specialized skills, skills developed through apprenticeship.

When we took office two years ago, government regulations blocked access to apprenticeships.

So, we modernized our apprenticeship and in the process, we quadrupled the number of apprenticeship slots.

(audience applauding) And we're seeing results.

In 2022, Montana added more than 1,000 apprenticeships and more new employer sponsorships to our Registered Apprenticeship Program.

We have more apprentices now than ever before.

Williams Plumbing in Bozeman is one of our employer sponsors.

And Quin Williams, the company president, and Cooper Austin, an employee with Williams Plumbing, are here with us tonight.

Quin told me, before our reform, the company had 35 available apprenticeship positions.

With the help of our reform, Williams Plumbing created nearly 200 apprenticeship positions for hardworking Montanans like Cooper, who earned his apprenticeship as a direct result of our regulatory change.

After Cooper graduated high school, he tried college but realized that wasn't the right path for him.

He enlisted in the Marines, was stationed in California and Missouri as he served, and remains active in the Reserves in Billings.

Cooper, thank you for your service to our state and nation.

(audience applauding) Cooper was looking for a good-paying career, and a close family friend suggested he find one in the trades, and that's how he ended up at Williams Plumbing.

Cooper tells me that he's learned a lot as an apprentice and he loves the work.

Cooper and Quin, thank you for making Montana a better place.

(audience applauding) Now more than ever, Montana needs plumbers, and carpenters, electricians, welders, masons, and machinists.

Now more than ever, Montana needs a highly skilled workforce, which is why we created the Montana Trades Education Credit in 2021.

As we anticipated, Montana employers are taking advantage of the credit to upskill their workforce.

And this year, our budget nearly doubles the Montana Trades Education Credit, boosting this successful program that builds the skills of hardworking Montanans.

As much as we need to open opportunities for trades education, we also need to grow our health care workforce.

Let's tear down the barriers for health care professionals to practice in Montana.

Send Representative Amy Regier's bill to join the APRN Compact to my desk, as well as Representative Bill Mercer's that improves professional and occupational licensing so we can staff our hospitals and clinics.

(audience applauding) Taken together, these measures will build a more robust provider network in Montana and ultimately increase Montanans' In 2021, we brought greater competition to the marketplace and more choice to consumers by authorizing direct patient care agreements.

With unanimous, bipartisan support, we expanded telehealth, increasing access to high-quality care to all corners of the state.

Let's build on this progress here in this session together.

If we want nurses, law enforcement officers, and teachers to live in the communities they serve, we must address the shortage of affordable, attainable housing as well.

(audience applauding) Home ownership is foundational to the American dream, but home ownership has become harder to achieve in the last decade.

Hardworking Montanans should be able to live in the communities where they work, and grandparents should be able to live closer to their kids and grandkids.

That's why, last year, I brought together a diverse, bipartisan Housing Task Force.

I want to thank Senator Greg Hertz, Senator Ellie Boldman, Representative Sue Vinton, former Representative Danny Tenenbaum, agency directors, and stakeholders for You did a great job.

Thank you.

(audience applauding) I made their mission clear.

Help make owning or renting a home an affordable reality again for more Montanans.

They delivered many strategies to increase the supply of affordable, attainable housing.

As an example, we adopted one of the task force's strategies in our budget, the HOMES Program, or Home Ownership Means Economic Security.

The HOMES Program invests $200 million to expand water and sewer infrastructure, and ultimately expand housing opportunities.

I want to thank Representative Mike Hopkins and Senator Forrest Mandeville for leading that effort.

Thank you, gentlemen.

(audience applauding) I ask you to pass the HOMES Program.

Get it to my desk so we can increase the supply of housing and get more Montanans into a home of their own.

To increase the supply of affordable, attainable housing, we also need to have infrastructure in place.

It's why, in addition to the historic investments in water and sewer, we've proposed an additional $100 million to repair our roads and bridges.

And like access to water and sewer systems as well as safer roads and bridges, Montanans' access to broadband is essential in the 21st century.

Lack of access to reliable broadband limits Montanans' access to educational opportunities, health care, and career opportunities.

That's why we made the largest investment ever in broadband infrastructure, which will bring reliable broadband to that are not currently served.

We have to get this done.

(audience applauding) As we create better opportunities for Montanans, we must also protect our way of life.

Above all, that means protecting life.

Our Declaration of Independence states, "We are endowed by our Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness."

But without life, there can be no liberty, and no pursuit of happiness.

All life is precious and must be protected.

(audience applauding) Last session, we passed commonsense pro-life bills, some of which are now tied up in the courts, but our commitment to doing what's right for unborn babies will never waver.

(audience applauding) As we stand firm for life, we must also ensure that Montana kids, from unborn babies to teenagers, have an opportunity to reach their full God-given potential.

Our kids, and Montana's future, depend on strong families, and we must help them prosper.

But inflation, rising prices, and increasing child care costs continue to be a heavy burden for working families with young kids.

To support them, we're proposing a $1,200 child tax credit for kids under six.

Folks, $1,200 is meaningful for these young families.

We need to get this done.

It'll make a real difference for growing families raising their kids here in Montana.

Representative Josh Kassmier is carrying the bill to provide this assistance for Montana families.

Thank you, Josh.

(audience applauding) And speaking of child care, let's make it more accessible and more affordable.

For too long, working families have faced a shortage.

This problem was only made worse by the pandemic, here and throughout the entire country.

It's why we've invested over $100 million to help stabilize child care here in Montana.

It's also why we're eliminating unnecessary barriers to child care, so we can better serve kids, provide them with the foundation for a better future.

We must also make it easier for Montanans to open their happy, loving, healthy homes to kids.

Every child deserves a home where they can reach their full potential.

(audience applauding) To get more children into permanent, loving homes, we're proposing an adoption tax credit of $5,000.

If you adopt a kid from our foster care system, that amount bumps to $7,500.

We heard inspiring testimony just yesterday from adoptive families who opened their homes and created a brighter future for their adopted children.

I appreciate Representative Courtenay Sprunger who's leading this effort.

Thank you, Courtenay.

(audience applauding) And I'm thankful for groups working each day to get every child into a permanent, loving home.

Groups like Child Bridge.

Launched by the late Steve Bryan and his wife Mary, Child Bridge advocates for abused and neglected children, and helps foster children find homes filled with love and support.

Because of Steve's vision, thousands of Montana children have a bright future in a loving family.

What started as a local organization in Bigfork, Child Bridge is now involved in, catch this, in nearly 2/3 of all non-kinship placements throughout Montana.

This is the power of the public sector working together with the private sector.

Child Bridge's Executive Director Jenna Taylor is with us here tonight.

Jenna, on behalf of a grateful state, thank you.

And thank you to the entire Child Bridge team.

You provide hope for generations of children.

Jenna, please stand up.

(audience applauding) To continue building bridges among Montana's public, nonprofit, and private sectors, under my direction, the Department of Health and Human Services has launched the Office of Faith and Community Based Services.

This office is helping bring people together to build better outcomes for families and children here in Montana.

As we know too well, drug addiction and violent crime threaten our families, our communities, and our very Montana way of life.

I've heard it in almost every community throughout our state, including at the public safety roundtables I did this last year.

With chemicals largely coming from China, Mexican drug cartels mass-produce fentanyl.

Then they bring it into our country, mostly over the southern border.

This fentanyl crisis is a direct consequence of our nation's insecure and porous border.

So tonight, I have a message for President Biden and the members of Congress.

Secure our southern border now.

(audience applauding) Stop neglecting it.

Secure the border.

The safety of our communities, our families, and our people depend on it.

Crime and addiction too often go hand-in-hand, with tragic results.

Addiction and substance use tear families apart, too often leaving family members grieving the loss of a loved one.

Addressing crime and addiction effectively will take partnerships and investments.

To hold criminals accountable, we propose to invest $200 million to repair and expand capacity at the state prison in Deer Lodge.

I want to take a minute to thank Representative Mike Hopkins and Representative John Fitzpatrick for Thank you, gentlemen.

(audience applauding) To make our communities safer, I ask you to pass that funding and get it to my desk.

Working with the attorney general, we also propose investing in law enforcement.

Our budget funds 16 new highway patrol troopers and criminal investigators.

We also propose funding six new prosecutors at the Montana Department of Justice.

Taken together, they will combat the scourge of drug trafficking, human trafficking, violent crime, and crimes against our children.

The brave men and women of law enforcement put their lives on the line each and every day.

They deserve our support.

And I speak for all Montanans.

We see you, we appreciate you, and we will always back the blue.

(audience applauding) And while we crack down on criminals peddling dangerous drugs, we're also focused on expanding access to treatment and recovery for Montanans struggling with addiction.

(audience applauding) The Angel Initiative is one way we're doing that.

Launched by our administration, the Angel Initiative allows folks struggling with addiction to visit any participating law enforcement office and get connected with treatment.

I'm proud to have Cascade County Sheriff Jesse Slaughter with us here tonight.

Sheriff Slaughter is dedicated to making our communities safer.

He was also the first Angel Initiative partner in the state of Montana.

Sheriff, please stand and be recognized.

(audience applauding) Thank you, Sheriff Slaughter.

We're proud to have more than 20 sheriffs throughout the state partnering with us on the Angel Initiative.

We'll keep adding more, but our work doesn't stop there.

In January 2021, we introduced the HEART Fund.

It funds a full continuum of substance abuse prevention and treatment programs in communities across the state.

The HEART Fund helps people regain their health, rebuild their lives, and become vibrant members of their local community.

To be clear, it's not bigger government.

It's a community grant program.

These funds go to nonprofits and NGOs that are on the ground working in the communities.

And I'm proud that our Budget for Montana Families expands on our historic progress, boosting the HEART Fund by 50%.

Our budget also permanently funds eight proven, effective drug courts throughout our state that are losing federal funding.

Instead of turning our backs on those struggling with addiction, we're investing in hope and opportunity as they get clean, sober, and healthy.

We also have an obligation to take care of the most vulnerable amongst us.

After decades of previous administrations and kicking the can down the road, we propose a generational investment in behavioral health.

With it, we'll repair the state hospital in Warm Springs, we'll improve patient services, and we'll better secure the safety of patients and providers.

We'll also support expanded community-based behavioral health clinics.

Friends, it's time to stop kicking the can down the road.

Send that budget item to my desk.

(audience applauding) I appreciate the leadership of Representative Bob Keenan, Representative Ed Stafman, Representative Mary Caferro, Senator John Esp, and the interim committee that worked with Director Brereton.

Thank you for your service to the state.

(audience applauding) We also continue to face the heartbreaking crisis of Missing and Murdered Indigenous Persons.

And this is an all-hands-on-deck moment.

I want to recognize Representative Sharon for giving a voice to the voiceless, for continuing to carry the torch that lights our way.

Tonight, I ask us all, ask you all to send her bill to my desk so that I can sign it.

Representative, thank you for your work.

(audience applauding) Part of our Montana way of life is defined by our rich outdoor heritage and vast public lands.

We must protect them for the generations that will follow us.

Active management will protect our forests.

When a forest is managed properly, we have less severe wildfires, more recreational opportunities, more wildlife habitat, and more jobs.

In 2021, we set an ambitious forestry target to match the urgency of the forest health crisis that we face.

Thanks to the leadership of Director Amanda Kaster and the hard work of the Department of Natural Resources and Conservation, we more than doubled the number of acres treated in Montana in one year.

Our budget proposes $10 million per year to expand the scope of active forest management, so that we have fewer wildfires in the future.

For the wellbeing of our people, their homes, their property, and their livelihoods, I urge you to pass our active forest management proposal.

As we better manage our lands, we're also increasing access to them.

Take our work in the Big Snowies.

The state purchased nearly 5,700 acres in the area, providing access to over 100,000 acres of state and federal land.

This conservation victory created the Big Snowy Mountains Wildlife Management Area.

Not only does this land offer exceptional hunting, with excellent habitat and access to the Big Snowies elk herd, but it will also remain open for cattle grazing.

Our state has a vested interest in seeing land conserved for wildlife, while also keeping ranchers on the landscape.

They were the first stewards.

(audience applauding) Production ag and conservation are not mutually exclusive.

We married those two interests in this agreement, and achieved a win-win for Montana, offering a great example of what we can accomplish together.

It's a testament to the fact that we're best when we're working together.

Let's keep that in mind as we work through this legislative session and in the years to come.

Let's remember that there's much, much more that brings us together than separates us.

Let's continue finding common ground and delivering results for the people of Montana.

That's what they sent us here to do.

Ultimately, we all want the same thing, to open the doors of greater opportunity so more Montanans can thrive, prosper, and achieve the American dream.

Let's work every day to make that a reality, because every day, Montanans work hard to realize the American dream, to earn a decent living, to own a home, to raise a family, to contribute to their communities, and to retire comfortably, to leave their kids and grandkids a better life than they had.

While the American dream might be fleeting in some states, it's alive and well here in Montana, because we embrace the freedoms that are foundational to who we are as Americans.

We support all those who want a better life and are willing to work for it.

We stand with parents doing everything they can do to give their kids a better life.

We celebrate our shared values of hard work, commitment to family, freedom, and love of country.

We embrace the fundamental idea that the American dream is a sacred one, and together, we will always defend it.

Friends, our best days are ahead of us, and the better, brighter future we're building together, one we'll leave our kids and grandkids, that's what inspires me every day.

Thank you.

God bless you.

God bless America.

And God bless the great state of Montana.

(audience applauding) - You've been listening to Governor Greg Gianforte delivering his State of the State address.

The governor spoke for just about one hour and he hit on some familiar themes.

A lot of economic themes early on, talking about what he was touting as the largest tax cut in Montana history, helping small businesses.

He also spoke about the HOMES program to help invest money into water and sewer infrastructure to make home ownership a little bit easier, increasing the inventory.

Also touched on K through 12 education, challenged the higher ed schools, two year and four year schools, to innovate there.

And also he was talking about crime and punishment and investing in state prison and law enforcement among the many themes that he hit on there.

Let's bring in our analyst this evening, Jessi Bennion from Montana State University and Carroll College.

Jessi, what initial thoughts from what you were hearing from the governor?

- Yeah, you know, initially I just think it sounds like a lot more fun and it seems like a a lot more fun for a governor to give a State of the State speech like this when the budget is flush.

So it had a very optimistic feel to me when I listened.

Obviously because Republicans have a super majority, there is a lot of opportunity for legislative change.

So we heard a laundry list, which is typical of these speeches, of proposals, changes.

Obviously pointing out wonderful stories of people attending.

The legislators who he's hoping to work with are getting people to come on board and vote for specific bills that he wants to pass.

But it just had an overall optimistic feel that really actually felt like a very traditional Republican old school speech and that was kind of initially what my biggest takeaway is.

- Yes.

Well, we want to remind our audience that we'll have the Democrats' response to the governor's speech that's coming up in just a few minutes from the Senate chamber there at the capitol.

Senate Minority Whip Shannon O'Brien from Missoula will be delivering that, but we're digging into that.

We talked about just a few of the topics that he touched on and it's odd to say that when you point out that it's a traditional speech, that seemed unusual to me because we are usually getting a lot of non-traditional speeches these days.

- I know it, but I was really struck, and I don't know the right way to say this, but it was really non-Trumpy.

It was a very traditional Republican talking points that could have been given 20 years ago it seems.

So that was striking to me.

- Yeah.

Well, let's dig into that as we've got some time.

For those of you just joining us, the governor speaking for just about an hour and we're going to listen to a couple of clips from the speech.

And you mentioned his emphasis in terms of the economy and generating things there.

And he spoke early on after they talked about some of the previous accomplishments.

One of the first things he jumped into, of course, was what he was billing as the largest tax cut in Montana history.

And here's what the governor had to say about that.

- With inflation taking a bite out of every Montana family budget, from gas to groceries, providing meaningful tax relief is critical.

For the people of Montana, that's why we're gonna cut your taxes by over $1 billion.

All of the tax proposals are rooted in a simple philosophy.

Hardworking Montanans should keep more of what they earn because ultimately it's not the government's money, it's the money of hardworking Montanans who earn it.

That's why we're gonna put money back in Montanans' pockets through immediate rebates and permanent long-term tax relief.

- Well, it always sounds like a great plan when you talk about that.

The devil is in the details because now we're talking about who gets how much money and where that money goes.

And I think that's what we're looking at as we get into this session.

- For sure.

And this is where we are going to see if Republicans can unite, all super majority of them, or are we going to see some disagreements about the size of the tax relief, about maybe could they possibly spend the money in other ways and possibly infrastructure or more to social services?

This is going to be debated.

And just because someone has an R behind their name doesn't mean that they're always going to, you know, form in line and check off everything that the governor wants.

So I suspect there's going to be intense negotiations, probably behind the scene, but maybe some in public about what exactly that tax relief will look like.

- Well, if history is any indication, the last time we had a big surplus, it was a never ending fight.

In fact, they could not get it done in the regular session during Brian Schweitzer's term.

They had to actually call a special session to get the budget worked out.

So yeah, when there's money on the table, I think that can definitely lead to things not being quite as simple as you would think.

- Yes, and thank you for that reminder.

That was the last time that we had a budget surplus this big.

It's been that many years.

And you're right, a special session happened.

And so I don't necessarily think that that is in the future, but you never know what happens.

With the super majority, I would think that they could get something through in the next, you know, this 90 day session, but we'll just have to wait and see.

- Now another fact that he spoke to, of course, was the K through 12 and education issues.

And he talked about a whole variety of things with that.

But what he started with was something that I think would be very popular with the Republican base and that's how he started when he started to begin with education and parents.

- We must also ensure that our kids receive the best education possible.

Too often, throughout our country, we've seen education bureaucrats fighting to keep parents out of their kids' education.

Let's be clear, government should never stand between parents and their kids' education.

(audience applauding) - So that's where he started with it.

And then of course he did eventually advance on into other programs that he is referencing that they have done previously and that they're talking about going forward.

But that one felt like that started to veer into a little bit of that social wedge issue thing that's come up in the last two years.

- Yes, that is an issue that I know a lot of Republicans in particular, when you look at the public opinion polling, they care about that issue.

So it's not surprising to me that he brought it up, but it is a sensitive, controversial issue about how we fund our schools and how much parental involvement should be in curriculum choices, et cetera, et cetera.

So we know that this is happening all over the country nationally.

So it's tapping into that nationalization issue, but it's bringing it close to home.

So, and then we saw the crowd react to that.

It was a resounding applause.

- Yes.

And I think it was notable that there were very few of those times where he tended to tack into that area.

He really stayed more bread and butter with certain base things because he then later went on to talk about the apprenticeship programs, the innovation for distance learning, all those types of things, and things they've done previously to try and boost the salaries up a little bit.

So there were some, again, bread and butter things there later on, but that was interesting that he veered off that way.

- Yeah, it actually is to me as well.

Coming into this tonight, I thought how much time is he going to spend talking about the economy and then how much time will he give to those more social or controversial issues?

And we just got glimpses here and there throughout the speech, but really sticking to those kitchen table issues, those bread and butter, like you said, issues, and it was actually kind of surprising.

- Yeah.

Well, we wanna remind everyone that the Democrats' response is still just ahead.

They're preparing over in the Senate chamber and the capitol building.

The Democrats will have Senate Minority Whip Shannon O'Brien from Missoula delivering that response to Governor Gianforte's address earlier.

Now you talked about that it was gonna be a little bit of a body language study there for the reactions and now the two things that got the sharpest reaction in terms of really being able to divide the chamber up had to be when he made a pro-life reference.

And then also when he talked about securing the southern border.

You could definitely tell where the Republicans and Democrats were sitting at that point.

- Yeah, they stood right up, the Republican side, on both of those parts of the speech, especially on the southern border part of it, talking about the increase in fentanyl and what that has done to Montana communities.

The Republicans, definitely that played well to them.

And of course the pro-life issue for Republicans is one of, a lot of people are single issue voters in that way on the Democratic and Republican side.

So that issue is always one of those hot button ones that as soon as someone starts talking about it, ears perk up.

And so maybe the crowd or viewers at home, you heard that and saw that happen.

- Yeah, and in fact, if anything, I was surprised at the small space that that took within the speech.

I mean, that is a very important thing.

He was very adamant about that when he ran his campaign in 2020.

I think he really was hanging his hat on that for a lot of it and in terms of really energizing the base, and it was very small there with a quick mention about the court cases that are still involved with some of that earlier legislation.

So really didn't speak much to how they were gonna move forward with that.

- No, he didn't, and I mean, the crowd probably would've been very happy to hear him talk for much longer about that, but for some reason, and it could be strategic politically, he only talked about it briefly.

Doesn't mean that he doesn't care about that issue.

I know that he probably does, he has campaigned on it.

Obviously it's a Republican platform issue, but yes, he did not spend much time talking about it.

The economy and those kitchen table issues really took up the majority of the speech.

- Well, we're about to listen to the Democrats' response, so let's talk about that for a minute because what can you do with that?

I mean, the Democrats, they're very limited in what they can really do or even put forward as a type of agenda because they are gonna need a lot of Republican help to make anything happen in terms of what they're seeing going forward.

- Yes, it is a much trickier position to be in the minority always.

They are going to have to be unified together on pretty much everything that they try to accomplish.

And they're also going to have to work across the aisle to get anything accomplished.

So it's only going to happen with bipartisanship.

Democrats, it's going to be difficult, but they are also speaking to their voters, to their supporters tonight.

So this is their chance to talk to the people who voted them in.

Many, many Montanans are going to be interested in what the Montana Democrats are going to say, how they're going to counteract the Republican platform and agenda.

And so I'm interested to see what they touch on tonight.

- I believe that they are ready now.

We are going to go to the Senate chamber now for the Democrats' response.

- Good evening, my fellow Montanans.

We just heard from Governor Gianforte.

Now it is an honor and a privilege to represent the Montana Democratic Party, the party of freedom, the party of fairness, and the party of responsible government.

Tonight, in response to Governor Gianforte's remarks, I'd like to share with you a picture of what it's really like to be a Montanan.

Not the multimillionaires who come here to buy a fourth or fifth house, but those hardworking Montanan families who drive our state forward and some of our older neighbors.

Honestly, and no offense to him, the governor is out of touch.

Allow me just a few minutes to lay out our solutions to the critical issues that are facing Montanans today.

For our families and our neighbors in this beautiful place we call home.

Tonight, the governor failed to provide any real solutions to the housing crisis.

He sent back $100 million of our federal monies that could have significantly eased the pain of the housing crisis.

Instead, he offers a red tape initiative, which quite frankly does nothing for Montana families and nothing to address the housing shortage.

The governor says that business has grown in Montana, bringing new jobs, but businesses can't thrive when they cannot find the staff.

What good are new jobs if people can't afford to live where they work?

His proposal doesn't go far enough, as much of the things that we heard about tonight.

It doesn't go far enough to help the small businesses whose workers simply can't find housing.

Montanans from every corner of the state, whether it be small towns like Troy and Ekalaka or our larger communities like Billings, they deserve elected officials to provide these solutions.

(audience applauding) We're all experiencing these rising costs of rent, of mortgage, and of property taxes.

It's all out of control and it's simply not fair.

There's this $2 billion surplus sitting in the bank here in Helena.

Our Democratic plan would put $500 million to work for you, making sure every Montanan can find a home.

We can help landlords keep rent affordable.

We can reduce outdated regulations that make it harder for builders to create starter homes.

We can help our working middle class families stay in their homes and stay in their communities.

(audience applauding) Let's talk childcare.

We hear a lot about childcare.

The governor offered a modest tax credit to address the childcare crisis, but it does not begin to meet the needs of families or childcare businesses across the state.

Those of us who have children, and those of us who have neighbors and friends who have children, we know that it costs $1,000 a month per child for childcare.

And that if you can find the childcare.

About half of our Montana families who need childcare simply can't get it because it doesn't exist.

And I also need to mention that our childcare workers, the people that look after the safety and the snacks and the songs for our children, they make about an average of $11.50 an hour without benefits.

It's not fair and it's not okay.

These are our children.

(audience applauding) What I hear is that every day Montanans go to work, they work hard, they bring home their paycheck, pay their bills, and they hope that at the end of the month, there's a little bit left over to go out to dinner, maybe even go to a movie.

But what I'm also hearing is that the cost of childcare has eaten into your monthly budget and you don't know if you are going to be able to make ends meet.

Simple.

We Montana Democrats know that the issue of childcare can affect our families, the businesses who cannot find workers because the workers are staying at home to look after the children, and the childcare businesses themselves, those people that take care of those little ones.

For parents, we're focused on scholarships and putting a cap on the copays so that you have the freedom to stay home or go to work, what you want to do.

(audience applauding) And for childcare businesses, let's get rid of exhaustive paperwork so that you have the freedom to focus on what's most important, the children.

(audience applauding) Now let's talk a little bit about tax relief.

We hear this quite a bit.

Every single one of us is feeling the pinch of property taxes, of income taxes, and of inflation.

The system needs to be fair where the wealthy pay their fair share and ordinary Montanans aren't stuck paying the bulk of the bill.

We can all agree there are ways to adjust the system while not putting all the burden on the middle and lower income families.

And to be clear, any action to implement a sales tax statewide will put additional pressure on the families least able to afford to put food on their table.

Tonight, the governor provided no real solution to ease the tax burden on everyday Montanans.

Instead, quite honestly, he used the tired old Republican playbook of giving our wealthiest a very, very generous tax break.

So get this.

If you make over $500,000 a year, you are going to see a tax benefit according to this plan of about $5,000 to $6,000 per year.

If you're an ordinary working Montanan making 50, 60, $70,000 a year, then you'll see a tax benefit of 50 bucks, maybe 60.

That is not right.

(audience applauding) When we look at taxes, we want consistency for our Montanans so that taxes don't all of a sudden skyrocket, and we look for fairness.

Quite frankly, the administration is Property taxes need to be adjusted for the long haul.

Montanans... Montanans aren't stupid.

The governor proposal to give a one time tax credit to property owners does not solve the problem, nor does it make the problem go away.

Honestly, in some ways, it's kind of a wink and a nod.

While, as I mentioned, giving a $5,000 to $6,000 tax benefit to the wealthiest.

And again, leaving the fundamental problem unsolved.

It isn't just unfair, it's just plain wrong.

Let's talk about healthcare and nursing homes.

On the governor's watch, just over the past year, 11 nursing homes have closed their doors in Hamilton and Ronan, Malta and Miles City.

This is not only an economic crisis for these communities, this, friends, is a moral crisis.

Our Montana values demand we take care of our parents, we take care of our grandparents, we take care of our older neighbors down the street.

And I will share with you that this one is personal to me right now.

We're going through this.

And Governor Gianforte, no, any political leader in this type of position, quite frankly, should be ashamed of themselves if they provide no solution to ease the pain and the burden of these families.

(audience applauding) Okay, let's talk a little bit about education.

And the governor had quite a bit to say about education.

Let's talk about the hope of quality public education.

(audience applauding) It's the way our democracy works.

Our schools are some of the finest in the country, yet our teachers are the lowest paid.

And not only that, they are leaving the teaching profession.

And additionally, fewer are going into it.

We have got to do something more serious about this.

Schools all over the state are short of teachers.

Montana Democrats have a plan to incentivize and encourage teachers to go into schools in rural areas in the first years of their teaching career.

The governor has yet to propose any real solutions to keep our schools strong and vibrant and an exciting place to learn.

Lastly, I am so grateful to my brothers and sisters of the Native Sovereign Nations within the borders of Montana.

I have learned so much witnessing their every day to honor their culture and to make sure it is here for generations.

We... (audience applauding) We Montana Democrats have numerous bills to support the American Indians who lived on this land first.

(audience applauding) So it goes without saying that Montana Democrats have presented real solutions to the many problems our families are facing across the state.

While much of this first month in the legislature, the Republican majority has been spending precious time not on the economic issues that should unite us, but rather on the divisive agenda that divides Montana.

And it breaks my heart.

Sometimes, for some of them, I wonder, have they forgotten the basic value of love thy neighbor as thyself?

(audience applauding) Sometimes I wonder, have they forgotten the basic value that privacy is a core value of Montanans in our healthcare, in our homes, and in our lives?

(audience applauding) I wonder, have they forgotten that the right to vote is the cornerstone of our democracy and anything that attempts to block that right flies in the face of our Constitution?

(audience applauding) And I wonder, have they forgotten that when they are sometimes so cruel and deny the freedom to be who you are and to love who you love, that they are hurting Montanans, human beings, our neighbors, our friends, our family, who are a valuable part of the fabric of this great state?

(audience applauding) Now, all this having been said, this legislative session is not about Democrats and Republicans.

It's not about political wins and political losses.

It's not about making national headlines and it's not firing up certain groups.

The 68th legislative session is about getting good things done for Montanans.

(audience applauding) We must work together to ensure our values of freedom, fairness, and responsible government are kept.

I invite you to join us, watch us, hold us accountable.

When I taught in the classroom, we said the Pledge of Allegiance every day and I just loved that as a social studies teacher.

And in this very chamber, every day we say the Pledge of Allegiance.

And it reminds us that freedom and justice is for all, not just some.

And I want you to think about those words, with freedom and justice for all.

(audience applauding) May God bless you and may God bless the great state of Montana.

(audience applauding) - We've been listening to the Democrats' response to Governor Greg Gianforte's State of the State Address.

And Senate Minority Whip Shannon O'Brien was delivering that address in the Senate Chamber.

And we're going to bring in our analyst for this evening, Dr. Jessi Bennion.

And Jessi, hit on some familiar things there with saying the governor was out of touch, not really providing solutions to the affordable housing crisis.

They talked about spending the 500 million out of that $2 billion surplus for that.

Other than that, there was not as much detail there as in terms of childcare, public education, I think some familiar themes that way.

But your initial thoughts after hearing that?

- You know, the overall tone of that speech was markedly different.

Obviously being in the minority, they have to be really a thorn in the side of the governor.

They need to be pushing on the things that they don't agree with.

And I think that that is really what that speech just showed, the difference in more somber tone.

It wasn't necessarily...

It was all the things that they disagree with, with the governor.

And at the end, a lot of talk about values, what the values are of what they see the Montana Democratic Party being as the alternative to the Montana Republican Party.

And that's really what struck me.

- Yeah.

What can they do?

I mean, that's what it comes back to.

I mean, I understand the disagreements and a lot of this sounded like unfortunately familiar Republican-Democrat talking points on the various issues.

But then now when we talk about we have the rest of the session ahead, what can you do?

What can they do?

- They have to be extremely strategic and pragmatic and it requires just an extra ounce of gumption to try to find people across the aisle to work with them.

Again, that bipartisanship, if Democrats want to get anything done that's gonna be the way that they have to do it.

And that is just a difficult position.

Very, very difficult.

- We want to remind our audience that we still have more interviews ahead.

We're going to talk with Republican leadership, speaking of what the plans are for the legislative session going forward.

We're going to have the Speaker of the House and the Senate President.

Montana PBS's Anna Rau will have that in just a few minutes with that interview.

But now, now as we start to look at the whole evening together, what sense are you getting in terms of the type of session this is going to be once you hear rhetoric from both sides?

- Yeah, I feel like after listening to both speeches, I think that obviously because of the super majority, Republicans really have the upper hand.

So my eyeballs are gonna be on wondering just how they navigate the different factions within the Republican party.

That's really what I see.

What are the moderates going to do?

I saw the governor pointed out Llew Jones, who is known as a moderate, get things done sort of legislator.

So that's where my attention will probably shift to.

- Yes, most valuable legislator has to be Llew Jones.

He has an incredible track record of getting things done.

But you're right, that is more to the middle of the party.

We talked about it earlier in the evening, the newly formed Freedom Caucus.

And is that going to be something that kind of moves things in a different direction?

- Yeah, it's so interesting to see that movement.

It is, as opposed to previous years, it's much more professionalized.

There's a national presence.

These are popping up in lots of different states.

I think that some of our Freedom Caucus members went to go to a training in DC.

So to me, I'm watching just how professionalized they are, just how motivated and organized they are.

Will this last?

Will this be something that's long lasting or will this just be for the next, you know, 60 days?

We'll have to see what happens, but that's kind of how I'm analyzing that.

- Well, let's go back now to the state capitol as we have Montana PBS's Anna Rau.

She is standing by with Republican leadership.

Of course, the super majority, there's the surplus to talk about.

There's a lot going on there, so let's send it over to Anna.

- [Speaker] Step to your right.

- My right?

- The other right.

- I know.

- Yeah, John, probably the biggest issue lawmakers are going to face this session is the budget surplus.

It's a historic $2 billion surplus.

And because the super majority's with the Republicans, that means they're gonna be making the decisions on how that's spent or saved.

Joining me now is leadership for the House and the Senate.

As Senate President Jason Ellsworth and Speaker of the House Matt Regier.

Thanks so much for joining us today.

- Thank you.

- Hey, thanks for having us.

- Yes, it's great to have you on.

So let's talk a little bit about Gianforte's speech.

He talked a lot about his priorities for that surplus.

Tax breaks, new incentives, that type of thing.

Do you agree with all those priorities and the amounts he discussed tonight?

And the first response goes to you, Mr. President.

- So I would say generally yes.

So what we do agree on is this is the people's money and we need to give it back to the people.

The question is how do we do that in what responsible manner?

So I think we've come up with, as a leadership team, some solutions, and we've presented those to the governor.

What we need to do is focused relief on, of course, property tax and income tax.

And then we need to be consistent with what we're doing on income tax throughout everybody's paychecks.

So putting that number down to 5.9% affects every Montanan's paychecks today in their pocketbook.

We pass that up, it actually had that through the Senate today, so I think it's gonna move along well and hit the House and I'm excited about it.

- All right, and now Mr. Speaker, your response.

- Yeah, it is, that's a great question.

Montana's in an unprecedented spot right now with over $2 billion in surplus.

I mean, the taxpayers overpaid to operate the government for the last two years and it's time we give that back.

And I think we're very much on the same page with the House, the Senate, and the executive branch there.

It's just a matter of how to give it back, I think.

I mean, we're in a great spot right now.

The taxpayers are in a great spot, having the Republican majority in control.

- Let's talk property tax relief.

You kind of touched on that a second ago.

Governor Gianforte would like to see rebates to homeowners who have a primary residence in Montana.

But people are critical of that.

They say that's not really gonna solve the problem, it's just a bandaid on the problem.

If they were to do those rebates, would that actually help that Flathead retiree couple he talked about, you know, in his speech, stay in their home?

First response is to you.

- For sure, yeah, I think there's a lot of people that are looking just to stay right now.

They need immediate relief right now.

There is a, with property tax, there's a little bit difference.

That's mostly driven by local government.

So we even got some legislation coming through that we can hopefully partner with in local government to reduce property tax movement in the future for the long term.

But right now, those property tax checks will provide relief for those people that need it.

- Okay, now that response to you, do you feel like it's enough for maybe that Flathead couple?

- And I would agree with the Speaker that, you know, getting a check to people immediately, something this year before they get their property tax bills, we need to do that.

We're moving legislation along now.

Does it solve the problem in the long run?

No.

Property tax is really about local government function.

And what we can do here is potentially do some red tape relief, alleviate some of those burdens to local government, and then hopefully local government will and give the people back their money as well.

- And I know one of the things I've heard people criticize with that idea of, you know, giving that money back is that they're criticizing, they're saying, you know, you didn't fund the schools as a legislator, you didn't fund our infrastructure, so we have to do it through mill levees.

Do you disagree with that assessment?

First response goes to you, Mr. Speaker.

- So I would say, you know, this comes back to local government.

We get a vote on levees as citizens and we put those levees upon ourselves.

So I've done it in Ravalli County.

I voted for things and I voted against things.

We recently had a community college that didn't go through because us as citizens decided, you know what, we didn't want that burden from local government and affecting our taxes on property.

So I think the way we handle things and our pocketbooks locally is very important.

- Okay, that question to you too, do you think it's shifted the tax burden at all?

- No, and this is kind of a right pocket, left pocket.

We hear this a lot here in state government of why aren't you funding schools?

But then Missoula's building a bridge to nowhere.

So it's all state government money.

You need to be prudent with all of it and not just cherry pick out one thing and say, hey.

With government and local government needs to do that too, figure out where they can be efficient with their left pocket so that the right pocket does have enough money.

- All right, Speaker of the House, Matt Regier, and President of the Senate, Jason Ellsworth, thanks so much for joining us tonight.

I appreciate it.

- Thank you.

- And John, I did talk with the legislative fiscal division today and they said that the bulk of that surplus right now is actually coming from taxes on earned income.

So things like wages, capital gains, and royalties.

So there's potential for some of that to continue into the future and not be one time money, but only time will tell with that.

John?

- Anna Rau, thank you very much.

Reporting from the state capitol tonight, talking with Republican leadership.

And Jessi, we got a chance to hear there and it felt like a united front from both the Speaker of the House and the Senate President in terms of their approach to it.

- Yeah, that's my takeaway as well.

- And as we talked about looking forward now, we've had the speech, we've had a little bit of political theater tonight now.

Now it's time to dig in.

What do you expect to see?

- Lots of hard work, lots of late nights, lots of negotiating behind the scenes.

I have a lot that I can take back to my Montana state politics class tomorrow at Caroll to talk about.

That's for sure, that's for sure.

- And then just I guess the overall tone and tenor.

As we wrap up the night, what was your feeling?

Do you feel like there's at least a possibility of getting things done?

I think both sides were talking about that, that it's not gonna be about political wins, that they need to get things done for Montana citizens who are watching and listening tonight.

- Yes, for sure.

I think that both sides of the aisle said that they put Montana citizens at the forefront in all of these decisions.

So I think we will see some compromises.

A budget certainly, hopefully, fingers crossed, will be passed, there won't be a special session, but it's gonna take a lot of hard work.

- We will be watching.

We appreciate your insights this evening.

- Thank you.

- We want to remind our viewers and listeners that for coverage of the legislative session coming up, daily coverage, you can count on Montana Public Radio and Yellowstone Public Radio for daily reports and special reports from Montana PBS and their series "Impact."

That's gonna wrap up our coverage for this evening.

Thank you all for joining us and from all of us here at Montana PBS, good night.

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