- [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.

- Good evening and welcome to Montana PBS and our special coverage of 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 69th Montana legislature is convening.

They're wrapping up the pre-speech ceremonies there.

As you can see, the invocation is just being completed.

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

It's all part of our coverage tonight that includes the governor's speech in its entirety.

We expect that to last about an hour.

That will be followed by the Democrats' response, to be delivered by Senate Minority Whip Shane Morigeau, who represents Missoula.

And Montana PBS's Anna Rau will also have interviews with key legislators about the upcoming session and important issues there.

Let's bring in our analyst for this evening.

From the University of Montana School of Journalism, Lee Banville joins us.

And, Lee, great to have you.

We've been covering this event for 20 years, and I think this is the earliest in terms of in the month of January, the earliest that we had a governor request to give the address at this point in the month.

Do you think there's a particular advantage to that?

- Well, I mean, I think... Well, we'll find out I guess.

But, I mean, I think the big thing is, you know, by moving it earlier, you know, the legislature's only about a week into business, right?

And so they haven't had a lot of time to dig into some of these issues, whether it's how to tackle housing, how to tackle economic development or property taxes.

And so by having the speech earlier, he does have the opportunity to kind of shape the parameters of the debate a little bit.

And so, you know, it's clear that the governor probably wants to be involved in the conversation more rather than sort of sitting back and seeing what the legislature comes up with.

So there probably is a little bit of strategy to it, but maybe also, I don't know, maybe he had a conflict later in the month.

- We're a couple of weeks earlier than normal, we will say that.

Well, let's just dive into it then.

In terms of details, what do you expect to hear in the speech tonight?

- Probably a lot.

These speeches tend to be very broad and cover all the big sort of like, so probably a lot of what people tend to call kitchen table issues.

So things like, I'm sure we're gonna hear about housing, we're gonna hear about property taxes, we're probably gonna talk about education.

You know, the things that really do, a lot of people do spend a lot of their time worried about or thinking about.

There will probably also be priorities that the governor has really emphasized.

So it could be things like, you know, sort of law and order issues.

We might see conversations around some of his other sort of priorities around mental health access or successes that he's seen from his first term.

So, you know, I think we'll see a lot in there.

And then he'll also be trying to sort of set the agenda for, you know, what his focus is gonna be as he goes into, not only this session, but these next four years.

- A lot to listen for.

The governor, as we await him to enter the chamber.

He is going to come in.

As you can see right there, he has now entered the chamber and is up to the rostrum and greeting the leadership, the legislative leadership there as we are close to him delivering, and let's listen in, the 2025 Governor's State of the State address.

- [Clerk] State of Montana, the Honorable Greg Gianforte.

(chamber applauds) - Thank you.

Please be seated.

Mr. Speaker, Mr. President, members of the 69th legislature, lieutenant governor, statewide officials, leaders of our tribal nations, members of the judiciary, members of our cabinet, the First Lady of Montana, my dear wife Susan, and, finally, my fellow Montanans.

Just last week we gathered on the front steps of the Capitol to commit to four more years of strong conservative leadership here in Helena.

As I did last week, I stand before you today with a message of hope and prosperity and an unwavering commitment to serve Montanans.

As we gather in this chamber, we're reminded that America lives in Montana, in our vast landscapes, our thriving communities, and, most importantly, in the hearts of our people.

Over the last four years, we've made great strides together, but our work is far from over, and I'm filled with optimism not only for our state but for our nation.

In just one week, President Donald J. Trump will return to the White House after... (chamber applauds) After his resounding victory in November.

Last Thursday, I had the great honor of having dinner with President Trump at Mar-a-Lago, and I can tell you he is ready to get to work.

And I'm eager to work with President Trump and members of his cabinet, many of whom I've worked alongside in Congress and as your governor, to make America affordable, safe, prosperous, and great again.

Our vision of Montana remains simple and steadfast.

Create more good-paying jobs, open the doors of greater opportunity for all Montanans to achieve the American dream, and to protect our Montana way of life.

It's a conservative vision centered on family and community.

We stand at a pivotal moment in our state's history.

The choices we make today will shape Montana for our children and our grandchildren.

For the first two decades of this century, state government hasn't done well by them.

As I said before and I'll say again, Montana's biggest exports were beef, grain, our kids, and our grandkids.

They left Montana for greater opportunities elsewhere, for better jobs with higher pay.

We're reversing that trend, improving educational opportunities and creating an environment where job creators and innovators can thrive, set up shop, grow, and create good paying jobs right here in Montana.

At its core, our vision is about freedom, opportunity, and community.

We believe in the unsurpassed spirit of Montanans, our resilience, our work ethic, and our deep connection to this land that we love.

Our policies aim to unleash that spirit, to create an environment where every Montanan can pursue their dreams, prosper, and build a wonderful life, where families thrive, where our communities are safe, where our public lands are protected for where opportunities abound, and a child growing up in one of our smallest towns has the same chance to succeed as one in our largest city.

We're building a foundation for greater opportunity, for long-term prosperity, one that can weather the storms and emerge stronger.

We're building a foundation that emphasizes self-sufficiency over government dependency.

Over the last four years, we've boosted self-sufficiency.

There is dignity in work, whether you're serving customers, building homes, working the land, or working behind a desk.

We must encourage work and the dignity that comes with it.

Now, we do have an obligation to support and care for the most vulnerable amongst us.

And to those who need temporary help to get back on their feet, we have an obligation to make sure that help that we provide is a hand up, not a handout.

I'm proud of the successful work of our cabinet to make government more responsive, to increase efficiency, and to emphasize self-sufficiency over government dependency.

In addition to prosperity and self-sufficiency, we're building a firm foundation on our shared commitment to fiscal responsibility.

But it's not just about balancing the books.

It's about respecting all Montanans who work hard to earn a living.

It's about ensuring government remains a servant of the people, not their master.

And Montanans endorse that vision loud and clear.

They want leadership that delivers results, and that's exactly what we've done.

And I'm proud to say, thanks to our shared efforts and successes over the last four years, the state of our state is strong.

(chamber applauds) Our economy is growing.

Over the last four years, wages here have grown at the second fastest rate in the country.

Montanans are finding new opportunities, with record job growth.

More Montanans are working than ever before.

Montana entrepreneurs continue to start businesses, with record business creation.

This success did not just happen by accident.

This success is the result of our commitment to creating an environment where hardworking Montanans prosper and businesses flourish.

And we've done all this despite strong national headwinds from failed leadership in Washington, failed leadership that's driven up the cost of living throughout our nation.

To be sure, Americans have struggled with higher prices.

I've heard about it from Montanans in every corner of the state.

They've had to rework their budgets to make ends meet.

But Washington, D.C. has not.

Joe Biden and the members of Congress have not tightened their belts.

The federal government does not live within its means.

As a result, they're imposing a crushing national debt on the backs of our kids and our grandkids.

In contrast, we've been fiscally responsible, enacting conservative, balanced budgets.

Over the last four years, we've cut income taxes for Montanans at every income level, held the line on new spending, kept spending under inflation, and even paid off all of our state debt.

And because of our conservative budgets, Montana has a surplus again.

Our budget invests part of that surplus into our current and future needs.

And let's be clear.

This is one-time-only funding.

It does not grow the size of state government.

Again, this is one-time-only funding invested today on a one-time-only basis for future generations.

And while we've been fiscally responsible, the reality is that the nationwide affordability crisis has harmed hardworking Montanans.

To help Montanans navigate the affordability crisis, we propose the largest income tax cut in state history so they can keep more of their money.

I've heard from many of you that this is a priority.

Montanans should keep more of what they earn and that we shouldn't tax work more than we need to.

Since 2021, we've lowered the income tax rate most Montanans pay from 6.9% to 5.9%.

We should go farther.

We should reduce the income tax rate from 5.9% to 4.9%, providing tax relief to workers and small business owners alike.

And that's why we should expand the earned income tax credit for hardworking lower and middle-income Montanans as well.

Let me share with you why this is so important to deliver meaningful permanent tax relief.

It makes a real difference for folks like Bill Miles from Kalispell, who's with us here tonight.

Bill served in the U.S. Air Force during the Gulf War.

Despite the challenges of a service-related disability, Bill's belief in America and the American dream remains strong.

Bill started Cowboy Country Painting & Remodel in 1997.

For nearly 30 years, Bill's worked hard and supported his fellow veterans as a junior vice commander of his local VFW.

Our income tax cuts have helped Bill, other small business owners, and Montana taxpayers, and we need to do more to support them.

Bill joins us here tonight, even after his 27th surgery last week.

When we asked Bill if he could join us, we didn't know about the surgery, and he refused to say no.

In fact, he was eager to come because this is so important to him.

Please join me in thanking Bill for joining us here tonight.

Bill?

(chamber applauds) (chamber applauds) (chamber applauds) Thank you, Bill, for your service and thank you for being here.

Friends, our proposed tax cut provides more than $850 million in permanent relief, a new record tax cut that benefits Montanans at every income level.

That's $850 million that will remain in the pockets of Montanans.

(chamber applauds) But this isn't just about the numbers.

It's about the fundamental idea that people should keep more of what they earn, that they should keep more of the fruits of their labor.

It's their hard earned money, not the government's.

And cutting the tax on work will allow Montanans to invest in their futures, their children, and their communities.

It's money for food on the table, a baby's diapers, a new winter coat for a growing kid or more breathing room in their monthly budget.

And while providing permanent tax cuts, we also recognize the burden of rising property taxes on Montana homeowners and small businesses.

Rising property taxes fuel the affordability crisis that's pinching homeowners across the country.

We must do something about it.

We must enact a homestead rate cut for Montana homeowners for their primary residence.

(chamber applauds) It's the place they call home.

This reform is estimated to lower property taxes for Montana homeowners by 15% and for small businesses by 18%.

It's projected to directly reduce property taxes for more than 215,000 homeowners and more than 32,000 small businesses, as well as provide indirect relief to 130,000 renters here in Montana.

(chamber applauds) This is about making Montana more affordable for families.

Some have asked me, "Why are you so focused on Montanans "and their primary home?"

Well, I'll be frank.

I don't believe, for example, a Californian who drops into Montana to ski once in a while near their mountain mansion should get a property tax cut.

It's not fair.

(chamber applauds) It's not fair to Montanans who own their home, live here, and invest their lives in their community.

One of my top priorities is delivering meaningful, permanent property tax relief for Montanans in 2025.

No gimmicks, and not in 2026 or 2027, but meaningful permanent relief this year.

To make that... (chamber applauds) To make that a reality, to deliver a permanent homestead rate cut for Montana homeowners this year, the bill needs to become law by the middle of February.

Now, I know that's a tight deadline, but the Department of Revenue needs some runway to implement this rate cut for Montana homeowners in 2025.

Montanans are counting on us to get this done, and we should.

(chamber applauds) Now, I also know corporate lobbyists are prowling the halls here in the Capitol trying to get carve-outs for their clients in property tax.

But if we go that route, Montanans who own and live in their home will see less relief.

I believe our focus must be on Montana homeowners and not corporate interests.

(chamber applauds) But here's a key question.

Why does a homeowner with a $400,000 home in Missoula County pay higher taxes than a homeowner with a $400,000 home in Flathead County?

Here's the answer.

Because local governments set a homeowner's property taxes.

And we must also encourage those same local governments to help keep property taxes as low as possible.

(chamber applauds) That's the only way to make this work for Montanans.

Just as property taxes are fueling the nationwide affordability crisis, so too is the rising cost of housing.

In Montana, our population grew by nearly 10% between 2010 and 2020, while housing grew less than 7%.

With more people moving to Montana and with not enough homes being built, the price of housing has skyrocketed, putting a key element of the American dream beyond reach for many.

Facing the problem, we launched our housing task force, which included legislators, stakeholders, and experts.

They developed substantial recommendations, some of which we enacted together in 2023, and now Montana leads the nation in pro-housing policy.

As a result of our work in 2023, counties and cities are reworking their growth plans with a keen eye on increasing housing supply and bringing down housing costs.

Another element of our pro-housing reforms is delivering immediate results, the HOMES Program.

The Board of Investments reports that the HOMES Program has led to construction of nearly 1,000 new homes in Montana.

And let me be clear about this.

This is not a handout.

The money the state invests comes back to us so we can reinvest it.

Given the success of this program, we should strengthen it, investing an additional $100 million in one-time-only funding.

(chamber applauds) By boosting the program, the increased proceeds of the fund can lead to the construction of more homes in Montana.

If the fund and its proceeds were twice the size they are now, we'd have another thousand homes under construction right now.

But there's more for us to do to make housing more attainable and to keep the American dream alive here in Montana.

Even after our bipartisan pro-housing reforms in 2023, our housing task force delivered even more recommendations just I look forward to working with each of you to secure more housing solutions for Montanans.

While we're making progress on making housing more attainable, we must address our future energy needs as well.

A home or small business cannot thrive if its power bill is too high.

Unfortunately, the affordability crisis has forced Americans to pay higher utility bills.

In fact, Americans have seen the cost of electricity rise nearly 30% since President Biden took office.

While demand for power rises, the heavy hand of the federal government has thwarted energy development.

We need affordable, reliable power, and we need the federal government's support, not obstruction.

We need to unleash Montana and America's all-of-the-above energy production.

(chamber applauds) I committed to President Trump that Montana stands ready to expand energy production to make America affordable again.

(chamber applauds) Montanans need and deserve solutions.

Just last month, I brought together consumers, energy leaders, and legislators.

We discussed how Montana can unleash American-made energy to meet the growing demand in Montana and across the region.

There were many good ideas, but this pressing issue requires a thorough, thoughtful approach.

That's why tonight I'm announcing that we will launch an Unleashing Energy Task Force in the coming weeks.

This task force will complement the work of our energy leaders here in the legislature and build on the legislature's energy accomplishments.

Because we need long-term solutions to ensure we have affordable, reliable energy now and well into the future.

(chamber applauds) Enacting solutions to today's affordability crisis through lower taxes, a growing housing supply, and greater energy production will help Montanans now and into the future.

And we must keep an eye on the future.

Our state has worked to build an education system with our children and grandchildren at the front of our minds.

As we know, the cornerstone of our state's future lies in the wellbeing and success of our children.

They're our most precious resource, and it's our duty to invest in their future.

The Big Sky Scholarships Program provides lower and middle-income Montana families with scholarships to access education opportunities that best meet the needs of the children.

I've heard from parents and kids about how much this program means to them.

That's why our budget increases funding for this popular program to $6 million, giving more Montanans the chance to pursue an education that works for them regardless of their financial circumstances.

(chamber applauds) We're also expanding educational opportunities through the Digital Academy, with increased funding for STEM and career and technical education.

These initiatives will prepare our students for the jobs of tomorrow right here in Montana.

We also have an obligation to all students and families to ensure our schools prepare them for the future.

But a bloated bureaucracy is not the solution.

That does not serve our students and families well.

Our focus must remain targeted on the classroom where the teachers teach and the students learn.

As a son and father of teachers, I'm well aware that teaching is one of the most noble professions.

For too long, though, Montana teachers, especially those just beginning their careers, have not been compensated properly for their work.

Over the last four years, we've worked together to boost starting teacher pay by establishing the TEACH Act.

Building on the success of the TEACH Act, our budget invests a historic $100 million to raise teacher pay.

(chamber applauds) (chamber applauds) (chamber applauds) And this program and our efforts has a special focus on educators that are just starting their career.

So why is this investment so important?

Well, let me tell you about Alex Cameron, a young teacher from Wibaux.

When I met her in October, she told me about herself, her background, and her love for teaching.

Because of our TEACH Act, the work we did together, Alex and her husband used her higher salary to buy their first home.

This is the kind of impact we're having on our educational system and on our communities when we work together.

(chamber applauds) While Alex and her family could not be here with us tonight, they, as well as their friends and colleagues from Wibaux Public Schools, are watching from home.

Let's make sure they can hear us in Wibaux.

(chamber applauds) (chamber applauds) (chamber applauds) Alex, thanks for the work you do to expand the minds of our young students.

Recruiting and retaining the best teachers in our classrooms will prepare young Montanans for the future.

But academic success requires students to be focused when they're in the classroom.

Too often, though, the swarm of notifications and content from social media distracts them.

Students in our classrooms should be focused on their teachers and not TikTok.

Creating a distraction-free learning environment is crucial for student success, and cell phone-free schools are a proven, powerful solution.

(chamber applauds) By eliminating this distraction during the school day, educators have seen significant improvements in student engagement, focus, and academic performance.

Our budget provides $1 million of one-time funds for incentives to school districts to adopt cell phone-free policies statewide.

(chamber applauds) Schools with these policies have experienced higher test scores, fewer discipline issues, and better social interactions amongst students.

But don't take my word for it.

I've met with school administrators, I've heard how cell phone-free policies are working in our schools.

That's why I called on school superintendents and school board trustees to consider implementing cell phone-free schools.

(chamber applauds) Molly Blakely is the Superintendent of the Hellgate Elementary School District in Missoula.

In November, I got a letter from Molly about the district's new cell phone-free school policy.

She wrote, and I quote, "By limiting cell phone use during the school day, "students are more focused on their learning "and present in their interactions with "Teachers have reported fewer classroom disruptions, "and students have expressed appreciation "for the opportunities "to build stronger in-person connection."

Tonight, we're grateful to have Molly with us.

Molly, thank you for being here and for your strong leadership for your students and teachers.

Molly?

(chamber applauds) (chamber applauds) Eliminating unnecessary disruptions in the classroom is one step to protecting our kids and their long-term interests.

I'm proud of the work we've done together to protect our kids, our grandkids, and their future.

We've responded strongly and unequivocally to the far left's extreme agenda that threatens the health, development, and wellbeing of Montana children.

Together, we enacted a ban on boys in girls' sports to preserve fairness and integrity in women's sports.

(chamber applauds) Together, we've enacted a ban on exposing kids to highly sexualized public performances in their schools and libraries.

(chamber applauds) Together, we've enacted a ban on exposing kids to pornography online.

(chamber applauds) Together, we've enacted a ban on unproven, invasive medical treatments used to permanently alter kids' healthy developing bodies.

(chamber applauds) (chamber applauds) And now together we've also defined an individual's sex into law.

Because the sex one is born with is an unchangeable, biological fact.

(chamber applauds) (chamber applauds) And some courts, including our own, haven't grasped that simple concept.

(chamber applauds) These are all common sense laws designed to protect Montana children.

But far left lawyers challenged them all.

And our courts?

Well, they've sided with the far left, either tying up the laws or tossing them out.

And it's no wonder.

Let's revisit last year's races for Supreme Court.

The ACLU out of New York City dumped more than a million dollars into those races.

So did the extreme left dark money groups who devised ingenious names to hide their intent.

So did the trial lawyers.

Their goal?

to elect judges that will do their bidding.

Let's face reality, folks.

We already have a partisan Supreme Court in Montana.

They're non-partisan in name only.

(chamber applauds) (chamber applauds) And Montanans have a right to know the values and principles of the judges they elect.

Let's bring light to the darkness.

That's why I'm asking you to send to my desk a bill that empowers Montana voters to know a judicial candidate's political party.

(chamber applauds) (chamber applauds) This is not a new idea.

Texas and six other states run their Supreme Court elections just like this.

But, friends, despite our setbacks in the courts, we must continue to honor one of our most solemn responsibilities, protecting our kids.

I welcome legislation to my desk that provides privacy and security to women and girls.

(chamber applauds) Because a man shouldn't be in a woman's restroom, shouldn't be in a woman's shower room, and shouldn't be housed in a woman's prison.

(chamber applauds) Now, while we've taken steps in protecting our kids and grandkids in Montana, we must not waver.

We must remain strong advocates for Montana children, and we must remain steadfast in our defense of our most vulnerable and impressionable minds.

One of the least obvious but most prevalent threats to our kids and grandkids is social media.

I'll be blunt about social media and its impact on our kids.

It's addictive.

It warps their impressionable young minds.

It results in bullying.

It causes kids to lose sleep.

And it increases their risk of depression, anxiety, and suicide.

Social media companies are profiting off their harmful impact on our kids.

And right now the burden is on parents and only on parents to try and protect their kids online.

To support parents and protect kids, we should take action together, as other states have done, like Arkansas, Texas, Utah, and Louisiana.

We should ensure parents can consent for their kids to create social media accounts.

We should allow parents to get access to their kids' social media accounts.

We should ban social media companies from collecting and selling data and personal information about kids who are on their platforms.

(chamber applauds) And we should require default privacy settings for minors on social media.

And, lastly, we should have a curfew, a blackout on social media overnight for kids.

Kids need more rest, not more Reels on Instagram.

They need more sleep, not more Snapchat.

Finally, to support parents and protect kids, we should empower parents with a legal course of action against companies that violate these laws and harm our kids.

And we should allow the state to investigate and enforce these laws.

Friends, when it comes down to it, we must protect our kids from the substantial dangers of social media, and we must empower parents to do the same.

A safe community is the foundation of a That's why our budget significantly increases support for law enforcement.

(chamber applauds) Because, in Montana, we back the blue.

(chamber applauds) We're investing $7 million to increase pay for the men and women of the Montana Highway Patrol.

(chamber applauds) (chamber applauds) And we're ensuring that they have the tools to get the job done.

They put themselves in harm's way, and they deserve to be compensated for it.

We must show our law enforcement officers that we value their service and are committed to their success.

Let me share a story with you about one of our law enforcement heroes.

In June, 2021, a state helicopter fighting the Deep Creek Canyon Fire was fighting a fire in Broadwater County.

It was a windy day.

So windy that the DNRC helicopter was forced to make a hard landing.

It landed right in front of Montana Highway Trooper Amanda Villa.

Trooper Villa immediately jumped out of her patrol car, radioed for help, and then ran into the fire.

In a testament of bravery, she climbed into the burning wreckage and pulled four people to safety.

It's men and women like Trooper Villa who protect our communities, and we need to pay them what they deserve.

(chamber applauds) (chamber applauds) (chamber applauds) Tonight, we're honored to have Trooper Amanda Villa with us.

Trooper?

(chamber applauds) (chamber applauds) (chamber applauds) (chamber applauds) Trooper Villa, thank you for your service to the state of Montana.

But, friends, let's be clear about one thing.

Our law enforcement officers who put their lives on the line every day are at the receiving end of our nation's failed border policies, those reckless policies that brought more criminals and drugs into our country.

Not just into states along the Southern border but into Montana and states across the country.

Every state is now a border state.

Law enforcement officers should have the resources they need to fight rising crime.

We've worked alongside the Attorney General to fund more prosecutors and forensic scientists because we should hold criminals accountable and ensure that they receive justice.

We need more judges to address the growing caseload, and we need more resources for the victims of crime.

(chamber applauds) But we can't find and prosecute criminals if we don't have a place to put them.

In fact, too many criminals who ought to be at the state prison are filling up county jails.

I'm told, and this is somewhat shocking, there are thousands of unserved warrants in Montana due to a lack of space to lock up criminals.

We must be able to serve these warrants and lock 'em up.

For the safety of our communities, we must fix this.

Building on the work of legislators, stakeholders, and agencies, we should expand the capacity of our state prison by 500 beds by spending $150 million of one-time-only funding.

And keeping an eye to the future, we should invest an additional $250 million again, of one-time-only funding, to develop and execute a long-term plan to improve public safety and keep criminals off the streets.

(chamber applauds) We should also better support the corrections officers who supervise inmates and ensure order and safety in our secure facilities.

That's why we invest $6.5 million for our correctional officers, providing them a pay increase, more training, and better resources.

(chamber applauds) (chamber applauds) We also know a strong Montana requires strong infrastructure.

Our budget allocates an additional $10 million per year towards bridge repairs, with the goal of fixing 500 bridges over the next five years.

(chamber applauds) To protect our communities from potential natural disasters, we also invest $100 million in one-time-only funding in a local disaster resiliency fund.

This fund will support local and state projects that reduce or eliminate long-term risk to people and property from future disasters like aging levies and canals that might fail.

We can leverage state dollars for up to a nine-to-one federal match, maximizing the impact of this investment.

We do all this while preventing ongoing general fund spending to address disaster resiliency.

Let me give you an example of how this would work and make a difference.

In a small town along the Yellowstone River, there's an aging levy, a source of concern for years.

With the resources of our disaster resiliency fund, we can reinforce that levy, protecting homes and businesses from potential flooding.

This isn't just about preventing disaster, though.

It's about giving our communities and our people the peace of mind they deserve.

While we propose these critical investments for our future, we remain committed to fiscal responsibility.

Our budget is not unlike the budgets Montana families have.

They spend within their means.

So do we.

They spend on what they need.

So do we.

If they have extra money, they invest it into long-term projects like fixing a leaky roof or replacing a failing heating system or buying a new refrigerator.

So do we.

With our schools, roads, bridges, and our budget is balanced, and it keeps spending growth under inflation and maintains a strong ending fund balance to protect against economic uncertainty.

We avoid cuts to essential services.

Working with legislators, many of you, in 2021 and 2023, we enacted conservative budgets that delivered results, providing permanent tax relief, making smart investments, keeping spending under inflation, and producing a surplus.

This budget continues that tradition of fiscal conservatism while making strategic investments in our It's about using our resources wisely to create greater opportunities, strengthen our communities, and secure our future.

My fellow Montanans, our budget is our path to security and prosperity.

It's a reflection of our values, our priorities, and our unwavering commitment to the future of our great state.

We live in an inspiring place filled with good, hardworking people.

I'm filled with great optimism for our state, our people, and our future.

Our budget prioritizes our people and our communities.

It prioritizes our future, the next generation of Montanans, by spurring job creation, boosting education in our classrooms, and opening the door of greater opportunity for all Montanans.

Montanans keep more of what they earn.

We pay law enforcement for their heroic work and we ensure they have the tools to get the job done.

We take more criminals off the streets and we make our communities safer.

We fix our infrastructure and grow Montanans' access to affordable, attainable housing.

Our budget does all this while being fiscally responsible.

Now, as I said on the steps of the Capitol one week ago, America lives here.

America lives in Montana.

Since our state's earliest days, people have flocked here for opportunity and our way of life.

People worked the land, and they established a government to serve the people.

As our Founding Fathers envisioned, public servants weren't professional politicians.

They served to make our state a better place for the people they served and future generations.

That remains a hallmark of public service in Montana.

Like all of you here tonight, public servants are committed to make our state a better place for the people they serve and our future generations.

Not only during this legislative session but for years to come, I ask you to hold close the noble purpose of public service and always consider why we're here, for the people we serve and for future generations.

Serving as the 25th governor of this great state is the greatest honor of my life.

Like some of you here tonight, I entered public service after a career, a career of starting businesses, creating jobs, and growing opportunities.

I say all this because Washington, D.C. has largely lost the fundamental principles of public service that guided our nation's founders.

Largely lost is the idea that public servants should serve the people, not themselves.

Largely lost is the idea that public servants should be public servants and not professional politicians.

While America lives here, while America lives in Montana, Washington, D.C. does not.

There are, however, hardworking, principled policymakers, like the members of our federal delegation, who are focused on the people they serve.

They understand and consider the long-term impacts of today's decisions.

But there are also some in Washington, D.C. whose focus seems to be chasing the hot lights of television or likes on social media.

They don't seem as interested in the long-term impact of today's decisions.

For the last four years, Washington, D.C. has been mired in dysfunction.

We felt the failures that come from that dysfunction, failure to restrain spending, ultimately fueling a nationwide affordability crisis, failure to contain our national debt, ultimately leaving a monstrous tab for our kids and grandkids, and failure to secure our nation's borders, ultimately letting cartels profit from misery.

Washington, D.C. is dysfunctional and failing the American people.

With President Trump taking office in exactly one week, I'm confident that he won't tolerate dysfunction and will get our country back on the right track.

(chamber applauds) But, friends, while America lives here, Washington, D.C. and its dysfunction do not.

We owe it to the people of Montana to keep it that way.

We owe it to the people of Montana to keep front of mind how our decisions today will impact our kids and grandkids.

We owe it to the people of Montana to keep our focus on them, our communities, and future generations.

We owe it to the people of Montana to keep the American dream alive and within reach for all Montanans.

When we maintain... You can applaud for the American dream.

(chamber applauds) When we maintain that kind of focus, Montanans find greater opportunities and they thrive.

Last summer, I stopped by a new growing business in Sweet Grass County.

I met with Wes Tuscano and his team.

I learned about their manufacturing business, including how they support young apprentices and their employees.

And that's where I met Tayla Kober.

Tayla was born, raised, and lives in Big Timber.

Her father's worked at the mine for 26 years, and her mother works at the local school.

Tayla had been working two jobs as a bartender and a bank teller.

And when Wes provided her an opportunity at his growing company, she's now a 3D printing engineer.

In 2023, Tayla was able to buy her first home at 22 years old.

(chamber applauds) She continues to grow in her role and is further planting roots in her community.

Thanks to employers like Wes and his business partner Julie, Montanans have access to more opportunities here than ever before.

This is what's possible when government stays out of the way.

Workers and businesses thrive.

Tonight, Tayla, Julie, Wes, and their family is with us.

Please join me in showing our appreciation.

(chamber applauds) (chamber applauds) Tayla, Julie, Wes, and the countless other Montanans who I meet are proof that our state of our state remains strong.

And that's because we've worked together for the people that we serve.

I look forward to continuing that work with you during the 2025 session and beyond, to continue our shared success, to continue delivering results for the people of Montana.

Working together, we can ensure the state of our state remains strong, not just today, but well into the future.

And as we move forward on this path to security and prosperity, let us remember that America truly lives in Montana.

It lives in our commitment to our children.

It lives in our support for our communities.

It lives in our dedication to creating greater opportunities for all Montanans.

With what we've been able to achieve together so far, Montana can and should be a model for our sometimes fractured nation.

Together, we will continue to make Montana a shining example of what can be achieved when, guided by our faith and commitment to serving Montanans, we put our families, our communities, and our way of life first.

We will show the nation that America, the ideal of America, and the American dream is alive and well right here in the last best place.

(chamber applauds) May God bless you, God bless our United States, and this great state of Montana.

(chamber applauds) (chamber applauds) - We've been listening to Governor Greg Gianforte deliver his third State of the State address.

The governor spoke for just about an hour, as you see him there leaving the chamber.

Gianforte covering a wide range of priorities for his administration.

He started out by talking about reducing the cost of living and proposing what he billed as the largest income tax cut in state history as well as more permanent property tax relief.

And Lee Banville joining us once again.

And the biggest applause line, one of them, had to be the education and raising teacher pay.

That was another big item there.

A lot of reaction from defining gender and the policies that were around that.

- Right.

- Stricter policies around kids' access to social media.

That also drew quite a bit of reaction there as well, including additional funding for law enforcement, infrastructure, those kinds of things.

So a lot there, as you said, usually a lot of lists of things.

- Pretty big list.

- Aspirational, as the upcoming session happens there.

So what's your initial take there as you listen to Governor Gianforte?

- Well, I do think there was a sort of, if there was a central theme, it was affordability, right?

And he took several different sort of whacks at the apple.

I mean, it was reducing income taxes, addressing property taxes, making housing more affordable, but also bringing down energy costs and like thinking about different ways our costs have increased over these last several years.

And so, you know, he definitely had that as a central theme.

You know, and there was also a sort of, kind of future-focused look at children broadly.

So everything from some of the more controversial issues or topics like the LGBTQ sort of issues, but also the more sort of like things that people can unify around, such as raising especially sort of early teacher pay.

Which Montana has addressed a lot, but still comes down quite low on the list when it is the starting pay of a teacher.

And so, you know, you definitely saw a couple of those key themes sort of hit multiple times in multiple ways.

- We wanna remind our viewers and listeners that we will also have the Democrats' response to Governor Gianforte's address.

That's gonna be coming up in just a few minutes, again, from the Capitol and the Senate Chamber.

That's Senate Minority Whip Shane Morigeau from Missoula, the Democrat from Missoula.

He'll be delivering that here in just a few minutes.

In the meantime, we are gonna dig deeper now into the speech.

We've talked about that long list of things that were in there.

Was there something notable that was not in there?

- Yeah, I did notice.

So one of the biggest questions the legislature has to answer is, do we continue this expanded Medicaid program that covers, you know, tens of thousands of Montanans?

It's been seen as fairly successful but also at times controversial.

There's been a lot of talks about sort of beefing up work requirements and other things.

Not a mention, right?

So there was nothing about really healthcare or specifically Medicaid expansion.

Which kind of surprises me because it is a thing that is taking up a lot of time and air in Helena these first couple weeks of the legislature as they debate how they're gonna tackle that issue.

- Well, we'll get now into the details of it.

Those of you just joining us, we'll get a chance to hear some clips now from what the governor was hitting on, some of the major topics.

And obviously one of the big ones was property tax relief.

- Right.

- And trying to find something that was a little bit more permanent.

They went the rebate route the last time around, couldn't really coalesce around an idea of how to do that.

Now he's been talking more about the homestead rate cut.

And earlier in the speech, this is what Governor Gianforte had to say about property tax relief.

- Rising property taxes fuel the affordability crisis that's pinching homeowners across the country.

We must do something about it.

We must enact a homestead rate cut for Montana homeowners for their primary residence.

(chamber applauds) It's the place they call home.

This reform is estimated to lower property taxes for Montana homeowners by 15% and for small businesses by 18%.

It's projected to directly reduce property taxes for more than 215,000 homeowners and more than 32,000 small businesses as well as provide indirect relief to 130,000 renters here in Montana.

(chamber applauds) - And there are critics of that plan, of course, of what will that do in terms of local budgets if you go that route.

I mean, it seems like a popular idea, of course, the idea of the second home and the vacation home and let's tax that.

- Yeah, stick it to the Californians, right?

Like who doesn't love that as a theme?

Well, first of all, I think one of the things we learned is, so you asked me at the beginning, "Why so early?"

Well, actually we might have got an answer there because he wants to see this done for this year's rate payers, right?

And so that, you know, as he mentioned, would have to happen by middle of February.

And so he's clearly kind of making a call to the legislature to be like, you know, "Do this and do it right now.

"Because if we can do it by the middle of next month, "this could be a thing that people would see, "you know, much more immediate relief with."

But you're right that the bigger question of like, what will this do to local budgets?

Who's really responsible for the property tax rate, the property tax sort of burden?

That is the thing that we're still gonna see play out.

I mean, you know, we didn't run that clip, but I mean he definitely mentioned, you know, that certain counties like Missoula have policies that have higher tax rates because of decisions that local officials and sometimes local voters have made to put sort of bills on themselves or actually have the government do certain things like, you know, transportation systems and things like that.

And, you know, one of the things that the governor seems to be saying is like we need to kind of rein in some of that too, because the state can only do so much.

Which is true.

Property taxes are very much a local issue oftentimes.

(no audio) - Local people telling us to talk to the state officials and state officials telling us to talk to the local people.

But we'll see if this gains any traction then in the legislature for that.

Now, another topic that was knocked about, of course, is this growing tension between the legislative branch, the executive branch, and the judicial branch.

I should put legislative or executive together against the judicial branch.

There's been a growing concern about that, and that kind of bubbled up in the speech as well.

It got attached to some of the controversial things that he was talking about where they got some unfavorable court rulings for that.

But another issue that Governor Gianforte touched on in the speech was the idea of partisan elections in judicial races.

And this is what he spoke about earlier tonight.

- Let's revisit last year's races for Supreme Court.

The ACLU out of New York City dumped more than a million dollars into those races.

So did the extreme left dark money groups who devised ingenious names to hide their intent.

So did the trial lawyers.

Their goal?

To elect judges that will do their bidding.

Let's face reality, folks.

We already have a partisan Supreme Court in Montana.

They're non-partisan in name only.

(chamber applauds) - This came up quite a bit in the last two election cycles, in 2022 and 2024, and who was backing whom and how all that worked out.

Do you think that's going forward?

Because I think it was noted later that there are seven states that are already doing this.

- Right, yeah, states.

I mean, he mentioned Texas, but also, you know, states like Pennsylvania, North Carolina.

It's not unheard of.

I mean, I think that what's interesting is, when the constitutional convention was convened in 1972, they very much said that they wanted these positions to be nonpartisan, that they felt very strongly at that time that nonpartisan elections created more independence among the judiciary.

You know, this has been churning for so long, and I think the tensions have been so increased that, I mean, it's clear that the legislature's gonna try to do something.

I think one of the things that's interesting is, oftentimes when partisan politics have cropped up in these races, so, for example, in 2022 with the Supreme Court race, the governor and the senator sort of endorsed a candidate right away, and that didn't seem to do anything.

So like there is this sort of like, do Montanans really worry about this?

Because if they wanted to know who the Republicans were backing in that race in '22, it was very easy to find it out.

And still that person lost in a state that Republicans do quite well in.

And so I guess the issue is, I think that right now the legislature and the executive see the judiciary as a stumbling block to them implementing the policies that they want.

And they tried to change the constitution two years ago, and none of their constitutional amendments got to the voters.

And so this time they're gonna try to look at, "Okay, can we reshape the judiciary "to perhaps make it less of a stumbling block "for us implementing the policies we think - As we mentioned, the Democrats' response is coming up here in just a moment, as Shane Morigeau will be delivering that, the Senate Minority Whip from Missoula, as they will respond to Governor Gianforte's address.

And, quickly, what do you expect to hear from the Democrats?

- I mean, I think you'll hear some of the same things.

I think there will be a focus on property taxes and housing and affordability, but I think you'll hear a different way of attacking the issue.

And I think it'll be interesting to see, you know, do they bring up things like healthcare access or rural hospital health or things like that?

But, you know, that's why we'll have to wait and see, and then I'll tell you what I think later maybe.

- All right, we're going to check on them right now.

We're going to go to Helena, and now we're over in the Senate Chamber for tonight's Democrats' response to Governor Gianforte's address earlier tonight.

And, again, it's Senate Minority Whip Shane Morigeau, Democrat representing Missoula.

He is on the rostrum there and prepared to deliver remarks.

Let's listen in.

- All right, good evening, everyone.

It's an honor to be here with you all tonight.

I'm Senator Shane Morigeau.

I'm a member of the Salish and Kootenai tribes.

I grew up in Ronan, and I'm a lifelong Montanan.

But, most importantly, I'm the father of my beautiful two-year-old daughter Juniper Rose.

And as we gather to begin this legislative session, I wanna share Democrats' vision for putting Montanans first and getting our state back on track.

Our mission is clear, to bring back freedom, fairness, and affordability to every person, family, and business in Montana.

Montana has been under Republican and our lives have only gotten harder.

Republicans have been raising property taxes, offering tax cuts for big corporations, and taking away our freedoms.

Thanks to Montana voters, we now have a more balanced legislature, with Democrats gaining seats in both houses.

We have 13 Native Americans as part of the Montana American Indian Caucus who are focused on solutions such as child welfare and fully funding public schools and school food programs.

We know that what's good for Montana and for Indian Country is good for all of Montana.

We expect that better representation will result in better government, and we are ready to work together on bipartisan solutions and put Montanans first.

Democrats will be working to put free back into freedom by standing up for your constitutional rights and your individual freedoms.

And freedom is more than just a word.

It's the foundation of our great state.

Democrats have and always will fight for the constitutional rights of all Montanans.

Democrats will keep politicians out of your bedroom and out of your doctor's office.

We will also fight to keep politics out of the courts.

The far right Republican attack against the court, as you just heard tonight, amounts to no more than putting their own political agenda in front of the rights of freedom of speech, government transparency, religious freedom, and privacy of all Montanans.

We know that Montanans want courts to be fair and impartial, and Democrats will put your rights first.

(chamber applauds) Democrats will be working hard to make Montana fair by bringing tax and renewing Medicaid.

We'll be bringing tax relief and renewing Medicaid.

Democrats have been sounding the alarm on the need for tax reform to prevent the affordability problems we are seeing today.

Democrats will make sure that lower and middle-class Montanans get the relief they deserve.

We want a fair tax system where corporations pay their fair share, and families, businesses, and communities can thrive in Montana.

So I'll say this.

Be wary of those who speak with honey in their mouth.

Fairness includes access to affordable, quality healthcare.

Democrats have always supported the Montana Medicaid program and will continue to do so.

Renewing Medicaid is critical to keeping Montanans healthy and for ensuring that we have adequate healthcare coverage, not only in urban areas, but also in rural Montana and in Indian Country.

Our commitment to fairness includes investing in our kids and our educators.

Underfunded schools and teacher shortages are jeopardizing Montana's future.

Democrats are committed to public money going to public schools because every child has an equal right to a high-quality public education.

(chamber applauds) All of our proposals center around the need to make Montana affordable again.

Affordability is a cornerstone opportunity, yet between housing, property taxes, childcare, and healthcare costs all on the rise, too many Montanans are struggling to make ends meet.

It's unacceptable that people feel obligated and forced to quit their job because they can't access childcare.

Republican leadership has offered handouts to wealthy out-of-state mansion owners and corporations while our hardworking Montanans and Montana families are taking on more and more and more.

While the government can't solve all of our challenges and really shouldn't, we must do what we can to help Montanans who are willing to work hard and contribute to the future of our state.

Affordability also comes with competitive wages.

We will support our friends in labor at every turning point, ensuring that they can organize to bargain for fair wages and safe working conditions.

(chamber applauds) Montanans have struggled for long enough.

Myself and my fellow Democrats are ready to turn the tide.

We know Montanans are tired of partisan politics, and we are willing to work with any and all legislators who are willing to make an immediate positive impact on freedom, fairness, and affordability.

Now is the time to get Montana back on track and put Montanans first.

I wanna say thank you for the chance to serve you and to address you tonight.

God bless you.

(chamber applauds) (chamber applauds) - We've been listening to the Democrats' response to Governor Gianforte's State of the State address that was delivered by Shane Morigeau, the State Senator Democrat representing Missoula.

And that was from the Senate Chamber in Helena, as the event wrapping up tonight.

And he touched on some familiar themes that Governor Gianforte had introduced in his speech, including the judicial branch and advocating for independence there.

So not so much the partisan take on it that the Republicans had.

Tax relief, seeing that is to be more fair.

And of course the big one, as we bring back Lee Banville from the University of Montana School of Journalism, the big one was talking about renewing Medicaid, a reference to that.

Something that was not in Governor Gianforte's speech.

- Yeah, I'm glad he said it 'cause I was worried no one was gonna say it, and then I was gonna feel silly.

But, yeah, no, clearly they see affordability, you know, themes on both sides were the same, like the goals, but the tactics are really different, right?

So like Medicaid and healthcare access is something that, you know, Senator Morigeau focuses on, while the governor really focuses on more like reducing the government burden through taxes and income taxes.

So I think what we see is, you know... Or for example, you know, raising wages by lifting government regulations from but empowering unions from Senator Morigeau.

And so you see the sort of philosophical difference of the two parties sort of playing out there.

But obviously, you know, Medicaid expansion will be a top priority of Democrats.

It doesn't sound like it's top priority of the governor, at least at the moment.

And then we'll see, you know, how they tackle things like property tax costs and whether Democrats will sort of come to see the homestead tax system as one that they might support.

- They did pick up 10 seats in the House, a couple of seats in the Senate.

That was mainly through the redistricting and the results of that.

But can the Democrats really gain any traction in this session?

Because it's not as overwhelming as last time, but it's still a very, very solid majority for the Republicans.

- It is 100% a solid.

Well, not 100% 'cause that's what you just said.

It is a solid majority for Republicans, but we have seen already in the Senate you know, groups of Republican senators linking up with Democrats to make certain things happen or certain things not happen.

And so I think, you know, that would've been harder to do last time because the gaps, the majority-minority So I do think there is the potential, but, I mean, it is still, they are gonna be working from the edges, not from the sort of power centers because they don't have the governor's mansion, they don't have, you know, the legislative control over the calendar and things like that.

So, yeah, they have an uphill battle, but it seems like the hill's not quite as steep as it was two years ago.

- And from the argument that he was making, which is we're now up to, this will be the eighth consecutive session that will be Republican controlled.

So that's 16 years of that.

That goes back into Bullock, actually back to the end of Schweitzer's term.

- Right.

- So there's been a lot there.

So if there are any negativity there as far as listing that, you know, you have to own some of that.

- Well, it's funny.

They both looked back and said, "Oh man, who's been running this place?"

And it's like, "Well, you both were."

But okay.

I mean, I do think that there is a little bit of like, you know, I mean, the governor wanted to focus on the Democratic governors and what they had done wrong.

The Democrats in the legislature are pointing at that what the Republicans have not been able to get done or the decisions that they've made that might've affected affordability in And so, yeah, there is a fair amount of... You know, it's not Congress, you know, it's not D.C., but there is still a little bit of like, "No, that's your fault."

"No, that's my fault."

"No, that's your fault too."

- So some Helena dysfunction.

- [Lee] Yeah, a little bit of Helena dysfunction.

But, you know, I mean, we still got a ways to go to get to D.C., and, you know, that's okay.

- As we look forward, and we're going to talk about the rest of this upcoming session.

As we noted at the top of the broadcast, this is, of course, very early.

We're barely into week two.

- Right.

- So we're gonna talk more about upcoming legislation, and we're gonna go back to Helena for that to talk more about what is going to happen in terms of this upcoming 69th session of the legislature.

Montana PBS's Anna Rau is standing by with a couple of legislators as we get more of a take on what's coming up with the important issues and debates that are ahead.

Let's go back to Helena and Anna Rau.

- Well, John, one of the things we didn't talk about much this evening or wasn't touched on is there actually is another budget surplus this year, albeit smaller than it was two years ago.

They're looking at 800, 900, maybe a billion dollar surplus.

So, and is often the case, sometimes it's hard to decide what to do with that surplus, maybe harder than what it is when you decide what to do with the deficit.

So joining me now are the Senate Minority and Majority leaders to talk about some of these things tonight.

It's Senator Tom McGillvray.

I said name right.

And Senator Pat Flowers.

Thanks for joining us.

- Yep, you bet.

- Thank you very much.

- All right, well, one of the first things that I wanted to ask you about is a big issue, property taxes.

And the governor talked about that in his speech and really touched on that.

It was a big issue last session, continues to be a big issue this session.

And he talked about something called the homestead tax cut.

What do you think about the homestead tax cut, and is that potentially a good thing for Montana homeowners?

- Yeah, it's actually a homestead exemption.

It gives everybody money in Montana a break in their tax rate.

So, you know, I think it's a good thing.

It'll help with their property taxes, lower 'em.

- Okay, okay.

And what about you, Senator Flowers?

How do you feel about that particular option for property tax relief?

- Well, we recognize the property tax are probably the highest priority right now for most Montanans.

And we have actually our own bill, similar to the governor's but slightly different.

We think it's a little more focused on lower and middle-income Montanans, and that's where we think the focus ought to be.

We also have a homestead exemption of $50,000 right off the top untaxed for all homeowners and then $200,000 for business owners.

- Do you guys generally support this idea?

Does it sound like something that would be really helpful for Montana homeowners?

- Yeah, I think in addition to the homestead exemption, we have also plans to move some of the bad tax money directly to a property tax credit, which will add onto that homestead exemption.

So you put those two things together, and it's a significant amount of help for every Montana homeowner, particularly the Montana homeowner.

- It did get a lot of applause, and it seemed like it was bipartisan.

Do you agree with that, Senator Flowers?

- I think what's bipartisan is the recognition that we need to reduce property taxes.

And, you know, the devil's in the details, and I'm hopeful that as we work through these bills over the next month or two, that we can arrive at some agreement on the best formula that really serves all Montanans.

- And one kind of glaring omission from the speech that I noticed as it went on was anything about Medicaid expansion.

That seems like that's going to be a big issue this legislative session.

First of all, were you surprised that that was omitted from the speech, and how big of an issue do you think that's going to be?

And the first response to this question goes to Senator Flowers.

- Well, I think it was vaguely alluded to but not specifically.

And I know the governor has supported renewing Medicaid and has built that into his budget.

It's important to tens of thousands of Montanans.

I think the latest estimate I heard was 82,000 Montanans are currently enrolled on what we call expanded Medicaid.

And that's critically important to them and just their human welfare, but also to the businesses that rely on that to support them.

It also provides healthcare for rural Montana.

We'd lose a lot in rural Montana in terms of healthcare if that gets somehow lost.

- Yeah, and it's up to you guys whether or not to extend this, the expansion.

It'll sunset without effort by the legislature.

How do you feel about that, Senator McGillvray?

- Well, I think that we'll look at all the options for Medicaid expansion.

There's more tools in the toolbox than just what we have.

Other states are innovating with good ideas and good plans.

Look at each of those options.

You have to also remember the governor said at the end of his speech that the federal government is deficit spending at trillions of dollars a year.

Ultimately, you have to look at, this is a federal budget issue too.

So that we cannot continue to spend and drive the whole country into the ground and inflate.

I mean, it doesn't do you good to have healthcare if you can't afford food, housing, energy, and transportation.

All those things need be taken into consideration, and expansion will be one of those things we look at.

- Alright, well, senators McGillvray and Flowers, thank you so much for joining us tonight.

Really appreciate it and good luck this session.

And, John, another places of potential tension this session could include spending for prison expansion, also judicial reforms, and, as the governor alluded to in his speech, potential politicization of the Montana Supreme Court.

So it's going to be quite a busy session, and it will be interesting to watch.

John?

- Thank you, Anna, very much.

We have a lot of work to still do in the upcoming legislative session, and those issues will certainly be at the top of the list.

So we'll bring back.

One more look at how things have been wrapping up here as far as the evening goes.

And, Lee Banville, let's talk about, as we've now had the speech, we've now had the response, and of course now we're hearing what the legislators are thinking of.

- Yeah.

- As you bring this evening to a whole and to a close, what's your impression now as we look forward to this 69th session?

- Well, what's interesting is, I mean, you know, there are some areas of overlap where both Republicans and Democrats, the legislative leaders we just heard from, are all sort of saying like, "This is an issue we gotta address, property tax.

"We have to do something about property taxes."

So it does seem like there will be some key action in certain areas.

And it does seem like those will focus on affordability.

There will be plenty to debate about like how we do it.

You know, you see Democrats already sort of staking out, "Well, we should direct more of that benefit "to lower income Montanans "and not sort of benefit the people "who have really, really nice houses in Montana.

"But only one."

And so, you know, I think that we'll see those debates sort of hash out.

It'll be interesting to watch those.

And then there are a couple sort of like more sort of explosive issues, the sort of really divisive stuff around, you know, in particular sort of transgender questions and maybe some of the issues around sort of like, you know, sort of pornography and the other issues that sort of like that they've touched on that we might hear a lot about but probably will not have any of that sort of like, "Well, what can we do together to kind of hash this out?"

And sitting on the sidelines is really also the Medicaid question.

I mean, it was interesting that the Senate Majority Leader sort of tied it to the federal budget, right?

Which is to say that, you know, if Medicaid expansion continues, well, that's gonna add to the federal deficit and maybe we should be thinking about that as well as how it affects Montana.

So it'll be interesting to see if that kind of framing of the debate changes whether it's really about benefiting Montanans or costing future Americans more because of the expanded spending by the federal government.

- A lot to keep an eye on, as you said.

Affordability was probably the biggest overlap theme of the night.

But we will be following that, and we encourage you to stay informed and educated on all the issues.

As the legislative session continues, you can get daily news updates from Montana Public Radio and Yellowstone Public Radio, as well as special reports from Montana PBS Reports: "IMPACT," their news and public affairs series.

That's gonna put a wrap on it for us tonight from the governor's State of the State address.

From all of us here at Montana PBS, thank you for joining us and goodnight.

- [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.

(upbeat orchestral music) (upbeat orchestral music)