[NFBMT] Special Session

[Jim Marks]

Sure is a good summary.  Thanks for pasting the article in the body of the
e-mail.

BLVS faces budget problems that go beyond the budget crisis.  Here are more
details.

BLVS and its partner general disability VR program overspent its budget by a
considerable margin in the last two years, Federal Fiscal Year 2016 and
2017.  The amounts were $3.5 million in 2016 and $5.5 million in 2017.  The
entire VR budget is about $20 million per year.  The overspending was caused
by the changes in the federal rules.  The 2014 Workforce Innovation and
Opportunity Act amendments to the Rehabilitation Act required 100 changes to
VR.  Many of these were massive changes, much like the difference between
knowing the world as flat or round.  In fact, the changes are so drastic,
that the VR of today and tomorrow looks very little like the VR of
yesterday.  These changes have three main themes:  An emphasis on youth,
requirements for work in the community for comparable wages and advancement
opportunities, and alignment with other workforce development programs.  One
of these themes, the youth focus, mandates that VR set aside 15% of its
federal dollars for Pre-Employment Transition Services.  These are very
specific services for a subset of youth that VR never provided previously.
Doing the math, that leaves VR with 85% of its resources to do everything it
always has done plus managing all the other 99 changes expected by the
federal rules.  Montana was very successful in adopting the new
Pre-Employment Transition Services.  In fact, Montana was one of the two
combined state VR agencies to comply with the mandate for Pre-Employment
Transition Services in 2016.  There are 80 state agencies across the
country, so Montana proved to be a cutting edge national leader in
re-purposing its resources.  Unfortunately, Montana did not curb spending on
all the rest of its responsibilities.  Thus, Montana overspent in 2016 by
the amount it spent on Pre-Employment  Transition Services.  The financial
hole Montana dug for itself was compounded by not applying the Order of
Selection as soon as it should have.  Montana closed all of its Disability
Level Categories in March 2017 when it probably should have implemented the
full Order of Selection as soon as January 2016.  The Order of Selection is
the legally mandated method VR agencies must apply when the agency does not
have enough resources to keep up with demand for services.  The reason for
the Order is to make sure VR resources go to those with the most significant
disabilities first.  It works by creating a wait list to start an
Individualized Plan for Employment.  Those with Plans get to continue as
usual, but those who have yet to begin a Plan must wait for resources to
build up enough to begin in-plan services.  It's much like there is a room
in which those with Plans can enjoy full services, while those not yet
admitted to the room must wait until those inside leave the room as they
achieve their Plans or drop out for any reason.  The Order applies only to
the vocational rehabilitation services and not its other programs such as
Independent Living Services for the Older Blind, the Business Enterprise
Program, or NFB Newsline.  Because Montana delayed implementing the Order
fully, it dug a very deep financial hole that makes it harder from which to
escape.  This means that Montana will be in an Order for a very long while.
Some with less significant disabilities may never be able to access VR
services in Montana.  This is happening all across the country because the
cause is the federal rules.  Those rules bring a great deal of good, but it
also brings change.  To go forward, BLVS has to let go of much of its past
and attend to a different future.  Again, all of this is national in nature
and not a matter of Montana being unique.  It's also intentional on the part
of the US Congress because the changes came from deep dissatisfaction with
national VR performance.  The national VR program was not changing the
employment statistics of people with disabilities, so Congress wanted to
shake up the services with new ways of making a difference.  It remains to
be seen whether the changes will deliver better outcomes.  In addition, it's
really hard on VR agencies to make the changes quickly without negatively
affecting many of its core services.  Congress knew this, but didn't care.
They wanted radical differences, and that's what's behind Montana's
financial crisis.  When we add the additional state government cuts, it
makes a bad situation much worse.

My biggest fear for BLVS is that it will be consumed with an attitude that
money is more important than people.  Right now, the fiscal hawks run the
show.  We need the program oriented folks to make sure we have a balance
between fiscal and program concerns.  There's no doubt BLVS will have less
resources to do its job of the past, yet there is hope that the new ways
will make a difference.  We have to avoid the very real danger of state
government leaders forcing an abnormal attitude of fiscal conservativism on
the wonderful staff of BLVS.



Jim Marks
Blind.grizzly at gmail.com
(406) 438-1421

-----Original Message-----
From: NFBMT [mailto:nfbmt-bounces at nfbnet.org] On Behalf Of Bruce&Joy
Breslauer via NFBMT
Sent: Sunday, November 19, 2017 11:46 AM
To: nfbmt <nfbmt at nfbnet.org>
Cc: Bruce&Joy Breslauer <breslauerj at gmail.com>; marjorie
<dmgregg at 3rivers.net>
Subject: [NFBMT] Special Session

In case some of you were not able to access the link I posted to the Helena
Independent Record a few days ago, here is the article.  I know it is a few
days old now, but it is one of the best summaries I have seen so far.  It is
followed by some interesting comments from both sides.   

Snip snip 

Special session adjourns - neither side gets what it wants, but both happy
to offset deeper cuts | Montana Politics | Helena Independent Record

 

A special session of the Montana Legislature called to address a budget
shortfall adjourned early Thursday morning with a deal that leaves all
parties less than satisfied but pleased something was negotiated.

Legislators came to Helena at the start of the week for a fast and furious
three days, called back by Gov. Steve Bullock to find ways to patch an
anticipated $227 million hole in the state budget caused by
lower-than-projected revenues and a $75 million fire bill after one of the
worse fire seasons in state history.

Before calling the special session, Bullock proposed splitting the budget
shortfall into thirds, with $76 million in cuts to state agencies made by
the governor, $75 million in fund transfers and other ways to tap money and
$75 million in temporary tax increases.

But Republicans, who hold a majority in the House and Senate, criticized the
governor for bringing them back without a solid deal in place. They took the
opportunity to craft their own plan that, while not pleasing to everyone in
the party, left the caucus saying they were able to claim they fixed the
problem without raising any new taxes.

Bills passed by lawmakers bring in about $94 million through fund transfers
and delayed payments, above what Bullock proposed. They also bring in $30
million from a fee charged to Montana State Fund, but the law passed says
State Fund cannot pass the fee onto those who pay into the workers
compensation insurance program. Because they brought in more than the $75
million called for in fund transfers, lawmakers were able to not approve
proposals that would have taxed accommodations and rental cars at higher
rates than they are now, one of Bullock's suggestions, and eliminate a long
list of income tax credits.

A bill requiring furloughs of state employees to generate $15 million was
passed, as was one that changes the state liquor license lottery to an
auction, which will generate $2.5 million this fiscal year and $3.8 million
in fiscal year 2019. Also eliminated were $13 million in block grants for
school districts statewide.

A controversial bill that would have stopped the state Department of Public
Health and Human Services from implementing a rule to allow people to change
the gender on their birth certificate died after the House failed to act on
it.

For his part, Bullock made his $76 million in cuts official Tuesday, just
after the House convened Tuesday.

An appropriations bill, House Bill 2, caused intense debate between
Democrats and Republicans on the House floor. It passed both houses.
Democrats call the bill, which would make the governor's cuts permanent,
unnecessary.
Republicans have said a separate bill would unwind the cuts if revenues come
in higher than expected.

"It's totally unnecessary," Rep. Kelly McCarthy, D-Billings, said of the
legislation.

Sen. Llew Jones, a Republican from Conrad and key architect of the final
compromise, said if the governor wanted to avoid the necessity of a bill
like House Bill 2, he should have made his cuts before the session started
and not minutes into the start of the first House floor session Tuesday.
Republicans had been calling for Bullock to make his cuts in the weeks
before the session, and while Jones said he always felt Bullock would take
action, some in his party were less sure.

"If you didn't want a (House Bill 2) to come to light, make your damn cuts,"
Jones said.

Jones carried the so-called unwind bill, Senate Bill 9, which passed early
Thursday morning.

It's a complicated vehicle that creates an account to accept hypothetical
money from the operator of the private prison in Shelby. Montana contracts
with CoreCivic to run Crossroads Correctional Center, which has offered to
return to the state $32 million it has placed into an escrow account to
offset a possible future purchase of the prison. In exchange, the company
wants its contract, set to expire in 2019, extended.

Half of the money from CoreCivic, if the governor chooses to negotiate with
them, would go toward the state's fire fund and the rest could be used at
the governor's discretion. Democrats have said it is a way to tie the
governor's hands and force him to extend CoreCivic's contract.

Jones said while he understands Democrats are ideologically opposed to the
prison, both sides of the aisle have issues they are ideologically opposed
to. For Republicans, that was tax increases.

The bill didn't leave Bullock without options, Jones said, adding the
governor could choose to make more cuts to balance the budget or decide to
keep a smaller amount in the state's rainy day fund.

"He may see all the alternatives as not his favored course," Jones said.

Senate President Scott Sales, a Republican from Bozeman, said Senate members
"did some good work" in the special session in a condensed setting.

"It's just really tough when you only have a few days," Sales said. "We did
what we could do and sent the legislation we thought was best."

Sales said Republicans were happy that they did not pass the tax increases
proposed by Bullock. "I've ran six times for the Legislature and have always
said I'm not going to raise taxes," he said. "I feel good about the fact
that transpired for the most part."

Sales said negotiations with Bullock went as well as they could.

"The governor is a very affable guy," Sales said. "I like talking with the
governor. Certainly he had some different objectives than we did."

House Minority Leader Jenny Eck, a Helena Democrat, called the end result
"far from perfect."

"The solution before us is far from perfect, but it allows us to avoid
hundreds of millions of dollars in unacceptable cuts that would hurt people
across our state. I am disappointed that the Republican majority demanded
cutting $76 million before they would even come to the negotiating table,
and then left town without fixing the full budget shortfall," Eck said.

Speaker of the House Austin Knudsen, a Republican from Culbertson, said
Republicans were happy to not have to raise taxes.

"Republicans came here with the message that raising taxes on hardworking
Montanans is not an option. Republicans remained united and strong in
standing up for Montana taxpayers. ... The Legislature came to town with our
work boots on. We got creative and looked to expand the opportunities to
find the best deal for Montana taxpayers, while keeping in mind also those
who utilize government services."

Bullock released a statement after the session adjourned, saying the deal
will help offset deep cuts that could have hurt statewide.

"Tonight we reached a reasonable and responsible compromise to balance our
budget and pay for Montana's record fire season. While I'm disappointed we
were not able to reach a full agreement, I would be remiss not to
acknowledge all the progress made to minimize the impacts of severe budget
cuts on the most vulnerable among us," he said.

Rep. Kelly Flynn, a Republican from Townsend, brought the motion to sine die
and bring the session to a close just after 1 a.m.

In an emotional address, Flynn told lawmakers after the last regular session
ended he was diagnosed with cancer in both kidneys, both lungs and has a
heart issue.

Flynn was heavily involved in critical bills over the last few days and many
lawmakers teared up as Flynn called himself "lucky."

"I'm way better off than so many people who never had the chance to live a
full life like I had," Flynn said.

"I hope you will live for today, plan for tomorrow and remember yesterday.
God willing and even if the creek does rise and if this is the last roundup,
I look forward to seeing every one of you again."

Reporter Erin Loranger contributed to this report.

Snip snip 

(12) COMMENTS

Charles FeneyNov 16, 2017 11:48am

May God bless and heal Representative Flynn's body! A truly decent guy.

Why is the State allowed to steal from the State Fund reserves?

The State Fund is well managed, so Bullock's parasites feel that robbing
reserves needed to pay future claims in a potentially inflationary
environment is acceptable.

Bullock and his parasite constituency feeding minions are below contempt!

*****

Steve Bullock and his orcs came to town

They knew that the coffers were down

They wanted more taxes

Without budget axes...

How did we get stuck with this clown?

 

Sasha HarlowNov 16, 2017 12:36pm

How is it Bullock or the minority party's fault that the Legislature passed
this bill? Last I checked, there was a Republican majority in both houses.
This would not have passed without Republican support. How about instead of
blindly blaming who we want to be responsible, we take a look at who's
actually responsible? If you look at the sponsors for all of these bills
juggling money, they all have an (R) next to their name:

http://laws.leg.mt.gov/legprd/LAW0217W$BAIV.return_all_bills?P_SESS=20172

 

Joane BayerNov 16, 2017 3:08pm

Mr. Feney, perhaps you forgot that the Republicans control both the House
and Senate in Montana? The Governor does not rule by fiat here, nor does he
control the check book.

Clueless much?

 

tom brownNov 16, 2017 4:22pm

Chuck,

We got stuck with the GOTP clowns because they sell you nothing and you buy
it. Your GOP once again has a majority and we will now be like other GOP ran
states that can't pay bills and refuse common sense measures to balance a
budget.

 

JR RettNov 16, 2017 7:43am

"Jones said while he understands Democrats are ideologically opposed to the
prison, both sides of the aisle have issues they are ideologically opposed
to. For Republicans, that was tax increases."

As usual this means that Democrats compromised. Republicans? Well, all they
really gave was the finger.

 

Tiffany MunsonNov 16, 2017 3:59am

Why did the State have $30 million (or more?) in a escrow? Why is the State
paying a private prison when there is an empty one in Hardin? Why does the
State get to raid State Fund whenever they need money? Policy holders pay
into State Fund and apparently the managers there are smart enough to grow
the money. If there is such a surplus, they should rebate it to the policy
holders (or lower premiums) than be forced to "donate" it to the State.
Maybe the money managers at State Fund should give lessons to money
mismanagers at the State.

Maybe there is more to the funding package than what has been printed, but
on the surface it seems like a shell game...moving money from one fund to
another. Furlough of State employees was mentioned, but how is that going to
work? Who decides who gets furloughed, and for how long? Is it basically a
hiring freeze where people who leave won't be replaced? Does it just mean
that seasonal (summer) workers will be furloughed until next summer? Other
than the prison and State Fund, it doesn't sound like any real money is
going to the State treasury. A lot of unanswered questions.

 

Bob BalhiserNov 15, 2017 9:44am

Private, for profit prisons are a bad idea. We should not accept this bribe
to keep the prison in Shelby open beyond 2019.

Not convinced? Check out the problems Idaho has experienced with private
prisons.

 

Dan AntonickNov 15, 2017 10:58pm

Bob, what about the Pre-Release Center the Legislature installed in Helena
at the Taxpayers expense in our county rather than expand Montana's State
Prison Facility Deer Lodge at the State of Montana expense.?

What I call a real problem "IS" the costs associated with our NEW JAIL and
additional Police Officer's hired to deal with Pre-Release Center escapee's
due to not wanting to spend money at the State level and making the
residents of Lewis and Clark County come with the money themselves to do the
State's job.!

Thank you Legislators for your great service to our community. 

 

tom brownNov 16, 2017 4:31pm

Legislators jobs are thankless. These guys themselves are worthless. So no
thanks for a job poorly done. Good riddance to bad rubbish.

 

Dan AntonickNov 16, 2017 4:52pm

Tom, your right about Legislators job's they are thankless, but wrong to
think they are all worthless, sorry...

Some of these guys and girls do a good job, but others destroy what they
do... It's hard to fix stupid...!

Gov. Bullock and his chosen people control the Legislative Sessions... Even
if Democrats and the Republican's agree on certain Bills the Governor
usually veto's them all...

People need to get involved to keep them ALL honest...!

Left alone we see the problems first hand, Gov. Bullock sent his bills to
the Special Session for the Legislature to act on, he has no else to blame
but himself for Montana's problems...

 

tom brownNov 17, 2017 6:59pm

Dan,

The GOP legislature did us no favors during the regular session and the
special session. They knew of the problem then and didn't address it. They
know of it now and still couldn't get the job done. This isn't a Steve
Bullock issue. He's done a good job and if Gianaforte had won we would have
lost $600 million. The GOP looks more and more incompetent like Trump.

 

tom brownNov 16, 2017 4:27pm

Agreed Bob. We are now another state that kowtows to whatever business buys
it. The land transfer battle has changed from public lands to the capitol.
If the price of $30 million buys private opinion in public works, what will
these guys but when 2019 comes around? 

 

Joy Breslauer, President

National Federation of the Blind of Montana 

Web Site: http://www.nfbofmt.org <http://www.nfbofmt.org/> 

 

Live the life you want

 

The National Federation of the Blind is a community of members and friends
who believe in the hopes and dreams of the nation's blind. Every day we work
together to help blind people live the lives they want.

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