Senate Approves Bill with $68M for Montana Schools, Medicaid (MT)

August 6, 2010

Montana stands to receive at least $68 million in federal money under the $26 billion state aid bill passed by the U.S. Senate on Thursday and expected to be approved by the House next week.

The Senate approved the bill 61-39 on Thursday, after it cleared a procedural hurdle Wednesday. Montana Sens. Max Baucus and Jon Tester, both Democrats, voted for the bill.

Baucus said the bill would provide more than $30 million in additional federal support for Montana schools to support education and protect teaching jobs.

It also contains about $38 million for Montana in additional federal money for Medicaid to protect vital services from being cut and ensure that the federal-state health care progra m for the poor has the funds to weather the fiscal pressures of the recession, Baucus said.

"I fought hard to pass this funding in the Senate and deliver much-needed federal support for Montana’s schools responsibly, without adding a dime to the federal debt," Baucus said. "The funding this bill provides will protect Montana teaching jobs now and provide our future workforce with the world-class education it needs to compete in the 21st century."

He said the bill would tighten the belt on federal spending, while ensuring foreign corporations pay their fair of U.S. taxes.

Tester also praised the bill in a statement from his spokesman, Aaron Murphy.

"This is a bill that will put folks to work in Montana and keeps our promise to quality education for our kids, without costing taxpayers a dime or increasing our national debt," Murphy said. "Doing that requires taking a magnifying glass and a scalpel to federal spending, then making sometimes tough decisions about where we can manage to make some cuts."

For Tester, the bill was a matter of balancing jobs and a stronger economy with his concern about the national debt, Murphy said.

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By providing more federal money for Medicaid, the bill can free up state money for other budget priorities, the Associated Press reported Thursday.

Gov. Brian Schweitzer said officials in his administration were in the process of finding out how the money can be spent, if the bill ultimately is approved. They are trying to find out if the money can be spent the same way as the federal stimulus dollars were in 2009.
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Schweitzer must present his proposed state budget for the next two years to the Legislature by Nov. 15.

"It’s welcome money, but here’s what I know about Washington, D.C.: there’s a lot of fumbles on the way to the goal line," Schweitzer said. "Whether we get the money or don’t get it, we’ll have a balanced budget, money in the bank and still be able to pay for the critical functions of government."

Eric Feaver, president of MEA-MFT, a union of teachers and government employees, said Montana hasn’t faced the kind of teacher layoffs that states such as California, Oregon and Washington have seen. However, he said this federal funding for education would prevent future layoffs of Montana educators.

"I would argue that even though Montana is not going to be one of the huge beneficiaries, it was a decision for the good of the nation for school teachers and para-professionals," Feaver said. "There are some serious problems this bill will help address. That’s how the Senate is supposed to work. I’m proud of their statesmanship in this case."

As Feaver understands it, the bill would provide money for Title I, which covers special education, reading and math.

"It will significantly relieve the pressure on state government and local taxpayers to maintain those programs," he said.