Bills altering mill levies will jeopardize public safety, critics say

Yahoo

08-02-2025

Feb. 8—Two bills designed to lower property taxes by changing the way mill levies work elicited opposition from local government officials, including those in Kalispell, last week.
Senate Bill 204 would require all levies to sunset after 10 years while Senate Bill 205 would raise the voter turnout required for a levy to pass. Critics say the proposals would hamstring local governments.
Kalispell City Manager Doug Russell spoke in opposition of the bills during a Senate Local Government Committee meeting Wednesday night, alluding to the "starvation path" cities would face if unable to collect mill levies.
"This bill doesn't move the goal post. It changes the game," said Russell.
Kalispell was far from the only city represented. Helena City Manager Tim Burton sarcastically referred to the legislation as the "Public Safety Reduction Act" during his testimony and Belgrade Mayor Russell Nelson joked that he was "starting to believe the Legislature does not like cities."
Chief among opponents' concerns was the potential for more mill levy elections. Senate Bill 204's 10-year maximum sunset period on levies would require municipalities to regularly go back to the public for funding. Opponents say that would lead to voter strain.
The bill also applies the new sunset period to levies already passed. In his testimony, Russell referenced a public safety levy passed by Kalispell residents last year. While the ballot measure defined the levy as permanent, voters would have to reapprove the measure in six years if SB 204 passed.
And that could prove challenging under Senate Bill 205, which raises the percentage of voters needed to pass a levy-related ballot measure. Currently, a levy passes with a majority of votes if a 40% voter turnout is achieved and a supermajority if a 30% voter turnout is achieved. If fewer than 30% of voters cast a ballot, the measure automatically fails. Senate Bill 205 would raise voter turnout thresholds to 40% and 50%.
While Russell and others expressed trust in their citizenry, they questioned whether voters would be willing to return to the ballot box again and again.
"We can't control the active nature of our citizenship," said Russell. "We have our budget meetings, our public hearings. Very few people show up for a $150 million budget to be passed."
Both bills are sponsored by Sen. Greg Hertz, R-Polson. He said the bills introduce necessary measures to curb local government spending, resulting in lower property taxes.
"Unfortunately, what we have done in a lot of taxing jurisdictions, is probably, in my mind, gone beyond what a lot of citizens expect out of their local government," said Hertz.
At a Feb. 6 press conference, Gov. Greg Gianforte agreed with the need to cut local spending and referenced "fear-mongering" by local officials.
"This is a question of priorities at a local level. We've seen runaway spending," said Gianforte.
On Feb. 6, Rep. Lukas Schubert, R-Evergreen introduced House Bill 410, which also addresses levy elections. Rather than raising voter turnout thresholds by 10 percentage points, HB 410 raises the thresholds by five percentage points. The bill is co-sponsored by Hertz, Amy Regier, R-Kalispell, Matt Regier, R-Kalispell, Braxton Mitchell, R-Columbia Falls, and 17 other lawmakers.
Reporter Hailey Smalley can be reached at [e-mail].