Latest news with #Governor'sOfficeofEconomicDevelopment
Yahoo
31-03-2025
- Business
- Yahoo
Governor seeks historic cuts, while bill aimed at middle-class receives bipartisan support
Montana Gov. Greg Gianforte espouses his income tax cut plan on the steps of the Montana Capitol on March 28, 2025. Courtesy photo. Gov. Greg Gianforte made another public pronouncement last week that his administration would deliver the largest tax cut in Montana history — to the tune of $850 million, according to his office. But opponents to the governor's plans to cut income taxes say the the approach would disproportionately benefit the state's wealthiest earners, while low- and middle-income Montanans would see just double-digit cuts. 'We're here today because we believe in a simple truth– you know how to spend your money better than the government does,' Gianforte said during a rally on the steps of the Montana Capitol on March 28. 'Every day you wake up, you go to work. You provide for yourself and for your family. You budget carefully and you save where you can. But too often, when you get a paycheck, you look at it and you wonder, 'Where did it go?' We know the answer — taxes.' Earlier that day, the governor's preferred plan to cut taxes received its first hearing before the Legislature. Carried by Sen. Josh Kassmier, R-Fort Benton, Senate Bill 323 would lower the top income tax rate — paid by Montanans earning more than $21,000 as single filers — from 5.9% to 5.4% in 2026 and down to 4.9% in 2027. The bill also cuts the long-term capital gains tax from 4.1% to 3.9% and expands the Earned Income Tax Credit from 10% to 15%. Montana currently has two income tax brackets — one at 4.7% and one at 5.9% — which split at roughly $21,000 for an individual filer or $41,000 for married filers. The state used to have a six-bracket marginal tax system until 2021. Calling it the 'third installment' of the governor's long-term plan to get to a single, flat tax rate for the state, Mark Blasdel, director of the Governor's Office of Economic Development and former Senate President, pointed out Montana has the highest tax rate of mountain region states. However, many of the states surrounding Montana also have a statewide sales tax. 'Montana is also currently the 17th highest tax rate in the nation. So we believe this is an incredible opportunity to bring this down another 1%,' Blasdel told the Senate Taxation Committee. 'We think this is a great way to continue that downward trend of the collection of taxes. It makes it so that we continue to be able to put pressure so that the budget does not continue to grow at a higher grade than inflation, and it continues to keep more money in the pockets of hard working Montanans.' But opponents decried the across-the-board cutting of the top tax bracket, saying it doesn't offer meaningful relief to middle-income earners. An analysis by the Montana Budget and Policy Center indicates that the wealthiest 1% of Montanans would see roughly $10,000 in tax breaks under the policy, while individuals making $50,000 or less would receive less than $100. 'The problem with structuring an income tax reform in this way … is that for every dollar you have, you get that cut. So if you have a lot of dollars, a huge bucket of dollars, you get that cut on every single dollar in that bucket,' Rose Bender, Director of Research for the Budget and Policy Center, told the committee. 'And if you just have a couple dollars you get that cut on just those couple dollars. So it's really impossible to reform income tax in this way while not disproportionately benefiting the wealthy.' But Kassmier pushed back and said that giving Montanans their money back, no matter how much, was a goal that everyone should want to get behind. 'These income tax dollars are the people's dollars. We have an opportunity here in the session to give our the people's money back, and if it's only going to give somebody $50 back or $100 back, I'm telling you that that means a lot to the people that are out there working,' Kassmier said. At previous press conferences, Gianforte has said his plan is the only comprehensive plan that addresses all income levels, with the expansion of the earned income tax credit helping out the lowest earners. In addition, the reduction in capital gains tax rate was lauded by supporters of the bill as helping farmers and ranchers. 'A lot of people think of (capital gains) as just stocks and bonds and those types of things that would come into play here, but for farmers and ranchers, capital gains comes into play on sale of property and also on certain livestock and equipment sales,' said Nicole Rolf, with the Montana Farm Bureau Federation. SB 323 was also supported by Montana Taxpayers Association, the Montana Stockgrowers Association, and the Montana Chamber of Commerce. The Montana Federation of Public Employees, Montana Nonprofit Association and a former Democratic legislator, Margie McDonald, spoke against the bill. The governor on Friday said that while there are several proposals aimed at reforming incomes taxes, his plan is the 'only fool-proof conservative plan.' 'Cut. The. Rate,' Gianforte said. [subhead]Majority support for middle class cuts [/subhead] A competing proposal, sold as a 'middle-class millenium' bill, passed the Senate with support from all but three Senators on Monday. Sen. Mike Yakawich, R-Billings, carried Senate Bill 203 with support from both majority and minority leadership as cosponsors. Rather than cut the top tax bracket rate, SB 203 would expand the lower bracket to comprise individuals making up to $100,000 — covering up to the 90th percentile of earners, according to Yakawich. For married couples filing jointly the bracket delineation would be at $200,000. The bill 'provides income tax relief for thousands of middle-class Montanans by expanding the number of people eligible for the state's lower (4.7%) tax rate,' Yakawich said. 'This bill is tailored to the middle-class Montana taxpayers.' Yakawich used his five millennial-aged children as examples — they have good jobs and families, but still struggle to make ends meet with rising costs of living in Montana. 'It's that middle 60 to 90 percentile. We really want to love them up. We want to thank them,' he said. 'That money that they save … might help them come back into the community, come back into our state.' SB 203 also changes the long-term capital gains tax, against expanding the eligibility for the lowest tax rate to an individual's first $100,000, from the current $20,500. The measure passed the Senate 47-3 and will next be heard by the Senate Finance and Claims Committee. 'Residents across the state repeatedly told us that tax relief is a top priority for them,' Senate President Matt Regier said in a statement following the vote. 'SB 203 is a historic step to limit government and help all Montana income tax payers prosper.'
Yahoo
07-03-2025
- Politics
- Yahoo
Gov. Rhoden has signed 64 bills, including baby box bill
SIOUX FALLS, S.D. (KELO) – Gov. Larry Rhoden has signed 64 bills into state law so far this legislative session. One of the most recent bills Rhoden signed on Thursday was House Bill 1044, which authorizes the use of safety boxes to anonymously surrender a newborn at an emergency location. Bill removing librarian defense heads for Senate floor The bill was named after Baby Gabriel, who was found dead in a Sioux Falls recycling center last August. Supporters of the bill say if the safe haven boxes had been legal in the state and another option was available instead of abandonment, it could have prevented Gabriel's death. 'Hopefully with these baby boxes, there will be fewer 'Baby Gabriels' and more babies in loving homes,' Rhoden said in a news release from Thursday. Rhoden also signed five other bills into law Thursday. SB 93 prohibits payment or rebate of insurance deductibles by contractors providing motor vehicle repair services SB 111 permits a court to order family therapy or reunification therapy in a custody or visitation dispute HB 1099 modifies the community paramedic endorsement HB 1144 adopts the dietitian licensure compact HB 1189 extends by two years the date on which moneys appropriated to the Governor's Office of Economic Development in 2021 for marketing, route restoration, business development, and air service marketing will revert to the general fund. KELOLAND News has reported twice on bills Rhoden signed. Our latest report from February 25 covered 43 bills. How Sioux Falls suspects were tracked down in Michigan From February 25 to March 5, Rhoden signed an additional 15 bills. SB 65 provides for the sale of certain real estate located in Pennington County and provides for the deposit of the proceeds SB 71 revises provisions pertaining to the compulsory age for school attendance SB 72 revises the payor of autopsy costs in certain circumstances SB 84 extends the timeframe for filling a vacancy in a board of county commissioners SB 97 allows the governing body of a municipality to change the use of municipally owned parkland by ordinance SB 109 permits a school district to implement a new or revised section 504 plan, individualized family service plan, or individualized education program for a student who is the child of an active-duty member of the United States armed forces HB 1042 makes an appropriation for the construction of historical exhibits at the Cultural Heritage Center HB 1053 requires age verification by websites containing material that is harmful to minors HB 1057 transfers moneys from the South Dakota-bred racing fund to the special racing revolving fund HB 1160 waives the driver license renewal period for members of the military and their families, and employees of the state department HB 1063 revises the provisions for preparing a fiscal note for ballot questions HB 1118 prohibits the award or use of state moneys for the research, production, promotion, sale, or distribution of cell-cultured protein HB 1052 prohibits the exercise of eminent domain for a pipeline that carries carbon oxide HB 1173 eliminates the cap on assessment amounts for road improvements HB 1095 extends the area in which a director for an irrigation district may reside All bills will go into effect on July 1, unless they have an emergency clause, then they go into effect immediately. The following bills have already taken effect and are currently being enforced: SB33 makes appropriations for water and environmental purposes and declares an emergency SB 35 modifies substances listed on the controlled substances schedule and to declare an emergency HB 1014 modifies provisions related to emergency medical services personnel and to declare an emergency HB 1033 makes an appropriation for costs related to emergencies and disasters impacting the state and to declare an emergency HB 1034 makes an appropriation for costs related to the suppression of wildfires impacting the state and to declare an emergency HB1047 makes an appropriation to reimburse health care professionals who have complied with the requirements for rural recruitment assistance programs and declares an emergency As of March 7, there are only five days left of this year's legislative session, including Veto Day. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
05-03-2025
- Politics
- Yahoo
Child care workers with kids could get more help
PIERRE, S.D. (KELO) — A proposal to expand South Dakota's child-care subsidies, so that they would cover more of the child-care workers whose children need the care, too, has cleared the Legislature. State senators voted 20-14 on Tuesday for House Bill 1132. That came after the House had approved it 39-31. With only two lawmakers, Democratic Rep. Erin Healy and Republican Sen. Tim Reed, as its sponsors, HB 1132 now goes to Republican Gov. Larry Rhoden for a decision whether to sign it into law. Myah Selland speaks out against anti-trans legislation Therein might be its problem. The only opponent at the House hearing was Brenda Tidball-Zeltinger. She is deputy secretary for the state Department of Social Services. The only opponent at its Senate committee hearing was state Social Services Secretary Matt Althoff. The deputy secretary answers to the secretary. And the secretary directly answers to the governor. They wouldn't have opposed such a high-profile bill, unless they were expected to do so. That's because legislation directly affects federal funding that the South Dakota Department of Social Services receives and distributes through its child care assistance program. HB 1132 adds a new section that calls for the department to expand child-care benefits specifically for people who work in child care. The new section tells the department to exclude all earned and unearned household income of an applicant to the program, if the income is less than 300% of the federal poverty level, and if the applicant works in child care at least 30 hours per week, specifically at any of three types of child care organizations or businesses: A before and after school day care program, licensed by the department; A day care center or group family day care home, licensed by the department; or A family day care home, registered by the department. The Healy-Reed bill also would change the name of the child care services program to the child care assistance program. Nearly a year ago, the Governor's Office of Economic Development announced that more than $3.7 million was being awarded to 13 recipients representing more than 40 organization. The news release said that the funding would retain more than 595 current child-care slots and allow for more than 2,460 new slots in Brookings, Burke, Highmore, Rapid City, Redfield, Madison, McIntosh, Mobridge, Murdo, Pierre, Platte, Sioux Falls and Vermillion. This came after Secretary Althoff announced in December 2023 that his department would be changing how child-care assistance was provided, so that providers would on January 1, 2024, start receiving full authorized payments regardless of temporary changes in child attendance. In September 2023, the Governor's Office of Economic Development and the Department of Social Services jointly announced establishment of a community-based child care grant program. of up to $15,000 apiece for planning child care services. It was part of then-Gov. Kristi Noem's federally funded Investment Plan for Child Care. The news release noted, 'The grant is provided through the American Rescue Plan Act (ARPA) providing South Dakota with additional funds designed to create a stronger child care system and industry allowing parents equal access to high quality child care.' In January 2023, the Noem administration announced that the governor was releasing $12.5 million of federal funding for child care services. The governor was quoted in the announcement: 'Over the past several months, we have held listening sessions to receive feedback from parents, child care providers, and communities to hear where state investments can be best utilized. Our joint goal is to increase the options available to parents across the state,' Noem said. She continued, 'We can do this by expanding our state's capacity of high-quality, flexible child care options. And we are looking at opportunities to streamline child care regulations to increase access, as well.' This came after her January 2023 State of the State speech to the Legislature, in which she said her administration would be overhauling child care regulations and rules, and releasing nearly $40 million in federal grants to child care providers. During the Senate debate on Tuesday, Reed said he chaired an ad hoc group on child care last year and staffing surfaced as the top need for child care providers. 'Many child care facilities have empty rooms simply because they cannot find enough workers,' Reed said, and low pay was one of the barriers. 'What they earn is often not even enough to cover the cost of child care while they're at work.' The current child-care services program provides assistance to parents who earn less than 209% of the federal poverty level. HB 1132 would raise that to 300% for families where at least one parent works 30 or more hours per week in child care. Reed said adding one more child care worker would lead to at least 10 more child care slots. 'The fact of the matter is that the child care work force supports all other work forces,' Reed said. Republican Sen. Kevin Jensen explained why he opposed the bill at its Senate committee hearing. 'It's not that I don't have a place in my heart for people who can't afford their child care. But this is a carve-out,' Jensen said. He said teachers should have been included, too. Jensen spoke from his experience as a former school board member. 'I know for a fact that we lose teachers, good quality teachers, every year because they can't afford child care,' he said. Democratic Sen. Jamie Smith defended the bill. 'What it does, it puts more people to take care of kids,' Smith said. 'In my district, we have a crisis, and yours probably too, in child care.' 'I have people who want to work but cannot afford to. This helps — this helps. There's also people who can afford to work but need a place to put their kids. We need places.' Smith acknowledged that other people might need to be included. 'That's not what we're debating right now. We're debating about child care,' he said. Republican Sen. Carl Perry likewise spoke for the bill. He said the YMCA in Aberdeen could add 30 or 40 kids if they had three or four more. 'I'm in favor of it because I really think we need to take care of our kids,' he said. Republican Sen. Paul Miskimins said child care workers earn an average of $12.73 per hour. 'And you try to live on twelve dollars an hour,' he said. 'Normally this is something I would not be favor in,' Republican Sen. Tamara Grove said. But testimony convinced her of its potential. 'So when you can have space for ten to sixteen children, that's a lot of families that will be impacted.' Republican Sen. Taffy Howard spoke against it. 'This bill does not provide any additional funding,' she said. The funding to expand it would come at the cost of the state general fund or the payments to low-income families would be smaller, she warned. 'This is shifting. Someone's going to have to cover the cost here, unless we want to put more money in,' Howard said. Republican Sen. Sue Peterson asked Reed a series of questions. One was who opposed the bill. Reed said the Department of Social Services. 'They're not wanting to change. They don't want to be part of the solution,' Reed said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
