A look at the budget, tax and energy policy compromise
BYLINE: By The Associated Press
DATELINE: HELENA Mont.
A look at the budget, tax and energy policy compromise between Gov. Brian Schweitzer's office and some House Republicans:
TAXES:
Supporters say the package holds roughly $300 million in tax relief
$400 per-homeowner rebates
A $120 income tax credit for renters
$29 million to offset local school property taxes
A homeowner income tax credit based on the size of state revenue growth
Business equipment tax reduced by excluding the first $65,000 in equipment from taxes
Revenue is increased about $34 million by closing "loopholes" used by corporations
Schweitzer is also pushing a new capital gains tax on Real Estate Investment Trusts, the largest of which is Plum Creek Timber. Republicans said they have not agreed to it as part of the deal.
ENERGY:
Tax incentives for energy projects using "clean coal" technology or for renewable resources such as wind and biodiesel
Tax incentives to encourage carbon dioxide sequestration
Tax breaks for agriculture land under transmission lines
SCHOOLS:
About $180 million more spent on schools
Optional all-day kindergarten
A teacher loan repayment program of up to $3,000 per year to help schools facing staff shortages to attract teachers
A freeze on college tuition, at a cost of about $30 million
BUDGET:
About $800 million of the $1.09 billion surplus spent on government operations
Spends $3.2 billion in state tax money, and reaches $7.8 billion including federal and other money sources
Increases spending by about 11 percent a year
Money for social welfare and health programs increased by $153 million, including expanded Medicaid, food stamp and children's health insurance benefits
Corrections spending up $96 million, mostly due to inmate population growth
An increase of $126 million in all other agencies, the biggest portion for the Department of Revenue's audit and compliance efforts
Total spending is about $37 million less than the last regular session version of the budget Senate Democrats pushed
Source:
Legislative Fiscal Division