As lawmakers prepare for hundreds of bills to hit the floor in 69th Legislature, local business leaders outlined their priorities at the Jan. 21 Kalispell Chamber of Commerce luncheon at Flathead Valley Community College, highlighting opposition to bills that would reduce tourism revenue and support for Medicaid expansion and education.
With the Medicaid expansion set to expire this year, health care representatives highlighted the serious financial consequences the state will face if lawmakers fail to reauthorize the program under House Bill 245.
Historically, Medicaid has applied to the elderly population, individuals with disabilities, children and pregnant women before it was expanded in 2015 to cover adults at 138% of the federal poverty level. The expansion program, 90% of which is funded by the federal government, will end on June 1 unless lawmakers vote to reauthorize it.
According to health care officials, a vote against the Medicaid expansion reauthorization would affect 80,000 Montanans, while affecting 10% of the workforce.
“That’s a lot of friends, neighbors and people in the community that are covered by this program,” said Mike Clark, of Logan Health.
In the hospitality and food service business sector, 89% of businesses have employees who are enrolled in Medicaid while 67% of retail workers and 54% of construction workers are enrolled, according to Clark, who explained that, through Medicaid expansion, Montana provides $27 million in federal funds that would otherwise be covered by taxes.
“Expanding Medicaid strengthens our health care system and improves access,” he said.
At Logan Health, 17% of patients are covered by Medicaid, which would cause a $68 million annual impact on the hospital if the expansion is not renewed, Clark said.
“It provides access to critical preventive care and care to improve overall health and wellness,” Clark said. “The financial impact on Logan Health would be tremendous.”
Some business leaders who advocate for tourism, housing and construction warned of the consequences of passing Senate Bill 90, describing a measure introduced by Sen. Carl Glimm, R-Kila, that would redirect bed tax funds to a efforts to correct high property taxes.
The bill threatens to dismantle tourism promotion funding, which leaders say would add more burden to taxpayers.
“Redirecting the bed tax — especially for our area that is so heavy on tourism — is not a great idea,” said Erica Wirtala of the Northwest Montana Association of Realtors® (NMAR).
According to the data, non-resident visitors generate more than $414 million in state and local taxes each year, reducing the average Montana household’s tax burden by $930 annually.
Additionally, business leaders argue that the law would reduce marketing and infrastructure support and hurt local hotels.
“If this passes, not only will it take away tools like the Department of Commerce’s tourism promotion marketing tools in the state of Montana, but it will also take away some of the programs that really help small rural communities,” Iron Star owner Construction. said Kisa Davidson.
Business leaders are also working to raise teacher base salaries as recruitment and retention remain a challenge across the state. On Tuesday, they said House Bill 252, also called the STAR Act, helps achieve that goal, with educators poised for its passage.
Having gained support from 36 co-sponsors, including Rep. Courtenay Sprunger, R- Kalispell; Rep. John Fuller, R- Kalispell; and Rep. Lyn Bennett, R-Whitefish, House Bill 252 urges schools to raise base salaries, with School District 5 already betting on its passage.
“Our teachers are proactively anticipating this being passed, so we’ve already raised our base teacher pay at the end in order to qualify for this incentive pay,” said Jenn Mariman, School 5 board administrator. That’s huge … it gives us more consistent funding because it’s pay per educator.”
[email protected]
