Algae blooms on the Smith River now start in June with warmer water temperatures. (Screenshot of image in the Smith River Nuisance Algae Study by the Montana Department of Environmental Quality.)
A widely published column by Rep. Llew Jones, who will chair the House Appropriations Committee in the coming legislative session, deserves serious attention by Montanans and our legislators. Why? Because Jones, R-Conrad, is breaking with 50 years worth of Republican opposition to establishing trust funds for state government. He says they make good sense for the state, the taxpayers, and the future — and he’s right.
The history of trust funds in Montana is long, starting with the 1972 Constitution’s establishment of both the Permanent Coal Tax Trust Fund and the Resource Indemnity Trust as well as the Public School Fund. In 2005 citizens voted to add the Noxious Weed Management Trust Fund to the Constitution.
These funds are protected so they cannot be ripped off by any given legislature to balance the budget in a fiscally tight year. It requires a three-fourths vote of both chambers of the legislature to bust the Coal Tax Trust, while the Resource Indemnity Trust “shall forever remain inviolate in an amount of $100,000,000.” Likewise the Public School fund “shall forever remain inviolate.”
The revenue for these trusts come from a variety of sources. The Constitution mandates “at least 50%” of the coal severance tax is dedicated to the Coal Trust. The Resource Indemnity Fund comes from “taxes on the extraction of natural resources.” The School Fund comes from revenue derived from school trust lands.
These trusts make sense because the funds are invested and earn interest that can be spent on the various purposes for which they were established — revenue that, as Jones pointed out, is from earned interest and has accomplished enormous, long-term good for our state and citizens.
What makes Jones’ support for more trusts exceptional is the break with past GOP opposition, primarily because Republicans have long sought smaller government, primarily by “starving the beast” through tax reductions. And indeed, they went well beyond that by continually trying to bust the Coal Trust throughout the ’80s.
Nor were they alone, as Democratic Gov. Ted Schwinden tried to use the Resource Indemnity Tax, which is meant to fund reclamation activities, for purposes of general government. He failed thanks to opposition from an “unholy alliance” of oil, gas, and hard-rock mining industries on which the tax was levied and environmentalists who wanted the thousands of historic mining and toxic waste sites throughout the state reclaimed.
Given that the Republicans are now completely in charge of Montana, the onus to deal with the plethora of needs falls entirely on them. It’s one thing to rail against government when the Democrats were in charge, quite another to deal with the realities of running a state when you own the Legislature, the executive, and the entire Congressional delegation.
Indeed, what Jones is suggesting is a proven method of producing revenue without continuous tax increases and should be “used for roads, bridges and water systems.”
He’s right, but as the quickly escalating impacts of the climate crisis hit Montana, we should establish an Instream Flow Trust to buy or lease water rights to keep our rivers flowing. Instream flows are critical for wild trout, but also provide the dilution for municipal and industrial discharges. Without dilution we just get pollution — and the consequences are stacking up — from the neon green Gallatin downstream from Big Sky to the algae covered bottom of the Smith River and the chronically-dewatered Big Hole.
Jones is right and the Legislature should listen to Llew and establish new trust funds to address new issues, with water quantity and quality being right at the top of the list.