CHIP triggers budget walkout
Byby Daniel Person, Bozeman Daily Chronicle
Democrats fired another shot in the battle over children’s health insurance Thursday, cutting off negotiations on an important bill that could dictate how many kids are covered by the state.
And they got one Republican’s help doing it. The House voted 51-49 to stop the work of a committee that had been working on House Bill 676, which could kill the legislation implementing parts of the state’s main spending bill.
Bob Bergren, the Democratic speaker of the House, said his caucus voted to walk away from negotiations for one reason: children’s health insurance. ”We’re done talking about those issues,” Bergren said. “(HB) 676 has the CHIP reductions and we don’t accept that.”
The committee was working on the version of HB 676 approved by the Republican Senate. That version called for extending coverage under the Children’s Health Insurance Program, or CHIP, to children in families living at 200 percent of poverty. Voters last November overwhelmingly called for the state to cover children living at 250 percent of poverty.
Democrats have staked their ground in budget talks on two issues: expansion of CHIP coverage and making budget increases for public school ongoing instead of one-time-only money.
Republicans say the Democrats’ plan is financially reckless, and have pitched a slimmer budget containing less money for an expanded CHIP program. If HB 676 were to die, eligibility would stay at the level the voters approved. But it would also eliminate a slew of money swaps necessary to make the state budget work. ”I think that does pose some very definite, very serious problems in being able to go ahead and complete the process,” said Sen. Keith Bales, a Republican from Otter who chaired the Senate Finance and Claims Committee.
Lawmakers have three working days left to approve a state budget. If they don’t succeed, the bill before them now will become void and they will have to start from scratch in a special session. Bales oversaw a morning meeting of the two remaining budget conference committees. As has been routine in budget negotiations this week, the meeting got little accomplished, past reiteration of where the parties stand.
Republicans are resisting full implementation of Initiative 155, the Healthy Montana Kids Act, and granting ongoing 3 percent base and per-student increases for K-12 education, increases known as “3 and 3.” ”We’re coming to realize that you can’t fully implement CHIP and 3 and 3,” Rep. Llew Jones, R-Conrad, said during a Republican caucus meeting. “You can implement a portion of them, or one or the other.”
The money, Republicans say, just isn’t there.
After the meeting, Republican Floor Leader Scott Mendenhall, R-Clancy, said a special session would come before Republicans agreed to give Democrats both full CHIP funding and ongoing education money. ”It’s unrealistic,” he said. “It’s as good as it’s going to get for the Democrats that want education and I-155. We are constitutionally bound to balance a budget. We can’t up hold our oath of office and approve” the Democrats’ plans.
Mendenhall was not pleased with the vote to disband the committee, saying it hurt the negotiation process, but he said it wasn’t a death blow. The Senate Republicans still hold the most power, he said. ”They think by shoving this down our throat that we’re going to cave? Give me a break,” Mendenhall said.
The one Republican who voted with the Democrats was Rep. Bill Glaser, R-Huntley. Glaser caught fire from some conservative Republicans in 2007 for working with Gov. Brian Schweitzer to pass a budget in special session. He said his Republican colleagues are risking another session with no budget passed by standing firm on the education and insurance debates. ”Mr. Bales is wrong. Mr. Bales thinks he can go against 70 percent of the voters. Mr. Bales thinks he can destroy schools in two years. … I don’t agree with that,” Glaser said.
Disbanding the committee “forces them to work in consensus rather than compromise. I like consensus,” he said.
"I think that it’s going to all work out, with the changes that we have agreed to. It’s not as much (spending for some programs) as I would’ve hoped, but apparently it’s more than other people wanted. As usual, we are trying to find the middle.” 
"[On term limits:] You empower the executive, you empower the lobbyists and that's not good for the system because then we lose what the citizen Legislature brings.” 