Montana is stuck in a waiting room.
Waiting for much needed revenue. Waiting for health care for thousands of Montanans.
Every day Montana stays in the waiting room, the state loses out on a staggering $1.84 million, a fact sheet released today by the Montana Budget and Policy Center shows.
That’s how much federal money would come into the state every day under expansion. It’s money that not only will pay for health care for as many as 70,000 Montanans, it will support jobs across the state and strengthen our economy.
The clock is ticking and the lost dollars are mounting. This Saturday, April 19, marks the day Montana will have lost out on $200 million in federal investment.
Montana can’t keep waiting. It’s time to move forward with Medicaid expansion.
On Tax Day, we all spend some extra time thinking about how much we pay in taxes. Even more so for low- and middle-income families, who contribute a larger share of their income than high income people do. The difference is significant – Montana low-income families pay 6.4% of their income in taxes, compared to 4.7% of the wealthiest Montanans.
The Institute on Tax and Economic Policy released a new report that compares the tax structure of each state and examines this issue of who pays.
How does Montana stack up? There’s good news and bad news.
First, the good:
- Montana’s tax system relies primarily on the income tax.
- Our income tax is progressive. This means as income goes up, the tax rate also goes up.
- Montana does not have a sales tax. The sales tax is one of the most regressive taxes, with poor families paying eight times more of their incomes in sales taxes than wealthier families.
And now the bad:
- Low-income families contribute more. Montana’s income tax kicks in at a very low income level. In fact, Montana is one of only a few states that impose income taxes on working families living in poverty. For a two-parent family with two children, Montana income tax rates begin at $12,500, roughly half of the federal poverty line.
- While Montana’s income tax has graduated rates, the legislature collapsed these rates in 2003. Now, all Montanans making more than $13,900 are taxed at the same rate. Over half of the benefit of the changes went to families with incomes over $500,000 per year.
- Our tax code values wealth over work. Montana taxes capital gains at an even lower rate than income earned by working. This tends to favor wealthy Montanans who make money on investments, compared to those earning an income from wages. Montana is one of only nine states that provides this tax break.
- Low-income Montanans pay a greater share of their income in property taxes than the wealthy, because in general the property tax rate for residential homes is the same for all homeowners no matter their income. Families in the lowest 20% of income level contribute about 3.5% of income toward property taxes, compared to only 2% of income for the wealthiest Montanans.
All in all, Montana is in the middle of the pack when compared to other states. But we could do more to help working low-income families. Twenty-four states have improved the disparity in the share of income going toward taxes by enacting state-based Earned Income Tax Credits, which lowers the taxes paid by working low-income families.
As Montana families complete their taxes, policymakers should consider policies like the Earned Income Tax Credit to ensure a prosperous Montana.
Hard-working women across the state of Montana are trying to solve a mystery. From every dollar in every paycheck women are bringing home for a hard day’s work, thirty-three cents are missing.
So the women started looking around.
“Nothing is missing,” Montana working women were told. “You chose to leave it behind – by working in the field you do, by taking the job you did, and by raising a family for those few years. Look again. You’ll find it.”
So they looked again.
The findings were clear. Women do, in fact, experience a pay gap of $0.33. For every dollar a man makes, a woman makes $0.67.
This week, Governor’s Bullock Equal Pay for Equal Work Task Force delved into this mystery. According to the Montana Department of Labor and Industry, part of this pay gap can be accounted for. Women often choose to take care of children and family members full-time, shortening their time in the labor force. Many women work in traditionally female professions, such as education, that are often underpaid. Women are also more likely to take part-time work, which often does not pay as well as a full-time position.
But these explanations only account for 65.7% of the pay gap (women, on average, are better educated than men, negating 6.7% of the gap). Fourteen cents out of every dollar that Montana women earn is still missing. This unexplained portion of the pay gap points to the gender inequality women in the workforce experience.
These missing cents matter. Economists estimate the U.S. economy would have produced an additional $447.6 billion in income in 2012 if men and women were paid equally. For women supporting families, the pay gap hurts even more. A single mother in Montana earns $26,610. That’s $13,000 less than a single father makes. Not only does the pay gap hurt Montana workers, it hurts families as a whole.
Our entire state does better when everyone earns their fair share. It’s time to find, and return, those missing fourteen cents.
Montana is a great place to live, work, and play. Visitors from every corner of the planet come to explore our rivers, mountain valleys, and world class skiing. How can Montana transform these eco-tourists into place-loving residents?
On Friday, March 21st, I was honored to join the Montana Ambassadors on a panel to address this question and more at their annual conference in beautiful Big Sky, Montana. The Ambassadors include business leaders, government officials, and community partners in their effort to promote and protect what we most love about the Big Sky state.
Here’s my theory: Montana’s unbelievable public lands attract new business and are the underpinning of Montana’s strong economy. Our public lands, rivers, and lakes shape and define us.
As it turns out, I’m not alone in this public land love. These ideas are deeply ingrained in Montanans.
Here’s a typical summer scene from my childhood. Can you identify with this scenario?
Picture a lanky 9 year-old-girl wearing third generation, hand-me-down jeans and an old ball cap trying to keep up with her dad on a rocky mountain trail. Keeping up was no easy task, considering Dad was a 6’2 timber-worker. Together, father and daughter searched weekly for another unexplored alpine lake, a waterfall, a mountain view in their little corner of Northwestern Montana. Regardless of the day’s itinerary, he’d say “Sarah, look around. All of this – these trees, this trail, this wildlife – this belongs to us. We’re not rich, but we are special. We’re Montanans.”
Later in life I understood how Montana’s Constitution and laws set us apart. Ever visit Texas? No offense to the Lone Star State, but not a lot of back roads for a weary traveler to (legally) set up camp for the night. Go to California for an untrammeled glance of the sea? It might take you hours to drive to public land, and twice as long to find a campsite. Colorado might be better for those who love to hike and ski, but private landowners largely control access to the best trout streams.
Montanans, on the other hand, have a constitutional right to a “clean and healthful environment,” and all of us are charged by that constitution to protect our public land, air and water. Our stream access law gives us room to roam and the right to fish, float or even stroll along the banks of our navigable water ways up to the high water mark. In return, anglers flock to our blue ribbon trout streams year round, from the Stillwater to the North Fork of the Flathead.
Numerous studies highlight the sheer economic benefit of public lands, and in particular, wild places to the west. In January 2013, our friends at Headwaters Economics recently demonstrated that protected, federal lands increase per capita income.
At the Montana Ambassadors’ conference, business leaders, government officials and community partners explored how to keep visitors exploring, and how to capture their best ideas and make them our own. For those of us who love to hike and explore our state parks, remember that our tax dollars pay for the state agencies maintain and protect them. Think about the roads that lead to your favorite trailhead, and the ranger who manages your most treasured wilderness area or national park. Public land and water are part of the public infrastructure, a worthy investment managed and paid for by all of us.
We are charged by those who came before us to protect what we most love about our special place – the clean air and water, the uncommon beauty, and the amazing access to public land and water. As stewards of this place, we must maintain the infrastructure –the trails, roads and river access points, and the public employees who do this critical work. And in return, our abundant land and water will continue to set us apart from our neighbors, providing the time and space to connect to family or ourselves, and bringing new entrepreneurs and their investment and jobs.
The Earned Income Tax Credit (EITC), the nation’s most effective tool for reducing child poverty and supporting working families, would be strengthened for workers without children in President Obama’s 2015 budget. Congress should take a serious look at this proposal. Furthermore, working Montana families would benefit from a state credit tied to the federal EITC.
In 2011, 86,646 Montana households received the federal EITC, pumping over $169 million back into the pockets of working Montanans earning low wages.
However, the current EITC provides little to no help for working adults without children. The President’s budget proposes to double the maximum credit for childless workers to $1000 and lower the age limit to 21. Under this proposal, 52,000 Montana workers without children would either become newly eligible for the EITC or receive a larger EITC, and see the taxes they pay reduced.
We’ve written before about the benefits of investing in Montana’s working families, by building upon the federal EITC at a state level. Montana is one of only a few states to impose income taxes on working families living in poverty. Over 33,000 Montana families are working, but remain below or near the poverty line.
So what would a state EITC mean for Montana’s working families? A state tax credit set at 20% of the federal EITC could provide Montana low-income working families with a boost in income of up to $1,178. For a single mother in Great Falls, that income boost could pay for over a month of her child care and transportation costs, so that she can keep working. A state credit in Montana would build on the federal credit to lift more Montanans from poverty and improve the future for Montana’s children.
The federal EITC has been a success in lifting working Montana families out of poverty. A state credit could work with the federal credit to do even more. Both Congress and state lawmakers should think seriously about expanding EITC and investing in hard-working Montanans.
Montana lost out on a million dollars this month. And last month, and the month before that.
And we’ll keep on losing that money because last November Congress allowed a temporary increase in Supplemental Nutrition Access Program (SNAP) benefits to expire and these dollars left our state. They flew off the dinner tables of Montana families. They disappeared from the cash registers of local grocery stores. They went missing from the fields of our farmers and ranchers.
When these dollars left Montana, a large number of families were still struggling to recover from the recession, and relying on SNAP benefits to help put food on their tables. After the cuts, households had an average of $22 less a month to spend on groceries.
$22 a month might not sound like a lot. But for a low-wage family on a tight budget, it is.
This cut means three fewer chuck roasts to put on the table at the end of a long day’s work. It means six fewer gallons of milk for kids to pour over their breakfast cereal. It’s seven fewer loaves of bread for a mom to make sandwiches for school lunches this month.
Milk bought in Montana grocery stores, and wheat grown in Montana fields. SNAP dollars flow through our local grocery stores, our farms, and our ranches. They strengthen not only families who need help putting food on the table, but our entire state.
The effect of this cut is still rippling through our state. Food banks, soup kitchens, and homeless shelters are bearing the burden as families who can’t afford enough to eat must rely on other options.
SNAP provides vital help for Montana families. We can’t let Congress take food off the tables of hungry Montanans again.
For my family, and many across the country, as the snow melts and the first signs of spring are coming to Montana, we are starting to plan trips to visit our national parks. For some, spring can’t come too soon, as chances to visit the parks were cut short last fall due to the shutdown of the federal government in October.
A new study by the National Park Service (NPS) demonstrates the damage the shutdown inflicted on communities that are the gateways to these natural treasures, offering visitors lodging, meals, outdoor gear, and other amenities. Glacier National Park was one of 45 parks whose neighboring communities saw a drop in visitor spending of over $2 million in October 2013. Compared to October averages, visitor spending decreased by $2.6 million, significantly less than the normal $4.7 million. The number of visitors was down by 55%.
Unlike Montana, six states used state funds to keep national parks in their borders open. These states saw visitor spending in gateway communities ten times greater than the amount states’ spent to keep the parks open during the month of October.
Montanans are proud to share our state’s remarkable natural beauty with the rest of the country, and tourism is a vital industry in many of our communities. Federal funds greatly benefit our state, helping to generate even more revenue for our local communities. As we saw this past October, the absence of these federal dollars can create a loss even deeper than the face value. Because of their importance to communities in Montana, Congress should not jeopardize these federal funds again.
Not only is keeping the parks open to families like mine wanting to experience Montana’s natural beauty, it’s important to the families and communities who depend on them for their livelihood.
Parents of a college student in Montana can expect to shell out between $6,350 – $6,750 a year in college tuition, depending if you’re a Griz or a Bobcat. But parents with a four year old in full-time preschool might be less prepared for the price tag – $7,518 a year, according to a new study from Child Care Aware.
Despite the numerous benefits of pre-kindergarten for both children and the state, Montana is one of only ten states without any state funding for pre-k. Out of these ten states, paying for child care places one of the highest burdens on Montana parents.
With costs higher than that of a year at college, many parents find themselves spending an unrealistic portion of their income on childcare. Those parents that can’t afford it often are forced to leave the workforce or place their children in substandard care. Parents who want or need to work should be able to afford to do so, and children deserve safe and quality childcare.
Early childhood is a critical time in a child’s life. By supporting state-funded pre-k, Montana could improve the lives of not only children, but working parents as well.
If you are interested in learning more about how state funded pre-k could benefit Montana’s budget, economy, and our children, read our report here.
On February 4, 2014 Congress passed the “Farm Bill” which authorizes funding for federal agricultural and nutrition programs for the next five years. Although it was disappointing that the SNAP program was cut by $8.6 billion dollars, hurting millions of families that struggle to put food on the table, there were other parts of the bill that will help Indian Country. Here is a highlight of some of those changes shared by the National Congress of American Indians:
Feasibility Study, Report, and Demonstration Project for Tribal Administration of Federal Food Assistance Programs-Section 4004
With tribal consultation, the Department of Agriculture will study the potential for tribes to administer federal food assistance programs for their respective communities, which are currently administered by the states. The study and a written report will be completed within 18 months.
Food Distribution Program on Indian Reservations Traditional Foods Demonstration Project (FDPIR)-Section 4004
This project will allow the FDPIR program to include foods produced locally by American Indian farmers, ranchers, and producers, rather than solely relying on USDA food purchased outside of reservation economies that is shipped to tribal communities for distribution.
These are just some of the provisions for Indian Country included in the Farm Bill. You can read the full NCAI alert here.
Montana has the chance to provide 70,000 people with high-quality health coverage by accepting federal funding to expand Medicaid to those whose incomes are less than 138 percent of the federal poverty level. For a single person, this means earning less than $15,857, and for a family a three, less than $26,951.
Here’s why it’s such a good idea:
1. It will support our economy and help create jobs.
Offering more people health coverage through Medicaid would bring in nearly $6 billion in federal funds to Montana between now and 2021. This will help strengthen our economy, by providing insurance to workers in Montana’s key industries, such as tourism, construction, and ranching. Additionally, expansion will help bring 12,000 jobs to our state annually.
2. It will benefit Indian Country.
Over half of Montana’s American Indians between the ages of 18-64 lack health coverage. But with expansion, nearly 20,000 American Indians in Montana will be eligible to enroll in Medicaid. Expansion will also provide a much needed economic boost to tribal communities. Additionally, it will help to improve services at Indian Health Services (IHS) facilities by freeing up funds for essential services such as mammograms that had been previously spent on the uninsured.
3. Veterans and their families will have better access to health care.
Montana has the highest percentage of uninsured veterans (17.3 percent) in the country. Even for those with coverage through Veterans Affairs, Montana VA facilities are few and far between, making it difficult for many veterans to get the care they need. With expansion, approximately 9,500 veterans and their families will gain access to health care.
4. Medicaid is quality health care.
Medicaid is an effective and efficient program. Not only does it improve access to health care and the health of those who use it, it also delivers high-quality insurance with significantly lower administrative costs than private insurance.
5. It will improve the lives and health of tens of thousands of Montanans.
Most importantly, expanding Medicaid would improve the lives and the health of 70,000 Montanans, helping to build healthy communities and a stronger state. It’s time for Montana to act.