Posted: June 14, 2012 at 7:53 am

Moving Montana Backward

kids should focus on learning - not checking their pagers all dayRick Hill’s understanding of economic policy and education funding appears to be outdated.

This week, Hill, who has been out of public policy discussions for most of the last decade, dusted off his vision for education funding–well, he dusted off Wyoming’s vision anyway.

Actually, given the tax give-aways for corporations Hill is also proposing, Hill’s plan looks more like a failed Wyoming proposal from Hill’s era 20 years ago–cutting taxes for big corporations like Exxon Mobil.  Hill has been out of it for a while, so perhaps he can be excused for not having the most current information. By the time Hill rolls out his next education idea–say banning pagers in schools–we’ll be used to it.

Montana’s tax on oil production used to be similar to Wyoming’s until Montana’s Oil Tax Holiday went into effect in the 1990s. A “tax holiday” means that that the first years production of a new well would go untaxed by the state.

Years back, Wyoming implemented a similar tax holiday on a two year trial basis. But after only one year the legislature realized the idea was a giant failure and rescinded the tax holiday immediately. They found it didn’t create more production or more employment, but it did decrease state revenues alarmingly-including funding for education.

Hill used to blather about how we needed to be more like North Dakota, rather than Wyoming. So I guess Wyoming is the New North Dakota for the former 1990s Congressman.

GOP candidates used to repeat ad nauseum that North Dakota had fewer taxes and relations and therefore more development.   Then Governor Brian Schweitzer called them out on their lies. Schweitzer said  ”that Republican candidates for governor, who he referred to as ‘jokers,’ are wrong to blame taxes and regulations,” for differing oil development levels in Montana and North Dakota the AP reports.

There are more oil wells North Dakota because there is more oil there to drill.  According to Montana Department of Commerce Energy Production and Development Division statistics, Montana’s taxes related to oil and gas production are 40-50% lower than in North Dakota. Our state also has a faster permitting process than both North Dakota and Wyoming.  Montana permits are out in 60 days on average.  In Wyoming a permit takes ten months.  It takes a year in  North Dakota.

It’s just not a good sign that Rick Hill–rather than coming up with current ideas to fit Montana in the 21st century–is focusing on obscuring the facts to make Montanans think we want to be more like Wyoming or North Dakota instead.

 

14 comments

  1. Dan T.

    Hill was out of public policy discussions for most of the last decade, true–unless it involved getting million dollar lease deals with the state. Oh and being Judy Martz’s economic advisor.

  2. John

    Dear Cowgirl,
    Just imagine if we repealed our oil,’tax holiday’, the way WY did. We would have enough money to fund and build a junior college in every county seat that didn’t have one. We could then fund said colleges and link them into the state university system,tailoring classes to fit that particular part of the state. The folks in Ekalaka or Libby could sit in on interactive webcasts of classes being held in Missoula or Bozeman to earn credit for basic courses towards degrees of their choice. MIT has started putting classes up on their webpage for anyone to participate in earning MIT credit for free. MT could do the same.
    As Confucius said,
    If you wish to rule for a year, form an Army
    If you wish to rule for 5 years, collect taxes
    If you wish to rule for one hundred years, educate the people.

    Better education means better paying job, even in these tough times.

    Sincerely
    John Marshall

  4. Norma Duffy AKA ILIKEWOODS

    Does Rick Hill just pull this crap from the talking points of Dick Armey, Carl Rove, ALEC, Koch Brothers… or is he close to others who swallows this, like it was mothers milk…. Will Deschamps and Denny Rehberg?

    I think I am gonna term this for what it is Zombie Capitalism. This is when one is not bright enough to spend anytime educating himself to the Problems Big Banks and Bushanomics. A man who Obviously just follows the Hoard around, until they happen along a middle class Neighborhood to eat. The Evangelical, Right wing Teapublican Base of the GOP, the willing slaves

    The entire Middle Class lost 40% by 2009 according to this new study that came out. Basically proving that the Bush agenda sucked 40& of the middle class net worth away from the people…. yet Rick still thinks this grave robbing of the Montana peoples money is still the best way forward?????

    Moody’s Investors Service, one of the two big ratings agencies, has said it will decide in any day now whether to lower its ratings for 17 global financial companies which are American. Morgan Stanley, which was hit hard in the financial crisis, appears to be the most vulnerable. Moody’s is threatening to cut the bank’s ratings by three notches, to a level that would be well below the rating of a rival like JPMorgan Chase.

    Bank of America and Citigroup may also fall to the same level as Morgan Stanley, but those two are helped by having higher-rated subsidiaries.

    Continue moving your Money to smaller Banks Folks, This is beginning to smell like a Bainisk Capital Zombie Job for the Richer upper-class undead.

  7. Buckminster

    Oh, please don’t try to confuse Mr. Hill (billy) with the facts. His mind is made up. And the science? Oh NOes.