October 4, 2008
Schweitzer touts energy advances, job growth By PETER JOHNSON Tribune Staff Writer
Gov. Brian Schweitzer touted his administration's record of increasing job growth, education spending and recruitment of energy projects Friday during a meeting with the Tribune editorial board.
The Democratic governor also expressed skepticism about whether two proposed Great Falls-area coal projects will ever be built.
Schweitzer said the state has issued building permits for the Highwood Generating Station, a coal-fired power plant proposed near Great Falls by electrical cooperatives. However, he said he's not sure plant backers can get financing in a time of economic uncertainty.
He said he has talked to a lot of energy companies and financiers "who don't see any utilities or investor-owned coal plants being built" until Congress sets rules for dealing with the carbon dioxide emitted by such plants.
Schweitzer also questioned the practicality of a proposed coal-to-liquid-fuel plant at Malmstrom Air Force Base, unless the Air Force can offer developers a long-term contract for the fuel produced there.
"The current Malmstrom proposal doesn't make any sense to me," he said, adding that Montana has 15 million acres elsewhere that are directly over coal reserves.
The Air Force only can offer 600 acres of land at Malmstrom, as well as an available work force, water and certain infrastructures, he said.
There are other sites, such as the one proposed for the Many Starts coal-to-liquid plant on the Crow Indian Reservation. That site offers nearby coal, water and a railroad spur, he said.
Schweitzer spoke extensively on energy during the meeting. He also presented an eight-page report listing more than 40 energy and resource development projects proposed or begun during his term.
"We've got a lot of projects in the pipeline, and I want to see them get to fruition," he said. "I'm looking for four more years of steady growth."
Schweitzer credited his 2007 "Clean and Green" law, which markedly decreased property taxes on clean transmission lines, pipelines and energy generation plants with spurring the new projects.
He said he would resist eliminating an 18-month "tax holiday" on new oil and gas production because the plan has helped Montana attract drillers.
Schweitzer, who is running for re-election against Republican Roy Brown on Nov. 4, also provided a 20-page handout of charts showing his administration's accomplishments.
Among the statistics he cited was that Montana had a record low annual unemployment of 3.1 percent in 2007, and the third-fastest growing state economy in the last six months.
He contrasted favorable numbers during his first term to the records of the last few Republican governors in a few categories, including:
An average monthly job growth of 1,321 during the Schweitzer administration; compared to average monthly job growths of 767 from 2001-2004 during Republican Gov. Judy Martz's administration; 855 from 1993-2000 under Republican Gov. Marc Racicot; and 877 from 1989-1992 under Gov. Stan Stephens; and that
State funding per student in public schools has increased from about $3,400 to approximately $4,600 during his term.
Schweitzer also spoke about the state budget. He said that while the state will end the fiscal year this month with a $465 million surplus, he won't present his proposed budget until he is required to do so in November. He also urged interest groups to be cautious.
"Let's get through this contagion, (the national financial crisis), and see where we're at," he said.
In forming the budget, it's prudent to keep $200 million in reserves, he said, and there will be legitimate requests for increased funding for education, health care, prisons and employees' salaries.
"People may need to temper their high expectations," he said.