Montana Bonds to Fund Biomedical Research Authority, I-181 (2016)

Montana I-181
Election date November 8, 2016
Topic Bond issues
Status d Defeated
Type State statute	Origin Citizens

2016 measures
November 8
CI-116 a
I-177 d
I-181 d
I-182 a
Polls
Voter guides
Campaign finance
Signature costs

The Montana Bonds to Fund Biomedical Research Authority, I-181 was on the November 8, 2016, ballot as an initiated state statute. It was defeated.

A "yes" vote supported creating $20 million per year in state bonds for ten years to establish and fund the Montana Biomedical Research Authority.

A "no" vote opposed this measure creating $20 million per year in state bonds for ten years to establish and fund the Montana Biomedical Research Authority.

Election results

I-181
Result		Votes	Percentage
d No		280,604	57.33%
Yes		208,883	42.67%

Election results from Montana Secretary of State

Overview

Status of bonds in Montana

Initiative 181 would have issued general obligation bonds. Montanans have not voted on general obligation bonds since 1960, when voters defeated a bond issue for prison construction. As general obligation bonds constitute public debt, it is common for states and municipalities to require their issuance be approved by voters at the ballot box. The state of Montana does not require voter approval, but did before the 1972 Constitution was implemented. Per the 1972 Constitution, general obligation bonds can be issued by the Montana Legislature with a two-thirds vote in each house. As Initiative 181 was a citizen initiative, it did require voter approval.

Initiative design

Initiative 181 would have authorized the issuance of general obligation bonds to provide grants to cover the costs of peer-reviewed biomedical research, therapy development, recruiting scientists and students, and acquiring technologies at Montana biomedical research organizations. Bonds would have been issued in the amount of $20 million per year for ten years. The measure would have established a Montana Biomedical Research Authority to review grant applications. Grants would have needed to be focused on promoting the development of therapies and cures for brain diseases, injuries, and mental illnesses, including traumatic brain injury, stroke, brain cancer, dementia, Alzheimer’s disease, and Parkinson’s disease.

State of the ballot measure campaigns

Opponents outraised Montanans for Research and Cures three-to-one. Supporters received $249,187 and opponents raised $730,562. The top donor to the "Yes" campaign was the McLaughlin Research Institute, which contributed $103,560. The top donor to the "No" campaign was the National Education Association, which contributed $728,292.

Text of measure

Ballot text

The proposed text of the ballot was as follows:

“

I-181 establishes the Montana Biomedical Research Authority to oversee and review grant applications for the purpose of promoting the development of therapies and cures for brain diseases and injuries and mental illnesses, including Alzheimer’s, Parkinson’s, brain cancer, dementia, traumatic brain injury and stroke. The grants, which are funded by state general obligation bonds, can be used to pay the costs of peer-reviewed biomedical research and therapy development, recruiting scientists and students and acquiring innovative technologies at Montana biomedical research organizations. I-181 provides specifics for the Montana Biomedical Research Authority’s membership, powers, staffing, grant eligibility and evaluation requirements, and reporting requirements. I-181 authorizes the creation of state bond debts for $20 million per year for a period of ten years. State general fund costs for debt service and other expenses would be $17.38 million total for the first four years and peak at $16 million per year for fiscal years 2027-2037. [ ] YES on Initiative I-181 [ ] NO on Initiative I-181

”

Full text

The full text of the measure can be found here.

Support

Montanans for Research and Cures led the campaign in support of Initiative 181.

Supporters

Former officials

• Mayor Randy Gray, Great Falls

Organizations

• Montana Chapter of the Alzheimer’s Association
• Greater Northwest Chapter of the National MS Society
• Montana Parkinson’s Foundation
• Montana Credit Union Network
• Benefis Health System
• Great Falls Development Authority
• Anderson ZurMuehlen Accounting
• PacificSource Health Plans
• St. Patrick's Hospital
• Rocky Mountain Tribal Leaders Counsel

Arguments

Randy Gray, Board Member on the McLaughlin Research Institute for BioMedical Sciences and campaign treasurer, said:

“

This initiative provides hope for hundreds of thousands of Montanans suffering from brain diseases and disorders – and their families – by creating an innovative, smart and common-sense strategy that builds on world-class research already occurring in Montana and will create many new jobs and new treatments.

”

Randy Gray, former mayor of Great Falls, argued:

“

This investment represents less than one half of 1 percent of the state’s general fund annually. By researching treatments and cures now, Montanans will save much greater amounts of the state budget on health care costs in future years. Bond interest rates are very low right now and there is still a lot of bonding capacity in the state of Montana so this will not impact other priorities such as infrastructure or education. We need to do something to help our fellow Montanans living with devastating diseases like Alzheimer’s.

”

Official arguments

Former Mayor of Great Falls Randy Gray, Matt Kuntz, and Patty Mazurek prepared the following arguments in favor of Initiative 181 for the secretary of state's voter information pamphlet:

“ I-181 would provide hope to tens of thousands of Montanans by providing funding for Montanabased research into developing therapies and cures for brain diseases, brain injuries, and mental illnesses. These diseases include Alzheimer’s, Parkinson’s, Multiple Sclerosis, PTSD, traumatic brain injury, addiction disorders, and depression—to name a few. With a population of aging citizens and veterans, Montana will be particularly hard hit in the coming decades by currently incurable diseases like Alzheimer’s and related dementias, as well as rising rates of PTSD and suicide in the veteran community. I-181 would establish the Montana Biomedical Research Authority to award grants “for the purpose of promoting the development of therapies and cures” for brain disorders and mental illness. An independent panel of doctors, nurses, and representatives of patient advocacy groups, veterans, and Montana Indian Tribes would award these grants to Montana universities, hospitals, and other organizations qualified to conduct such research. This initiative will build on world-class research already occurring in Montana on these issues. We will be able to provide more opportunities for our young people interested in science and medicine to stay in Montana and create good-paying jobs. The research conducted through I-181 will be “made in Montana,” likely providing Montanans earlier access to new treatments and cures and possibly allow them to participate in early clinical trials. This targeted research investment will help bring state of the art diagnostic and treatment techniques to Montana that will help reduce the enormous costs families and the state budget will face in caring for the increasing numbers of Montanans expected to deal with these diseases and disorders in the coming decades. For example, the U.S. Centers for Disease Control (CDC) estimate that with medical costs and lost work costs, the average suicide costs $1,164,499. In 2014, there were 248 suicides in Montana. If CDC costs are applied to that figure, suicide deaths alone cost Montanans around $2.89 billion over the course of ten years. Similarly, the number of Montanans with Alzheimer’s disease is expected to reach 27,000 by 2025. Alzheimers’ impacts on Medicaid costs alone are expected to rise from $140 million in 2015 to $214 million in 2025. Brain research in Montana could be critical in stemming those costs. An investment of $20 million in funding per year for 10 years through general obligation bonds is a powerful commitment to the hundreds of thousands of Montanans—and their loved ones—who suffer from brain diseases and disorders and mental illness. The proceeds from the sale of these bonds, if appropriated by state legislative sessions, would be used to fund research grants to qualified Montana institutions. Bond interest rates are very low so this is a good time for Montana taxpayers to make this investment. The initiative has been drafted with the assistance and advice of lawyers of Dorsey Whitney, L.L.P of Missoula, MT. We believe ensuring robust research for the sake of our children, grandchildren, our seniors and our veterans is both a responsibility and a Montana value. ”

Opposition

Montanans for Fiscal Responsibility registered to oppose Initiative 181.

Opponents

Officials

• Sen. Jim Keane (D-73)
• Sen. Bob Keenan (R-5)
• Rep. Ron Ehli (R-86)

Former officials

• Sen. Robert Story (R-30)

Organizations

• Montana Taxpayer Association

Unions

• Montana AFL-CIO
• National Education Association
• MEA-MFT
• International Union of Operating Engineers Local #400

Arguments

Former Sen. Bob Story (R-30), Executive Director of the Montana Taxpayer Association, argued:

“

Most are local, I’ve never heard of a statewide bond election. ... We wouldn’t support statewide bonding, especially for research. It’s a risky proposition we would not get a cash flow return on it.

”

Al Ekblad, Executive Secretary of the Montana AFL-CIO, contended:

“

While I-181 is well intentioned, it has raised some major concerns. ... First, it sets a precedent of directing bonding through the initiative process that could be abused by special interests in the future. Second, it’s our executive board’s belief that public funds should be used for public projects and institutions. Finally, and perhaps most importantly, I-181 could hinder the Montana Legislature’s ability in 2017 to invest in Montana’s infrastructure and put Montanan construction workers, who have not recovered from the 2008 recession, to work in good-paying jobs.

”

Official arguments

Sen. Bob Keenan (R-5), Rep. Ron Ehli (R-86), Alan Ekblad of the AFL-CIO, and former Sen. Robert Story (R-30) prepared the following arguments in opposition to Initiative 181 for the secretary of state's voter information pamphlet:

“ We urge you to vote no on Initiative 181. Initiative 181 would indebt the taxpayers of Montana in the amount of 200 million dollars with a payback of over 325 million dollars. While the promoters of the initiative promise economic benefit from borrowing against future income, funding research by creating debt is not a wise use of taxpayers’ dollars. Initiative 181 allows an appointed board to request the sale of State bonds, deposit the money in an account outside the state treasury, and issue grants for research projects that have failed to receive funding from conventional sources. It also allows the appointed commission to provide grants to medical organizations to build facilities and purchase equipment. This will create winners and losers inside the medical service community. Some providers will receive state money to improve services while their competitors will not. Initiative 181 is bad policy because it creates and funds a new program without considering the impacts the cost of this program will have on existing obligations of the State. The passage of I-181 will reduce the upcoming legislature and future legislatures’ ability to fund the increasing costs of existing programs like K-12 school funding, health care for low income Montanans, new infrastructure projects and a host of other existing programs. Here are some of the many reasons to vote NO on I-181: It allows voters to create a new spending program without providing a revenue source to fund the program. It circumvents the current legislative process that prioritizes State spending. Ongoing operational programs like those funded by I-181 should be funded through the current appropriation process so they can be balanced with the other needs and obligations of the State. It has the potential to stop bonding for infrastructure projects now and in the future. Once the program is started there is no legislative oversight to insure the borrowed money is used wisely. Opportunities for public input into decisions of the Biomedical Authority, that has oversight over the program, are limited because the Authority can meet by electronic conference. Borrowing money to fund research projects that have a low probability of succeeding is not good policy. Placing State-generated money directly into a fund outside the State Treasury with no accountability could be unconstitutional. The creation of State debt should be reserved for spending on projects that create hard assets that are owned by the taxpayers. If the debt is paid back over 20 years the cost to taxpayers could exceed 325 million dollars; payback over 40 years will be much higher. For these and many other reasons we urge you to vote NO on I-181 when you cast your ballot this fall. ”

Media editorials

Support

• The Great Falls Tribune said, "We believe this innovative and ambitious idea has the merit to justify people signing a petition to place the issue on the ballot in November, and we encourage registered voters to do just that. It’s a tall order these days to get issues on the ballot, as 24,175 valid signatures are needed from across the state."

• Bozeman Daily Chronicle said, "One of the best arguments advocates for I-181 offer is that federal money for this kind of research has been declining. That’s true, and it has been reflected in some recent declines in Montana State University research grants. But it would be better to lobby our congressional delegation to lean on their colleagues to restore that funding at the federal level than to create another state bureaucracy."

Opposition

• Billings Gazette said, "Montana’s Constitution requires a balanced budget. Under I-181, over the next three decades, Montana government would have about $300 million less to spend on everything else if it has to repay the proposed $200 million in borrowing. Much as we would like to think that a research breakthrough in Montana would lead to cures, cost savings and job creation that would make the investment worthwhile, the truth is we don’t know. There are no guarantees. The initiative doesn’t even require that the state share in royalties from treatments developed through publicly funded research."

Campaign finance

Total campaign contributions:
Support:	$249,187.00
Opposition:	$730,561.69

As of January 9, 2017, the support campaign featured one ballot question committee, Montanans for Research and Cures, that received a total of $249,187.00 in contributions. The support campaign had spent $241,620.31.

As of January 9, 2017, the opposition campaign featured one ballot question committee, Montanans for Fiscal Responsibility, that received a total of $730,561.69 in contributions. The opposition campaign had spent $726,397.58.

According to reports through January 9, 2017, the top donor in support of this initiative, McLaughlin Research Institute, provided approximately 42 percent of the campaign's total war chest. It contributed $103,560 in cash and in-kind donations.

Support

The following ballot question committee registered to support this initiative as of January 9, 2017. The chart below shows contributions and expenditures current as of January 9, 2017.

Committee	Amount raised	Amount spent
Montanans for Research and Cures	$249,187.00	$241,620.31
Total	$249,187.00	$241,620.31

Top donors

As of January 9, 2017, the following were the top five donors in support of this initiative:

Donor	Amount
McLaughlin Research Institute	$103,560.00
First Interstate Bank	$20,000.00
Dorsey & Whitney LLP	$10,638.00
Blue Cross Blue Shield of Montana	$10,000.00
Irving Weissman	$10,000.00

Opposition

The following ballot question committee registered in opposition to Initiative 181 as of January 9, 2017. The chart below shows contributions and expenditures current as of January 9, 2017.

Committee	Amount raised	Amount spent
Montanans for Fiscal Responsibility	$730,561.69	$726,397.58
Total	$730,561.69	$726,397.58

Top donors

As of January 9, 2017, the following were the top five donors in support of this initiative:

Donor	Amount
National Education Association	$728,291.69
MEA-MFT	$3,919.94
Montana State AFL-CIO	$1,306.80
International Union of Operating Engineers Local #400	$500.00
Cary A. Hegreberg	$100.00

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Background

Bonds in Montana

Voting on Bond Issues
Ballot Measures
By state
By year
Not on ballot
Local City bonds County bonds District bonds School bonds

See also: Bond issue

There have been no statewide votes on bond measures in Montana since 1960. Between 1908 and 1960, 17 bond issues appeared on the ballot. Most dealt with issues of public transportation, education, hospitals, and prisons. The reason bond issues stopped appearing on the ballot after 1960 was because a new constitution was ratified in 1972, which no longer required voter approval for bonds. Prior to 1972, constitutional law required voter approval of any bonds over $100,000.

In 1970, voters approved Referendum 67, which called for a constitutional convention. A new Montana Constitution was ratified in 1972, and voter approval was no longer required for the state to issue general obligation bonds. The new constitution required the Montana Legislature to approve bond issues with a two-thirds vote in each chamber and forbid the legislature from issuing bonds to cover state debt. Section 8 of Article VIII of the Montana Constitution reads:

“

No state debt shall be created unless authorized by a two-thirds vote of the members of each house of the legislature or a majority of the electors voting thereon. No state debt shall be created to cover deficits incurred because appropriations exceeded anticipated revenue.

”

As Initiative 181 was a voter-initiated bond issue, it required voter approval.

Path to the ballot

See also: Laws governing the initiative process in Montana

Montanans for Research and Cures sponsored the petition to the secretary of state. It was received on February 2, 2016, and approved for circulation on April 7, 2016. Supporters needed to collect 24,175 valid signatures, which was 5 percent of the total number of votes cast in the previous gubernatorial general election.

Supporters said they submitted over 39,000 signatures.

The Montana secretary of state's office verified 24,970 valid signatures on July 15, 2016, certifying the measure for the November 8, 2016, ballot.

Cost of signature collection:
Sponsors of the measure hired Revolution Strategies to collect signatures for the petition to qualify this measure for the ballot. A total of $98,620.00 was spent to collect the 24,175 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $4.08.

Lawsuit

  

Lawsuit overview
Issue: Constitutionality of the measure; whether public money can be spent on private organizations
Court: Montana Supreme Court
Ruling: Ruled in favor of defendants, allowing a vote on the measure, but refraining from deciding the ultimate constitutionality of the measure
Plaintiff(s): Montana Taxpayers Association	Defendant(s): Secretary of State Linda McCulloch
Plaintiff argument: Measure is unconstitutional because the state cannot spend public revenue on private organizations	Defendant argument: The measure is constitutional.

  Source: Billings Gazette

The Montana Taxpayers Association filed litigation on July 28, 2016, against Secretary of State Linda McCulloch (D). The plaintiff asked the Montana Supreme Court to remove Initiative 181 from the ballot. The legal challenge argued that the measure violated the Montana Constitution by giving public money to private organizations. The paragraph in the constitution that plaintiffs cited was:

“

No appropriation shall be made for religious, charitable, industrial, educational, or benevolent purposes to any private individual, private association or private corporation not under the control of the state.

”

Backers of Initiative 181 responded to the litigation. Randy Gray, Treasurer of McLaughlin Research Institute for Biomedical Sciences, said, "I-181 is a bipartisan, constitutional measure written to serve Montanans affected by terrible diseases and disorders. That's why the voters of Montana, not special interests, will decide the fate of this important measure, which benefits tens of thousands of our seniors, kids and veterans."

The Supreme Court rejected the legal challenge on procedural grounds, saying that a constitutional challenge to a ballot initiative cannot bypass the lower courts and go straight to the supreme court.

State profile

Demographic data for Montana
	Montana	U.S.
Total population:	1,032,073	316,515,021
Land area (sq mi):	145,546	3,531,905
Race and ethnicity**
White:	89.2%	73.6%
Black/African American:	0.5%	12.6%
Asian:	0.7%	5.1%
Native American:	6.5%	0.8%
Pacific Islander:	0.1%	0.2%
Two or more:	2.5%	3%
Hispanic/Latino:	3.3%	17.1%
Education
High school graduation rate:	92.8%	86.7%
College graduation rate:	29.5%	29.8%
Income
Median household income:	$47,169	$53,889
Persons below poverty level:	17%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Montana. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Montana

Montana voted Republican in all seven presidential elections between 2000 and 2024.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, three are located in Montana, accounting for 1.46 percent of the total pivot counties.

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Montana had two Retained Pivot Counties and one Boomerang Pivot County, accounting for 1.10 and 4.00 percent of all Retained and Boomerang Pivot Counties, respectively.

More Montana coverage on Ballotpedia

• Elections in Montana
• United States congressional delegations from Montana
• Public policy in Montana
• Endorsers in Montana
• Montana fact checks
• More...

See also

Suggest a link

• Montana 2016 ballot measures
• 2016 ballot measures
• Montana Legislature
• List of Montana ballot measures

External links

• Initiative 181
• 2016 General Election Voter Information Pamphlet

Support

• Yes on I-181: Montanans for Research and Cures
• Yes on I-181: Montanans for Research and Cures Facebook

Footnotes

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