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Montana LR-128, Property Tax for State University System Measure (2018)

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Montana LR-128
Flag of Montana.png
Election date
November 6, 2018
Topic
Taxes and Education
Status
Approveda Approved
Type
State statute
Origin
State legislature


Montana LR-128, the Property Tax for State University System Measure, was on the ballot in Montana as a legislatively referred state statute on November 6, 2018. It was approved.

A "yes" vote supported renewing a six-mill tax on real estate and personal property to provide funding for the Montana University System (MUS) from January 1, 2019, through December 31, 2028.
A "no" vote opposed renewing a six-mill tax on real estate and personal property to provide funding for MUS.

Election results

Montana LR-128

Result Votes Percentage

Approved Yes

307,704 62.94%
No 181,171 37.06%
Results are officially certified.
Source

Overview

Measure design

LR-128 was designed to levy a 6 mill tax on the taxable value of all real estate and personal property subject to taxation in the state of Montana. Under the measure, the revenue will go to the Montana university system to be used "for the continued support, maintenance, and improvement of the Montana University System." The funds raised from the levy will be deposited in the state special revenue fund. A six-mill tax rate is equivalent to $6 for each $1,000 of a property's taxable value.[3] The act was designed to be effective January 1, 2019, and was designed to terminate on December 31, 2028.[4] Approval of the ballot measure was expected to provide an estimated $20.9 million in fiscal year 2020 and $21.5 million in fiscal year 2021 for MUS. If voters rejected the measure, the tax would have terminated and ceased as a source of revenue for MUS.[5] For fiscal year 2017, MUS's total operating budget was estimated to be $1.5 billion. About $508.8 million of that was expected to be spent on educational units, with $19 million derived from the six-mill tax.[6]

How did this measure get on the ballot?

The six-mill tax for higher education was first levied after a public vote in 1948 and was reauthorized at the ballot box every 10 years, including in 1958, 1968, 1978, 1988, 1998, and 2008. The highest margin of approval for the tax was 67.24 percent in 1978, and the lowest margin of approval was 51.51 percent in 1958. The average approval rate of the seven times the tax was voted on was 60.10 percent.

Sen. Mary Moe (D-12) introduced the measure into the state legislature as Senate Bill 85 on January 4, 2017. On January 24, 2017, the Senate approved the referral, with 32 voting in favor and 17 against. The House of Representatives passed the measure, 86 to 13, on February 22, 2017. The measure was enrolled on March 8, 2017.

Supporters and opponents

Two committees—Business for Higher Education and Montanans for the 6Mill—were registered to support this measure, and one committee—Montanans Against Higher Taxes—was registered to oppose it. The support committees raised a total of $1.63 million in contributions and spent $1.64 million. The opposition committee raised $3,750 in contributions and spent it all.

Text of measure

Ballot title

The ballot title was as follows:[4]

[] FOR continuing to levy 6 mills for the support of the Montana university system.

[] AGAINST continuing to levy 6 mills for the support of the Montana university system.[7]

Full text

The full text of the measure is as follows:[4]

Section 1. Tax levy for university system. There is levied upon the taxable value of all real estate and personal property subject to taxation in the state of Montana 6 mills for the continued support, maintenance, and improvement of the Montana university system. The funds raised from the levy must be deposited in the state special revenue fund.

Section 2. Codification instruction. Section 1 is intended to be codified as an 17 integral part of Title 15, chapter 10, part 1, and the provisions of Title 15, chapter 10, part 1, apply to section 1.

Section 3. Effective date. If approved by the electorate, this act is effective January 1, 2019.

Section 4. Termination. Section 1 terminates December 31, 2028.

Section 5. Submission to electorate. This act shall be submitted to the qualified electors of Montana at the general election to be held in November 2018 by printing on the ballot the full title of this act and the following:

[] FOR continuing to levy 6 mills for the support of the Montana university system.

[] AGAINST continuing to levy 6 mills for the support of the Montana university system.

Readability score

See also: Ballot measure readability scores, 2018
Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure.


The FKGL for the ballot title is grade level 12, and the FRE is 34. The word count for the ballot title is 26, and the estimated reading time is 6 seconds. The FKGL for the ballot summary is grade level N/A, and the FRE is N/A. The word count for the ballot summary is N/A, and the estimated reading time is N/A.

In 2018, for the 167 statewide measures on the ballot, the average ballot title or question was written at a level appropriate for those with between 19 and 20 years of U.S. formal education (graduate school-level of education), according to the FKGL formula. Read Ballotpedia's entire 2018 ballot language readability report here.

Support

Montanans for Higher Education and Montanans for the Six Mill (also styled Montanans for the 6Mill) led the campaign in support of this measure.[8]

Supporters

  • Bob Brown (R), treasurer of Montanans for the Six Mill and former Montana Secretary of State[9]
  • Montana Chamber of Commerce[9]
  • Montana AFL-CIO[9]
  • Montana Farm Bureau[9]
  • MEA-MFT teachers' union[9]
  • Montana Associated Students[9]
  • Montana Economic Developers Association[9]

Arguments

  • Bob Brown (R), said, "We want to be sure people know it is not a tax increase. It’s the same level of support our great-grandparents passed on to our grandparents, going back to 1948."[9]
  • Montanans for the Six Mill featured the following arguments on its website:[10]

The 6-Mill Levy is a legislative referendum that is voted on once a decade. Since 1948, Montanans have kept their commitment to future generations by approving the 6-Mill levy, increasing opportunity for students, communities and Montana's economy. Voters will decide on the 6-mill levy during the general election in 2018. The money from the levy goes towards supporting, maintaining and improving the university system's four-year colleges. The 6-Mill Levy ensures the university system is accessible to all and drives economic growth. As Montana businesses continue to look to the university system to provide a well-educated, skilled workforce, the 6-Mill Levy allows students to pursue their professional goals while preparing themselves to be competitive.[7]

Montanans for the Six Mill give the following six reasons for supporting the levy:[10]

  • The 6-Mill Levy is not a new tax.
    • It simply renews an existing levy to fund colleges and universities that was set in 1948 and has been approved by voters every ten years since without a single increase.
  • The 6-Mill Levy is a Montana tradition.
    • It is a commitment to our kids that has been approved by Montana voters for 70 years. This is a critical investment in our future generations and our state.
  • The 6-Mill Levy benefits all Montana communities.
    • Every community benefits from efforts like the scientific and agricultural research at universities and colleges that keeps farmers and ranchers on the cutting edge of new technologies and practices and helps protect our fisheries and public lands.
  • The 6-Mill Levy keeps education more affordable for all Montana students and families.
    • Montana students are paying 60% of tuition costs out-of-pocket, more than double a generation ago. Without the levy, tuition could rise by 18%, making college unaffordable for many Montana students and families.
  • The 6-Mill Levy readies graduates to compete for the jobs of tomorrow.
    • The levy ensures Montana students have opportunities at 4- and 2-year colleges to help them compete for the jobs within a year of graduation.
  • The 6-Mill Levy funds go directly to Montana universities and colleges.
    • Distribution of 6-Mill Levy funds is discussed and approved by citizens across the state who sit on the Montana Board of Regents.

Opposition

Montanans Against Higher Taxes led the campaign in opposition to this measure.[11]

Opponents

Arguments

  • Rep. Tom Burnett (R-Bozeman) said, "Maybe taxpayers are doing enough. No one is arguing higher education is not valuable. The question is, at what level does it need to be funded?"[9]
  • Montanans Against Higher Taxes featured the following argument on its website:[12]
We believe that Higher Education spending has become out-of-control as everyday Montanans struggle financially with rising costs of living and low wages. When Montana ranks 47th in wages nationally they should not have to subsidize a university system of flat in-state enrollment, large amounts of debt and ever-increasing spending. University enrollment of in-state students has been flat or falling across the 14 campuses in the state, while out-of-state enrollment climbs dramatically to make up for increased spending. College students at some campuses enjoy perks like pool parties, DJs, raves, climbing walls, racquetball courts etc. and can even ski for college credit. Less than half of every dollar contributed by state taxpayers actually goes toward education, with the rest covering salaries, benefits, activities etc. Vote NO on LR-128 in Nov. 2018 to give yourself and your neighbors a $200 million tax cut and make the Montana University System live within its means.[7]

Campaign finance

See also: Campaign finance requirements for Montana ballot measures

Two committees—Business for Higher Education and Montanans for the 6Mill—were registered to support this measure, and one committee—Montanans Against Higher Taxes—was registered to oppose it. The support committees raised a total of $1.63 million in contributions and spent $1.64 million. The opposition committee raised $3,750 in contributions and had spent it all.[13][14][11]

The largest donor to the support campaign was the MFPE (formerly MEA-MFT), which provided $1,034,131.80 in contributions. MFPE is a labor union that represents "state, county, & municipal employees; public K-12 school teachers and support staff; higher education faculty; health care employees; Head Start teachers and staff; retired members; and student members (college students who plan to become teachers)."[14][15]

The largest donor to the opposition campaign was Timothy Adams, who provided $677.06 in contributions—$500 in cash and the rest in in-kind services.[11]

Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures
Support $1,494,988.40 $141,959.31 $1,636,947.71 $1,498,405.57 $1,640,364.88
Oppose $3,572.46 $177.06 $3,749.52 $3,572.46 $3,749.52
Total $1,498,560.86 $142,136.37 $1,640,697.23 $1,501,978.03 $1,644,114.40

Support

The following table includes contribution and expenditure totals for the committees in support of the measure.[13]

Committees in support of LR-128
Committee Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures
Montanans for the 6Mill $1,494,988.40 $141,238.44 $1,636,226.84 $1,498,405.57 $1,639,644.01
Business for Higher Education $0.00 $720.87 $720.87 $0.00 $720.87
Total $1,494,988.40 $141,959.31 $1,636,947.71 $1,498,405.57 $1,640,364.88

Donors

The following were the top donors to the committee.[13]

Donor Cash Contributions In-Kind Contributions Total Contributions
MFPE (formerly MEA-MFT) $1,012,338.50 $21,793.30 $1,034,131.80
Montana Public Interest Research Group:MPIRG $0.00 $64,335.64 $64,335.64
Zurmuehlen Anderson $40,127.25 $0.00 $40,127.25
Montana Hospital Association $25,000.00 $0.00 $25,000.00
Washington Corporation $20,000.00 $0.00 $20,000.00

Opposition

The following table includes contribution and expenditure totals for the committees in opposition to the initiative.[11]

Committees in opposition to LR-128
Committee Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures
Montanans Against Higher Taxes $3,572.46 $177.06 $3,749.52 $3,572.46 $3,749.52
Total $3,572.46 $177.06 $3,749.52 $3,572.46 $3,749.52

Donors

The following were the top donors to the committee.[11]

Donor Cash Contributions In-Kind Contributions Total Contributions
Timothy Adams $500.00 $177.06 $677.06
Geoff Goble $503.46 $0.00 $503.46
Stephen A Zabawa $500.00 $0.00 $500.00
Glen Brecht $200.00 $0.00 $200.00

Methodology

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

Polls

See also: Ballotpedia's approach to covering polls and 2018 ballot measure polls

Below are poll results for the measure:

Montana LR-128
Poll Yes NoUndecided or will not vote on the measureMargin of errorSample size
Montana Television Network News and Montana State University poll
9/14/18 - 10/6/18
21.6%53.9%24.6%+/-2.02,000
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to editor@ballotpedia.org.


Background

Montana University System

See also: Higher education in Montana

The Montana University System (MUS) was established in 1994.[16] A seven-member Board of Regents governs the system. As of 2017, MUS was comprised of sixteen public institutions of higher education, including two state university systems and three community colleges. The following institutions were members of MUS:[17]

  • Montana State University (Bozeman, Gallatin College, Billings, City College at Billings, Northern, Great Falls College)
  • University of Montana (Missoula, Missoula College, Bitterroot College, Montana Tech, Highlands College, Western, Helena College)
  • Dawson Community College
  • Flathead Valley Community College
  • Miles Community College

Following is a chart of MUS tuition and fees for one academic year (two full-time 15-credits semesters) for in-state students. For 2017-2018, the average cost of full-time tuition for a 4-year undergraduate degree was $6,412 per year, or about $25,651 for four years.[18]

Montanatuition.jpg

The average cost of tuition per academic year in nearby states was around $7,453, or about $29,812 for four years.[19]

Following is a chart of the Montana University System's operating budget for fiscal year 2018:[20]

Musbudget.JPG

Measures

See also: Taxes on the ballot and Education on the ballot

In 1920, Montanans approved Initiative 18, which enacted a 1.5-mill tax for 10 years to provide funding for the state university system. The legislature referred Referendum 34 to the ballot in 1930. Voters approved the measure, which levied a three-mill tax for 10 years to provide funding for the University of Montana, the Agricultural Experiment Station, and the Agricultural Extension Service. The legislature referred a measure, titled Referendum 42, in 1940. The measure levied a 3.5-mill tax to provide funds for the university system.

The six-mill tax for higher education was first levied after a public vote in 1948 and was reauthorized at the ballot box every 10 years, including in 1958, 1968, 1978, 1988, 1998, and 2008. The highest margin of approval for the tax was 67.24 percent in 1978, and the lowest margin of approval was 51.51 percent in 1958. The average approval rate of the seven times the tax was voted on was 60.10 percent.

Year Measure Percent “Yes” Percent “No”
1948 R-51 60.80% 39.20%
1958 R-61 51.51% 48.49%
1968 R-65 58.81% 41.19%
1978 LR-75 67.24% 32.76%
1988 LR-106 64.14% 35.86%
1998 LR-113 61.40% 38.60%
2008 LR-118 56.79% 43.21%
Average 60.10% 39.90%

Referred statutes on the ballot

From 1996 through 2016, the state legislature referred eight state statutes to the ballot. Voters approved seven and rejected one of the referred statutes. The rejected measure would have shortened the deadline for late voter registration. The average number of referred statutes appearing on the ballot during an even-numbered election year was between zero and one. No referred statutes appeared on the ballot in 2016. However, one appeared on the ballot in 2014. The approval rate for referred statutes at the ballot box was 87.50 percent during the 20-year period from 1996 through 2016. The rejection rate was 12.50 percent.

Legislatively-referred state statutes on even-year ballots from 1996-2016
Total number Approved Percent approved Defeated Percent defeated Annual average Annual median Annual minimum Annual maximum
8 7 87.50% 1 12.50% 0.73 0.00 0 3

Path to the ballot

See also: Legislatively-referred state statutes in Montana

In Montana, a simple majority is required in both chambers of the legislature to place a legislatively referred state statute on the ballot.

Sen. Mary Moe (D-12) introduced the measure into the state legislature as Senate Bill 85 on January 4, 2017. The Senate Taxation Committee approved the measure in a nine to one vote on January 19, 2017. On January 24, 2017, the Senate approved the referral, with 32 voting in favor and 17 against. One senator was excused from the vote. The House Taxation Committee approved the measure on February 10, 2017. The House of Representatives passed the measure, 86 to 13, with one member absent, on February 22, 2017. The measure was enrolled on March 8, 2017.[21]

Section 5 of Article III of the Montana Constitution, along with Montana Code 5-4-301, provides that the governor cannot veto legislatively referred state statutes or stop them from appearing on the ballot.[22]

Senate vote

January 24, 2017[21]

Montana SB 85 Senate Vote
ResultVotesPercentage
Approveda Yes 32 65.31%
No1734.69%
Partisan breakdown of Senate votes
Party Affiliation Yes No Excused Total
Democrat 17 0 1 18
Republican 15 17 0 32
Total 32 17 1 50

House vote

February 22, 2017[21]

Montana SB 85 House Vote
ResultVotesPercentage
Approveda Yes 86 86.87%
No1313.13%
Partisan breakdown of House votes
Party Affiliation Yes No Absent Total
Democrat 41 0 0 41
Republican 45 13 1 59
Total 86 13 1 100

State profile

Demographic data for Montana
 MontanaU.S.
Total population:1,032,073316,515,021
Land area (sq mi):145,5463,531,905
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.[23]

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

See also

External links

Support

Opposition

Recent news

The link below is to the most recent stories in a Google news search for the terms Montana 2018 property tax university. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Footnotes

  1. If one missed the Oct. 9 deadline, he or she could have still voted in the election by registering in person at the county election office. Late registration was available until the close of polls on Election Day.
  2. If one missed the Oct. 9 deadline, he or she could have still voted in the election by registering in person at the county election office. Late registration was available until the close of polls on Election Day.
  3. Investopedia, "Mill Rate," accessed February 4, 2017
  4. 4.0 4.1 4.2 Montana Legislature, "Senate Bill 85," accessed February 4, 2017
  5. Montana Legislature, "Fiscal Note 2019 Biennium," accessed February 22, 2017
  6. Montana University System, "Montana University System – Summary," accessed February 22, 2017
  7. 7.0 7.1 7.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  8. Facebook, "Montanans for Higher Education," accessed June 16, 2017
  9. 9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 Bozeman Daily Chronicle, "Tradition worthy? Montanans debate 6-mill levy, support for universities," accessed October 4, 2018
  10. 10.0 10.1 Montanans for the Six Mill, "About," accessed June 12, 2018
  11. 11.0 11.1 11.2 11.3 11.4 Montana Campaign Electronic Reporting System, "Committee Search: Montanans Against Higher Taxes," accessed December 12, 2018
  12. Montanans Against Higher Taxes, "Who We Are," accessed June 12, 2018
  13. 13.0 13.1 13.2 Montana Campaign Electronic Reporting System, "Committee Search: Business for Higher Education," accessed December 12, 2018
  14. 14.0 14.1 Montana Campaign Electronic Reporting System, "Committee Search: Montanans for the 6Mill," accessed April 16, 2018
  15. MEA-MFT, "About Us," accessed April 16, 2018
  16. Missouri University System, "The Restructuring of the Montana University System," accessed February 22, 2017
  17. Montana University System, "Colleges & Universities," accessed February 22, 2017
  18. Montana University System, "Tuition and Fees," accessed June 13, 2018
  19. Montana University System, "Resident Undergraduate Tuition & Fees at Public Institutions in the WICHE Region," accessed June 13, 2018
  20. Montana University System, "MUS FY2018 Operating Budget," accessed June 13, 2018
  21. 21.0 21.1 21.2 Montana Legislature, "Senate Bill 85 Overview," accessed February 22, 2017
  22. Montana Code Annotated, "5-4-301," accessed February 22, 2017
  23. The raw data for this study was provided by Dave Leip of Atlas of U.S. Presidential Elections.