Montana Legislature

Eastern Montana schools want more oil and gas money

Posted: Jan 21, 2013 9:46 PM by Marnee Banks - MTN News

Some lawmakers believe school districts in eastern Montana aren't getting their fair share of oil and gas money, so they are proposing a bill to change the way taxes are allocated.

Right now the Montana Department of Revenue collects about $215 million a year in oil and gas taxes. About half that goes to the state and half is sent back to the counties and school districts.

Many small towns in northeastern Montana have seen a jump in population and traffic because of the Bakken oil boom in North Dakota.

Representative David Halvorson (R - Sidney) is asking the House Education committee to increase the amount of oil and gas taxes that a school district can keep.

Currently school districts can keep 130 percent of their budget and any extra cash above that is returned to the state. Halvorson would like to increase the maximum to 150 percent.

Bainville School District Superintendent Renee Rasmussen is supporting the legislation because she says the oil and gas development is putting a strain on her classrooms.

"Before the impacts of the Bakken were really being felt, our special ed department had about ten students in it. As of today it stands at about 22 with three more kids to test in the next few weeks," Rasmussen testified. "That is a tremendous impact cost wise."

Rasmussen says recruiting teachers is nearly impossible because the wages are low and the cost of housing is skyrocketing.

"They are not exactly easy to find. I'm sure you've heard stories about the kinds of wages that are being paid in the Bakken and the school's inability to cope," Rasmussen said.

According to the Montana Department of Revenue, if this bill passes the state's general fund will lose $1.4 million a year and instead that money will stay with the local school districts.