Martin Kidston

(Martin Kidston) Threats by the Trump administration to cut funding for certain federal programs and bills afoot in the Montana Legislature has the City of Missoula watching with financial concern.

The city on Monday said it was watching several bills that could upend a number of taxation issues, including House Bill 20, which would require any new tax proposed to voters to be stated in dollars as opposed to mills.

Senate Bill 205, sponsored by Sen. Greg Hertz, R-Polson, would also sunset or require re-approval of any voter-approved property tax bond or levy. Voters in Missoula have passed a number of such bonds in recent years, and the city would be hard-pressed to continue certain programs if the funding were rescinded through legislation.

“It would put an end-date on property tax levies, including those already voted on,” said Jessica Miller, the city's digital engagement administrator.

Another effort in Senate Bill 205, also sponsored by Hertz, would require a minimum voter turnout for proposed municipal or county bonds. The bill would require a simple majority to pass a levy if the voter turnout is more than 50%.

But if the turnout is more than 40% and less than 50%, it would require 60% of voter approval to pass. If the turnout is less than 40%, the proposed bond would be considered rejected.

The measure could be challenging for local governments in several ways, city officials said. Among them, turnout is generally less in off-presidential election years or during primary elections. Citing an example, the voter-approved fire levy held last year in Missoula passed with 58% of voters approving, but the election had a turnout of just 39%.

“The fire levy we just had that passed would not have had enough voters to meet the turnout requirement,” said Miller.

Sen. Greg Hertz, R-Polson. (Freddy Monares/UM Legislative News Service)
Sen. Greg Hertz, R-Polson. (Freddy Monares/UM Legislative News Service)
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President Donald Trump's recent funding freeze also has cities on edge, even though it was temporarily rescinded. Fearing the order could be resumed, the City of Missoula has placed a hiring freeze on any vacant federally funded positions.

“Any positions that are not currently filled that would be federally funded, we've put a pause on that,” Mayor Andrea Davis said. “We're watching daily and making sure we're paying attention.”

CAO Dale Bickell said the city has asked its departments to review any federal grant contracts to understand the nature of the program and any liabilities that may arise under a potential Trump order.

Some federal funding has already been contracted and, in many cases, use of that funding comes with a timeline, Bickell said.

However, some have already been impacted by Trump's order on federal funding.

“The grant I'm working under is still currently frozen,” said council member Kristen Jordan. “We can't access the funds at all, so my job is personally on the line. The grant I'm working on, the portal is still frozen. We can't get in and look at our account at all.”