Finance committee tables bill to transfer funds to coal-trust endowment for school tax-credit growth after split vote

Senator Daniel Emmerich introduced Senate Bill 159 as a mechanism to create a lasting revenue stream for an education-related tax-credit scholarship program by placing a one-time general-fund transfer into a coal-trust subaccount and using a portion of earnings to increase the tax-credit cap.

Proponents framed the measure as a long-term investment in public-school students who qualify for the scholarship program. "The dollar amount isn't as important as the structure of the bill," Emmerich said, arguing that even a smaller seed amount would enable the subaccount to grow.

Opponents, including the Montana Budget and Policy Center, urged caution given broader pending spending proposals and uncertain revenue forecasts. An informational witness from the Department of Revenue and staff from the Legislative Fiscal Division answered technical questions about precedent for general-fund transfers into trust accounts; fiscal staff noted similar transfers occurred in prior sessions for other trust accounts.

During executive action, a sponsor motion proposed changing the transfer amount in the bill text; the committee approved an amendment changing a numeric line (recorded as "change 100 to 20" in the hearing record) and then a substitute motion to table the bill was offered. The committee took a roll-call vote on the motion to table: the clerk recorded 12 yes and 10 no, and the motion to table carried. The bill was therefore tabled and will not move forward from the committee that day.

Why it matters: the proposal would shift general-fund resources into a trust structure with multi-year implications for education tax credits and the general-fund balance; opponents said the state should be cautious about large transfers amid competing budget demands.

The committee—s recorded roll-call on the tabling motion was 12 in favor, 10 opposed; with the motion passed, SB 159 was tabled.