State Legislature 2024: SD24-Mark Nicholson (D)

What are your three most important policy priorities? What do you hope the impact of implementing these policies will be?

My policy priorities are reauthorization of Medicaid Expansion, fair residential property taxes and public school funding.

In a recent survey of our members, an overwhelming portion of respondents (96%) agreed or strongly agreed with the statement: “Reducing the cost of doing business in Montana generally benefits all Montanans.” What do you hope the Legislature will do to reduce the cost of doing business in Montana?

Before we start new programs to reduce the cost of doing business in Montana, we would do well to make sure we are fully utilizing the programs we already have. A program that already exists that can help reduce the cost of doing business is the Last Best PACE program. Commercial property assessed capital enhancement (C-PACE) is a program that allows businesses to obtain loans for up to 100 percent of the capital costs of energy efficiency improvements and repay the loans through a special property tax assessment. The Montana Department of Commerce has an explanation at https://commerce.mt.gov/Business/Programs-and-Services/CPACE/.

In our recent survey, public safety was identified as the number one policy issue for our members. During the 2023 Session, important bills to update the antiquated Youth Court Act and revise theft laws both narrowly failed. We expect those and other safety bills to come up during the 2025 Session. What legislative changes would you suggest to address safety issues in Billings and around the state?

Certainly we need enough police officers, enough judges, prosecuting attorneys, public defenders, enough detention beds and enough parole officers to address what is needed after crimes are committed and I am all for these things.

The public is truly safe, however, when crimes do not happen in the first place. The school district recently asked for a levy that would target the root causes of criminal behavior through the school system. Sadly, it failed not because it was a bad or unpopular idea but rather because residential property owners are overburdened by high property taxes. Some communities, Boston in particular, have substantially reduced murder and other violent crimes by adding a public health approach to crime prevention. The community deciding to adopt such an approach, however, is probably long in coming. In the meantime, I would advocate for adequate funding for substance use treatment and mental health care.

Last session, the Montana Legislature passed numerous bipartisan housing bills, reforming onerous regulations that restrict housing supply and appropriating an historic amount of funding for housing. Considering how much was accomplished, it was dubbed the “Montana Miracle.” However, the work is not done, and more recommendations are coming forward from the Governor’s Housing Task Force. Which recommendations to add housing supply and make housing more affordable will you consider supporting?

As a retired psychiatrist, I am interested in addressing the issue of homelessness, the extreme end of the housing issue. A substantial part of this problem could be addressed by making more inexpensive single-room occupancy housing available. Such housing can serve not only to house the unhoused but also to prevent people from falling into homelessness. Also, because a substantial portion of the unhoused population suffers from substance use and mental disorders, I would support measures to develop supportive housing.

Over the last two sessions, the Montana Legislature took significant steps to reduce the business equipment tax, relieving 502 Yellowstone County businesses from the burden of paying this tax. Would you be supportive of further reductions, allowing even more businesses to keep more of their hard-earned dollars?

Residential property owners and people who rent residential property are being asked to contribute an unfair share of tax revenue. I believe that the constituents of SD24 would prefer their state senator to prioritize reducing residential property taxes.

Reauthorizing Medicaid Expansion will be a major topic of debate in the upcoming session. Originally passed in 2015, the program provides significant benefits to Yellowstone County, creating over 1,500 jobs and providing healthcare coverage to approximately 10% of our local workforce. Are you supportive of reauthorization? With changes? Not at all?

Continuing Medicaid expansion is the right thing to do for Montana’s people, healthcare systems, economy and the state budget.

Hard-working, low-wage Montanans—130,000 of them—deserve the access to the general medical care, mental health care and substance use treatment that Medicaid expansion provides.

Medicaid expansion keeps our urban hospitals and clinics financially healthy and our rural critical access hospitals alive. It supports about 7,500 Montana jobs, generates about $475 million in personal income and $700 million in economic activity.

Finally, between budget savings and increased tax receipts, Medicaid expansion more than pays for the state’s investment.

Tax Increment Financing (TIF) is consistently a topic at the Legislature, with supporters arguing it is one of the only economic development tools available to local communities in Montana, while some opponents contend it should be eliminated. The Billings Chamber has long been a strong supporter but acknowledges there could be room for improvement. What are your thoughts on TIF?

Tax Increment Financing (TIF) is good for business and it should definitely be preserved.

One concern, however, is that as the cost of maintaining infrastructure increases, maintenance costs within a TIF district sometimes have to be subsidized by the rest of the community, especially toward the end of the duration of the district.

Another concern is that TIF districts of longer duration delay the benefits of an increased to the whole community.

The best was to deal with this is to judiciously structure the duration and boundaries of TIF districts to the shortest possible time and only to the area that will contain the improvements that will increase the tax base. Such measures probably do not require legislation but rather a modicum of care in the planning and approval of a TIF district.

All in all, though, Tax Increment Financing is a good thing. I would oppose attempts to end it and carefully scrutinize any attempts to change it.

Considering the concern over recent property tax increases, the Governor established a Property Tax Task Force to offer recommendations for dealing with increasing property taxes. Which of the 12 recommendations, or other solutions, would you support to address property tax concerns?

To start, I would support reducing the multiplier for residential property taxes from the current 1.35 percent to 0.94 percent as the Department of Revenue advised—and the Republican legislature and governor ignored—before the last legislative session.

Next, I would support the residential property tax plan set forth by the Montana House Democrats and the Montana Senate Democrats. That plan would provide immediate proper tax relief by reducing the taxable value of residential properties and small businesses. It also would reduce taxes on primary residences of modes and middle value by asking owners of multi-million dollar mansions pay their fair share. Further, it includes a housing fairness tax credit for seniors, renters and workers with modest and middle incomes.