April 29, 2009

The Honorable Linda McCulloch

Secretary of State

State Capitol

Helena, MT 59620

Dear Secretary McCulloch:

In accordance with the power vested in me as Governor by the Constitution and the laws of the State of Montana, I hereby veto Senate Bill 460, “AN ACT PROVIDING FOR A FEDERAL ECONOMIC STIMULUS PROGRAM OVERSIGHT COMMISSION; PROVIDING FOR MEMBERS AND DUTIES; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A TERMINATION DATE.”

The Legislature has passed House Bill 645, the bill to appropriate approximately $880 million in federal stimulus funding for Montana. Federal stimulus funding equates to roughly 10% of the state’s entire budget for the 2011 biennium. Senate Bill 460, sponsored by Senator Story, creates a special Economic Stimulus Program Oversight Commission to “oversee” the distribution and use of any federal economic stimulus program funds. My decision to veto this bill is based on two primary factors.

First, I believe the creation of a new Commission is unnecessary and a waste of taxpayer money. Any legislative review of the expenditure of federal stimulus dollars can be accomplished equally effectively by existing legislative committees, such as the Legislative Finance Committee and the Legislative Audit Committee. As explained above, federal stimulus money comprises only about 10% of the entire state budget, and, as required by federal law, the vast majority of the federal stimulus dollars are appropriated to existing programs. It escapes me why an entire new Commission is necessary to oversee the expenditure of this money, which by and large is appropriated to existing programs.

Second, I object to particular duties of the Commission described in Senate Bill 460. Specifically, the bill provides that the Commission may establish a website to foster greater accountability and transparency. However, the American Recovery and Reinvestment Act (“ARRA”), itself, contains requirements for accountability and transparency, for which I, as Governor, and head of the executive branch, am accountable. Pursuant to the requirements of the ARRA, my administration has already created a website, and is investing in tools to enhance the website, which comport with federal law and guidance concerning transparency. The site can be found on the internet at http://recovery.mt.gov/default.mcpx. I believe a website created by the Commission would not only be confusing to the public but would be an unnecessary duplication of the required site that is already in existence. This, itself, would be a waste of taxpayer resources.

Similarly, Senate Bill 460 directs the Commission to “determine the transparency in bidding and the contracting process.” A major feature of the ARRA is its strict requirements concerning transparency and accountability, and federal agencies will be monitoring Montana’s compliance with those requirements. As stated, the executive has already begun complying through creation of the website referred to above. Indeed, if Montana does not comply with federal transparency requirements, the state runs the risk of losing these federal dollars. Additionally, Montana procurement laws already provide standards related to the transparency of state contracts. It is unclear what benefit would be provided by creating a Commission to “determine” these matters, where there are numerous safeguards already in place to assure transparency in the spending of the federal stimulus money.

Finally, I find it inappropriate to falsely empower a Commission to determine the “adequacy of public notice and opportunity for comment and input” with respect to the spending of federal stimulus dollars when the Montana Constitution and Montana statutes are abundantly clear about these requirements. Appropriate public notice and comment is a constitutional right of Montanans to which my administration adheres. Senate Bill 460 suggests otherwise, and I oppose that aspect of it, as well..

Notwithstanding my objections to particular provisions of Senate Bill 460, as stated above, I anticipate that existing legislative committees, with their existing resources, will conduct much of the work assigned under the bill to be performed by the Commission. For example, I expect the legislative branch will watch to ensure legislative intent in funding projects is being followed, projects are being coordinated, and waste and duplication is avoided. I commit to you that within the framework established by the Montana Constitution and existing laws, my administration will work with the legislative branch as these federal dollars are spent to ensure that the Legislature has the information it needs to perform its duties under the law.

I ask for your support in sustaining my veto of Senate Bill 460.

Sincerely,

BRIAN SCHWEITZER

GOVERNOR

cc: Legislative Services Division