Volume XXI, Number 19

Wednesday, December 14, 2005

By John Conlan, Chairman, North Valley Public Library Board

Recently, a letter, which called into question some of the library's collection management practices, appeared in the Bitterroot Star. As Chair of the Board of Trustees, I would like to explain the library's policy in this regard.

The library's executive director is managing the collection at the board's request and direction and in accordance with American Library Association and Montana State Library Association guidelines. A part of collection management includes removing some books from the library's shelves. Suggested criteria for removing books include:

- The condition of each item
- The accuracy of the information contained in non-fiction items
- Whether there is another copy of the item in the collection
- Whether the item can be easily obtained through other libraries through interlibrary loans
- Whether the item has been used in the past five years

The Library Board is working in the best interests of the community. Recently, a Community Planning Committee advised the Board and Staff concerning a five-year plan, which will include policies and procedures that respond to community needs and requests. The Board welcomes suggestions and we invite the public to attend our open meetings. Meeting times are posted in the front window of the library. For additional information about meetings, policy, procedures, or just to say hello, call the library at 777-5061. We thank the community for its continuing support.

Thanks from Lone Rock School

I am writing to thank the Three Mile Quick Response Unit of the Three Mile Fire Department for their help last Friday, December 2 at Lone Rock School. We had an emergency situation with a student who was injured on the playground.

We were impressed with the response time and how quickly the ambulance crew was able to get to our school. I was aware that the persons who were responding had stopped in the middle of their daily work and came to volunteer their medical expertise and help with our emergency situation. They took control of the situation and helped to ease the worry of the victim and concern of our staff. Normally, we have several staff members who are trained for medical emergencies, but they were either gone from the campus that day, or at that time.

I would like to personally thank Josh Wagner, Frank Wehrli, Gordy Blietz, Colleen Schmiedeke, and Lori Ann Rokosch. Thank you for donating your time to the community and your willingness to provide quality emergency medical services. You provide all of us at Lone Rock School with a great "peace of mind" knowing that you are just a phone call away.

During this season of peace and hope, please know that you provide both to us at the Lone Rock School and community. Many thanks to all of you for your willingness to volunteer and share your time and training.

Marjorie Johnson, Principal
Lone Rock Elementary School

Pension Fund liability must not fall on taxpayers

Dear Editor,

There are no simple fixes to the public employee pension systems. Two out of eight of these plans now show an unfunded liability of $1.46 billion during the next 30 years. Other plans may also become actuarially unsound in the future if major policy changes are not implemented in the next session.

Montana's pension problems didn't start in 2001. Ever since these plans were created in 1937, lobby groups for government employees have always pressured the Legislature to increase benefits. Past Legislatures have increased monthly payments, shortened years of service, increased medical benefits, and also implemented early retirement benefits, while not requiring increased employer and employee contributions in return. But because Article II, Section 31 of our state constitution prohibits the Legislature from breaking or impairing contracts made in the past, there can be no increase in employee contributions or decrease in benefits in order to make up the shortfall left by past agreements. Montana may address the shortfall by using so-called "surplus state general funds" or by placing the entire burden on employers -- our local and state government agencies. The agencies in turn can either absorb these costs in their budgets, or as is more likely, pass them straight through to the taxpayer through increased commercial and residential property taxes.

The root cause of the problem with our government pension system is the misuse of the phrase "surplus money." The ending fund balance in the state general fund is not really a surplus, but is better described as leftover taxpayer money after the state budget set by the previous Legislature has been funded. It is better thought of as a reserve, a cushion held back in case of unforeseen emergencies with the hope it can be refunded to taxpayers.

These funds are "one-time" dollars which should never be used to expand government.

The pension dilemma was created by the same sort of faulty thinking. Pension funds are invested in stocks and bonds in order to both reduce risk and earn a good return of about 8% a year, which is figured into the 30-year actuarial calculations for paying out future benefits in existing pension plans. When the economy thrives, the cushion increases. When it tanks, the cushion decreases. During the 1990's, we had years of 12 to 19 percent returns, which gave the false impression that increased benefits could be funded without increasing employee and employer contributions, something that in hindsight should have been, and should today be, against the law.

The legislative fiscal notes attached to these benefit-increase bills showed no impact on the state general fund and federal funds. The impact was, you guessed it, on the so-called "surplus" money in the pension plans. Had the "surplus" not been drawn down by the new benefits, there would now be no unfunded liability in the pension plans.

The State Administration and Veterans’ Affairs Interim Committee has developed a bill (LC2005-3) which revises the fiscal note procedures and solves other policy problems with retirement systems. Although I appreciated working on this committee and voted to draft the bill for use in the next session, I will not support the fiscal part of the bill which raises the employer's share of the contributions by about 30%. A tax of this magnitude will cause irreparable damage to home owners and businesses.

I am working with other Republican legislators on alternatives such as using money out of the Coal Trust Fund ($720 million balance), contributions out of the ending fund balance each year and bonding to secure the funds needed.

An idea that has merit is to put the $125 million "one time money" promoted by the Governor into the fund and sell about $625 million worth of bonds. These bonds could be sold with an interest rate of about 4% depending on the market. This $750 million cash infusion positions the pension fund to continue its historical average performance (8% return) and restores the cushion needed to mitigate future market fluctuations. For example, the rate of return for PERS, the largest pension fund, for 2004 was 13.4%. If the $750 million had been in the fund, about $100 million would be available ($60 million for the fund and $40 million for the cushion or to retire bonds).

Hopefully, all of the bonds issued now will be retired much sooner than 30 years and we will have our cushion back which must never again be called a "surplus!"

Rep. Verdell Jackson, HD6
Member, State Administration Interim Committee

Marketplace growth control

Dear Editor,

I have a novel idea on how to control growth in the Bitterroot Valley. Why don't we let the general public decide how the Valley will develop, expand, grow, or whatever? One simple unambiguous word covers all possibilities. The word is marketplace.

The business man, land developer, building contractor, even the municipalities, the State and even Federal agencies must follow the marketplace. The home buyer will have a huge influence on control with their "pocketbook". Land developers will not buy and subdivide land if they cannot sell for a profit. Builders cannot afford to build homes if they cannot be sold for profit. Businesses cannot stay in business unless there are buyers by any name.

Why complicate life by looking to politicians to make a stab at leadership? The Ravalli Republic says it beautifully in the editorial on December 6: "Hamilton government has developed a reputation across the state as a dysfunctional, infantile body that struggles to make it through a meeting."

Two wards in Hamilton picked examples of juvenile representatives as their representatives, hence our weird reputation across the state. That was a true example of how we electors pay attention. Our county commission frequently provides absurdities that we read about.

Builders are erecting houses in Hamilton so close together a person can jump from one rooftop to the other. But every house is occupied upon completion. Tracts are under construction that are so crowded that the streets only have sidewalks on one side, but the houses are being sold. If the prospective homebuyer is looking for open land home sites, look at the Arrow Hills development or the Stock Farm, providing the buyer has deep pockets. Condos, townhouses, plain apartments and even mobile homes are available.

My point is, if people don't buy, that is solid control. When things get sticky we simply change administrations, the code word for politicians, but in the long run nothing changes reality. The marketplace is the word.

Earl Pollard
Hamilton

Victory in Iraq

Dear Editor,

We find ourselves getting quite upset over some of our nation's leaders who continually deliberately attempt to derail the President and the courageous in Congress and the military who are trying to conduct the war in Iraq to victory. Our son(s) have been there and may be going again as early as this spring. Some of our nation's leaders are deliberately sending mixed signals to our allies and enemies alike. This only makes it more dangerous for our soldiers and our sons and weakens America in the eyes of our allies and terrorists.

It appears to most of us that individuals like Howard Dean, Harry Reed, John Kerry, Ted Kennedy and others are only undermining our military and president for political gain and power. These are the same people who voted to go to war, only to change when the political wind seemed advantageous. This is an outrage, especially for those of us with children who are in danger trying to provide democracy for those in the mid-east and greater security for the rest of us. To have some of our leaders aiding and assisting some enemy organizations who want nothing more than to destroy free speech and democracy in the world to further their own personal political power and economic gains is wrong.

We cannot surrender, we cannot fail. If we don't support our president until the Iraqi forces are fully ready, and then stay close at hand, we will surely see great destruction here at home on the order of the devastation that Katrina brought to New Orleans.

Iraqi forces led much of the recent fight in Tal Afar, with U.S. troops now in a supporting role. Pulling out could cause another blood bath and horror like was visited upon the people after the fall of Vietnam and Cambodia. It was estimated that six million died from vengeful purges there.

History can and does repeat itself and this time it's us here in America who are also at stake. Wake up America! Before it's too late!

JoDell Haverfield
Lolo