A 3% management fee on Montana State Fund investments would generate $30 million to help cover a $227 million budget shortfall while also having the potential to drive down rates by sending a message to the carrier that it shouldn’t be hoarding capital, according to supporters.
Opponents say the proposed fee is essentially a tax on only those businesses that purchase comp coverage from the state-chartered carrier, which could weaken its financial position and lead to higher rates or lower dividends in the future.
Despite two days of hearings, the bill to impose the management ...
Comments