Big Sky leaders support new bill to ease special district withdrawal

By Jack Reaney SENIOR EDITOR

A new bill slated to enter Montana Senate committee this week might address hospital and school district boundary quarrels between Big Sky and Ennis. 

Senate Bill 260, sponsored by Sen. Greg Hertz (R-Polson) would make it easier for petitioners to withdraw from special districts if services are inaccessible due to: “a physical or geographical barrier; a lack of county or county-maintained roads; or a lack of legal access on existing roads that would require the owner to travel through an adjacent county and then back into the county in which the owner’s property is located,” according to the bill’s draft language.

The bill’s purpose aligns closely with recent undertakings in Big Sky. Twice in the past year, some portion of Big Sky’s Madison County residents have attempted to withdraw from the Madison Valley Hospital District, which collects more than $3 million in annual property taxes from Big Sky. Both attempts have been unsuccessful, with the more recent attempt being struck down by 2-1 vote of the Madison County Commission. In each instance, petitioners have argued that MVHD health care services are not reasonably accessible. If passed, SB 260 would take decision-making authority away from county commissions, instead requiring a popular vote by residents within the area proposed to be transferred. 

Allen Rohrback, CEO of the Madison Valley Medical Center, is concerned that a successful hospital district withdrawal would create financial challenges for the Ennis hospital and place future tax burden on Madison Valley property owners. He believes both MVMC and Big Sky stakeholders are legally sound in their support or opposition of withdrawal, but said MVMC will be prepared to fight SB 260. 

“We do believe the existing hospital district statute is a good one,” Rohrback said in a phone call. “It really is around the benefit that a community receives. And I think the [SB 260] is very specific to the Big Sky and the Ennis community, and it’s probably not very relevant to the rest of the state.”

Rohrback said MVMC is committed to continue growing its services to Big Sky taxpayers, “because we really do think that preserving the original hospital district boundary is important.” Currently, two licensed medical providers see patients at the medical center in Big Sky—located in Gallatin County—plus MVMC provides telehealth resources for Big Sky’s Madison County taxpayers, he explained. 

“We’re also very aggressively looking for either purchased or leased space in Big Sky, because our operating budget this year does include plans for an outpatient clinic in Big Sky,” Rohrback said. MVMC has evaluated several options, but none have been a viable long-term fit for a medical facility in Big Sky. 

Madison County Commissioner Bill Todd, whose area of jurisdiction includes Big Sky and Ennis, declined to comment for this story but noted he would consider issuing commentary during a hearing for the bill, as he would for any potential legislation. In a Jan. 13 hearing, Todd voted to reject the petition by Big Sky’s Silvertip community to withdraw from the Madison Valley Hospital District. 

Commissioner Ron Nye, who voted to accept the Silvertip petition on Jan. 13, also declined to comment. 

Boundaries ‘outdated,’ Big Sky community members ‘voiceless,’ supporters say

Proponents in Big Sky argue that the services provided by the Madison Valley Hospital District are not reasonably accessible due to the geographic barrier between Big Sky and Ennis—the semi-private Jack Creek Road is most direct route but it’s not accessible to most community members, and the closest public route takes more than 90 minutes, whereas the Bozeman Health Big Sky Regional Medical Center is roughly 10 to 15 minutes away along Montana Highway 64. 

If Big Sky residents succeed in their withdrawal efforts, they will transition to a “wellness district” directing taxes to services in Big Sky, officials say. SB 260 is designed to prevent tax avoidance—taxpayers living in any withdrawn area would annex into another adjacent district—and would not impose new or additional taxes, according to a Feb. 3 press release from the Big Sky Resort Area District. 

In addition, proponents argue that the Ennis School District does not represent Big Sky taxpayers, as they are unable to send their children to Ennis schools or vote for board members in the school district where they send their children—all 26 students living on the Big Sky side of Madison County attend the Big Sky School District.

The BSRAD press release endorsed the bill, stating that it would ensure fairness for voters and taxpayers by allowing locally driven changes to service district boundaries.

“A foundational right of Americans is representation in taxation—yet outdated district boundaries in Big Sky have left many taxpayers without a voice in the decisions shaping their community,” the release explained. “Despite being a vital contributor to Montana’s economy, generating 8% of the state’s taxable value and $2.6 billion in statewide economic impact while supporting nearly 26,000 jobs, Big Sky’s 3,795 residents remain voiceless, especially the 573 living in Madison County.”

The release noted that some district boundaries date back more than 70 years and have not adapted with Big Sky’s growth. “This outdated system leaves residents underserved and excluded from decisions that directly impact them.”

As the bill will likely stoke tensions between two communities at odds, BSRAD board chair Kevin Germain added that Big Sky takes pride in its Madison County heritage. 

“This bill is not designed to sever that connection but instead focus on supporting locals in need of accessible health care and education,” he stated. BSRAD Executive Director Daniel Bierschwale said he echoes the same sentiment.

“We have a longstanding relationship with Madison County and Big Sky… This is attempting to make right… a longstanding boundary challenge,” Bierschwale told EBS. “Change is happening around us, it’s just how we choose to adapt.”

He said as Big Sky’s withdrawal efforts unfold, they will only impact the Madison Valley—loss of tax revenue for school and hospital districts would not affect Madison County at large, nor special districts in Ruby Valley communities such as Sheridan and Twin Bridges. 

Bierschwale added it’s a misconception that Big Sky is trying to get out of Madison County, and as for the narrative that special district withdrawal would “fold” the county, “That’s simply not true.”

Sen. Cora Neumann (D-Bozeman), who represents Senate District 30 including Big Sky, cosponsored the bill, adding that it would support workers and families who make Big Sky a massive economic engine for the state, contributing roughly 4% of Montana’s GDP.

Hertz, Montana Senate taxation chair, was among the legislators who visited Big Sky in September for a “familiarization tour” of the community and its infrastructure challenges. He believes SB 260 is about building trust in Montana’s taxation system. 

“It ensures fairness for rural and resort communities while aligning resources with local access,” Hertz stated in the BSRAD press release.

In a phone call, Hertz said he’s not aware of Montana communities aside from Big Sky dealing with these challenges currently, but it could apply to Lake County where he lives, and where the Mission Mountains create a geographical barrier.

“My philosophy for taxes is taxes should always be broad-based and fair for all taxpayers,” Hertz told EBS. “And right now, as I look at what’s going on in the special districts in the Big Sky area… It’s not fair to all the taxpayers in those special districts.” 

Resort Tax board urges community support

In the BSRAD board meeting on Tuesday, Feb. 4, board members urged the Big Sky community to provide testimony in support of the bill in the next 10 days. 

Jackie Haines, BSRAD director of economic and strategic development, said to expect strong opposition from Madison Valley community members. “We would like to mobilize our community as much as possible to come out in support of this bill,” she said. 

Germain said it’s going to take a community effort to get SB 260 passed in Helena. “For those of us that have been passionate about taxes and services over the years, now is the time to show your support. And apathy does not win the day—you have to speak up, and you have to let your legislators know your voice.” 

Board member Sarah Blechta echoed Germain: “This is your voice, and this is your chance to put your voice forward… If you do anything this week, if you can help us here, I think it will be really meaningful for you to use that voice,” she said. 

Bierschwale added that BSRAD staff and board members will host community members at the Resort Tax office from 5 to 7 p.m. on the next two Thursdays, Feb. 6 and 13, to answer questions and aid supporters who may need assistance submitting their public comments for consideration in Helena. 

Correction: This article incorrectly stated that Big Sky’s Madison County residents cannot vote for Ennis School District board members. It was corrected to state those residents cannot vote for Big Sky School District board members.