Author: Press Room

Americans are Paying Off Their Debt

23 September 2020
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The Center Square

Americans are paying down their credit card debt in 2020, and Californians are leading the way.

According to a new study from financial website WalletHub, American consumers entered 2020 owing more than $1 trillion in credit card debt. In the first quarter of the year, consumers reduced that by $60 billion. And in the second quarter, they reduced it by an additional $58 billion, or about 6.7 percent.

“Although first quarter paydowns are normal, Q2 2020 marks the first time in more than 30 years that credit card debt has dropped from April through June,” WalletHub’s report says. “As a result, WalletHub now projects that U.S. consumers will end the year with a slight reduction in credit card debt for the first time since the end of the Great Recession in 2009.”

California led all U.S. states in the amount of credit card debt reduction, according to WalletHub’s rankings. The average Californians reduced such debt by $558 in the second quarter. Texas placed second in the rankings, with the average household reducing credit card debt by $550.

California residents still have the fourth highest credit card debt on average in the U.S. at $9,472 per household. Only residents of Virginia ($9,589), Hawaii ($10,987) and Alaska ($11,250) have more on average, according to WalletHub.

Across the U.S., the average credit card debt is $7,938.

WalletHub says its study is “based on analysis of the latest data on consumers’ finances available from TransUnion as well as the Federal Reserve and Bureau of Labor Statistics. Quarterly changes in credit card debt levels include both the total amount outstanding (revolving credit, not seasonally adjusted) and charged-off debt (not seasonally adjusted) that is no longer on credit card companies’ books but consumers continue to owe.”

Dan McCaleb is the executive editor of The Center Square. He welcomes your comments. Contact Dan at dmccaleb@thecentersquare.com.

Five Mile Road Open to the Public

22 September 2020
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The Montana Department of Transportation (MDT) announced that Five Mile Road is now open to the public. Finishing work taking place will include epoxy striping in mid-September and final seeding and erosion control blankets in mid-October.

Historical Horse Racing Deal

22 September 2020
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Fleetwood Gaming Gains Historic Horse Racing Partnership with Exacta Systems

Fleetwood Gaming CEO Jon Dehler announced that his company has entered into an agreement with Exacta Systems to form a joint partnership to manufacture and distribute Historic Horse Racing (HHR) machines in Montana.  The Montana legislature will consider HHR legislation in the upcoming session, after the passage of SB 183 in 2019, which instructed the Montana Board of Horse Racing to propose legislative language surrounding HHR.  The Montana horse racing and breeding industries support the introduction of HHR terminals to help sustain the equine and agriculture-based industries in the state. 

The agreement will see Exacta’s HHR pari-mutuel wagering platform rolled out throughout Fleetwood’s distribution network in Montana.  Fleetwood Gaming CEO Jon Dehler commented, “this is an amazing opportunity for us at Fleetwood adding HHR pari-mutuel terminals to our distribution chain. Having terminals with pari-mutuel payouts that can compete with the Montana Lottery and Montana Cash finally levels the playing field and will be a win-win for all.”

“We are excited to have found an experienced partner like Fleetwood Gaming and Jon Dehler,” commented Exacta Systems President Jeremy Stein.  “HHR terminals will help enhance Fleetwood’s already strong product lines and wide distribution range throughout Montana.  We look forward to bringing the HHR success story to Montana and its legendary equine industry.”  

Montana’s population is just over one million people, but over 12.6 million tourists visited Montana in 2019 and spent $3.6 billion in the Treasure State.  The leisure betting market in Montana provides a great market opportunity for the Fleetwood-Exacta Systems HHR partnership.

About Fleetwood Gaming, Inc.

In 1974, the Fleetwood Distributing Company headquarters was established in Montana and in 1978, Jon Dehler purchased the family run company from his father Bill.  Soon after, Fleetwood began operating as both a machine route operator and distributor. The business achieved a major product line expansion in 1985 when gaming was legalized and video poker machines were introduced in Montana. Today, Fleetwood Gaming, Inc. is one of Montana’s leading suppliers of gaming products, and has five locations throughout Montana providing local support and or distribution from Billings, Butte, Great Falls, Missoula and Sidney.

About Exacta Systems

Founded in 2013, Exacta Systems is the leading provider of Historic Horse Racing systems and terminals in the country.  Exacta is currently operating in Kentucky, Wyoming and Virginia, and is expanding into new markets each year

Employers Shouldn’t be Held Liable for Getting COVID

22 September 2020
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A recent survey shows that 21 percent of Montanans believe that employers should be liable to pay compensation should an employee contract Covid-19 in the workplace. Nationally, 38 percent believe the employer should be held responsible, in a survey done by Gomez Trial Attorneys.

As business slowly starts to pick up following Coronavirus-related restrictions, companies across America are addressing how they can create a safe space for their employees or customers. However, as Congress has recently been debating, there exists the potential for lawsuits to be filed against businesses should their staff or customers contract Covid-19.

A number of states have acted to extend liability protection to businesses. It will undoubtedly be an issue before the 2021 Montana State Legislature. The US National Chamber of Commerce has pushed for the provision to become a nationwide protection for business owners as part of the next Congressional package for COVID benefits. Harold Kim, President of the US Chamber, said during a recent virtual conference in Montana that more than 30 states have already “done something” in that regard, adding that “it shouldn’t be a partisan issues.”

The survey release pose the question, “Does the government side with workers who want their safety to be prioritized above anything else, or beleaguered employers who fear resulting lawsuits pose an existential threat to their businesses following extended periods of lockdown?”

Broken down across the country, the survey found that West Virginians felt most strongly about “protecting employees’ rights,” with 75% saying businesses should not be protected from legal blame if workers contract Coronavirus. Comparatively, South Dakotans felt most strongly about protecting businesses during this time, with only 11% agreeing that employers should be held liable.

One method many companies will adopt as they re-open their workspaces is to take everyone’s temperature regularly. Employees feel reassured that temperature checks are a positive way of protecting their health, as the survey found that over three-quarters (76%) believe they should be compulsory each time you enter their  place of work. If a person’s temperature is over a certain degree, they could be instructed to go home and seek medical advice. 

There are also ongoing debates on the issue of privacy regarding personal data involved in temperature checks. Nearly three-quarters (74%) of employees say their personal data obtained via temperature checks should be kept confidential. Re-introducing workers back into the workplace has not only brought up issues related to health and privacy, but also finance. For example, if Covid-19 testing or temperature checks take place outside of official work hours, should workers be compensated for their time? The survey found that 58% of employees feel they should be compensated, for example for testing before work, during lunch or after hours.

‘In the midst of a global pandemic, it is vitally important to know your rights – whether an employee, employer, or customer’ says a spokesperson for Gomez Trial Attorneys. 

Chamber Releases Judicial Review of Montana Judges

22 September 2020
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Montana Chamber of Commerce Report

The Montana Chamber of Commerce has presented its 2020 Judicial Review of more than 50 Montana Supreme Court decisions from 2018 and 2019 that impacted business and the economy.

“The Montana Chamber is one of the only organizations that reviews court decisions with special attention to their long-term impacts on doing business in Montana,” said Bridger Mahlum, government relations director for the Montana Chamber.  “As the third branch of our state government, it’s just as important to evaluate the activity of the judiciary as it is to engage in its legislative and executive counterparts.”

Harold Kim, President of the US Chamber, during a recent webinar commented on the Montana Chamber’s review of the courts saying it “is critically important because it has had an impact on the Montana Supreme Court.”

Mahlum added, “It is an incredibly important tool .. not only do judges recognize it but so do legislators and policy makers.”

The Montana Chamber of Commerce has presented its 2020 Judicial Review of more than 50 Montana Supreme Court decisions from 2018 and 2019 that impacted business and the economy. Overall, the Court received a 74% rating for its decisions on crucial business cases – a slight improvement from its 72% rating on the 2018 review. Receiving the highest individual rating for the second consecutive cycle was Justice Laurie McKinnon at 83%t (Career Judicial Score of 87 percent). Other ratings included:

* 68 percent for Chief Justice Mike McGrath (57 percent Career Judicial Score);

* 78 percent for Justice Beth Baker (67 percent);

* 64 percent for Justice Ingrid Gustafson (64 percent);

* 80 percent for Justice Jim Rice (78 percent);

* 71 percent for Justice Dirk Sandefur (71 percent); and

* 72 percent for Justice Jim Shea (67 percent).

As a part of our continued focus on worker’s compensation, the Montana Chamber included a review of the Worker’s Compensation Court’s performance from 2018 and 2019. Twenty-six cases were reviewed, with Judge David Sandler ruling on all those cases. His rating was 62 percent, bringing his career score to 66 percent.

The Montana Chamber of Commerce tracks all activities related to business in Montana. With legal reform as part of its Envision 2026 business climate objective, the Chamber facilitates the Montana Justice Coalition and produces the Judicial Review under the auspices of that coalition.  The Coalition brings together business leaders, attorneys, association directors, and other stakeholders to track Montana’s legal climate, monitor important cases, and develop legal reform measures.

Yellowstone Art Museum Awards for 2020

21 September 2020
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At its Board of Trustees meeting, the Yellowstone Art Museum’s Board of Trustees bestow the annual President’s Awards for Service to the Arts. Given out since 2001, these awards recognize outstanding service from philanthropists, artists, and volunteers to the YAM and the art community. In most cases, awardees have given prominent support over a number of years. The 2020 awardees are:

Philanthropists

John & Patricia Burg

John and Patricia Burgs were named Legacy Society members. Their commitment to the YAM spans more than two decades. As donors, members, and through Patricia’s time as a docent, the Burgs have been very involved with the museum, and understand that there are many moving parts and that much support necessary to keep delivering its programs. The Burgs have understood the importance of the YAM’s capital campaigns and its endowment throughout its history. The Burgs’ gifts are quite generous, and steady. John and Patricia’s gifts to the YAM cumulatively place them amongst the first ranks of the philanthropists.

Docent  Year, Posusta

Jean Posusta has been a docent who proactively participates in educational programming at the YAM. She is always striving to do more and explore new ways of teaching, learning, and creating art. Posusta has been a YAM docent since 2011. Since that time, she has toured children and adults, always seriously undertaking her training on current exhibitions and best practices for inquiry based learning. The projects Posusta has undertaken this past year have had a powerful impact on museum programming and on docents here and across the state. Jean is an artist who often participates in ArtWalk. She is also a prolific author of a wide range of books. When Posusta volunteered to read a story to young children as part of YAM’s Art & a Story program, she wrote her own story.

Artist of Year, Neltje

Neltje’s paintings, like the artist, are intense, complex, and larger than life. Now in her 80s, Neltje is still constantly learning, growing, and taking on new challenges. For a Wyoming retrospective in 2012, she painted her first 10’ x 30’ works, The Moroccan Suite. She followed with four wall-scale paintings representing the four seasons. These works anchor her current exhibition at the YAM, offering an experience of sublime beauty that envelops, overwhelms, and, ultimately cradles the viewer. Her fearless energy is an inspiration to anyone who comes in contact with her or her paintings. Living in New York as a young adult, Neltje absorbed the spontaneous energy and improvisational style of the abstract expressionists, whose work she experienced firsthand. Inspired by Joan Mitchell, she learned to channel “a sense of power and joy,” as well as energy and rage.  Neltje moved to Wyoming. In her late 30s.

Tax Most Expensive Ingredient in Beer

21 September 2020
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According to the Beer Institute, “Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.”

Research has shown that approximately 40 percent of the retail price of beer is dedicated toward covering all the applicable taxes.

Tennessee, Alaska, and Hawaii levy the highest beer excise tax rates in the country, while Wyoming, Missouri, and Wisconsin have the lowest rates. Tennessee’s tax is $1.07 per gallon and in Wyoming the tax is 2 cents a gallon.

Montana’s tax is on the low end at 14 cents a gallon, ranking the state 40th.

Meanwhile across the pond in Europe, the EU countries with the highest excise taxes on beer are Finland, Ireland, and the United Kingdom.

On the lower end, Bulgaria, Germany, Luxembourg, Romania, and Spain levy the lowest rate (EU’s minimum rate of €0.03 per beer bottle).

State Has Enough Fire & General Funding for Fire Season

21 September 2020
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Despite economic setbacks imposed because of COVID-19 concerns, Montana has remained financially resilient, with adequate reserves to meet this year’s fire season, according to Governor Steve Bullock. 

State Government ended the fiscal year under budget which allowed the transfer of $46. million to the fire fund. This puts the fire fund at its statutory maximum of $101.5 million, or 4% of fiscal year 2021 appropriations, for the first time in history, enough to cover nearly five average years of state wildfire suppression costs, said the Governor.

Additionally, the Budget Stabilization Reserve remains at its statutory maximum, which is $114.2 million or 4.5% of fiscal year appropriations. This represents the second year in a row that the Budget Stabilization Reserve has been funded to its statutory cap and it is available to sustain the budget should revenue collections or expenditures vary from projections.

The balances of the general fund, the fire fund, and the Budget Stabilization Reserve total $620 million as the 2021 fiscal year begins.

Public Asked for Input on City’s Downtown Street Plans

21 September 2020
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The Billings Yellowstone County Metropolitan Planning Organization (MPO) is seeking public input regarding six feasible alternatives to the downtown Billings traffic system that were identified by a recent study. Public input is being collected on the alternatives in an online survey; the deadline to participate is September 15, 2020. Public input will be used to steer future planning efforts. (The MPO is the same as the Policy Coordinating Committee)

The feasible alternatives being posed for public consideration include:

*North and South One-Way to Two-Way Conversions – Converts remaining north and south one-way streets between Division Street and North 24th Street to two-way operation and provides potential bicycle facilities consistent with the City’s Bikeways & Trails Master Plan.

*2nd Avenue N & 3rd Avenue N One-Way to Two-Way Conversions – Converts the one-way segments of 2nd Avenue N and 3rd Avenue N between Division Street and North 22nd Street to two-way operation and provides potential bicycle facilities consistent with the City’s Bikeways & Trails Master Plan.

*Montana Avenue Road Diet (Division Street to 18th Street) – Reduces Montana Avenue from three lanes to two lanes from Division Street to North 18th Street, provides potential bicycle facilities consistent with the City’s Bikeways & Trails Master Plan, and maximizes on-street parking.

*6th Avenue N Road Diet (Main Street to North 13th Street) – Reduces 6th Avenue N from five lanes to four lanes from Main Street to North 13th Street and provides a potential bicycle facility consistent with the City’s Bikeways & Trails Master Plan.

*13th Street Road Diet between 6th Avenue North and 1st Avenue North – Converts North 13th Street to a two-lane roadway with or without a center turn lane and provides potential bicycle facilities consistent with the City’s Bikeways & Trails Master Plan.

*Broadway Street Seasonal Closure – Creates a festival street by seasonally closing Broadway Street to vehicles between 1st Avenue North and 2nd Avenue North.

Members of the public are encouraged to participate in an online survey available at https:// dowl. mysocialpinpoint .com/ downtown- billings- traffic- study.

The site offers the opportunity to provide specific feedback on the proposed alternatives through an online survey, a budgeting tool to help prioritize how funds are allocated, and a digital bulletin board for other thoughts and perspectives. A link to the full Downtown Billings Traffic Study document and general project information are also available.

Following the public feedback deadline, the findings will be documented in a report and presented to the MPO and community leaders.

Direct comments, questions, or concerns to Lisa Olmsted at lolmsted@dowl.com or by calling (406) 869-6329.

Parks Visitations Drop Dramatically

21 September 2020
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From Montana Institute for Tourism and Recreation 

In 2019, nonresident travelers spent $3.77 billion throughout Montana, a 5.4% increase from the previous year. Over 12.6 million nonresidents visited in 2019.

Research by the University of Montana’s Institute for Tourism and Recreation Research reveals a different story in 2020. Nearly all of the second quarter was shut down to travelers this year due to the pandemic, creating a jolt to that yearly injection of money and visitors into Montana’s economy. The second quarter generally accounts for a bit more than 20% of annual traveler spending in the state.

Additionally, the latest available statistics by the National Park Service show big visitation declines in June in Montana’s Glacier and Yellowstone national park. Glacier was down 62% during June 2020, and Yellowstone was down 32% in June compared to that month a year ago. July figures are not yet available for Glacier, but Yellowstone actually experienced a 2% increase in visitors when compared to July 2019.

In general, when the two national parks do well, Montana’s tourism does well. As travelers drive to the parks, they spend extra time in Montana just to get there.

“What we expect to see, however, is a change in nonresident spending patterns for 2020,” said Jeremy Sage, ITRR associate director. “For example, with nervousness about dining in, we expect higher spending in the grocery and snack categories and less in restaurants and bars.”

Fuel always has been a high expenditure by nonresidents visiting Montana, but this year gasoline prices are lower than they have been in the past 20 years.

“The conundrum for fuel spending is that the pandemic actually encourages people to drive around more for sight-seeing while on vacation and spend less time stopping at museums and other attractions because they are either closed or people are uncomfortable being in indoor settings,” Sage said. “So fuel spending could be on par with other years in terms of average daily spending in that category.”

Accommodations, as well as restaurants and bars, are taking a big hit in 2020, ITRR Director Norma Nickerson said.

“A recent survey of tourism-related business – the fourth in a series of surveys – is showing that accommodation owners are still seeing cancellations and fewer reservations compared to the same months last year,” she said.

Seventy-eight percent (121 respondents) of the accommodations owners in the survey reported decreased reservations for August, with an average decrease of 52% compared to August last year.

Similarly, declines in September reservations average 61%, and winter reservations are down 66% compared to the same time last year.

“In general, however, visitors are waiting to make last-minute decisions on travel as they watch the number of COVID-19 cases go up or down and their comfort level of traveling changes based on those numbers,” Nickerson said.

Campgrounds are an exception to the general decrease in accommodation business. Nationally, there are reported spikes in recreational vehicle sales and rentals. Campground respondents in the ITRR tourism business survey basically agree. Twelve of the 14 campground owners (85%) said inquiries are up or have stayed the same.

“So it’s business as usual for the camping industry, except, of course, for the extra cleaning, mask-wearing and social distancing,” Nickerson said.

In normal years, Montana’s six travel regions and 16 of the counties with the highest levels of nonresident spending have shown that visitation and spending is widespread throughout the state and that all regions benefit.

In the most recent 2019 figures from ITRR, the Yellowstone and Glacier travel regions received 34% and 31% of all nonresident spending, while Gallatin and Flathead counties, located within those regions, accounted for 25% and 16% respectively of all nonresident spending in the state.

How different will these numbers be in 2020?

The Glacier and Yellowstone regions, home to Montana’s two iconic national parks, receive the majority of nonresident travel spending, according to Kara Grau, the ITRR assistant director of economic analysis.

“In 2019, both those regions received over 30% of traveler spending,” Grau said. “We expect those regions to continue to lead the state in nonresident spending in 2020 but realize that overall traveler spending will take a big hit this year due to pandemic-related travel restrictions, closures in the parks and consumer hesitancy in travel.”