Author: Press Room

State Remains Focused on Workforce Training

8 March 2022
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Together with the Department of Commerce, Governor Greg Gianforte announced the state has awarded $605,000 to Montana businesses and nonprofits for skills-based workforce training and apprenticeship programs. 

“When you couple the Montana work ethic with the tools folks need to thrive in the jobs of today and the future, the result is a highly qualified, highly skilled workforce that can only be found here in Montana,” Gov. Gianforte said. “With this investment, we’re ensuring more hardworking Montanans have the skills needed to thrive and succeed in good-paying Montana jobs.” 

In October, Gov. Gianforte announced the launch of the Workforce Training Grant Program (WTG) reimbursing businesses for costs associated with skill-based training for new and existing full-time workers. 

 Since the program’s launch, eligible businesses have been able to apply to the program and receive up to $3,000 per eligible employee, with a maximum allocation of $210,000. Each eligible employee must make a wage that meets or exceeds 170 percent of Montana’s current minimum wage, which today is $15.64 per hour. 

 “The growth of any business can only happen through trained and capable employees,” Montana Department of Commerce Director Scott Osterman said. “Workforce training grants are adaptable to evolving industry and market needs. The Montana Department of Commerce is excited to help businesses connect with grant dollars that will provide a real return on investment in terms of future growth and productivity.” 

 The first round of award recipients of the ARPA Workforce Training Grant Program are as follows: 

 Bozeman’s Acela, Inc. will receive $72,000 to train five new full-time and 19 existing full-time WTG-eligible jobs within one year. 

 Missoula’s Big Sky Life Support will receive $87,000 to train 25 new full-time and four existing full-time WTG-eligible jobs within one year. 

 Kalispell’s Code Girls United will receive $12,000 to train two new full-time and two existing full-time WTG-eligible jobs within one year. 

Bozeman’s Harvest Solar MT, LLC will receive $11,000 to train seven existing full-time WTG-eligible jobs within one year. 

Butte’s Montana Craft Malt Company will receive $36,000 to train 12 existing full-time WTG-eligible jobs within one year. 

Kalispell’s Tricon Commercial Construction, LLC will receive $117,000 to train 17 new full-time and 22 existing full-time WTG-eligible jobs within one year. 

Bozeman’s Williams Plumbing & Heating, Inc. will receive $210,000 to train 30 new full-time and 40 existing full-time WTG-eligible jobs within one year. 

The governor also announced the following ARPA Apprenticeship Training Grant Program recipient: 

 Helena’s Laborers AGC Apprenticeship, Training, and Work Preparedness Trust for Montana will receive $60,000 to provide construction-related apprenticeship training for 20 new positions and add more training staff.  

 The governor accepted the funding recommendations from the ARPA Economic Transformation and Stabilization and Workforce Development Programs Advisory Commission. ARPA advisory commissions comprise state legislators, agency leaders, and administration officials. More information about the advisory commissions may be found at arpa.mt.gov. 

 The Workforce Training Grant Program and Apprenticeship Training Grant Program build upon Gov. Gianforte’s success in expanding workforce development, a central element of his Montana Comeback Plan. 

In April 2021, Gov. Gianforte signed into law the Montana Trades Education Credit, or M-TEC. M-TEC provides $1 million per year in 50-percent credits to businesses for their employees to learn a trade. M-TEC will support as many as 1,000 scholarships annually. Under the program, employers and employees can decide on training that is best for the business and the employee. Representative Llew Jones (R-Conrad) sponsored House Bill 252, which creates M-TEC. 

 Last week, the governor announced a $6 milliongrant to Accelerate Montana, a collaborative partnership led by the University of Montana to establish a series of rapid retraining and upskilling programs. The programs will train up to 5,000 Montanans in sectors such as construction, health care, manufacturing, and infrastructure.

Tax Abatement Programs Encourage Business Capital Investments

8 March 2022
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Yellowstone County and Billings’ tax abatement programs encouraged $410.8 million of investment in the community in 2020, involving eleven different businesses, supporting $126.7 million in payrolls and granting $3.3 million in tax savings, reports Steve Simonson, Senior Project Manager for Big Sky Economic Development.

Those totals include abatements granted to Phillips 66 and CHS. Simonson pointed out that the refineries account for two-thirds of all manufacturing that happens in Yellowstone County. Deducting refinery abatements, the total capital invested by other businesses came to $34.3 million who have total payrolls of $26.6 million. Their total tax savings was $154,679.

Simonson highlighted one company’s abatement program that concluded in 2019. Motor Power Equipment invested $2,530,000 in their business increasing its market value from $1,900,000 to $5,400,400, creating an increase of $3,500,400 of new wealth in Yellowstone County. The company’s beginning general tax bill was $42,555 and ended $75,319, an increase in taxes for the county of $32,764.

Other companies with on-going tax abatement programs in the county, extending as far back as 2011, also include Aspen Air, Billings Flying Service, Home 2 Suites by Hilton, Subaru of Billings, Montana Peterbilt, Northwest Scientific and Summit Resource International. In total the companies made capital investments totaling $445 million from 2011 through 2018 and generated 95 jobs from 2019-20.

There are two versions of the abatement program which the Montana Legislature has allowed to cities and counties, both of which strongly focus on job creation.

A five year program reduces tax on remodeling, reconstruction, and/ or expansion of existing real property when the cost of improvements exceeds $500,000.Tax relief comes with only an incremental increase in taxable value on the new value generated by the improvements or additions. The Remodeling, Reconstruction or Expansion Tax Incentive Program allows a reduction of taxes by 100 percent for the first five years after completion of the project. After the fifth year, the property is returned to its full taxable value.

The ten year program, called the New & Expanding Industry Tax Incentive Program, allows tax reductions on the taxable value of the real property up to 50 percent in the first five years, but only for businesses that generate at least 50 percent of their revenues from out of state. The abatement decreases ten percent a year from year six to ten, to the full 100 percent of tax liability in year ten.

In 2017 the state legislature allowed governing bodies the discretion to choose an abatement of either 50 percent or 75 percent in years one to five, and then decrease it 15 percent a year in years six to ten.

MMEC to Hold Course for Excellence

26 February 2022
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Are you ready to accelerate your company’s journey towards Operational Excellence? Do you have high potential employees motivated to learn and prepare for Lean certification?

The Montana Manufacturing Extension Center has just added a new session of its Operational Excellence course, which has been updated to reflect the latest core material and test requirements for the Society of Manufacturing Engineers (SME) Bronze Certificate.  The 6-week, in-person course will be offered at MMEC’s main offices in Bozeman, from March 28 to May 10.  It will combine interactive activities, real-world problem solving, and classroom instruction, offering participants solid preparation for certification testing as well as proven strategies that can be immediately applied at work. Participants will:

* Learn essential elements of Lean, Theory of Constraints, and Six Sigma

* Gain professional mentoring and earn professional credentials

* Become engaged leaders in improving company performance

As a manufacturer, your company can benefit from the return on investment from the projects implemented by employees trained in OpEx tools, and expand your efforts toward company-wide, transformational change. For details contact MMEC Business Advisor and OpEx Instructor Alistair Stewart at Alistair. stewart@ montana.edu

What is going on at MetraPark? 

25 February 2022
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By Denis Pitman, Yellowstone County Commissioner

The question on many people’s minds, and an important topic for our community.  I would like to offer some answers, clarify what is going on, and hopefully put much of this into context. 

Within the past five years we have seen significant deterioration of the property and buildings at MetraPark.  Things were becoming dangerous, and the possibility of people getting hurt were increasing. 

We began by doing an assessment of the property and cost of saving barns and the grandstands.  It was determined that cost of just maintenance and stopping the hazards from getting worse were more of a liability than just removing them. That would lead to conversations about what should or could the entire 189 acres look like with this new foot print?  What did people want to use the property for within the next several generations? 

At the same time, the general manager would indicate that he was going to be retiring.

Then we were hit with a global pandemic that would change everything. While it has been claimed that things were done without transparency, that is not accurate, and in fact things have been delayed and extended to make sure that people were aware of what was being discussed throughout the process. With that, the Board of County Commissioners, the MetraPark Advisory board began a process of examining every aspect of how the property runs, and what the vision for the future might look like. 

We have been going out to the community, we have been sharing everything with the public.  We have been bringing the policies and procedures current and consistent with Montana law, and we have been exploring many different options and ideas.  One aspect of that conversation was what type of management did we want going forward?  It has been managed by a governing board, and recently by the Board of County Commissioners. 

MetraPark is an enterprise department of Yellowstone County, and so it has a separate mission than departments like Road and Bridge.  They have the potential to generate funds, and excel at providing services beyond just what is generated in taxes and fees.  What we are doing right now is simply exploring what all the options are, and who can best provide that professional and productive path forward. 

Everyone agrees that things must change, and as we move forward. Accountability and productivity as well as return on investment must be part of that discussion as well as legacy groups and their contributions to our community. 

All of the members of the board agreed that we must move forward in asking these questions, seeking answers, and keeping the best interests of the property owners, ie, the tax payers as a priority. 

That is the commitment we have made, and now, openly and transparently, we are asking a lot of questions, and seeking as much advice as possible.  From there, we will make decisions about the future of the entire campus, and then put before the voters a cost of construction if they want to invest in additional development of the property.  It is an exciting time for Yellowstone County, and the future of MetraPark.   Ask questions, listen to what we are learning, point out concerns, tell us what you like and don’t like, and stay active in the process. Together we will make this project a premier facility that will serve everyone for generations to come.

Denis Pitman

Yellowstone County Commissioner

THE FINANCIAL FOCUS

25 February 2022
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Watch for changes in RMDs

By Michael Vondra

If you’re a certain age, you’ll need to withdraw money from some of your retirement accounts each year. But in 2022, the amount you must take out may be changing more than in other years – and that could affect your retirement income strategy.

      Here’s some background: Once you turn 72, you generally must start taking withdrawals, called required minimum distributions, or RMDs, from some of your retirement accounts, such as your traditional IRA and your 401(k) or similar employer-sponsored plan. Each year, your RMDs are determined by your age and account balances. This year, the life expectancy tables used by the IRSare being updated to reflect longer lifespans. This may result in lower annual RMDsthan you’d have to take if this adjustment hadn’t been made.

      If you’ve started taking RMDs, what does this change mean to you? It can be a positive development, for a few reasons:

      • Potentially lower taxes – Your RMDs are generally taxable at your personal income tax rate, so the lower your RMDs, the lower your tax bill might be.

      • Possibly longer “lifespan” for retirement accounts – Because your RMDs will be lower, the accounts from which they’re issued – including your traditional IRA and 401(k) – may be able to last longer without becoming depleted. The longer these accounts can stay intact and remain an asset, the better for you.

      • More flexibility in planning for retirement income – The word “required” in the phrase “required minimum distributions” means exactly what it sounds like – you must take at least that amount. If you withdraw less than your RMD, the amount not withdrawn will be taxed at 50%. So, in one sense, your RMDs take away some of your freedom in managing your retirement income. But now, with the lower RMDs in place, you may regain some of this flexibility. (And keep in mind that you’re always free to withdraw more than the RMDs.)

      Of course, if you don’t really need all the money from RMDs, even the lower amount may be an issue for you – as mentioned above, RMDs are generally taxable. However, if you’re 70½ or older, you can transfer up to $100,000 per year from a traditional IRA directly to a qualified charitable organization, and some, or perhaps all, of this money may come from your RMDs. By making this move, you can exclude the RMDs from your taxable income. Before taking this action, though, you’ll want to consult with your tax advisor.

Here are a couple of final points to keep in mind. First, not all your retirement accounts are subject to RMDs – you cangenerally keep your Roth IRA intact for as long as you want. However, your Roth 401(k) is generally subject to RMDs.If you’re still working past 72, though, you may be able to avoid taking RMDs from your current employer’s 401(k) or similar plan, though you’ll still have to take them from your traditional IRA.

Changes to the RMD rules don’t happen too often. By being aware of how these new, lower RMDs can benefit you, and becoming familiar with all aspects of RMDs, you may be able to strengthen your overall retirement income situation.

Michael A Vondra

Certified Financial Planner Practitioner

Edward Jones

Tackling Labor Shortage at The High School Level

25 February 2022
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Big Sky Economic Development’s (BSED) workforce development program, BillingsWorks will be implementing the Summer Jobs Program in Yellowstone County this upcoming summer. The Yellowstone County Summer Jobs Program matches participants with a job or paid internship, provides a paid foundational work skills training, and connects students with an adult mentor for the summer. SJP participants are high school students and recent graduates eager to develop their work skills and explore their career options. Participating area businesses (in all industries) and community organizations help strengthen the local economy by connecting youth to meaningful work experiences.

“We are excited to support our partners in Yellowstone County as they implement the Summer Jobs Program. We have seen success with this community-driven program in Helena, and we are eager to expand the program so more youth can access earn-and-learn opportunities,” Gabrielle Ekund Rowley, Executive Director of American Jobs for America’s Youth Montana.

Through the program, students gain skills, experience, and professional networks that prepare them for success in future endeavors. The work skills our students learn and practice serve them well both in and out of the workforce.

Bo Bruinsma, Career Outreach Director at School District Two stated, “Billings Public Schools is excited our students will have the opportunity to participate in the Yellowstone County Summer Jobs Program. Students will have the opportunity to be introduced to careers and industries they are interested in, gain valuable employability skills and experience, and network with professionals in our community. We’re confident this program can help students make more informed decisions about their future and show them all the great career opportunities available here in Yellowstone County.”

“BillingsWorks is proud to have the opportunity to collaborate with community partners to implement the SJP here in Yellowstone County in efforts to address local workforce challenges and expose students to potential career pathways.”- Marcell Bruski, Director of Marketing & BillingsWorks

The execution of this effort will be done in conjunction with the Yellowstone County Summer Jobs Program (SJP) Committee made up of BSED, the Billings Chamber of Commerce, School District 2, Reach Higher Montana, City College at MSUB, Billings Association of Realtors and with the support of American Jobs for American Youth (AJAY) Montana. The goal of this pilot year is to serve at least 30 Yellowstone County youth (ages 16-19), matching them with local employers and local mentors.

Stockgrowers Oppose Using Montana Wolves for Reintroduction in Colorado

25 February 2022
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From Northern Ag Network

Recently, the effort regarding the reintroduction of wolves in Colorado has generated national attention and has started a conversation between Montana producers recalling our state’s own reintroduction over two decades ago and the significant impacts that came with it. This month, leaders from Montana Stockgrowers Association (MSGA) discussed this issue and the challenges Colorado livestock producers will face as wolves continue to be reintroduced to their state.

MSGA’s Board of directors decided to be proactive on this issue and state the Association’s opposition to using Montana wolves in the reintroduction in Colorado.

In a letter sent to Montana Fish, Wildlife and Parks (FWP), MSGA shared concerns for Colorado livestock producers who have no available tools in place to allow for the protections and programs for their livestock that Montana producers currently have.

“Giving Colorado wolves from Montana isn’t going to solve the wolf issues in our state, but it will significantly impact livestock producers in Colorado,” said Jim Steinbeisser, MSGA President. “MSGA represents ranching families throughout the state, and we have experienced first-hand the impacts this apex predator has on our family ranches.”

From the initial reintroduction into the state, Montana has continued to put in place, through policy and legislation, management tools for the livestock industry to help protect livestock. While producers still face significant predation from wolf activity, there are measures in place to lessen those losses.

It is critically important livestock producers do not shoulder the burden and costs of these types of reintroduction efforts, especially with no management tools in place to protect their property, livelihoods, and resources ranchers so carefully manage.

For these reasons, the MSGA Board of Directors is in strong opposition to Montana Fish, Wildlife and Parks considering any request from the state of Colorado to provide Montana wolves for reintroduction into Colorado.

Program to Help Businesses Grow

25 February 2022
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Governor Greg Gianforte has announced Montana entrepreneurs have a new tool to grow their businesses. Approved by the governor in December, the Montana Down Payment Assistance Program is a public-private partnership between the State of Montana and Montana’s banks, credit unions, and economic development agencies. 

 “Montana entrepreneurs and job creators now have another tool in their toolbox to invest and grow their business, create more good-paying jobs, and meet increasing consumer demands,” Gov. Gianforte said. “I appreciate the private sector leaders who are partnering with the state in this first of its kind program.” 

 The Montana Down Payment Assistance Program will help finance the acquisition of equipment, purchase of real estate or buildings with improvements, and new construction for existing Montana businesses. Loans have a low fixed interest rate for ten years and range in size from $250,000 to $3,000,000. 

 The Governor’s Office of Budget and Program Planning and the Montana Board of Investments developed the program and presented the proposal to the ARPA Economic Transformation and Stabilization and Workforce Development Advisory Commission in December. With the commission’s unanimous, bipartisan recommendation, Gov. Gianforte allocated $37 million for the program to the Montana Board of Investments. 

Program details are available at https:// investmentmt.com/ Loan-Programs/ Programs-

NILE Seeks General Manager

25 February 2022
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The Northern International Livestock Exposition (NILE) is accepting application for the next General Manager.  Applications will be accepted until March 24; followed by the interview process. The goal of the NILE Board of Directors is to interview, select and hire the next General Manager on or before June 1.

The responsibilities of the position will be to oversee the general business and management activities of the NILE organization, including the events of NILE Stock Show and Rodeo, Professional Bull Riders event, Montana Agri-Trade Exposition, and various other NILE events.  For more information go to: https:// www. thenile.org/ p/about/jobs

ND Files Lawsuit to be Able to Make Own Repairs

25 February 2022
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From the Northern Ag Network

A North Dakota farm filed a class-action lawsuit last week, alleging John Deere is violating the Sherman Act in not making diagnostic software available to farmers who want to repair their own equipment.

The lawsuit filed in the U.S. District Court for the District of Northern Illinois alleges John Deere has monopolized the repair service market for John Deere brand agricultural equipment with onboard central computers known as engine control units, or ECUs.

Forest River Farms in Forest River, North Dakota, asked for a trial by jury and wants the court to order John Deere to make the necessary software available to individual farmers and repair shops.

In addition, the lawsuit seeks damages for farmers who have paid for repairs from John Deere dealers beginning on Jan. 12, 2018, to the present.

The right to repair increasingly has become an issue in agriculture and other industries with state legislatures introducing bills in at least 32 states, including bills in 21 states in 2021.

“Farmers have traditionally had the ability to repair and maintain their own tractors as needed, or else have had the option to bring their tractors to an independent mechanic,” the lawsuit reads. “However, in newer generations of its agricultural equipment, Deere has deliberately monopolized the market for repair and maintenance services of its agricultural equipment with ECUs by making crucial software and repair tools inaccessible to farmers and independent repair shops.”

In addition, the lawsuit alleges Deere’s network of “highly consolidated independent dealerships” is “not permitted through their agreements” with Deere to provide farmers or repair shops “with access to the same software and repair tools the dealerships have.

“As a result of shutting out farmers and independent repair shops from accessing the necessary resources for repairs, Deere and the dealerships have cornered the Deere repair services market in the United States for Deere-branded agricultural equipment controlled by ECUs and have derived supracompetitive profits from the sale of repair and maintenance services.”

The lawsuit alleges John Deere has “deliberately” made software unavailable to individual equipment owners and independent repair shops.

“Historically, farmers who owned Deere tractors have had the option of repairing their tractors themselves or taking them to an independent repair shop of their choosing,” the lawsuit said.

The lawsuit said farmers report their tractors shutting down from computer faults. This requires producers to wait for John Deere technicians to arrive on-farm “while they lose valuable time, which can lead to expensive crop losses. Without the firmware, the product is incomplete and will not run, making the firmware as vital a part to the basic functioning of a tractor as a steering wheel or an engine,” the lawsuit said.

“According to a report from a U.S. Public Interest Research Group, the John Deere S760 combine harvester has 125 different computer sensors in it. If any one of those sensors throw an error code, the combine will enter limp mode.”

As of 2021, the lawsuit said, farmers pay between $150 to $180 per hour for Deere repair services from an authorized dealer.

In September 2018, the Equipment Dealers Association, a trade and lobbying group that represents John Deere and other manufacturers, committed to make repair tools, software and diagnostics available to the public by Jan. 1, 2021.