By Chris Woodward, The Center Square

Montana will no longer allow state funds to go towards environmental, social, and governance (ESG) investing.

Joining the Montana Board of Investments in his announcement, Gov. Greg Gianforte said recently his administration is committed to getting returns on $26 billion in investments of the state’s financial assets, but it “will not advance a political agenda.”

“As the State of Montana invests its financial assets, our priority is and should always be maximizing returns for our shareholders – the people of Montana,” the governor said in a press release. “On my watch, we won’t undermine taxpayers’ returns on investment in favor of the trend of activist, woke capitalism through ESG investing.”

ESG is defined by Investopedia as a set of standards that socially conscious voters use to screen investments. Critics say investment firms are using “activist” ESG policies regardless of what investors want. 

Stephen Soukup, who’s head of the investment consulting group The Political Forum, applauded Gianforte and the board’s move, saying ESG is a “top-down, anti-democratic, and coercive investment technique that takes power out of the hands of the people’s representatives and hands it to large, centralized multinational asset management firms who should be investing on behalf of their clients’ best pecuniary interests.”

“I think that state executives, treasurers, comptrollers, and pension boards should most definitely be willing to take back control of pension investment decisions from large Wall Street firms,” Soukup told The Center Square.  “The top-down, one-size-fits-all approach of the big firms misses and ignores state and local needs, beliefs, and investment goals and is, therefore, an unfit solution.” 

Soukup, whose books include ‘The Dictatorship of Woke Capital” and the upcoming “Other People’s Money,” thinks there is a lesson here for elected officials across the nation.  

“Governor Gianforte and the Montana Board of Investments are exercising their responsibilities as fiduciaries of the people of Montana,” Soukup said. “More politicians – right, left, and in between – should follow their lead and put the community interests of their constituents ahead of the ideological predispositions of the Wall Street mega-firms.”

By Derek Draplin, The Center Square

A new program launched by a Bozeman-based research group will offer privately-funded financial incentives to ranchers for brucellosis-related costs that might arise from allowing migrating elk on their land.

The Property and Environment Research Center (PERC) says its Paradise Valley Brucellosis Compensation Fund “will help ease the financial burden” for ranchers whose land is used for migrating elk, which can expose cattle to brucellosis and its costly effects.

Brucellosis is a contagious bacteria endemic to some elk and bison populations in the U.S., and transmission “has occurred in several cattle herds commingling with infected elk in the greater Yellowstone Park area,” according to the Merck Veterinary Manual. 

PERC CEO Brian Yablonski said the fund “is a creative market solution that allows conservationists to help reduce a major source of concern for the private stewards of elk habitat.”

“There is a significant opportunity for conservationists to privately fund and protect open space that migrating elk depend on in the Greater Yellowstone Ecosystem,” he said. “If these ranches were to be carved up and developed, it would be devastating for elk herds and everyone who loves them. 

The fund will begin in January as a three-year pilot program that any cattle ranchers in Paradise Valley can participate in, PERC said. There will be $100,000 to $150,000 available to participating ranchers, funding which will cover between 50% to 75% of costs associated with quarantining a cattle herd after brucellosis is detected. 

“By sharing the costs that come with providing habitat, this novel approach can increase landowner support for living with wildlife, build trust within the community, and help ensure migration routes and winter range on private lands remain open and avoid subdivision development,” Greater Yellowstone Coalition Executive Director Scott Christensen said in a statement.

What is the Outdoor Economy and how big is it?

In Montana it is really big – bigger than most may realize. Sure, everyone in Montana talks about their outdoor activities but is it really that different than what people everywhere do?

According to data from the Department of Labor and Industry, Montanans far exceed in their recreational activities what people in any other states do. Based upon the value of goods and services sold for outdoor recreation as a percentage of all production, Montana is way over the top. As a percentage of GDP (Gross Domestic Product) Montana goods and services for outdoor recreation is 4.4 percent compared to the second highest states – which are  Wyoming, Alaska and Maine – at 3.6 percent.

It’s least in New York and Connecticut at 1.3 percent.

Logan Hendrix, Senior Economist for the Montana Department of Labor and Industry, writes, “Enjoying the outdoors can be as simple as going on a walk. Yet even simple pursuits involve ontributions from multiple industries. For example, fly fishing involves fly rod manufacturers, retail sellers of those rods, and fishing guides. There are also often transportation and lodging costs associated with getting someone casting. The outdoor economy encompasses all economic activity generated from outdoor recreation, including core and supportive activities. Outdoor recreation makes up a substantial component of Montana’s economy, generating $2.5 billion of annual gross domestic product (GDP) and accounting for 4.4% of total GDP in 2021. Only Hawaii has a greater concentration of outdoor recreation. Montana’s location in the Rocky Mountain West contributes to the state’s high concentration of outdoor recreation production. Other states in the region, like Wyoming and Idaho, also experience high levels of outdoor recreation.

Outdoor recreation production consists of both the recreational activities themselves (skis and lift tickets) as well as the supportive activities that make them possible (transport to the mountain and construction of chair lifts). About half of outdoor recreation production comes from recreational activities, generating $1.3 billion in GDP. The other half of economic activity comes from supportive activities such as lodging, food, transportation, and construction.

The largest activities are RVing and boating, generating $160 million and $110 million in GDP. These activities aren’t necessarily the most popular, but they generate the largest amounts of economic production due in part to the high equipment prices. The outdoor recreational activities that contribute the most to GDP are similar in Montana and the US— Montana just does relatively more of each activity.

Many outdoor activities increased in their economic production during the COVID pandemic, which could reflect increased popularity as people turned to outdoor opportunities for recreation. Several water activities had especially large increases. Canoeing and kayaking GDP more than doubled over these two years. RVing and tent camping GDP were both up over 30%, though RVing is a much larger component of GDP. Guided tours, hunting, shooting/archery, and biking all saw similarly large increases from 2019 to 2021.

The GDP associated with several activities fell in transporta tion GDP across the state during this from 2019 to 2021, including recreational flying, timeframe. 1 Rising fuel costs and supply chain sailing, and snow activities. The lack of widespread disruptions resulted in a drop in transportation vaccine availability in early 2021 disproportionally production in the state, especially for non-hurt winter outdoor activities like skiing and essential services like vacation travel, snowboarding. Economic activity from large Despite declines in outdoor recreation outdoor gatherings also remained depressed in transportation GDP, the number of out-of-state 2021 compared to 2019. Outdoor events like visitors has held steady. The Institute for Tourism festivals and concerts reported a 30% drop in GDP and Recreation Research (ITRR) estimates a over the two-year timeframe. similar number of visitors in 2021 as in 2019,

According to a new University of Montana study the TV series “Yellowstone,” has brought in an estimated 2.1 million visitors and $730 million in spending to Montana in 2021. The show was also responsible for 10,200-plus jobs across a wide spectrum of industries, including tourism-related sectors.

Missoula’s Denny’s, at 2922 Brooks Street across from Southgate Mall, is “permanently closed,” according to a handwritten sign posted on the door.

In response to a bounty hunt that turned fatal in Butte, Troy Downing, Montana’s auditor and commissioner of Securities and Insurance, wants lawmakers to rein in rogue bail bond agents and “Wild West” tactics sometimes used to nab fugitives. The bill that would require bail recovery agents to be trained and licensed and notify police of planned apprehensions.

Matthew Monforton, a former GOP lawmaker is backing changes to Montana’s citizen-led ballot initiative process. Citizen-proposed ballot initiatives must reach a certain threshold of voter signatures before they can appear on the ballot. The 2021 law requires those initiative petitions to first go before a legislative interim committee for review and a vote before they can go out for signature-collecting. The attorney general’s office also gets an opportunity to weigh in, deciding whether they would be bad for business and whether they might be unconstitutional.

A group of Bozeman residents filed a lawsuit to the city about a fraternity that took over a single-family home in their neighborhood. The city will consider a zone text amendment request that would limit where Greek organizations could set up a house. The Community Development Board had on their recent agenda a zone text amendment that was requested by a group of neighbors in the university neighborhood near Montana State University. Many of the residents live near 411 W. Garfield St., which recently became the home of the Alpha Sigma Phi fraternity.

The Bozeman Whole Foods Market that has been anticipated for over two years is finally set to open its doors in February. Located off West Main Street near the Gallatin Valley Mall, will open Feb. 1. The Bozeman location will include an outdoor patio with heaters and a local, coffee bar Treeline Coffee Roasters.  The store will employ approximately 130 people.

The Purple Cow restaurant in Hardin was demolished recently. The owners of the property, the Good 2 Go Company, claimed to be exploring opportunities.

The multi-billion-dollar gas-to-liquids (GTL) complex slated to be built in Williams County remains on track, according to a Cerilon GTL ND spokesperson. The Canadian company reportedly was provided $9 million in combined loan assistance from the ND Department of Commerce and Williams County.

San Diego-based Dvele, a California company that makes modular homes plans to build an $80 million, 450,000 square-foot facility at the Montana Connections Business Development Park in Butte. The project could employ up to 150 employees the first year. Officials with the company announced the plans recently. Acco9rding to the officials they chose Butte in large part because of its connecting interstates and its people.

The Montana Department of Transportation will be taking action in Glendive to help alleviate congestion on West Towne Street around the CTAP industrial yard. According to state officials there will soon be significantly more signage in that area, giving local officials more enforcement power to keep the roads clear.

Les Kleinman has opened Brooklyn Bagels on Nucleus Avenue in Columbia Falls in the new Ruis building. Kleinman also owns a Brooklyn Bagels in Missoula and owns several Firehouse Sub franchises across Western Montana and Idaho. The bagels are imported from New York from Ess-a-Bagel, where are they already boiled and par-baked.

TDS Telecommunications LLC (TDS) will be delivering its all-fiber network to Helena, Butte, Missoula, Lolo, and Great Falls, Montana this year.  In these communities, TDS has commenced final build preparations and will break ground on its fiber network in 2023. TDS will eventually connect more than 100,000 homes and businesses. When construction is completed, TDS will deliver symmetrical internet speeds up to 8Gig, TDS’ all-digital TV service, TDS TV®+, and a variety of phone options for residential and business customers.

Governor Greg Gianforte directed Montana Fish, Wildlife & Parks (FWP) to develop a new wolf management plan for the state.

The Made in Montana Tradeshow for food and gifts will be held March 10-11,  in Helena.  The Tradeshow is a unique selling opportunity for Made in Montana companies as it incorporates a “Wholesale” day and a public “Retail” day.

“Given the public and legislature’s engagement in wolf management, it is an appropriate time to revisit the Wolf Plan,” said Gov. Greg Gianforte in a letter to FWP Director Hank Worsech, as he provided direction to form a new Wolf Plan. The state’s current Wolf Conservation and Management Plan was finalized and approved by the United States Fish and Wildlife Service in 2004. Congress delisted wolves in 2011, and since that time, Montana has retained statewide management authority.

Move Buddha shows people moving to Idaho from other states are starting to lose momentum.  The site tracks data from companies that rent moving trucks.  Arrivals have been running at more than three to one of the departures, but the site now claims the difference is no more than a couple of dozen newcomers for every 100 people leaving.  Per capita, Coeur d’Alene is the most popular destination for incoming moves.  Californians remain the greatest imports. • 1 in 3 moves in are coming from California in 2022, according to move Buddha’s data.  #1 Coeur d’Alene is the city in Idaho seeing the most inflow in 2022, to date. Data shows there are over 223 moves in for every 100 moves out. Other popular cities to move to include #2 Eagle (176 to 100), #3 Twin Falls (136 to 100), #4 Lewiston (132 to 100) and #5 Boise (124 to 100). • One solitary city has seen massive exits in 2022: Rexburg, ID.

Whole Foods Market announced they are opening its new store location in Bozeman Feb. 1, the first Whole Foods in Montana. The Bozeman location will include an outdoor patio with heaters and a local, coffee bar Treeline Coffee Roasters.

Great Falls has one of the highest crime rates compared to other communities of  comparable size in the nation. A report says that the chance of becoming a victim to either violent or property crime is 1 in 20. According to the Great Falls Police Department (GFPD), over the last 8 years, some crime has been rising; specifically crimes against persons and aggravated assaults. 

Two former mayors of Bozeman were recently quoted: “If we woke up tomorrow to 1,000 brand-new housing units, they would be snatched up by the same people who are snatching them up today: 20 percent would go to wealthy people from Bozeman who can afford to move up or invest; fifty percent would go to wealthy newcomers; and the remaining thirty percent would go to out-of-state investors.”

North Dakota’s commercial service airports finished calendar year 2022 with a statewide total of 1,028,159 airline passenger boardings. This is a growth of 141,350 passengers and a 16% overall increase from calendar year 2021. In 2022, the airports also tallied 1,023,816 passenger deplanements for a grand total of 2,051,975 passengers.

In North Dakota, Williams County approved a loan of $10 million to Cerilon GTL ND to construct a 24,000 barrel per day Gas-to-Liquids (GTL) plant with carbon capture and sequestration. The plant will have the lowest carbon footprint of any GTL plant in the world. It will convert natural gas into high value and low emission synthetic energy products, including ultra-low sulfur diesel, naphtha, and lubricant base oils. It creates a platform for the production of other valuable products such as ammonia and fertilizer. Cerilon GTL ND’s parent company is based in Alberta, Canada. The project will bring 1,000 construction jobs and 95 permanent jobs.

Every year, nearly 2 million school-age children and young adults are injured playing sports. However, sports are getting safer, reports Quote Wizard News. Analysts found that sports-related injuries have declined 31% since 2017. Football is the most dangerous sport for children under 15. Basketball, skateboarding, and football are the most dangerous sports overall. Skateboarding is the only sport where injuries have increased, going up more than 100%.

Montana Governor Gianforte has named Chris Gallus to be the next commissioner of political practices, replacing Jeff Mangan.

While still a sellers market the real estate market in Gallatin County is nearing more typical numbers, reports the Gallatin Realtors Association. Compared to December 2021, median sales prices increased 8.5%, from $725,000 to $786,951. Closed sales fell 38.5%, from 117 to 72. The median number of days homes spent on the market jumped 366.7%, from 12 to 56. The average percent of list price received by sellers fell slightly by 1.1%, from 99% to 97.9%. The median price per square foot sold increased 10.3%, from $331 to $365. Pending sales decreased 28.4%, from 74 to 53. New listings dropped 47.5% from 59 to 31. End of month inventory increased 147.1%, from 102 to 252. The month’s supply of inventory, which is an estimate of the time it would take to sell off the existing inventory, jumped 301.4%, from 0.9 to 3.5 months.

A California company that makes modular homes plans to build an $80 million, 450,000 square-foot facility at the Montana Connections Business Development Park in Butte that could employ up to 150 employees the first year.

BauerFinancial, Inc., the Nation’s Premier Bank Rating Firm, has once again awarded Stockman Bank of Montana, its top (5-Star) rating. “It’s important to impress, this award is not granted; it is earned,” emphasizes Karen Dorway, president of BauerFinancial. “And, having earned 5-Stars for 40 (or more) consecutive quarters, Stockman has earned an even higher designation as an Exceptional Performance Bank.” 

Bauer rates every federally insured U.S. chartered bank with the same strict standards, and reports that Stockman Bank continues to excel in areas of capital adequacy, profitability, loan quality and more. This marks the 57th consecutive quarter it has done so – since January 2009.

“With the Federal Reserve raising interest rates at breakneck speed, it may be tough for some banks to keep pace,” cautions Dorway. “But, with high capital cushions and an established track record, Stockman is well-positioned to continue to thrive and be a source of strength for the communities it serves.”

By Rachel Cone and Nicole Rolf, Montana Farm Bureau Federation

Week four of the 68th Montana Legislature is working to accomplish the peoples’ business and we saw many bills continue their journey this week.

A Montana Farm Bureau member, Christy Clark, was confirmed by the Senate Agriculture, Livestock and Irrigation Committee to serve as Director for the Department of Agriculture (DOA). Her confirmation now move to the Senate floor for a full confirmation vote Clark, who Governor Gianforte appointed last January, has served the DOA since 2015 in a variety of roles such as deputy director, agricultural science administrator, and interim director.

 This week we saw several bills supported by MFBF advance through the legislature, some without any opposition. HB 212 Increase business equipment tax exemption sponsored by Josh Kassmier (R) HD 27 which increases the business equipment tax exemptions from $300,000 to $1 million passed through the House Taxation Committee with no opposition, bringing this important legislation one step closer to helping small businesses acquire more or better equipment. Following its passage out of the Taxation Committee, the bill was referred to the House Appropriations Committee, where MFBF and many other business groups supported it in a hearing again this week. In the Appropriations Committee, the fiscal impact of the legislation is considered. After further vetting, we expect it to continue its advancement through the process.

Other bills that advanced this week include HB 245 Revise tax credit for trades education and training sponsored by Sue Vinton (R) HD 56. With around a quarter of farms and ranches in Montana hiring out-of-family labor, the tax credit provided by HB 245 gives these farms and ranches a great incentive to provide training and education to those workers while bringing in more jobs to rural communities.SB 58 Increase landowner payment cap for block management sponsored by Steve Hinebauch (R) SD 18 also advanced this week. With a proud heritage of hunting in Montana, SB 58 is set to continue to support that history by doubling the block management program cap from $25,000 to $50,000 giving landowners more incentive to provide sportsman access to more hunting land. SB 58 passed through the Senate Finance and Claims Committee without any opposition.

This week saw the first of what we expect could be several pieces of legislation regarding foreign ownership of agriculture land. SB 203 Revise law for transfer of critical infrastructure and agricultural land sponsored by Kenneth Bogner (R) SD 19 prevents an entity from selling, leasing or renting agricultural land to a “foreign adversary.” This year, several Montana Farm Bureau members shared their concerns over agricultural land being bought by foreign governments, particularly those with strained relations with the United States. We support this bill as it fits within our grassroots policy and represents our membership’s concern over the ownership of agricultural land by an adversary foreign government

Red Tape Removal. A big theme of the session has been reducing the regulatory burden for all Montanans. Many of the bills we have supported in the 2023 Session have been under the Administration’s “Red Tape Relief Project” and we are very thankful to each department that took an in-depth look at their various sections of Montana Code Annotated to review what is outdated or cumbersome.

The Department of Livestock (DOL) has presented many bills that remove outdated language. For example, HB 153: Generally revise laws related to livestock markets sponsored by Brandon Ler (R) HD 35 updates language in regards to livestock markets to include the use of online markets since today, online auctions are a common way to market livestock. Advances of new technologies should not be hindered by legislation that was developed many years ago and this is just one example of the DOL’s work in this project. MFBF supports this initiative and applauds the many who are making it possible.

The Department of Agriculture, Department of Natural Resources and Conservation, and the Department of Fish, Wildlife, and Parks have all brought forward bills of similar nature to update and modify legislation that benefits agriculture.

Water Rights. The Montana Comprehensive Water Review took place between the 2021 Legislative Session and the 2023 Legislative Session, focusing on two main key challenges: Final Decree Transition, and Changes, Mitigation and Exceptions. Through this process, two bills were created to address the challenges and both bills have strong support from Montana Farm Bureau.

Grizzly Bears. Montana Farm Bureau supported SB 85: Require management of delisted grizzly bears at sustainable levels sponsored by Mike Lang (R) SD 17. Removing grizzly bears from the Endangered Species List is of utmost importance to MFBF members. Montana Fish, Wildlife and Parks (FWP) has proven they are capable of properly managing grizzly bears and should be the primary manager of this species, not the federal government. This bill outlines how MT FWP will manage the bears after delisting and shows the federal agencies that Montana is more than ready to take back state management.

By Brett Rowland, The Center Square

The latest survey from the National Association for Business Economics found that more than half of respondents put the possibility of a recession over the next year at 50% or higher.

“The results … indicate widespread concern about entering a recession this year,” said NABE President Julia Coronado, founder and president of MacroPolicy Perspectives LLC. “For the first time since 2020, more respondents expect falling rather than increased employment at their firms in the next three months.”

The association’s Business Conditions Survey looks at the responses of 60 members from Jan. 4-11 on business conditions. It comes amid a wave of mass layoffs in the technology sector and despite continued optimism from the White House.

Respondents reported higher interest rates and costs as the biggest downside risks to their outlooks. Sixty-three percent of respondents reported rising wages over the past three months. That was unchanged from the October 2022 survey. They further reported that sales growth in the fourth quarter of 2022 was relatively unchanged from the previous quarter.

The Net Rising Index for sales — the percentage association panelists reporting rising sales minus the percentage reporting falling sales — in the fourth quarter of 2022 was 8, unchanged from the October 2022 survey. It is the lowest NRI for sales growth since the negative reading during the pandemic in the first half of 2020. The forward-looking NRI fell to 5 from 20 in the October survey, indicating weaker expectations for sales over the next quarter, according to the association.

“The survey results reveal an unevenness across indicators,” said NABE Business Conditions Survey Chair Carlos Herrera, chief economist for Coca-Cola North America. “Wages rose at a majority of respondents’ firms in the last three months of 2022 and more firms added workers than reduced headcounts. But far more firms than in the past three years reported falling profit margins.

“The panel suggests that inflation may be easing with the outlook for prices charged at its lowest reading since the October 2020 survey, overall,” Herrera said. “Materials costs have drifted down significantly since last July, and more respondents expect falling costs in the next three months.”

The survey comes on the heels of mass layoffs in several big-name tech businesses. Last week, Google’s parent company Alphabet laid off 12,000 employees. Microsoft laid off 10,000 employees. On Monday, streaming platform Spotify announced it was laying off 6% of its workforce. That’s about 600 employees. 

President Joe Biden’s Press Secretary Karine Jean-Pierre said Tuesday that she wouldn’t speculate on why companies were laying off employees.

“Our economy is continuing to grow in a steady and stable manner as we have said,” she said during a news brief at the White House. “You just have to look at the economic data.” 

The Consumer Price Index for All Urban Consumers declined 0.1% in December on a seasonally adjusted basis, after increasing 0.1% in November, the U.S. Bureau of Labor Statistics reported earlier this month. Over the last 12 months, the all items index increased 6.5% before seasonal adjustment. 

By Dan Brooks, Billings Chamber of Commerce

Now that we’re a few weeks into the Legislative Session, the question often arises, “How’s it going in Helena?” I pause and think of quoting a favorite tragic hero, trekking toward the Gap of Rohan: “It’s moving fast …and against the wind.”

Over 550 bills have been introduced so far—almost 200 more than this time during the 2021 Legislative Session which was an exceptionally busy session with 1,313 bill introductions.

With more than 4,500 bill draft requests in, this session is on pace to introduce more legislation than 2021 and has the potential to eclipse 2007 as the session with the most bills introduced in the last 20 years. Legislators are limited, however, by how much the state’s bill drafters (legislative staffers who actually write the new laws) can take on. Judging by the current trend line of bill introductions, and considering General Bills (not Revenue, Appropriation, or Referenda Bills) cannot be introduced after February 23rd, I’d be surprised if this session surpasses 2007 for the most introduced bills.

Even if this session isn’t record-breaking in that respect, it is still extremely busy. If you’re looking for tools to help you keep up, our Data Dashboard is tracking a few session statistics. You can also find out:

 Which local legislator has the most bills introduced and how many bills our local delegation is working on? Granted, this isn’t an entirely fair comparison as a few legislators are carrying bills such as SR 43, “Confirm governor’s appointees for the board of housing.” These bills aren’t proposing changes to the law, but are necessary to conducting government business.

 The number of bill hearings in various policy committees. Curious what the legislature is spending most of its time debating? Other than the budget, the House and Senate Business & Labor Committees are racking up the most hearings so far. 

Senate Bill 145 — Local distribution of lodging tax revenue, Sen. Keith Regier (R) SD 3 – Chamber opposes. This bill redirects funding from the Department of Commerce and the General Fund to go toward property tax relief. As is often the case, policy makers propose ideas to re-divide the same metaphorical pie, robbing Peter to pay Paul, as the saying goes. In this case, diverting money from Dept. of Commerce that funds tourism grants and programs may lead to a reduction in tax collections, which the sponsor wants to go toward property tax relief. If the bill solely redirected funds from General Fund, the Chamber would have no concerns. The bill was heard in (S) Tax on Wednesday, January 18.

House Bill 245 — Revise credit for trades education and training, Rep. Sue Vinton (R) D 56— Billings Chamber supports. This bill builds on the success of the Montana Trades Education and Training Tax Credit, established last legislative session, which offers a credit for 50% of an employee’s education, up to $2,000 annually. HB 245 expands the number of occupations and industries that qualify for the tax credit. The Department of Labor estimates the current credit covers 38,000 employees. The expansion offered by HB 245 would include an additional 31,130 employees. This is a great program for getting our workforce additional education.

A few of Governor Gianforte’s tax proposals are up for debate, Among the proposals are a couple the Billings Chamber is eager to support.

The first is House Bill (HB) 212, a bill to increase the business equipment tax exemption from $300,000 to $1 million. Meaning, businesses with market value of class 8 property less than $1 million are exempt from taxation. And those businesses with class 8 property valued at over $1 million will see reduced taxes.

 For Yellowstone County, that means significant savings to our business community. There are 502 entities with business equipment tax liability in tax year 2022. House Bill 212 would fully exempt 273 entities, reduce liabilities for the remaining 229, and provide a total savings of $1.293 MILLION to businesses in Yellowstone County.

 The Billings Chamber has long been a supporter of reducing or eliminating the business equipment tax. We were enthusiastic supporters of raising the exemption to $300,000 during the 2021 Session, and we believe HB 212 is an even better step in the right direction.

Another tax bill making it’s debut this week is Senate Bill (SB) 121. This bill would lower the top marginal income tax rate from 6.5% to 5.9%. It also comes with significant benefits to Yellowstone County taxpayers. The Department of Revenue estimates SB 121 will result in a tax savings of $20.5 million for Yellowstone County taxpayers in tax year 2024. With many of our small businesses filing as pass-throughs, this means more money to reinvest in their businesses.

 Reducing Montana’s top income tax rate to 5.9% would allow the state to take a step down from the top of the tax rate podium. Currently, Montana holds the title for highest top marginal tax rate among our neighboring states. See the graphic below and note that it lists the state’s top rate as 6.75 in January 2022 rather than 6.5, which would go into effect in 2024 per legislation passed in 2021. 

By Chris Woodward, The Center Square

A new report aims to show how California-style zoning practices make it difficult to build affordable starter homes in Montana. 

The updated Montana Zoning Atlas 2.0 from the Frontier Institute also outlines a “Pro-Housing Platform” with policy solutions that local and state leaders can adopt. 

The updated atlas utilizes “a new standardized methodology” that was developed by Cornell University Professor Sara Bronin for the National Zoning Atlas project, “which aims to depict the nation’s 30,000 zoning codes in a clear, publicly accessible map,” according to Frontier Institute President and CEO Kendall Cotton.

“The goal of the Montana Zoning Atlas is to provide community leaders with actionable data which clearly demonstrates how harmful zoning practices worsen the housing shortage by making it difficult to build affordable types of homes in Montana cities,” Cotton told The Center Square.

Published in March 2022, the original zoning atlas accounted for just two zoning factors that impact housing affordability. It was also limited to six cities, whereas the new atlas examines over 100 different variables of zoning regulations. 

“It finds 50% of zoned land in 13 of Montana’s most in-demand counties either outright prohibits or penalizes affordable multifamily starter homes like duplexes,” Cotton said.  

Montana’s population grew 10% from 2010 to 2020, but the supply of housing grew only by 7%, according to Cotton. 

“Governor Greg Gianforte’s Housing Task Force noted that strict local zoning regulation outright prohibits the most affordable types of starter homes like duplexes, townhomes, and triplexes in vast portions of Montana cities,” Cotton said. “People aren’t just getting priced out of Montana cities, they are getting zoned out.”

Cory Shaw, executive director for the Montana Building Industry Association, agrees that housing supply is a problem. Shaw told The Center Square that a lack of housing is a major issue for workers relocating to the state for jobs.

“If there are homes, those that are available are extremely expensive and cost prohibitive due to supply and demand driving up prices,” Shaw said. “Land is tied up in zoning and growth plan restrictions that prevent new construction. All of these play into the detrimental impact to local businesses that a lack of housing can cause.”

The housing crisis is one of the reasons why organizations such as Shelter WF exist.

Nathan Dugan, co-founder and president of Shelter WF, said downtown businesses in Whitefish have had to limit hours due to staffing problems. Meanwhile, Dugan said it is increasingly difficult for younger people to lay down roots and build community in Whitefish. 

“The overall vibrancy of nightlife has decreased as well over the years as many younger folks have been forced out of town due to housing costs,” Dugan said.

The Frontier Institute’s Pro-Housing platform asks Montana leaders to step up with “bold, pro-housing reforms on a statewide scale to give Montana landowners more freedom” to build affordable homes, such as duplexes, triplexes, and fourplexes.

“These are some of the most affordable starter home options,” Cotton said. “These types of homes are often referred to as the missing middle because they are outright prohibited in vast portions of America’s cities.”

The platform also says local governments and state lawmakers should “prohibit excessive minimum lot areas in cities,” a move that “can boost the supply of housing.”

State Sen. Jeremy Trebas, R-District 13, is among lawmakers trying to push reforms. He plans to carry a proposal suggested in the governor’s housing task force report that would allow for more multi-family units to be constructed where only single-family housing is currently allowed.

“I agree with Frontier Institute’s position, especially that it prevents starter homes and encourages urban sprawl,” Trebas told The Center Square. “People are pushed to the outer parts of a city or bedroom community because costs in the city close to where they generally work is too high.”

By Keely Larson, From Kaiser Health News

Jenna Eisenhart spent nearly six years as a licensed therapist in Colorado before deciding to move to a place with a greater need for her services. She researched rural states facing a shortage of behavioral health providers and accepted a job as a lead clinical primary therapist at Shodair Children’s Hospital in Helena, Montana, in January 2018.

But she couldn’t start her new job right away because state officials denied her application for a license to practice in Montana on the grounds that her master’s degree program required only 48 credits to complete instead of 60.

Eisenhart spent nearly $7,000 to earn 12 more credits to meet the requirement, something she acknowledged not every provider would be able, or want, to do.

“I’m coming here as a licensed therapist to provide services that Montana desperately needs and you’re saying, no, you’re educationally deficient, when that’s not actually true,” said Eisenhart, now the director of clinical services at Shodair. “It kind of made me feel unwanted.”

Eisenhart’s difficulties are an example of the problems that health professionals can have in obtaining a Montana license to practice. State lawmakers are considering proposals to make it easier for professionals with out-of-state licenses to work in Montana. The need to attract more workers is particularly acute amid a national mental health crisis and a worker shortage, both heightened by the covid-19 pandemic. But lawmakers, behavioral health advocates, and providers say the need is so great, they doubt that lowering barriers for out-of-state practitioners will be enough.

One measure, House Bill 101, sponsored by Republican Rep. Jane Gillette and drafted by the Children, Family, Health and Human Services Interim Committee, covers social workers, professional counselors, addiction counselors, marriage and family therapists, and behavioral health peer support specialists. It would let the Department of Labor & Industry automatically license those providers in Montana if they meet certain requirements, like having an active license from another state for at least a year and having proper educational credentials.

Eisenhart said if the bill had been in effect in 2018, she wouldn’t have had to jump through as many hoops to work in Montana.

Another, House Bill 152 sponsored by Republican Rep. Bill Mercer and requested by the state Department of Labor & Industry as part of Gov. Greg Gianforte’s “Red Tape Relief” initiative, aims to streamline the licensing process for all occupations regulated by the department, from nurses to real estate appraisers.

HB 152 is designed to simplify the process for licensing the more than 50 professions and 150 types of licenses under the purview of the labor department, Eric Strauss, administrator of the department’s Employment Standards Division, said in a Jan. 18 committee hearing on the bill.

Last year, the department received more than 21,300 applications for licensure across professions, and half of those were from out-of-state professionals, said Dave Cook, the department’s deputy administrator of professional licensing. Health care-related licenses had an even higher share of out-of-state applicants — 60%, he said.

HB 152 would improve license mobility by creating a standard the department uses across professions to determine whether out-of-state license holders are qualified to work in Montana, department officials said. It also would establish a timeline of 30 days for the agency to issue a license after receiving a completed application.

“This helps the engineer, psychologist, social worker, or cosmetologist who has practiced for 20 years to get licensed without being required to get additional education or take an examination,” said department spokesperson Jessica Nelson.

Though the two bills have the same aim, labor department officials criticized Gillette’s bill on behavioral health worker licensing as not going far enough to remove obstacles for out-of-state workers.

HB 101 “creates additional burdens to licensure, including requiring residency and mandating that a particular licensing examination has been taken,” Nelson wrote in an email. “These are issues that HB 152 is attempting to reform.”

Gillette said she doesn’t think her bill or Gianforte’s bill alone would solve the workforce problem in health care. To make a substantial change, Gillette said, Medicaid provider reimbursement rates need to be higher.

“It’ll do something but it’s not going to fix it by any stretch,” Gillette said, referring to streamlining the licensing process.

A study commissioned by the 2021 legislature found that Montana’s Medicaid provider rates were too low to cover the cost of many of those who work with seniors, people with disabilities, and children and adults with mental illness.

The study found that the state’s Medicaid program is now paying, on average, 85% of the actual cost of care for adult behavioral health services, for example. Gianforte’s proposed budget would boost that funding next year to 94% of costs, on average, before lowering it again to 91%. The budget proposal is before lawmakers, and, to fully fund the services, providers are asking them to raise the rates higher than the governor proposes.

Mary Windecker, executive director of the Behavioral Health Alliance of Montana, which strives to make community-based services more accessible to patients, said that her organization recommended the interim committee come up with what became HB 101 but that HB 152 goes further than they could have hoped.

Windecker said every agency that her organization represents is experiencing staffing shortages of 25% to 30%. Up to 90% of the alliance members’ income comes from Medicaid reimbursements, she said, and it’s not enough. She said speeding up the licensure process and raising the Medicaid provider rates in accordance with a study the Montana Department of Public Health and Human Services instigated are the main strategies needed to satisfy demand for behavioral health services.

“We’ve got to get people in here to work,” Windecker said. “We have a huge labor shortage and with the Medicaid reimbursement so low, we’re having a really hard time hiring people.”

According to the Board of Behavioral Health, there were 5,126 active behavioral health providers in Montana as of last April. The Montana chapter of the National Alliance on Mental Illness reported 163,000 adults in Montana have a mental health condition.

Keely Larson is the KHN fellow for the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Newspaper Association, and Kaiser Health News. Larson is a graduate student in environmental and natural resources journalism at the University of Montana.

KHN (Kaiser Health News) is a national newsroom that produces in-depth journalism about health issues. Together with Policy Analysis and Polling, KHN is one of the three major operating programs at KFF (Kaiser Family Foundation). KFF is an endowed nonprofit organization providing information on health issues to the nation.