By Chris Cargill, The Center Square

Raising the minimum wage is one of the many policy ideas peppered with tradeoffs, but one of the few that have such a direct impact on businesses and employees alike. Lawmakers in Idaho and Montana have introduced legislation intended to raise the minimum wage. The legislation in Idaho has been introduced by Rep. Steve Berch.

House Bill 48 would repeal a prohibition on local governments setting their own minimum wage. Meantime in Montana, House Bill 201 introduced by Rep. Kelly Kortum would hike the minimum wage to $11.39 per hour plus tips. The minimum wage in Montana currently sits at $9.95 per hour, while Idaho’s minimum wage is the federal minimum of $7.25 per hour.

Currently, there are only 54 cities or counties around the nation that have their own minimum wages which vary from their state minimum wage. The patchwork of different wages makes it difficult in some states for small business owners to properly plan for and track employee hours, especially if employees work at multiple locations. The broader issue, however, is the financial impact on small businesses and the workers themselves. It is true that some workers will see paychecks rise as a result of minimum wage increases, but many more end up seeing wages fall as hours are reduced. We know this from experience, and projections.

A great Congressional Budget Office tool gives users the opportunity to see the impact of raising the minimum wage. It shows some positive impacts, including a decrease in the number of people living in poverty. But it also shows negative aspects – specifically, the change in employment and the overall change in real family income. Under a scenario where the minimum wage would increase to $15 per hour, both see dramatic declines.

Research from the Harvard Business Review had similar findings. It concluded “for every $1 increase in the minimum wage, we found that the total number of workers scheduled to work each week increased by 27.7%, while the average number of hours each worker worked per week decrease by 20.8%. For an average store in California, these changes translated into four extra workers per week and five fewer hours per worker per week — which meant that the total wage compensation of an average minimum wage worker in a California store actually fell by 13.6%.

This decrease in the average number of hours worked not only reduced total wages, but also impacted eligibility for benefits.” The University of Washington conducted a review of Seattle’s increase of the minimum wage to $15, phased in over several years. Researchers wrote “those earning less than $19 an hour saw wages rise by 3.4% once the city’s minimum wage was $13, while experiencing a 7.0% decrease in hours worked.” In other words, the hike was costing jobs.

In fact, the research showed there would be 5,000 more jobs in Seattle if the hike had not been adopted. While some businesses might be able to afford the hit of a minimum wage hike, others will not. Restaurants, retail and hospitality, for example, run on very low profit margins. The impact there is likely to be much more severe. In the end, some workers will benefit from a hike in the minimum wage, but others will see fewer hours and lower earnings. It’s a tradeoff – not necessarily the rosy picture some activists and lawmakers project. Chris Cargill is the President & CEO of Mountain States Policy Center.

The 8th U.S. Circuit Court of Appeals has temporarily blocked President Joe Biden’s plan to cancel billions of dollars in federal student loans. The action is in response to a petition from six Republican-led states that sought a pause on the proposed student debt relief while the court rules on their request for a longer-term injunction.

The lawsuit by the six Republican-led states—Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina—is before the appeals court after a lower court judge rejected the suit a day prior.

The states argue that the debt relief program bypassed Congress and poses a threat to the states’ future tax revenues, as well as money earned by state entities that invest in or service the student loans. But U.S. District Judge Henry Autrey in St. Louis determined that while the six states had raised “important and significant challenges to the debt relief plan,” their lawsuit lacked the necessary legal standing to pursue the case.

Biden’s student debt relief program, announced in August, seeks to cancel up to $10,000 to borrowers who earn less than $125,000 per year (or $250,000 as a couple per year), or $20,000 in debt relief to Pell Grant recipients who meet similar income standards.

Applications opened on Oct. 14. Nearly 22 million borrowers had applied for the debt relief program since —  about half of the more than 40 million Americans that the Department of Education expects are eligible for some amount of debt relief.

Last week, Yellowstone County Commissioners gave a green light to Mike Mayott, a member of the MetraPark Advisory Board and chairman of its Finance Committee to proceed with updating a study on the economic impact that MetraPark has on the Billings community.

The study will be done with the assistance of Patrick Klugman of Big Sky Economic Development Authority (BSEDA) and it will be funded by NorthWestern Energy.

By Casey Harper, The Center Square

Nearly three out of four Americans are becoming more concerned about rising prices, according to a new poll.

BMO Financial Group released survey data on the economy and inflation that showed that 74% of Americans say they are becoming increasingly worried about rising costs due to inflation.

“More than 70% feel their financial momentum is threatened by higher grocery bills (78%) and the rising cost of gas (76%),” the group said. “In order to prepare for a potential recession, 76% of Americans said they are making lifestyle changes such as delaying large purchases on a house or car, paying down debt, and cutting back on holiday spending.”

The poll, conducted with Ipsos, also found that “significantly fewer U.S. consumers feel confident about their financial situation compared to last quarter.”

That concern varies by age group.

“Older Americans report feeling more concerned than younger generations,” BMO said. “Between ages 55-64, 82% said their concerns about inflation have increased over the last three months, compared to 62% of those between ages 18-24 and 70% of those aged 25-34.”

The survey comes as the latest federal inflation data shows prices have continued to rise on a range of goods and service. The overall inflation rate has dipped in the past several weeks, but that is in part due to a decrease from record-high gas prices in June. After dipping for a couple of months, gas prices are now on the rise again.

Americans are also concerned about the impact of a recession.

“Nearly 8 in 10 Americans (76%) said they plan to adjust their lifestyles in response to recession concerns,” the survey said, with 34% “delaying major purchases, like buying a new home or car,” as well as 28% cutting down holiday spending, and 24% putting more money in savings.

“Americans who report being ‘more’ financially secure decreased to 39% from 50% a year ago and 47% last quarter,” BMO said. “Americans who said they feel ‘less’ financially secure, rose to 27% from 16% in the same quarter a year ago. The number of Americans who said they are making financial progress decreased to 54% from 62% a year ago. More than 40% of Americans under age 35 do not have enough savings to cover an emergency.”

Adaptive Performance Center (APC), a phenomenally successful veterans’ support organization that was founded in Billings just over two years ago, has received a $750,000 grant that opens wide the doors for its future and to be able to more completely meet the needs of its veteran members. One of APC’s  expansion goals is to open a similar facility in Helena.

The grant was part of $2.15 million in federal funding for Montana by the Department of Veterans Affairs (VA) under the Staff Sergeant Parker Gordon Fox Suicide Prevention Grant Program . Also receiving grants were the America Northern Rockies ($750,000), and the Rocky Boy Veterans Center in Box Elder ($650,000).

APC founders Karen Pearson and Mitch Crouse are ecstatic about winning the grant and the promise it holds for them to be able to expand the training and support they provide veterans and to expand those services.

APC is a gym for veterans and enlisted military, where they can meet and talk with like-minded individuals whose association helps to build inner strength and peace while building physical strength. Pearson and Crouse launched APC as a new concept, with no guidelines or guarantees or members. Today the non-profit organization has over 500 members.

So on- target was their concept that from Day One they began signing up members, and gaining sponsors who wanted to make sure no potential member has to be turned away because of any financial concerns. And, almost every day the APC trainers witness incredible success stories as one member or another achieves a goal.

The gym is almost a front for helping veterans get support and connection with other veterans and military people that they need, explains Pearson. And, it just happens naturally, as they regularly attend to work out.  The gym becomes a safe and comfortable place for them, where they find others who understand.

That they actually have an impact that helps troubled veterans who are struggling or who might even be suicidal is exactly the kind of outcome that Pearson and Crouse believed was possible given the opportunity for regular physical exercise. Now they can prove it.

Part of the grant requirements include the collection of data and documentation to prove their theory. Depending on how the first year goes with the grant funding they are eligible for grants in each of the next two years.  Pearson said that one of the purposes of the grant program is to show that there is programming available to impact the suicide rate and to demonstrate how APC can impact the suicide rate and help with mental health.

Pearson and Crouse each bring their own knowledge and unique experiences to APC. In each of their experiences in providing physical training for people, who had traumatic situations to deal with, they realized that physical exercise was hugely beneficial in that process. As Crouse frequently reiterates, “Move your body, heal your mind.”

Crouse learned that reality first hand in struggling to recover from a severe injury he suffered in a car accident. Pearson recognized the connection in dealing with patients who were veterans trying to integrate back into families and adapt to regular life after serving in the military. She saw them struggle with PTSD and knew those, who believing there was no hope, committed suicide.

With the grant funding, the first order of business has been to fill gaps in the support and services that they have identified over the past couple of years. “We can hire people to fill those gaps,” said Pearson.

They have hired four additional trainers in the gym, which means they don’t have to rely on volunteers and always have trainers available.

Two of the people they are hiring are Veteran’s Advocates – a man and a woman who will share a full-time position. The advocates are needed to help direct veterans how to deal with getting their needs met, and where to go, what processes are necessary. To help them fill out forms, etc. – “anything they need that is intimidating and frustrating and prompts them to give up,” said Pearson.

They are also hiring a part time therapist and acupuncturist, and a full time occupational therapist who will split their time between the gyms in Billings and Helena.

Getting a second APC off the ground has been a struggle because there is a shortage of the kind of space they need in Helena. But they have finally found a 9600 square foot building in which they will be able to duplicate the facility in Billings. They will also be hiring the same level of staffing in Helena.  Funding for most of the equipment and fixtures that will be needed has already been acquired from an early sponsor, said Crouse, and it is sitting in escrow waiting for a building. They plan to be open in January.

Montana ranks right at the top of having the highest suicide rate in the nation. Pearson noted that from 2018 to 2020 active duty suicide increased by more than 40 percent, and in 2020 in Alaska it jumped 15 percent.

The founding duo of APC urged that anyone who knows a veteran or active duty military, to urge them to check out their gym and services.

Anyone who has their D2-14 discharge papers can join ACP. It doesn’t matter where or when or how they served, they simply have to have served. The cost is $19.95 a month, but no one is turned away because of inability to pay. In fact, APC has numerous individuals, businesses and organizations, who have will pay the dues of anyone who can’t afford to do so. Between 35 and 40 percent of their members depend on such contributions, and they are very appreciative.

APC gym is located at 1420 Broadwater in Billings