Early summer brings work and a traditional decline in unemployment insurance (UI). In May, about 70,000 Ninth District workers received weekly UI benefits. That’s about half of January’s levels, but UI levels historically decline with warmer weather. Current levels are 17 percent higher than last year but still a 5 percent gap from 2019 levels. The gap would be much wider—closer to 20 percent—without last year’s change in Minnesota law allowing hourly school workers to claim unemployment benefits in the summer. For other recent trends, see the Minneapolis Fed’s Regional Economic Indicators.
Government
State Grants $2.6 million to Film Industry
Since the Montana State Legislature created a taxpayer funded program in the hopes of attracting Hollywood –style business to Montana, the Montana Department of Commerce recently announced $2.6 million in grants to 67 film creations statewide.
The program is called the Big Sky Film Grant program and this year there were 150 projects requesting $9 million in funding.
The Montana Department of Commerce announced that 67 film creations will share more than $2.6 million in subsidies to film on-location productions across the state.
Grants were made available from Feature Film and TV; Feature Film and TV – Resident Only; Short-Form Content; and Short-Form Content – Resident Only categories.
A sampling of some of the recipients include:
— 7030 Entertainment, LLC – – $50,000 for the production of “Cold Storage.”
— Attack Team Entertainment Inc. – – $50,000 for the production of “Where the Wild Horses Live.”
— Eat Different, LLC will revive $100,000 for the production of “Inhuman.”
— FMLY Films, Inc. – – $50,000 for the production of “Lunatic.”
— Hold The Map Productions, LLC – – $50,000 for the production of “Breaking the Silence.”
— Justin Olson, ETC FILM, LLC – – $150,000 for the production of “Earth to Charlie.”
— Last Chance Pictures, LLC – – $50,000 for the production of “Good Kids.”
— Michael Polish, There There, LLC – – $100,000 for the production of “There, There.”
— MMM MT, LLC – – $50,000 for the production of “Swimming Hole.”
— Nathan Norby, LLC – – $50,000 for the production of “The Price of Paradise.”
— Paradise Valley Pictures – – $100,000 for the production of “The Gift of the Game.”
— Stillwater Historical Society, Museum of the Beartooths will receive $50,000 for the production of “Moccasins, Mining and Montana’s 34th County.”
“Commerce’s Film Office promotes Montana as a business destination for film production companies to expand production in our state, increase job opportunities, promote small business growth and to promote tourism,” said Paul Green, Director of the Montana Department of Commerce. “These 67 film projects are expected to spend an estimated $35 million in Montana and will bring in productions that will help boost the economies of many rural Montana communities, including Plentywood, Cohagen, Lame Deer, Poplar, Dillon, Clyde Park, Choteau, Pryor, Roberts, Virginia City and Pray.”
The richest in Montana…
Based upon the average net worth of its citizens, the richest city in Montana – not surprisingly — is Bozeman followed by Whitefish. Belgrade comes in as the third richest – undoubtedly as spillover from Bozeman. Then its Columbia Falls, followed by Billings, Helena, Missoula, Laurel, Livingston, and Kalispell.
NFIB Urges State Delegation to Act Faster
The most recent release of NFIB’s monthly Small Business Economic Trends report didn’t vary much from previous dismal ones, but it did reveal a more troubling finding that prompted the Montana state director for the association that publishes it to call on the state’s Congressional delegation to act faster on two issues that would help reverse small businesses’ slide.
“The small business sector is responsible for the production of over 40% of GDP and employment, a crucial portion of the economy,” said Bill Dunkelberg, chief economist for NFIB. “But for 29 consecutive months, small business owners have expressed historically low optimism and their views about future business conditions are at the worst levels seen in 50 years.”
Ronda Wiggers, NFIB’s Montana state director, said it’s time for Congress to act. “I’m very proud of our State Legislature for not exacerbating a very serious problem but instead initiating helpful measures to ease the problems of small businesses. I wish Congress would do the same. It needs to act now on two issues that would greatly help with a national recovery along the Main Streets of the nation. I commend Sen. Steve Daines and Congressman Ryan Zinke for their leadership on one of the issues and ask Sen. Jon Tester and Congressmen Matt Rosendale to join them in not letting the Small Business Deduction expire. Then, I’d like all four to unify in freeing Main Street, mom-and-pop companies from the vise grip of the Corporate Transparency Act.”
In a guest editorial in The Washington Times, which preceded NFIB’s Fly-In week of small business lobbying activities, NFIB President Brad Close described the consequences of both issues.
“The first and most important thing Congress should do is cut small businesses’ taxes permanently,” wrote Close. “The small-business deduction — the small-business centerpiece of the 2017 tax cuts — expires next year. If lawmakers allow that to happen, Main Street will face an unprecedented tax hike. At least half of the nation’s small businesses are uncertain about their future. They’re holding back when they want to be ramping up. With disaster already beginning to unfold, Congress should act immediately.
“… The second thing Congress should do is end a particularly burdensome mandate — the ‘beneficial ownership’ reporting requirement. Created in 2021 and enforced since January, it’s 100% targeted at the smallest of small businesses, wrapping them in red tape while giving big business a pass.
“Under this mandate, more than 32 million small businesses must regularly send private personal information about their owners to a federal database. If they don’t, they face up to two years in prison and a $10,000 fine. Would any member of Congress like to tell a small-business owner that they deserve to go to prison over this?”
The Immigrant Population of The Ninth District Has Grown
By Erick Garcia Luna
Since January 2020, employers across the United States have filled the job hole created by the pandemic, plus another 5 million jobs. That ability to hire suggests there is an expanding labor pool. The growing foreign-born1 population is a contributing factor.
In the Minneapolis Fed’s Ninth District, foreign-born growth rates have been robust, and the share of the labor force comprised of foreign-born workers has increased. Still, compared with the national average, the concentration of foreign-born workers remains relatively low in district states. (Foreign born means they were not born in the US, and pertains to both citizens and non-citizens.)
After declining early in the pandemic, the U.S. foreign-born population bounced back strongly. According to the Current Population Survey, from 2010 to 2023, the foreign-born population grew by 30 percent, more than three times faster than the native-born population.
There are other differences among groups. Foreign-born men tend to participate in the labor force at higher rates than native-born men and women, regardless of nativity. Among women, rates tend to be slightly higher among native-born workers.
But the gap seems to be closing, and quickly in some cases. In Minnesota, labor force participation among foreign-born women has been higher than that of native-born women since 2021.
The foreign-born labor force is also relatively younger. Across the country, about 70 percent were between the ages of 25 and 54—what economists call the “prime” labor force—compared with 62 percent of the native-born labor force. That younger share is even higher in some Ninth District states, like North Dakota, at 82 percent.
Fast growth among the foreign-born workers means their slice of the labor force is also growing.
Nationwide, 18.6 percent of the total labor force in 2023 was foreign-born, up from 15.8 percent in 2010. Despite high growth rates among district states, their labor force shares still lag far behind that national average. At the top, Minnesota’s labor force share of foreign-born workers was 10 percent in 2023. At the bottom, Montana’s share is just 3 percent despite having seen 55 percent growth in foreign-born workers since 2010.
In North Dakota, a much higher growth rate among the foreign-born population has pushed its labor force share from about 3 percent in 2010 to almost 7 percent in 2023.
Over the years, North Dakota has worked particularly hard to integrate people from around the world into the labor force.
“We want new arrivals to have the same opportunities as everyone else,” said Janna Pastir, deputy director of the North Dakota Department of Commerce Workforce Development Division. “Coordinated language, adult education, and digital skills programming help integrate immigrants to meet the needs of our economy.”
Governor, Chamber of Commerce Highlight Business Climate
Joining the Montana Chamber of Commerce, Governor Greg Gianforte highlighted recent investments to improve Montana’s business climate at the Big Sky, Bright Futures Economic Summit in Bozeman.
“With record business creation and more Montanans working now than ever before, it’s clear Montana’s economy is on the move,” Gov. Gianforte said. “Thanks to our pro-business, pro-jobs policies we’re welcoming investment across all industries. We’ll continue to cut red tape and make Montana an even better place to do business and create new opportunities for Montanans.”
Talking with Montana Chamber President and CEO Todd O’Hair, the governor outlined his priorities to continue lowering taxes, reducing red tape, attracting new businesses, building the workforce, and addressing Montana’s housing shortage.
Last spring, the governor was proud to deliver the largest tax cut in state history, providing income tax cuts for Montanans at every level, as well as immediate and long-term property tax relief.
Since taking office, Gov. Gianforte has prioritized investments to develop a highly-skilled, highly-qualified workforce. In 2023, the governor nearly doubled the Montana Trades Education Credit, offering employers credit for employee education and training and expanded work-based learning opportunities for Montana students.
In addition, the governor has reformed the state’s tax code to promote business investment and job creation, attracting businesses from around the world to Montana.
And to meet the growing demand for housing, the governor last October reconvened his Housing Task Force following a historic legislative session for pro-housing reforms that some have dubbed the “Montana Miracle.”
“This is a pivotal moment for business in Montana,” said O’Hair. “Companies are increasingly drawn to the unique opportunities Montana offers, making our state a prime destination for growth. To sustain this momentum, we must address key challenges like housing and childcare.”
Gov. Gianforte talking with BHE Montana President Nancy Murray at the Big Sky, Bright Futures Economic Summit in Bozeman
Wrapping up the afternoon, the governor also highlighted his focus on Montana’s all-of-the-above energy policy in a fireside chat with BHE Montana President Nancy Murray.
As a subsidiary of Berkshire Hathaway Energy, BHE Montana earlier in the day announced their latest investment in two new renewable energy projects in Montana.
The first, a 100-megawatt solar project on 1,000 acres of land in north central Montana. The installation of 200,000 solar panels is expected to add 100 megawatts to the grid by 2026. And the other, a 75-megawatt battery in Ethridge to store energy from BHE Montana’s wind and solar generation assets by 2025.
“We are incredibly excited to build upon the significant investments we’ve already made to further develop energy resources in Montana,” Murray said. “These new projects reflect our commitment to grow our business in Montana and support the growth of local businesses and communities that rely on a clean and resilient energy grid.”
Gov. Gianforte added, “Montana continues to be on the cutting edge of innovation, including in our energy sector. We will continue to embrace our all-of-the-above policy to address energy affordability and grid reliability and gladly welcome this investment from BHE Montana.”
Creating the best environment for business and more opportunities for Montanans is a top priority of the Gianforte administration.
Federal Judge Issues Injunction Stopping Title IX Rules
By Steve Wilson,The Center Square
A federal judge has issued an injunction that put a temporary hold on new Title IX rules issued by the Biden administration.
U.S. District Court Judge Terry Doughty issued the order in a lawsuit brought by the states of Louisiana, Mississippi, Montana and Idaho. The injunction keeps the final rules from going into effect pending a review by the U.S. District Court of the Western District of Louisiana.
The new rules finalized by the Department of Education and which are supposed to go into effect Aug. 1 expand the definition of sex discrimination to include gender identity and pregnancy, but the agency didn’t issue any rules relating to transgender athletes. Among the changes include a prohibition on single-sex bathroom and locker rooms and requirements that a school use pronouns based on a student’s preferred gender identity.
Doughty said in the order that the new rule violated the free speech and free exercise clauses of the First Amendment along with the spending clause and “is arbitrary and capricious.”
The judge also said in his ruling that for one of these injunctions to be issued, the plaintiffs must show a substantial chance of success on the merits of their case, a threat of irreparable harm that must outweigh any that would result if the injunction weren’t issued and it must be in the public interest. Doughty said the plaintiffs did so successfully.
Doughty also said that the plaintiffs were able to prove that the harassment standard created by the rule is contrary to Title IX and he said they “made compelling arguments for how it can violate the free speech right of the First Amendment.”
Louisiana Attorney General Liz Murrill, who brought the Title IX lawsuit, praised the ruling.
“This a victory for women and girls,” Murrill said in a statement. “When Joe Biden forced his illegal and radical gender ideology on America, Louisiana said NO! Along with Idaho, Mississippi, and Montana, states are fighting back in defense of the law, the safety and prosperity of women and girls, and basic American values.”
Title IX prohibits educational institutions that receive federal funds from discriminating on the basis of sex in both educational programs and activities.
Federal courts have already acted against the Biden administration’s rules.
U.S. District Court Judge Reed O’Connor granted the state’s motion for summary judgement in a case over a mandate issued by two federal agencies before the administration amended Title IX to redefine biological sex to include “sexual orientation” and “gender identity.”
He also denied the Biden administration’s request to dismiss and vacated the guidance nationwide and issued a permanent injunction against its enforcement in Texas.
14 AGs Petition Court over Federal Mining Rule
By Bethany Blankley, The Center Square
Attorneys general from multiple states for years have been petitioning courts and suing to block federal agency rules from going into effect, arguing the agencies promulgating them are exceeding their statutory authority. The latest petition makes a similar argument about a final rule issued by the U.S. Department of the Interior’s Surface Mining Reclamation and Enforcement Office (OSMRE) related to state regulatory oversight of coal mining.
Fourteen attorneys general filed a petition for judicial review with the U.S. District Court for the District of Columbia asking it to vacate the rule they argue seeks to strip states of regulatory authority delegated to them by Congress and the U.S. Constitution.
The petition was filed by the attorneys general of Indiana, West Virginia, Alabama, Alaska, Arkansas, Kentucky, Louisiana, Montana, North Dakota, Ohio, Texas, Utah, Virginia and Wyoming. Several state agencies are also petitioners.
Secretary of the Interior Deb Haaland, two OSMRE directors, and both federal agencies were named as respondents.
The petition argues the rule, which went into effect May 9, exceeds Haaland’s statutory authority, is arbitrary, capricious, an abuse of discretion and inconsistent with law. The AGs asked the court to declare the rule unlawful, vacate it and grant temporary relief pending the outcome of litigation.
The OSMRE Final Rule amends the Surface Mining Control and Reclamation Act of 1977 (SMCRA), which gives states exclusive jurisdiction over regulating surface coal mining and reclamation operations with few exceptions. It also gives states the sole authority to issue permits and bonds; states also inspect mining sites and enforce regulatory requirements. The SMCRA only applies to non-federal and non-Indian land.
The law limits the Interior secretary’s mining regulatory authority with two exceptions: the secretary is authorized to issue a “Ten-Day Notice” to state regulatory authorities if there is “reason to believe” a regulatory violation exists and to take over a state regulatory program if the state fails to enforce it.
The OSMRE explains that it amended the law in its rule change to limit the sources of information to determine if a possible violation exists. It also changed its definition of “reason to believe,” which it says “is supported by its legislative history.” The OSMRE also said it made the changes because it “observed instances in which requesting and considering information from” state regulatory agencies resulted in delays.
It made the claim after the Interior secretary and OSMRE officials previously acknowledged that delays occurred at times because state regulatory agencies needed weeks or months to perform complex investigations, including because of inclement weather, the lawsuit notes.
But the real reason OSMRE officials changed the definitions of the exceptions was to limit states’ rights, the AGs argue. The final rule “is dismissive of consequences for federalism,” the complaint states.
Indiana Attorney General Todd Rokita, leading the coalition, said, “Simply put, this new rule is unlawful.” It intrudes on the states’ “rightful authority under the American system of federalism. We’re suing to uphold the proper balance of power between the individual states and the federal government and to prevent another unjustified assault by the Biden administration on coal.”
The rule “proposes to overthrow the Act’s deference to States” by issuing ten-day notices, the complaint states. It also subjects “state decisions over which the Act affords States exclusive jurisdiction, such as permitting decisions, to federal oversight through ten-day notices.”
OSMRE also “seeks to make the federal government the regulator of first resort,” stripping states of their regulatory authority, the complaint states.
The rule eliminates a key requirement that citizens must first contact state regulators with concerns before they can contact the federal government. It also imposes “inflexible, arbitrary timelines on states to complete complex investigations without regard for facts on the ground, setting up federal regulators to swoop in,” the complaint states.
The AGs represent state regulatory agencies that oversee surface coal mining operations and are responsible for enforcing the SMCRA within their states. They also pointed out that these agencies received positive reviews from OSMRE officials.
Last year, OSMRE officials said Indiana’s Department of Natural Resources “administers its program in a way that effectively protects citizens and the environment from adverse impacts resulting from surface coal mining activities,” Rokita said.
OSMRE officials also said Montana’s program “had no regulatory problems” and Montana “takes citizen complaints seriously,” Montana AG Austin Knudsen said. OSMRE found “Montana DEQ appropriately responded to complainants in a timely manner consistent with applicable rules.”
$15.8 million for Behavioral Health
$15.8 Million in Grants to Increase Community-Based Behavioral Health and Developmental Disabilities Care
As recommended by the Behavioral Health System for Future Generations (BHSFG) Commission the State of Montana is issuing a total of $15.8 million in one-time grants to increase bed capacity for community-based residential providers offering behavioral health care or developmental disability services.
The grants represent the next allocation of $300 million in funding from the state to reform and improve Montana’s behavioral health and developmental disabilities services systems.
“Timely access to more residential services at the local level is critical and plays a major role in preventing the need for more intensive services down the road,” Gov. Greg Gianforte said. “I thank the commission for advancing another recommendation that will help to transform the delivery of behavioral health care in Montana.”
Department of Public Health and Human Services (DPHHS) Director Charlie Brereton said the goal of the grant program is to stabilize or increase residential services across Montana and to build sustainable capacity, while also ensuring more Montanans can be served in clinically appropriate settings closer to home.
“This funding represents yet another key milestone to ensuring providers at the local level have the resources they need to serve Montanans appropriately,” Dir. Brereton said. “We know the current lack of residential services capacity in our state leads to inefficient treatment, challenges for patients discharging from inpatient settings, and missed opportunities to keep Montanans closer to home. We are eager to help solve this longstanding issue and will continue to advance projects like these with the needs of future generations in mind.”
Possible uses of the grant funds include helping purchase or construct new facilities, upgrading and maintaining existing facilities, and hiring and training staff to increase bed capacity.
In the coming weeks, DPHHS will work toward finalizing contracts with eligible providers who applied for the funding and received an award. DPHHS will publicly announce award recipients once all contracts are effectuated.
Cities Get Reimagine Grants
Eleven communities across Montana are receiving $19,600 for Reimagine What is Possible Grants to support community development projects. Reimagining Rural is a program spearheaded by MSU Extension in conjunction with the Montana Community Foundation and other partners. The program provides small towns with opportunities and resources to shape their future.
Tara Mastel, the program lead of MSU Extension’s community vitality program, describes Reimagining Rural as an initiative aimed at boosting volunteer involvement in rural areas. “As we mark 4 years since its inception, we witness remarkable collaboration between local organizations, residents and the rise of leadership within these communities, as they actively shape their collective future. It’s impactful and inspiring work.”
Grants are provided through the support of the Montana Community Foundation. Since Reimaging Rural’s inception in 2020, $115,160 has been reinvested in small towns across the state through grants from the Montana Community Foundation and 53 communities have been through the program. This year’s grantees include:
* Big Timber – $2,000 to Sweet Grass Community Foundation to draw visitors downtown through better signage.
* Boulder – $2,000 to Boulder Chamber of Commerce to purchase and install banners on Main Street.
* Choteau – $2,000 to MSU Extension – Teton County to create an online community wide calendar for residents.
* Cut Bank – $2,000 for the Cut Bank Chamber of Commerce to create wayfinding signage in and around Cut Bank.
* Ekalaka – $2,000 to the Carter County Geological Society to enhance Veteran’s Park with a community garden and convertible benches for visitors.
* Forsyth – $2,000 for MSU Extension – Rosebud and Treasure County Office to create a disc golf course at Riverside Park in Forsyth.
* Lima – $2,000 to the Town of Lima to create a community foundation, install a kiosk, and host a community event.
* Miles City – $2,000 to the Miles City Public Library for building revitalization in the form of a community mural.
* West Yellowstone – $1,600 to the West Yellowstone Foundation for town beautification initiatives and clean up challenges.
* Winnett – $2,000 to Winnett ACES, Inc to draw visitors downtown through better signage and the installation of banners on Main Street.
Businesses Get Federal Grants
Six Montana businesses and agriculture producers are receiving federal funding to support “clean energy projects” planned for their businesses. Montana division of the USDA Rural development agency is making the grants through the Rural Energy America Program (REAP), which is aimed at helping agricultural producers and rural small business owners expand their use of wind, solar, geothermal and small hydropower energy and make energy efficiency improvements.
The awardees are as follows:
* Heberle Ford in Forsyth will use a $10,125 grant to make energy efficiency upgrades to the business. This project is expected to save this rural car dealership $1,743 in annual energy costs.
* Soundcolor Studios Inc. in Livingston will use a $17,200 grant to install a roof-mounted 6-kilowatt solar photovoltaic system with a 30-kilowatt hours battery. This film, music, and art studio operation is expecting to save $1,155 per year in annual energy costs and replace 100 percent of its annual energy consumption.
* West Paw Properties LLC in Bozeman will use a $37,237 grant to make energy efficiency improvements. The business, which manufactures dog toys and other products, expects to save $2,559 in annual energy costs.
* Highmark Properties LLC in Choteau is receiving $85,854 in grants to install a 74.205-kilowatt solar photovoltaic system at the Twin Peaks Assisted Living Facility. It’s expected this project will save $5,607 in annual energy costs and replace 82,427 kilowatts in energy use.
* Terri Kollman, a rural agricultural producer outside Joliet will use a $20,000 grant to buy and install a 9.84-kilowatt solar photovoltaic system. The project should save this producer $2,030 in energy costs and replace 14,877 kilowatt hours of electricity per year.
* Bart R. Bilden of Lavina will use a $49,797 grant to purchase and install a 29.1-kilowatt solar photovoltaic system. It’s expected this project will save $6,343 in annual energy costs and produce enough energy to replace 100 percent of the energy used per year to support their farm and ranch operations
