Government

Struggling More Than Most

7 March 2023
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By Chris Woodward, The Center Square

Affordable housing, wages, even an unwillingness to work are why experts say Montana businesses struggle to hire workers.

Montana is among the states where employers are struggling the most in hiring this year. Wallethub, a personal finance website, ranks Montana fourth out of all the states plus the District of Columbia. 

The list comes at a time when the labor force participation rate is only 62.4%, and in order to determine which states are ranked where, Wallethub examined the rate of job openings for the latest month as well as the 12 months. 

Tanner Avery, communications and outreach director for Montana-based Frontier Institute, says a major reason businesses are struggling to find workers is that “Montana’s most in-demand counties and cities frequently either outright prohibit or penalize affordable multifamily starter homes like duplexes.” As a result, the lack of housing has forced workers to leave their communities in search of affordable places to live.

“Fifty percent of zoned land in thirteen of Montana’s most in-demand counties either outright prohibit or penalize affordable multifamily starter homes like duplexes,” says Avery. “Among the major cities assessed in the Montana Zoning Atlas report, two-family housing is on average welcomed by-right on just 41% of zoned land, while 3+ family housing is on average welcomed on only 29%.”

National experts offer different takes as to why employers in some states are struggling more than others. 

“They are not offering high enough wages,” says Daniel Schwab, assistant professor of economics and accounting at College of the Holy Cross. “The relatively low unemployment rate makes workers confident they can find another job if they quit.”

Joelle Saad-Lessler, Ph.D., associate dean of undergraduates at the Steven Institute of Technology’s School of Business, thinks Americans might be “re-evaluating” their willingness to work. They may be due to concerns about COVID or the desire to care for their kids more.

“Perhaps they can live off the benefits they have received during the pandemic and do not have to pay for rent yet if the rent moratorium still holds,” says Saad-Lessler. “But it is not 100% clear why the labor force participation rate is still so low.”

If the labor force remains low, it could cause more problems for the economy. Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council, says the U.S. faces a long-term challenge on the labor front with aging people. 

“Higher levels of immigration would help not only to meet the need for workers but also would boost the country’s slowdown in entrepreneurship,” says Keating. 

Only Alaska, West Virginia, and Louisiana outranked the Treasure State.

NFIB Advocates for a “Congressional Review Act”

7 March 2023
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Resolution to Repeal New WOTUS Rule

Which bodies of water are subject to federal regulation has been greatly contested when it comes to Waters of the United States (WOTUS). National Federation of Independent Business (NFIB) members have been fighting for certainty and clear compliance standards while the rules continue to change with each administration. The Congressional Review Act (CRA) establishes a process for a resolution of disapproval that would repeal the new WOTUS rule. NFIB recently sent two letters of support for the CRA to the House and Senate.

The resolution would repeal the Environmental Protection Agency’s (EPA) and the Army Corps of Engineers’ December 2022 WOTUS rule that expands the federal government’s regulatory authority over wetlands, farms, and private property. The Administration ignored the calls from NFIB and America’s small farmers, ranchers, developers, contractors, and other small businesses to wait for the U.S. Supreme Court decision in the Sackett v. EPA case, which is expected in the coming months.

“America’s farmers, ranchers, developers, contractors, and other small businesses have been greatly affected by the ongoing changes to WOTUS standards,” explained Kevin Kuhlman, NFIB Vice President of Federal Government Relations. “This overreaching rule increases compliance burdens and uncertainty for small businesses as they wait to hear from the Supreme Court.” 

According to NFIB’s Problems and Priorities survey, “unreasonable and burdensome government regulation” is a significant problem facing small businesses. NFIB has filed an amicus brief in Sackett v. EPA. NFIB’s brief argues the Supreme Court should reverse the lower court’s decision and clarify that EPA has exceeded its federal authority under the Clean Water Act (CWA).

Under the CWA, the WOTUS Rule determines which bodies of water fall under federal jurisdiction. Over the years, presidential administrations have applied very different standards regarding when the federal government has jurisdiction over – and can regulate – wetlands. The EPA’s new rule reinstates a broader interpretation of the CWA that would expand federal authority over private property wetlands and land across the country. Under this standard, owners would need to acquire federal permits for lands that are dry most of the year.s

Mayors  Mum after Research Shows Vaccine Mandates Didn’t Work

7 March 2023
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By Casey Harper, The Center Square

 Researchers analyzed nine U.S. cities that implemented vaccine mandates during the pandemic and found that those mandates had no real effect on the spread of COVID-19.

Now, those cities’ leaders are not responding to questions about their mandates and the economic impact they had on residents.

The study was conducted through George Mason University’s Mercatus Center and evaluated Boston, Chicago, Los Angeles, New Orleans, New York, Philadelphia, San Francisco, Seattle and Washington D.C.

Those cities announced some form of city-wide vaccine mandate in 2021, leading to economic hardship for local businesses and lost jobs for those who refused to comply.

“Our findings put into question the efficacy of city-level vaccine mandates,” the report said. “Indoor vaccine mandates caused large disruptions for many individuals and businesses. New York City, for example, fired 1,430 city workers for failing to comply with its vaccine mandate (Fitzsimmons, 2022). A survey found that over 90% of NYC restaurants reported having customer-related challenges, such as losing customers who objected to the mandate, and 75% having staff-related challenges (New York State Restaurant Association, 2021). Those are just a small fraction of the disruptions caused by the mandates.”

Despite the economic hardship they caused, the study found no noteworthy slow of COVID-19. Researchers said this was in part because residents could simply travel outside city limits to participate in any activities banned in the city.

[Bear in mind that Montana’s major cities all made attempts at shutting down businesses and mandated stay-at-home policies for workers – often to the point of establishing their own enforcement agents to do so.]

“We find no evidence that the announcement or implementation of indoor vaccine mandates in the cities listed had any significant effect on vaccine uptake, COVID-19 cases, or COVID-19 deaths, and this is largely consistent for all US cities that implemented the mandate,” the report said.

The Center Square reached out to the mayor’s offices for all nine cities to present the findings and ask if their respective governments made a mistake but received no response.

“I think the more important thing is to find out what was in the minds of the people both at the federal level and at the state and local level who imposed these policies,” said Bob Moffit, an expert at the Heritage Foundation who served as a senior official of the U.S. Department of Health and Human Services and the Office of Personnel Management during the Reagan administration.

“Because based on the data, these kind of comprehensive vaccine mandate policies, there is no other way to describe except as a stupid, ham-handed policy,” he added. “The economic consequences were awful.”

Vitor Melo, one of the researchers behind the report, told The Center Square his team was surprised by the results. They expected to find some benefit to the mandates.

“We were all surprised, and I think we were all surprised as we kept going with this how consistent the results were for all the cities,” Melo said.

The researchers hope this report impacts decision-making for these kinds of policies going forward.

“Public health restrictions and regulations were widespread during the COVID-19 pandemic, and so understanding their consequences is essential,” the report said. “The authors find that city-level mandates had smaller effect on vaccine uptake (and consequently on COVID-19 cases and deaths) than nationwide mandates – and thus failed to achieve their intended objectives.”

Gov. Urges Reforms to Increase Supply of Affordable Housing

7 March 2023
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Addressing the Montana Housing Coalition at the State Capitol, Governor Greg Gianforte highlighted his administration’s efforts to increase the supply of affordable workforce housing in Montana, calling on the legislature to send pro-housing reforms to his desk.

“Housing is a top priority for Montanans. I hear it over and over from folks throughout the state,” Gov. Gianforte said to the coalition at the State Capitol. “To increase the supply of affordable workforce housing, we can’t keep doing the same thing we’ve done year after year after year. The state can’t. And local governments can’t. It hasn’t worked.”

Gov. Gianforte continued, “We must change our approach. I’m urging the legislature to get pro-housing reforms to my desk.”

In his remarks, Gov. Gianforte highlighted how the demand for more housing has outpaced homebuilding over the last decade in Montana. Between 2010 and 2020, Montana’s population grew by 9.6 percent, outpacing the state’s housing unit growth of 6.6 percent, according to the U.S. Census Bureau.

The governor also pointed to rising prices, mortgage rates, and inflation as making it more difficult for Montanans to own or rent a home, as well as burdensome regulations.

Driven by increased consumer demand, rising inflation, and national supply chain breakdowns, the cost of building a new home has soared, with private residential construction costs skyrocketing 18.4 percent nationally between March 2021 and March 2022, according to the Census Bureau.

Regulations at every level of government drive up the price of newly built homes. The National Association of Home Builders (NAHB) estimated government-imposed regulations account for 23.8 percent of the final price of a new single-family home built for sale.

Last summer, Gov. Gianforte stood up a diverse, bipartisan Housing Task Force to provide recommendations to make housing more affordable and attainable for Montanans.

In line with one of the task force’s recommendations, the governor proposed the Home Ownership Means Economic Security (HOMES) Program in his Budget for Montana Families. Tied to conditions, including increased density, the program invests $200 million to expand water and sewer infrastructure and ultimately increase the supply of affordable workforce housing.

The governor has called on the legislature to send this bill and other pro-housing reforms to his desk.

“Working with the legislature, we’re making great progress to get these bills across the finish line, but we must continue to act with the urgency this situation requires,” said Gov. Gianforte.

The governor concluded, “Every day, I am focused on opening the doors of greater opportunity so more Montanans can thrive, prosper, and achieve the American dream. And every day, Montanans work hard to realize the American dream – to earn a decent living, to raise a family, to contribute to their communities, to retire comfortably, and to own a home. Working together, let’s increase the supply of affordable, attainable housing, and let’s help more folks achieve the American dream of homeownership.”

Jobs Program will Grow Workforce for Businesses

24 February 2023
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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 for the second year in a row. The Yellowstone County Summer Jobs Program matches participants with a paid position, 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. We hope to see participation from all high schools within Yellowstone County.”- 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 NextGEN, School District 2, Reach Higher Montana, 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.

c will be implementing the Summer Jobs Program in Yellowstone County this upcoming summer for the second year in a row. The Yellowstone County Summer Jobs Program matches participants with a paid position, 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. We hope to see participation from all high schools within Yellowstone County.”- 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 NextGEN, School District 2, Reach Higher Montana, 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.

Home Prices See Slowdown as Mortgage Rates Increase

23 February 2023
Dennis Pyburn
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Approximately nine out of 10 metro markets registered home price gains in the fourth quarter of 2022 despite mortgage rates eclipsing 7%, according to the National Association of Realtors’ latest quarterly report. Eighteen percent of the 186 tracked metro areas registered double-digit price increases over the same time period, down from 46% in the third quarter of 2022.

Compared to a year ago, the national median single-family existing-home price rose 4.0% to $378,700. Year-over-year price appreciation decelerated when compared to the previous quarter’s 8.6%.

“A slowdown in home prices is underway and welcomed, particularly as the typical home price has risen 42% in the past three years,” NAR Chief Economist Lawrence Yun said, noting these costs increases have far surpassed wage increases and consumer price inflation of 15% and 14%, respectively, since 2019. “Far fewer metro markets experienced double-digit price gains in the latest quarter.”

Among the major U.S. regions, the South saw the largest share of single-family existing-home sales (45%) in the third quarter, with year-over-year price appreciation of 4.9%. Prices grew 5.3% in the Northeast, 4.0% in the Midwest, and 2.6% in the West.

“Even with a projected reduction in home sales this year, prices are expected to remain stable in the vast majority of the markets due to extremely limited supply,” Yun added. “Moreover, there are signs that buyers are returning as mortgage rates decline, even with inventory levels near historic lows.”

The top 10 metro areas with the largest year-over-year price increases all recorded gains of at least 14.5%, with seven of those markets in Florida and the Carolinas.

Half of the top 10 most expensive markets in the U.S. were in California.

Roughly one in 10 markets (11%; 20 of 186) experienced home price declines in the fourth quarter of 2022.

“A few markets may see double-digit price drops, especially some of the more expensive parts of the country which have also seen weaker employment and higher instances of residents moving to other areas,” Yun added.

In the fourth quarter of 2022, housing affordability was exacerbated by elevated home prices and mortgage rates which roughly doubled from the beginning of the year. The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,969. This represents a 7% increase from the third quarter of last year ($1,838) but a major surge of 58% – or $720 – from one year ago. Families typically spent 26.2% of their income on mortgage payments, up from 25% in the prior quarter and 17.5% one year ago.

Once again, first-time buyers looking to purchase a typical home during the fourth quarter of 2022 encountered challenges related to housing’s growing unaffordability. For a typical starter home valued at $321,900 with a 10% down payment loan, the monthly mortgage payment rose to $1,931, about 7% more than the previous quarter ($1,806) and an increase of almost $700, or 57%, from one year ago ($1,233). First-time buyers typically spent 39.5% of their family income on mortgage payments, up from 37.8% in the previous quarter. A mortgage is considered unaffordable if the monthly payment (principal and interest) amounts to more than 25% of the family’s income.

A family needed a qualifying income of at least $100,000 to afford a 10% down payment mortgage in 71 markets, up from 59 in the prior quarter. Yet, a family needed a qualifying income of less than $50,000 to afford a home in 16 markets, down from 17 in the previous quarter.

Federal Funding to Address Water Contaminants in Montana

22 February 2023
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The U.S. Environmental Protection Agency (EPA) announced $18,914,000 from President Biden’s Infrastructure Law to address emerging contaminants, like Per- and Polyfluoroalkyl Substances (PFAS) in drinking water in Montana.  This investment, which is allocated to states and territories, will be made available to communities as grants through EPA’s Emerging Contaminants in Small or Disadvantaged Communities (EC-SDC) Grant Program and will promote access to safe and clean water in small, rural, and disadvantaged communities while supporting local economies.

Administrator Michael S. Regan announced the availability of $2 billion in water infrastructure investments at an event held in North Carolina recently. “Too many American communities, especially those that are small, rural, or underserved, are suffering from exposure to PFAS and other harmful contaminants in their drinking water,” said EPA Administrator Michael Regan. “Thanks to President Biden’s leadership, we are investing in America and providing billions of dollars to strengthen our nation’s water infrastructure while safeguarding people’s health and boosting local economies. These grants build on EPA’s PFAS Strategic Roadmap and will help protect our smallest and most vulnerable communities from these persistent and dangerous chemicals.”

“EPA is delivering on its strategic commitment to address PFAS and emerging contaminants with more than $18 million for infrastructure projects that will safeguard Montana’s drinking water for years to come,” said EPA Regional Administrator KC Becker. “These funds will help water providers invest in treatment technologies and solutions to contamination concerns in the communities that need them most.”

The Bipartisan Infrastructure Law invests $5 billion over five years to help communities that are on the frontlines of PFAS contamination reduce PFAS in drinking water. EPA announced the funds for Montana as part of an allotment of $2 billion to states and territories that can be used to prioritize infrastructure and source water treatment for pollutants, like PFAS and other emerging contaminants, and to conduct water quality testing.

EPA is also releasing the Emerging Contaminants in Small or Disadvantaged Communities Grant Implementation document. The implementation document provides states and communities with the information necessary to use this funding to address local water quality and public health challenges. These grants will enable communities to improve local water infrastructure and reduce emerging contaminants in drinking water by implementing solutions such as installing necessary treatment solutions.

What is a Lawyer’s Favorite Chip? . . . Tort-Tilla

21 February 2023
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By Dan Brooks, Billings Chamber of Commerce

One of the Billings Chamber’s public policies is to reduce the cost of doing business in Montana. One expense that can be costly to a business is litigation. Fortunately, Montana’s legal climate ranks pretty well according to the U.S. Chamber’s Institute for Legal Reform (ILR) Lawsuit Climate Survey, putting our state within the Top 10 at #7.

 It hasn’t always been the case that Montana is viewed in that top tier. In previous ILR surveys, our state was ranked 27th, 34th, and 45th in 2017, 2015, and 2012 respectively. We’ve been climbing the ranks as businesses have slowly shifted perceptions of the fairness and reasonableness of our state’s liability systems.

 To maintain and perhaps increase that favorable perception, the Montana Chamber is putting forward some thoughtful tort reform bills that we are thankful for and will be supporting.

 The first, SB 216, deals with product liability reform. Product liability laws are intended to provide compensation to folks harmed by defective products. However, current product liability law in Montana lacks some reasonable defenses for business. This bill makes a number of common sense changes to protect our Montana manufacturing and retail entities from unfair claims:

* Creates a comparative fault defense that allows product sellers to show that another party contributed to the injury.

* Strengthens product misuse defense and allows product sellers to argue that the product was used contrary to an express warning or instruction included with the product.

* Creates a defense for government safety regulation compliance if the product complied with mandatory government safety regulations and requirements.

* Creates a 10-year statute of repose, with reasonable exceptions, recognizing that most products have a limited useful life and eventually wear out.

* Allows for an innocent-seller defense, protecting retailers that sell products unchanged from manufacturers.

* Adds a no safer alternative defense, allowing the reasonable consideration that there is no safer alternative in existence at the time of sale. 

 The second bill is LC 0932, which attempts to shine a light on the unregulated third-party litigation financing (TPLF) industry. Third-party litigation financing is the investment by hedge funds, wealthy individuals, and sovereign wealth funds in the outcome of lawsuits for a profit.

 Imagine the imperfect hypothetical where Mr. Baggins is suing Bert for property damages caused when Bert irreparably soiled Mr. Baggins’ coat, mistaking it for a handkerchief. Typically, Mr. Baggins and Bert would have their day in court, the dispute would get resolved, and damages recovered. However, let’s assume a TPLF, Oakenshield Capital, wants to get involved and helps fund Mr. Baggins’ suit against Bert in exchange for a share of the recovery. Oakenshield Capital’s interest is in a return on investment, not an appropriate or fair outcome. Are they influencing Mr. Baggins to seek more damages than justified? Or to continue a lengthy legal battle when settlement is best? What is the percentage of winnings Mr. Baggins would owe to Oakenshield Capital? In the event Mr. Baggins loses the suit, will Oakenshield Capital assist Mr. Baggins if he incurs additional costs or penalties? Do Bert or the court even know Oakenshield Capital is involved?

 This bill provides thoughtful reforms that protect consumers from potential predatory practices by TPLFs and increases transparency by:

* Requiring TPLFs to register.

* Limiting interest rates TPLFs can charge to plaintiffs.

* Capping TPLF’s share of winnings from plaintiffs.

* Requiring disclosure to all parties of TPLF involvement.

* Creating TPLF liability for court-order costs/penalties against the plaintiff.

We are grateful for the Montana Chamber’s prioritization of these bills. Passage will help improve the legal climate in Montana for our business community.

House Bill 30

Revise laws relating

   to dangerous drugs

Rep. Denise Baum (D)

   HD 47

   Chamber Supports

This bill enhances penalties for criminals who commit the offense of distributing dangerous drugs, or intend to distribute, while in possession of a firearm, a destructive device, or another dangerous weapon. Often, our law enforcement officers encounter dangerous weapons when dealing with drug-related crimes. This provides an additional tool for state prosecutors and disincentivizes drug dealers from carry weapons. The bill has 15 bipartisan co-sponsors from our local delegation, for which the Chamber is incredibly grateful. The bill was heard in (H) Judiciary on Friday, January 27th.

In the counties…

21 February 2023
Evelyn Pyburn
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Yellowstone County is Montana’s largest economic hub, made so in large part because it serves a four-state regional area. Partly because its economy is based upon success of other states in the region, which have had their own economic struggles, Yellowstone County’s economy has had a “subpar performance for the latter half of the previous decade,” explains economist Pat Barkey, Director of the Bureau of Business and Economic Research.

He referenced areas like the Bakken in North Dakota, whose gas and oil industry has a significant impact on Yellowstone County. Despite that, the county has had some steady improvement over the past two years because of improvement in some of its core industries, which includes “strong visitor spending.”

While Yellowstone County and Billings had strong growth in 2022 at 3.1 percent, Barkey said he is pessimistic about 2023 for the county – projecting a growth of less than zero at – 1.1 percent.

The county’s health care industry, has had “sluggish” growth, which has been the industry’s experience across the state.

Banking and finance, retail, wholesale and transportation-related businesses in Yellowstone County have been enjoying growth.

It was noted that, unlike other areas of the state, much of Yellowstone County’s population growth has been from other counties in the state.

Looking beyond 2023, the BBER forecast was quite a bit better with 2024 projected at 2.4 percent, and 2025 at 3.1 percent and 2026 at 2.0 percent.

Yellowstone County’s most prominent industry (wages as a share relative to US average) is Mining, followed by Wholesale Trade and Health Care, followed by Transportation and Construction.

Defying the law of supply and demand, the number of housing starts over the past two years has slipped, while median sales prices have increased. Housing has barely been able to keep on a par with the county’s population growth which has ranged from 11 percent to 14 percent over the past couple of years. In 1980 housing growth was 46.6 percent in the county while population growth was 23.7 percent.

Recovery in employment over pre-pandemic levels has been strong, with Accommodations and Food having seen phenomenal growth. Growth has also been strong in Construction, Transportation and Professional/ technical fields.

Airport passenger enplanements at Billings Logan International Field have not recovered from declines over the past three years from a peak in 2019.

The situation for other highly-populated areas of the state is varied.

GALLATIN COUNTY

Gallatin County has the state’s fastest growing economy, according to the BBER, noting that that growth is spreading across the county from Bozeman to impact Belgrade, Manhattan and Three Forks. Tourism has had a strong impact on the county’s economy, in more ways than one. While many of the businesses that serve the tourism industry have surged, many have been forced to limit their hours or expansion because of workforce issues. Not only is it difficult to find workers but the escalating cost of housing in Gallatin County makes it difficult for workers to be able to afford to live there.

Nevertheless, visitor spending is expected to remain strong in Gallatin County, which along with strong tech growth and its attraction for out-of-staters to relocate there, will continue to spur strong growth into coming years. While Gallatin County is attracting out-of-state migration, others are leaving the county to relocate in other Montana counties.

FLATHEAD COUNTY

Experiencing the second fastest growth in Montana is Flathead County, which in 2021 was almost as strong as Gallatin County. Driving the economy is visitor spending  and construction. The BBER forecasted 2023 growth at 1.9 percent in non-farm earnings. Housing prices cooled in Flathead County in 2022, and wages surged by 20 percent. Its basic industries are non-resident travel, manufacturing, health care and government.

Flathead County is projected to experience 1.9 percent growth in 2023.

MISSOULA COUNTY

Visitor spending was also important to strong growth for Missoula County, which has had “noticeable acceleration” in its economic growth over the past two years. Visitor spending has spurred the expansion of the motel and restaurant business segments in Missoula. The county also has growth in tech industries and in health care.

While not quite as robust as in Flathead and Gallatin Counties, construction has been strong in Missoula, where 2023 growth has been projected at 1.5 percent.

SILVER BOW

After three years of negative growth, Silver Bow County experienced positive growth of 5.5 percent in 2021. In 2022 growth was 0.6 percent. Such volatility for the county is not unknown, said economist Pat Barkey, because of its exposure to world commodity prices. Mining is the county’s most predominant industry. Like so much of the rest of the state, the county benefited from non-resident spending.

Positive growth is not projected to continue into 2023, according to Barkey, who projects negative growth of -0.7 percent.

CASCADE

Cascade County has “upshifted” into faster growth, according to the BBER. In 2021 its growth was 3.3 percent—the fastest growth since 2006. Its growth has been spurred by new building construction in both residential and commercial projects. A new medical school is one example. Great Falls is a trade center for the agricultural “Golden Triangle” area.

Government and federal military are Cascade County’s biggest industries because of the presence of the military base. Health care follows as the next important business segment.

While the growth in 2022 was 2.1 percent for Cascade County, projected growth for 2023 drops to 0.3 percent.

LEWIS & CLARK COUNTY

Lewis & Clark County has seen unprecedented growth in federal transfer payments related to federal transfer payments for pandemic stimulus programs. As those programs wound down, the county’s growth decelerated in 2021 but still came in at 2.7 percent in 2022.

This county too benefited by visitor spending and had an uptick in retail trade. Government and state government are at the top of the most prominent industries in the county. The county is projected to experience 0.5 percent growth in 2023.

From Center Square

21 February 2023
Dennis Pyburn
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Sixteen attorneys general – including Montana’s —are urging members of Congress to modify, clarify, and rescind an emergency-use authorization authority still being used by federal agencies to mandate coronavirus-related policies.

The letter sent to House Speaker Kevin McCarthy and House Committee on Energy & Commerce Chair Cathy McMorris Rogers, both Republicans, relates to curtailing the authority of the U.S. Department of Health and Human Services and Food and Drug Administration.

The AGs have requested that Congress override existing emergency-use authorization policies still in effect and to conduct rigorous oversight to establish what mistakes were made related to current and past implementation of the federal authority. They also asked Congress to “consider revising the liability protections provided by a prior Congress, and confirm what President [Joe] Biden has admitted and what the American people in their sound judgment know: any valid grounds for claiming a state of medical emergency due to COVID have ended; normalcy and the rule of law must be restored.”