Government

Unemployment Claims in Some States are Worse than Last Year

18 November 2021
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Surprisingly, or perhaps not, Oregon and Washington D.C. started out the month with unemployment claims were worse than the same week last year.  

WalletHub reported on new unemployment claims comparing week-over-week on October 25, with many states, including Montana, 96 percent below the peak during the COVID-19 pandemic.

23 states had unemployment claims that were lower than before the pandemic: Arkansas, Virginia, North Dakota, West Virginia, South Carolina, Delaware, Montana, Vermont, Colorado, Arizona, Pennsylvania, South Dakota, Wyoming, Kansas, Georgia, Iowa, Illinois, Washington, New Hampshire, Connecticut, Ohio, Maryland, and New Jersey.

Least recovered were Hawaii, Louisiana, Oregon, Alabama, California, Michigan, Tennessee, New Mexico, and Kentucky.

Inflation Continues to Rise Fueled by Gas Prices, Deficit Spending

18 November 2021
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The Center Square

The costs of goods and services rose at above-normal rates again in October, as new federal economic data released, Nov. 9, show inflation continuing to impact the U.S. economy.

The Bureau of Labor Statistics reported that the producer price index, a figure that measures wholesale prices, grew another 0.6% in October, after increasing 0.7% in August and 0.5% in September. Overall, the figures show that inflation has grown 8.6% in the past 12 months ending in October, tying a record set earlier this year.

That rise in inflation means everyday goods and services are more expensive for Americans. BLS said gasoline and food helped drive this latest increase.

“One-third of the October advance in the index for final demand goods can be traced to prices for gasoline, which rose 6.7 percent,” BLS said. “The indexes for diesel fuel, fresh and dry vegetables, gas fuels, jet fuel, and plastic resins and materials also moved higher. In contrast, prices for beef and veal decreased 10.3 percent.”

Construction, in particular, became much more expensive.

“Over 60 percent of the October increase in the index for final demand can be traced to a 1.2-percent rise in prices for final demand goods,” BLS said. “The index for final demand services moved up 0.2 percent, and prices for final demand construction advanced 6.6 percent.”

The Biden administration has said the inflation is only temporary, but many economists have said it could continue well into 2023. The report came just days after promising jobs data. The Department of Labor reported that in the month of October, payroll employment increased by 531,000, surpassing expectations.

Republicans quickly laid the blame for the rising prices at the feet of President Joe Biden and pointed to inflation as a reason to stand up to Biden’s several trillion dollars in proposed new spending. Debt spending contributes to inflation since printed money helps fund federal debts.

Will County Commissioners Privatize Management of Metra Park?

17 November 2021
Evelyn Pyburn
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By Evelyn Pyburn

Last week,  the regular meeting of the Board of County Commissioners was anything but typical as the commissioners considered an agenda item for requests for proposals (RFP) for the private management of Metra Park.

The public hearing was punctuated by loud voices, dissention among county commissioners, shouted outbursts from the crowded room, and standing applause.

Most of those in attendance were either opposed to the idea or were asking that more information be gathered before making a decision. Following public comment, the RFP request passed in a 2-1 vote. Commission John Ostlund voted in opposition.

Prior to voting against the RFP, Ostlund made a motion to table the issue until further information could be gathered. It failed for lack of a second.

Most of the public seemed to conclude that the RFP would finalize the decision, which both Commissioners Denis Pitman and Don Jones said was not the case.

Ostlund said that he was disappointed in what they were doing because they were “totally ignoring 100 percent of the user group asking them to slow down. We need a third-party evaluation.” He said that the commissioners sprang the idea on everyone… “they didn’t even notify users.”

He vowed to completely vet the idea which is the obligation of the commissioners, he said. “…and I’m going to see that we do that.” Ostlund said that if it was not vetted, his support for the Master Plan “is gone.” “I’m not interested in asking taxpayers to support it,” he continued without thoroughly knowing what it is they are supporting.

His comments elicited standing applause from the packed house and people from the audience began to shout comments to the commissioners such as “You should be ashamed of yourselves.”

Chairman Jones called for the audience to quiet and said he would dismiss everyone from the room if they did not.

Pitman said that requesting RFPs was part of the process that they needed to pursue in order to gather the necessary information, which is what the public was asking them to do.

Jones actually reworded the motion to be more specific that what they were voting upon was to include investigating the current management structure of Metra Park, employee skills, finances etc. Jones said that the Metra Park Advisory Board was completing a Master Plan that would take the county-owned facility into the next 50 years – “We need to make sure we have the best management structure to take us into the next 50 years.”

The request passed by the commissioners for RFPs requires that interested companies submit their qualifications by November 23, and that following a review and a public comment period, the commissioners would make a final vote on the proposal on December 7.

Pitman disagreed that this was “thrust upon people.” He said, “The vote we take today is to get information….You are coming to conclusions before the process even starts.” To do it any other way would be to not pursue the process of an RFP, which Pitman said would violate the commissioners’ policies and procedures.

Ostlund attempted to interrupt Pitman, but was chastised by Jones who said that Ostlund didn’t have the floor. When he was allowed to speak, Ostlund said ,“”I’ve never heard so much B.S. from Denis Pitman’s mouth.” Ostlund likened the RFP process to trying to get objective information from a sales person trying to sell something. “This is no process this is a railroad job,” he declared.

Jones reiterated a statement he had made before that they are not going to turn the issue over to a third party. He said that they were elected as commissioners to get information “from all sides and determine what is best course of action for the public” and to get public input. He conceded that while they had gathered some positive input about the benefits of privatizing the administration, they still don’t know the negatives.

He went on to explain that they would be talking and working with Metra Park administrators and employees to gather information. When he mentioned working with Manager Bill Dutcher, who has been at Metra Park for 40 years, Dutcher, who will retire on Dec. 31, pushed back saying that that he would have nothing to do with the process, that he would be gone. Dutcher said that he was at Metra Park for the people, pointing at those in the audience, for the employees and the users of the facility.

There were several speakers who expressed concern about what the controversy was going to do to the support for the Master Plan, which has been worked upon by the Advisory Board for two years. They pointed out that many people spent a lot of time building public support for the project and many had contributed hundreds of thousands of dollars to help promote a levy to build the structures that will be recommended in an announcement expected in the next few weeks.

One speaker threatened that if Jones and Pitman continued on this track there would be a recall petition.

Truckers Plead for Claw Back of Mandate

17 November 2021
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By Chris Talgo, From Center Square

Several groups representing American truckers are pleading with the Biden administration to claw back its vaccine mandate and a new regulation that will make it more difficult to hire new drivers, which is scheduled to go into effect in early 2022.

According to a letter from the American Trucking Associations, Truckload Carriers Association, and others, “We are concerned a mandate will cripple an already strained supply chain.”

The letter goes on to state, “We estimate companies covered by the mandate could lose 37% of drivers at a time when the nation is already short 80,000 truck drivers. … We ask for flexibility for transportation and supply chain essential workers, particularly truck drivers who spend most of their time in their trucks and have minimal contact with colleagues and customers.”

The letter comes in response to the recent unveiling of President Biden’s federal vaccine mandate rule, released by OSHA. Per the rule, all private companies with more than 100 employees are required to have all employees vaccinated by Jan. 4, 2022. Under the rule, employers can be fined $14,000 per violation and a whopping $136,532 for those deemed “willful” violations.

Unfortunately, as the Truckload Carriers Association (TCA) explains, “TCA repeatedly called on the Administration to heed our warnings regarding this mandate’s impact on the already constrained supply chain, yet they chose to proceed with a disastrous mandate which will undoubtedly ensure the trucking industry loses a substantial number of drivers.”

TCA also issued this ominous warning, “These are the drivers the country is relying upon to deliver food, fuel, and presents for the upcoming holiday season, yet our national leadership has decided these needs must go unmet.” Over the past 18 months, the U.S. supply chain has been upended by economic disruptions due to government-mandated shutdowns, persistent inflation, and policies that have made energy and fuel costs skyrocket

Mandates Violate Montana Law

17 November 2021
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Federal mandates that federal contractors require their workers to be vaccinated violates Montana law and is therefore unenforceable.

President Biden has directed new or renewed federal contracts to require COVID-19 vaccination for contractor or subcontractor employees, to which Gov. Gianforte has responded that it violates Montana law prohibiting discrimination based on a person’s vaccination status.

Recognizing that the mandate has created confusion for Montana employers and employees, the Governor issued guidance to Montanans regarding compliance and recommended reasonable accommodations for health care facilities and special rules for licensed nursing homes and long-term care and assisted living facilities.

Issued September 9, Pres. Biden’s Executive Order 14042 directs new or renewed federal contracts to require COVID-19 vaccination for contractor or subcontractor employees.

The governor wrote, “As outlined in concurrent guidance from my administration, President Biden’s executive order violates Montana law. COVID-19 vaccine mandates, including as a condition of employment, are illegal in Montana, and state law makes clear that contract terms that violate Montana public policy are unenforceable. As such, President Biden’s order is unenforceable.”

The governor also wrote, “While I encourage Montanans to consult with their health care provider and get vaccinated, doing so is voluntary and no individual should face discrimination based on their vaccination status.”

The governor’s guidance clarifies to whom the president’s executive order applies, as well as the effect of the executive order on new or renewed contracts.

Governor Opens Monoclonal Clinic

17 November 2021
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Gov. Greg Gianforte announced the state is expanding access to life-saving monoclonal antibody (mAb) treatments with the opening of a new state-sponsored clinic in Missoula. This is the second state-sponsored mAb clinic in Montana – one was opened in Butte earlier.

“A life-saving tool for Montanans who contract COVID-19, monoclonal antibody treatments help reduce the strain on our hospital systems and open up ICU beds for the most critical patients,” Gov. Gianforte said. The new clinic at Providence St. Patrick Hospital in Missoula will use staff and resources through Jogan Health Solutions, a third party with which the state contracted to alleviate the strain on hospital resources. The monoclonal antibody treatment center is open to eligible, at-risk Montanans with a referral from their medical provider.

“While monoclonal antibodies are an important piece of the COVID-19 toolkit, they are only given with physician prescription once a person has contracted the virus. COVID vaccination remains the key measure in preventing a patient’s possible hospitalization and death,” Joyce Dombrouski, Chief Executive, Providence Montana said. “Partnering with the State of Montana for staffing was integral in our ability to offer this treatment locally.”

Court Blocks Mandate on Employers

17 November 2021
Evelyn Pyburn
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Last week, the Biden administration asked a federal appeals court in New Orleans to lift a temporary order halting a federal COVID-19 vaccination mandate on private businesses, while warning employers that they should comply with the mandate despite the “stay.”

The Fifth U.S. Circuit Court of Appeals, on Saturday, temporarily halted the mandate on private sector businesses with 100 employers or more, citing “grave” constitutional issues. Ruling on lawsuits filed by Texas, Louisiana and Mississippi, as well as a Louisiana businessman seeking to prevent the mandate from taking effect, the appeals court issued the stay saying, “Because the petitions give cause to believe there are grave statutory and constitutional issues with the Mandate, the Mandate is hereby stayed pending further action by the court.

The mandate, which could affect an estimated 100 million American workers, includes a Jan. 4 deadline for vaccination. The policy also imposes nearly $14,000 in fines per employee if businesses are caught letting their workers skirt the mandate. “Willful violations” could result in fines up to $136,000.

Republican-led states filed multiple lawsuits last week challenging the mandate’s legality. Louisiana businessman Brandon Trosclair with assistance from the Liberty Justice Center, a public interest law firm, and the New Orleans-based Pelican Institute for Public Policy, also filed suit.

Other lawsuits are pending, including an 11-state coalition, which includes Montana, filed in the 8th U.S. Circuit Court of Appeals against OSHA. Montana is joined by Alaska, Arizona, Arkansas, Iowa, Missouri, Nebraska, New Hampshire, North Dakota, South Dakota, and Wyoming.

A similar lawsuit was filed in the 6th U.S. Circuit Court of Appeals by the attorneys general of Tennessee, Idaho, Kansas, Kentucky, Ohio, Oklahoma and West Virginia.

Georgia, Florida, and Alabama have also filed a lawsuit in the 11th U.S. Circuit Court of Appeals arguing the new rules exceed the Department of Labor’s “statutory authority, fails to comply with the standards for issuing an [Emergency Temporary Standard], and conflicts with the First Amendment and the Religious Freedom Restoration Act.”

“I am confident that the courts will see this mandate for what it truly is: An attempt to make laws while bypassing Congress,” Sarah Harbison, general counsel at the Pelican Institute, said in a statement.

The administration’s 28-page legal request to lift the stay, included OSHA’s claims that a stay would likely cost dozens or even hundreds of lives per day.”

The administration claimed the OSHA’s authority is grounded in its traditional role of protecting workers from workplace dangers, such as exposure to “substances or agents” that are determined to be toxic.

“The COVID-19 virus is both a physically harmful agent and a new hazard,” the court filing said.

“We think people should not wait,” White House Deputy Press Secretary Karine Jean-Pierre was quoted by media. “We say, do not wait to take actions that will keep your workplace safe. It is important and critical to do and waiting to get more people vaccinated will lead to more outbreaks and sickness.”

A final ruling could come as early as Wednesday. If the Fifth Circuit permanently blocks the mandate, the administration could appeal directly to the U.S. Supreme Court.

County Adopts Interim Regulations, Could Put MJ on the Ballot

17 November 2021
Evelyn Pyburn
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By Eveln Pyburn

County Commissioners passed a resolution of intent to adopt interim regulations governing the sale and production of marijuana in the county, outside city boundaries. The temporary regulations will be in effect for a year, at which time state law requires that the commissioners adopt more permanent regulations – that is, if the county doesn’t put the issue on a county-wide ballot in the interim.

A public hearing and action by commissioners regarding the temporary regulations will be held on Nov. 23. The commissioners see a need for some kind of regulations because the law that made the possession, sale and processing of marijuana legal – HB 107 – goes into effect January 1 and the commissioners believe there needs to be guidelines for those planning to go into the business.

Commissioners are opting to adopt interim measures because the state — the Department of Revenue — which has final authority over regulations, has not issued its regulations. In the interim the County Planning Department, will be conducting the research and writing final regulations.

Another option for county commissioners, one which continues to be bounced around, is to put the issue of selling marijuana on the ballot for the county, like the city did. Comments have been made about how surprising was the margin that voters in Billings rejected the sale of drug in the city after having approved the initiative that made it legal. City voters passed the initiative by a 4,000 vote margin in 2020, but they rejected its sale within the city limits two weeks ago 18,045 to 14,696.

HB 107 allows cities and counties to put the issue on the ballot in their jurisdiction or to accept the results of their city or county voters in the 2020 election on the initiative that was passed statewide to legalize recreational or adult use and production of marijuana. The initiative passed county wide by 1100 votes, or 50.7 percent to 49.3 percent. City voters passed the initiative by a 4,000 vote margin in 2020.

In a November 2, 2021 election, voters in the City of Billings rejected allowing the sale or dispensing of marijuana within the city limits, but it remains legal for growers, manufacturers and laboratories to function. The City Council is in the process of writing regulations for those functions within the city.

County commissioners voted 2-1 in August not to put the issue on the ballot for reconsideration in Yellowstone County, however there is still time in state law for them to reconsider and call for an election.

Commissioners indicated that they expect conversation regarding that option to continue.

County regulations are only effective within zoned areas in the county. Outside those areas there is little regulation except that imposed by the state, which issues licenses for those entering the business.

How many businesses already exist in the county – those that distribute medical marijuana in the county which are already legal – is uncertain. The state doesn’t disseminate much information to local governments about the businesses. But, Nicole Cromwell of the planning department said she has explored the question and believes there are about 42.

The state law gives the medical marijuana purveyors an 18-month lead in getting the recreational license and to sell recreational marijuana.

The speculation is that most of the medical shops will disappear and the recreational sales will dominate the industry as changes are implemented.

There were those who spoke about changes they would like to see made in the law, which included limits as to the potency of the drug and amounts allowed in packages, and some said they would like to see a cap on the number of licenses that are allowed.

The county has little zoning and few controls for how the industry will operate  much of it will be dictated by the state Department of Revenue. In the parts of the county with no zoning at all, which is the majority of Yellowstone County, nearly any kind of business can set up shop how it likes.

The areas within the county that are zoned sit close to Billings city limits. In those areas, recreational marijuana storefronts must be separated at least 600 feet from schools, churches, youth centers and addiction recovery centers, and 350 feet from residential areas.

Barkey on Dealing with Montana’s Labor Shortage

5 November 2021
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The current labor shortage in Montana carries with it some surprises that haven’t been seen before, but reaction to them should be much the same as it has been for any labor shortage, according to Patrick Barkey, Director of the Bureau of Labor and Industry.

“To say that the balance of power in the give and take between workers and employers has swung toward workers in recent months would be an understatement, and that is just one of many surprises,” writes Barkey in the most recent issue of the Montana Business Quarterly.

“In past recessions, employment growth lags economic growth, as employers hire back laid-off workers only after all other measures to boost output” …but … “The brief but severe 2020 pandemic recession has been a completely  different animal. Not only did the resumption of job growth occur in April 2020, barely two months after the February 2020 date considered to be the pre-recession peak, but the growth was strong.”

Barkey reminds that prior to the COVID-19 mandated business closures there were already concerns about a shrinking labor market.

At the same time, employers and employees alike, expected the shutdowns to be longer, which prompted different responses by both than what might have happened had the realized the short duration.

Many employees used the time to look around for new options and different career opportunities, which because it was a strong market there were many. And, many employers deeply regretted breaking ties with experienced and trained employees.

While some of the circumstances impacting this labor shortage are not unique, some are:

—The reopening was strongest in industries previously hurt the most, notably the highly seasonal and labor-intensive accommodations, restaurant and personal services industries.

—With a new interest in domestic travel – “The Bozeman Yellowstone International Airport enplanements were almost 90% higher in June than pre-pandemic, the second highest increase of any airport in the country.”

—Many former workers withdrew from the labor market permanently for “a variety of reasons, including financial security from stock market and housing wealth increases, government support payments, spousal income and COVID-related concerns.”

Also, “One last factor contributing to pressure on Montana labor markets is the seasonal nature of our economy. During the summer months of any year, employment generally surges by 25,000 jobs or more as tourist volume ramps up and labor-intensive industries that serve that demand expand. The timing of the reopening of the state economy in 2021 coincided almost exactly with that seasonal peak.”

All these events contributed to tightening an already tight labor market.

“By almost any measure, the scarcity of labor is apparent, particularly for entry level jobs, where increases in starting wages have been the strongest. There has been a marked increase in voluntary quits by workers, a sign of their confidence in future job availability. And speaking of availability, the 62% increase in job openings experienced in Montana since before the pandemic began was higher than any state.”

Despite the pandemic, the factors contributing to an already tight labor market in Montana have not changed.  Things like: “Demographic events like falling birth rates and the retirement of baby boomers, coupled with huge disruptions in international migration, are stagnating the growth of the working-age population. And the shift in the interests and desires of Generation Z workers just entering the labor market continues to work against the needs of employers in less desired trades and construction occupations.”

Since these factors existed prior to the COVID shutdowns, the recommended responses remain the same:

— Raising wages. …which is already being done, but its impacts on growing the entire labor force have been limited.

—Searching more broadly for workers, relaxing requirements, looking at nontraditional workers. Looking outside local areas for a broader category of jobs.

—Investing more in training, hiring less qualified workers and training them up to acceptable skill levels.

—Reconfiguring job roles to find ways to make existing staff more productive, covering needed functions with the existing workforce.

—Recruiting future workers by connecting with middle- school-aged students to give them exposure to the nature of jobs they may otherwise know nothing about.

“Other actions, such as automation and outsourcing of work, has been underway when feasible for decades, but recent shortages have pushed the envelope further. The lack of available workers, while not a pleasant challenge for employers, nonetheless may prod them to take steps to eliminate the “bad jobs” in their workplaces. These may be jobs with high physical burdens, long or inconvenient working hours and other aspects that make them less competitive in a seller’s market for labor services.”

Policy makers could also make changes, notes Barkey – which although unpopular would improve the situation.

—Boosting the retirement age, which effectively means resetting the age at which individuals become eligible for Social Security and Medicare.

—Increasing female labor force participation by helping to increase child care availability.

— Fixing immigration policy. This traditional strength of the U.S. labor market has foundered on the rocks of political storms for almost a decade.

— Raising teenage labor force participation, currently at rates that are 20 percentage points lower than 40 years ago.

— Rethinking drug testing policies. Legalized cannabis is just one of many factors that are causing attitudes and policies to change.

—Reconsider occupational licensing requirements, which limit the ability of two-earner couples to relocate to Montana.

NFIB Resists “Slew” of Tax Increases on Business

25 October 2021
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NFIB President Brad Close wrote a new op-ed in USA Today explaining why the latest tax plan from lawmakers would be detrimental to small businesses.

Close notes that small businesses aren’t looking at one or two tax hikes under the proposed plan – they’re looking at a slew of tax increases that would hit them from every angle including raising small business income taxes, capping the small business deduction, and raising capital gains and estate taxes.

“As usual, the White House offered platitudes this month at the start of Small Business Week. Small businesses are the ‘engines of our economic progress.’ The ‘pillars of their neighborhoods.’ And so on. But a few days later, the House of Representatives, with the White House’s backing, announced one of the most dramatic assaults on small business in decades. Lawmakers unveiled a massive tax-hike package that would jam those ‘engines of our economic progress’ and topple many of those ‘pillars of their neighborhoods.’”

“These tax hikes are bad enough, promising job losses and shuttered stores across the nation. But the White House and Congress also want to raise costs on small businesses in other painful ways. Case in point: The $3.5 trillion House bill would mandate that all businesses with five or more employees auto-enroll them in a retirement plan. A third of small employers offer a retirement plan.”