Government

City Plans Rec Facility

9 November 2022
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After five years of planning, the preliminary plans for a multi-use recreation center for Billings have been released.

The proposed $98.7 million facility would be located adjacent to Amend Park at the corner of King Avenue East and South Billings Boulevard, on property that the city acquired through a tax increment finance district. The plans call for a 177,000 square-foot facility that would include an ice sheet for hockey and skating, a leisure and activity swimming pool, a 50-meter competition pool, four sports courts, open fitness and activity areas and an indoor running track.

A facility with that price tag will require multiple sources of funding according to city officials. Besides funds from the South Billings Boulevard Tax Increment District, it will require community contributions and a bond request from the voters.

Funding a project of that size would require cash from multiple sources, including tax increment finance dollars, philanthropic support and most notably a voter-approved bond.

A&E designed the facility after gathering broad community input.

Planning was based on “a statistically valid survey” done in 2019 and repeated this spring to determine the highest priorities of the community.

Projections estimate that the facility would cost $3.4 million to operate annually while bringing in $2.5 million in revenue, a cost recovery rate of about 74%. The $901,000 gap would be filled by the city and would cost the average Billings homeowner roughly $12 to $15 a year.

WWAMI  –  50 Years Educating Montana Medical Students, Providing Montana with Doctors

18 October 2022
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By Anne Cantrell, MSU News Service

Montana State University is celebrating the 50th year of the WWAMI Medical Education Program, which allows students from Montana to pay in-state tuition while earning MD degrees from University of Washington’s top-ranking School of Medicine.

Since WWAMI’s inception at MSU in the fall of 1973, more than 1,000 students from Montana have enrolled, according to the program’s records. More than 350 WWAMI graduates currently serve as physicians in the state of Montana.

“There were two goals at the outset of the WWAMI program,” said Martin Teintze, MSU WWAMI director. “One is to provide an opportunity for Montana students to go a top-notch medical school. The other goal was to provide physicians for the state of Montana.

“The first goal has definitely been met,” Teintze continued. “For the second goal, there are more than 350 physicians practicing in the state that are WWAMI graduates. That’s a significant chunk of physicians in our state.”

In addition to Montana, other states participating in the cooperative medical education program are Washington, Wyoming, Alaska and Idaho. Montana students spend 18 months receiving instruction from MSU professors as well as physicians at Bozeman Health Deaconess Hospital. The next two and a half years are spent doing clinical rotations in a variety of Montana locations, as well as Seattle and other sites in the WWAMI region.

Montana’s first WWAMI class had 10 students. Class size grew to 20 in 1975 and then to 30 students in 2013, with support from the Montana Legislature.

Students complete their first 18 months in Bozeman, which means that two groups totaling 60 Montana students are now educated in the program at MSU each fall.

“There was general agreement when Montana joined WWAMI in 1973 that Montana needed more physicians and this was the way to do it,” Teintze said. “It was also the least expensive way to do it. Building a standalone, Montana University System-run medical school would have been vastly more expensive for the Montana taxpayer.”

Teintze expressed appreciation for Montana lawmakers who supported the state’s joining the program in the 1970s and have increased the number of Montana resident students supported by legislative funding in successive decades. Students who do not end up practicing in Montana within a year after completing their education repay a portion of the subsidy they received from the state.

“We appreciate the ongoing support the program has had from the legislature for the past 50 years,” Teintze said. “It’s a long-term investment in the health of Montanans.”

Montana WWAMI students complete the majority of their clinical training in the state at more than 50 sites under the direction of approximately 650 Montana physicians, Teintze said.

“It has really become a Montana program,” Teintze said.

In the mid 2000s, the University of Washington hired a Montana clinical dean, Jay Erickson, who developed a program called TRUST, which stands for Targeted Rural Under Served Track. The program links 12 WWAMI students in each class to underserved communities. Those students spend a couple of weeks in the community in which they are paired before starting medical school as well as a month between the 1st and 2nd year. Then, in their second year, they spend five months in those communities completing part of their clinical training. There are currently 11 TRUST sites in Montana, from Miles City to Libby and from Dillon to Glasgow.

“The objective is to provide students who are interested in this kind of a work a real experience of what it is like to be a small-town physician, and to make sure they are trained by people who have chosen it as their career path,” Teintze said.

Teintze said TRUST has seen success with its goal of increasing the number of WWAMI graduates now practicing in the state’s rural areas, with alumni of that program now practicing medicine in places like Anaconda, Ronan, Hardin, Havre, Lewistown and Miles City.

“We’re hoping this success will grow,” he said.

Teintze said that, after 50 years in operation, the need for the WWAMI program remains strong.

“The average age of the population in Montana is going up, and therefore the need for medical care is also rising,” he said. “We are also facing a wave of physician retirements at a time when the need for more physicians due to the aging population is increasing, and the situation is even more dire in rural parts of Montana.

“With the time it takes to educate a medical student – four years of medical school, plus three to five years of residency afterwards – we need to be planning now for physicians that we need seven to 10 years from now. The prudent thing is to plan ahead.”

States to Fight for Federal ‘hydrogen hub’

17 October 2022
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The Center Square

Montana, North Dakota, Minnesota, and Wisconsin are joining forces to create a regional clean hybrid hub that will compete with other hubs for federal dollars.

The Biden administration announced last week that it was accepting applications for the $7 billion program for regional hubs funded through President Biden’s Bipartisan Infrastructure Law. The money is part of a larger $8 billion hydrogen hub program, according to a news release from the Biden administration. 

The U.S Department of Energy will select six to ten hubs, according to a news release from Burgum. The four-state collaboration will be called the Heartland Hydrogen Hub. 

The Energy & Environmental Research Center at the University of North Dakota in Grand Forks is leading the effort, which also includes the state’s tribes, according to Burgum’s office. The National Center for Hydrogen Technology is housed at the research center.

According to the memorandum of understanding, other states could join the hub in the future. 

“By bringing together our expertise in agriculture and energy production, we can create a world-class hydrogen hub and do even more as states to feed and fuel the nation and the world,” Burgum said. “We are grateful to these states and their governors for their participation, collaboration and shared interest in American energy production, U.S. energy security, job creation, economic development and environmental stewardship.”

Other states are collaborating on regional hydrogen hubs. Colorado, New Mexico, Wyoming, and Utah formed a regional hub in February. Louisiana, Arkansas and Oklahoma announced a regional hub in March. 

The hydrogen hubs are part of the Biden administration’s plan for a net-zero carbon economy by 2050, according to the Department of Energy. 

Loan Repayments May be Done Through County Tax Collectors

17 October 2022
Evelyn Pyburn
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The City of Billings and Yellowstone County are scrutinizing a proposed lending option for businesses which many believe would be a boost to economic development. Called C-Pace, the program would allow businesses to borrow money from lenders and make repayment as a part of their property tax bill. The loan would be attached to the property rather than the borrower – something like a lien.

Overseeing the program is a Great Falls-based non-profit organization connected to the Montana Department of Commerce called the Montana Facility Finance Authority (MFFA). MFFA has traditionally specialized in serving the medical care industry to finance energy and water-saving measures in the process of remodeling or building new buildings. MFFA aids companies in processing taxes, loans and grants for health care.

MFFA wants to extend their services to other businesses and to utilize the property tax collection system to facilitate repayment of the loans. MFFA would serve as the facilitator that handles the disbursement of the money collected through tax bills to the appropriate financial institution or bank. Delinquencies would be dealt with as part of the total tax bill and in the same way as delinquent taxes.

Implementing C-Pace would necessitate a hearing process and approval of a resolution by county commissioners, but before moving forward the county commissioners are asking their legal advisors to check the fine print to make sure that the county can in no way be held responsible for any defaults.

City of Billings officials are interested in the concept, but are waiting to see if the county moves forward in adopting the program, since the city would be part of any county-wide application.

County Treasurer Sherry Long expressed concern about the idea and has a lot of questions that she believes must be answered before the county adopts it.

During a discussion meeting, a number of people spoke about the potential economic development benefits and encouraged county commissioners to join seven other counties that have already adopted the financing option. They urged the county commissioners to act quickly since there are projects already pending, they said.

CON Limits Health Care Growth in Montana

17 October 2022
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South Carolina is the third worst state to have a baby, writes Dean Clancy, Senior Fellow, Health Care Policy for Americans for Prosperity. The key driver to the problem, he states, is government red tape “that creates artificial shortages for hospitals, obstetrics services, perinatal services, and intensive neonatal car.”

Clancy sites an associate analyst, Thomas Kimbrell, whose data shows that in South Carolina families use neonatal intensive care units (NICU) 30 times more often than what government estimates claim is needed under the state’s “certificate of need” plan.

He goes on to say that State and local “certificate of need” or CON laws are well-named: they’re the biggest “con” in American health care today. For Montanans that’s problematic because Montana is one of the handful of states that still requires “certificate of need” to expand health care.

“These unnecessary, harmful laws require hospital systems and other health facilities to get approval from a government agency before they can open or expand their facilities in a given area,” said Clancy.

Often, just adding a single new bed or MRI machine requires government approval, a process that can add years and thousands of dollars in costs.

“All Certificate of Need laws should be repealed to boost competition and reduce costs for patients,” claims Clancy.

Kendall Cotton, President and CEO of Frontier Institute, reports that, “Under Montana’s “certificate of need” program, the government gets to determine if a new health care business is ‘needed’ in a process that lasts at least six months and charges a fee of $500, or 0.3% of the intended expenditure. The effect is to limit competition that could give residents more choices and lower costs.”

For example, in 2019 Montana denied new applications for home health businesses in Yellowstone County, despite the government’s own estimate of 795 patients in the county with an “unmet need” for home health care. Those new services could have opened up beds at hospitals and increased access to care during the pandemic.

In addition to home health, Montana requires certification for outpatient surgery centers, nursing homes and even drug rehabilitation facilities.

Certificate of need programs were pushed by the federal government in 1974, but by the mid-1980s the program was declared a failure and Congress withdrew it.

While 15 states dropped their certification programs, Montana did not. Existing health care facilities benefit from keeping out new competitors, so the programs remain stubbornly in place.

Research by the Mercatus Center at George Mason University shows abolishing certificate of need laws could help reduce health care costs, potentially saving each Montanan $214 per year.

An effort in the 2019 legislature to repeal Montana’s certification program was vetoed by Gov. Steve Bullock, who said the certification laws “prevent the creation of excess capacity in health care facilities.” In other words, the laws reduce competition that could increase access and decrease costs.

“With health care capacity at critical levels for many Montana counties, state lawmakers should repeal harmful and anti-competitive certificate of need laws,” advises Cotton.

Economist Barkey Gets Award

20 July 2022
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A University of Montana director recently received the most prestigious award from a national association of regional economic research centers.

Patrick Barkey, director of UM’s Bureau of Business and Economic Research, received the Thayne Robson Award from the Association for University Business and Economic Research (AUBER). The award is the highest honor that AUBER awards to an individual for longtime commitment and service to the organization. Award winners must be economic and public policy leaders in their state.

Barkey is the past president of AUBER, has served as Secretary-Treasurer for more than a decade and has been a member of the organization’s board of directors.  “I am humbled to receive this honor, especially considering the outstanding AUBER leaders who have preceded me,” Barkey said.

“No one has been a stronger advocate of AUBER than Pat,” according to John Deskins, AUBER’s president and director of West Virginia’s Bureau of Business and Economic Research. “He has devoted years to working to make the community stronger, and we owe him so much for his dedicated service. He is a great asset to applied economics research centers nationwide.”

Businesses Get a Break in Filing Fees

20 July 2022
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The fee to register a Limited Liability Companies (LLC) or a corporation in Montana has been reduced by the Montana Secretary of State Christi Jacobsen from $70 to $35. In 2021 the Secretary of State registered 29,000 new LLC’s.

The reason the fee can be reduced, said Jacobson, is “due to increased efficiencies in our office.”

Jacobsen stated that she wants businesses in Montana to know that they are supported and appreciated. She said that her office is looking forward “to seeing our record business growth continue for years to come.”

To register a business, go to sosmt.gov/business. Information is also availability regarding different kinds of business structures and what is required by government of each.

Build American, Buy American Month of Action

20 July 2022
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By Aikta Marcoulier, SBA Region Eight Administrator

During July, the U.S. Small Business Administration (SBA) will kick off its Build America, Buy American month of action to highlight the administration’s commitments to America’s small businesses, entrepreneurs, and startups and highlight the benefits of the president’s bipartisan infrastructure law that will create opportunities for small manufacturers and contractors.

As Montana and the nation recovers from the pandemic, and supply chain issues, the federal government must begin to level the playing field for small manufacturing firms wanting to scale up, expand, and compete globally.  As I visit local communities throughout the Rocky Mountain region, I am seeing more jobs, more hope, and something else more important: the rebirth of pride that comes from buying American.

Montana is a hub for small manufacturers. One example is Hi Country Snack Foods, which is based in Lincoln. Hi Country is the largest employer in the county employing 50 full time people. The business started as a beef jerky company forty years ago, but under the ownership of Travis Byerly the business has expanded into new products lines including a variety of flavored jerky, and specialty seasonings.  Byerly also operates the Hi-Country Trading Post which is packed full of made in Montana products.

The SBA’s mission is to assure there is an equitable federal procurement strategy that prioritizes small, disadvantaged businesses which will increase competition and rebuild our economy from the bottom up and the middle out. The SBA is collaborating with an array of federal agencies to take “shopping small” to a whole new level by transforming how the U.S. government-the world’s largest buyer-spends more than $560 billion of America’s tax dollars on goods and services each year.

To assist businesses with planning, strategy, and contracting, the SBA has various partners including local Procurement Technical Assistance Centers (PTACS) to assist small businesses. President Biden laid out his vision to open more doors to federal contracting with an ambitious goal: Increase the share going to small, and disadvantaged businesses by 50 percent by 2025. Buying from small, and disadvantaged businesses will leverage the federal government’s purchasing power to reestablish domestic supply chains and American made products – using market growth opportunities to strengthen our nation’s industrial base.

Included in these reforms is an effort to make certain that “category management,” a government-wide initiative to strategically source commonly purchased goods and services, does not shut out small businesses. We want to make it easier for more small businesses owned by people of color, women, and veterans, to do business with the federal government. The administration has directed over 40,000 federal contracting officers across government to spend tens of billions of dollars more with small, disadvantaged businesses.

The  Infrastructure Investment and Jobs Act’s $1.2 trillion created an enormous opportunity for small construction and service firms.  The SBA stands ready to support these businesses with bonding capacity, access to capital, and the ability to subcontract with large businesses to get their fair share of the contracting pie. We must ensure all taxpayer dollars are being used to fortify entrepreneurship, innovation, and domestic supply chains, and in the process strengthen our democracy by creating equitable pathways to the American dream.

75% of $800 billion Paycheck Protection Program didn’t Reach Employees

20 July 2022
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By Joe Mueller, The Center Square

Taxpayers paid $4 for every $1 in wages and benefits received by workers in jobs saved by the federal government’s pandemic Paycheck Protection Program (PPP), according to a new study by the Federal Reserve Bank of St. Louis.

The Fed study also found PPP didn’t support jobs at risk of disappearing, and money flowed disproportionately to wealthier households.

“The PPP was a very large and very timely fiscal-policy intervention, saving about 3 million jobs at its peak in the second quarter of 2020 and distributing $800 billion well within two years of the onset of the COVID-19 crisis,” authors William Emmons and Drew Dahl concluded in their study, “Was the Paycheck Protection Program Effective?”

“But it was poorly targeted, as almost three-quarters of its benefits went to unintended recipients, including business owners, creditors and suppliers, rather than to workers. Due to differences in the typical incomes of those varied constituencies, it also ended up being quite regressive compared with other major COVID-19 relief programs, as it benefited high-income households much more.”

When COVID-19 pandemic-induced executive orders forced small businesses to stop or reduce operations, the PPP was created as a temporary program under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Forgivable loans began on April 3, 2020, one week after President Donald Trump signed the legislation and three weeks after a national emergency was declared. The low-interest loans could be made without collateral for up to $10 million to businesses with fewer than 500 employees. The loans were forgivable if businesses maintained employment and wages at pre-pandemic levels for two to six months following acceptance of the funds.

The Small Business Administration reported 90% of the nearly $800 billion in PPP loans were forgiven by last month, according to the study.

The Fed report quoted research published in the Journal of Economic Perspectives estimating PPP loans saved 2.97 million jobs per week in the second quarter of 2020 and 1.75 million per week during the fourth quarter of 2020. The research also found the cost per job saved for one year was $169,000 to $258,000. The average wage and benefits for a small business employee was $58,200 in 2020.

Small business owners spent $3 out of every $4 in PPP to pay suppliers and meet other expenses, according to the Fed report. The research found that 72% of PPP funds went to households with incomes in the top 20% of the national distribution. Comparatively, 20% to 25% of the federal government’s unemployment insurance went to households in the top 20%. Approximately 10% to 15% of stimulus checks – up to $1,200 per adult and $500 per child – went to households in the top 20%.

3 More Counties Declared For Disaster Relief

20 July 2022
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Governor Greg Gianforte announced the State of Montana has added three additional counties to the presidential major disaster declaration for Montana: Yellowstone, Treasure, and Sweet Grass. Six counties in southern Montana are now eligible for aid through FEMA’s Public Assistance Program.

“I appreciate Administrator Deanne Criswell and her team at FEMA for approving the state’s request to add Sweet Grass, Yellowstone, and Treasure counties to the presidential major disaster declaration for Montana,”

On June 16, Gov. Gianforte announced the state secured a major disaster declaration for severe flooding. The initial declaration applied to Park, Stillwater, and Carbon counties.The federal aid that accompanies the major disaster declaration supplements state and local resources being used to offset widespread damage caused by the flooding. Specifically, the FEMA Public Assistance Program provides supplemental federal grant assistance for debris removal and the restoration of disaster-damaged, publicly owned facilities, and specific facilities of certain private nonprofit organizations.