Economists across the country are sounding increasingly alarmed about what they see as the possibility of a prolonged period of inflation in the U.S. The concern comes as consumer prices rose by the most in 13 years in June.
According to the Labor Department, the consumer price index increased 0.9 percent last month, the largest gain since June 2008, after advancing 0.6 percent in May.
In the 12 months through June, the CPI jumped 5.4 percent, the largest gain since August 2008. That increase followed a 5.0 percent increase in the 12 months through May. Excluding the volatile food and energy components, the CPI accelerated 0.9 percent after increasing 0.7 percent in May.
The so-called core CPI surged 4.5 percent on a year-on-year basis, the largest increase since November 1991, after rising 3.8 percent in May.
Spurring the inflationary trend is the nearly $6 trillion in the federal governments expenditures as well as low interest rates. Economists are saying that these things, along with the year-long COVID-19 disruptions are “fueling demand, straining the supply chain, and raising prices across the economy.”
Some forecasters are expecting inflation to remain elevated through part of 2022, while others are saying it will last “years.”
Government
Fewer Students Enrolling in Public Schools
The Center Square
The number of students attending public schools during the 2020-2021 academic year fell by roughly 3% compared with the previous year.
The data comes from the National Center for Education Statistics, a federal agency that analyzes education figures.
The 3% drop represents some 1.5 million students according to the preliminary report. A final report will not be available until next spring, according to the NCES. Figures come from reports generated by state departments of education.
There were 51.1 million students enrolled in conventional and public charter schools during the 2019-2020 academic year.
Even more stark is the drop in enrollment among younger students. Preschool enrollment fell by 22%, and preschool and kindergarten enrollment combined dropped 13%.
By contrast, high school enrollment fell by 0.4%.
Ross Santy, associate commissioner for the NCES, noted how rare it is for public schools to lose students.
“K-12 enrollment in our nation’s public schools has been increasing almost every year since the start of this century,” Santy said in a statement. “Before this year, in the few recent years where we have seen enrollment decreases, they have been small changes representing less than 1 percent of total enrollment.”
Some 29 states experienced enrollment declines of between 1% and 3%. Washington, D.C., Utah, South Dakota, the U.S. Virgin Islands and American Samoa saw decreases of less than 1%.
Vermont, Mississippi and Puerto Rico all saw enrollment fall by more than 5%, while Washington, New Mexico, Michigan, Kentucky and Maine lost between 4% and 5% of enrollment.
The coronavirus pandemic and government-imposed restrictions that closed schools has been the main driver behind the drop in the number of public school students.
The large drop in enrollment among younger students confirms earlier speculation that families chose to keep those students out of school rather than attempt virtual learning.
Home-schooling, meanwhile, more than doubled between the end of the 2019-2020 school year and the start of 2020-2021.
According to the U.S. Census Bureau, 5.4% of American households said they were home-schooling their children in the spring of 2020. By October of 2020, that figure reached 11.1%.
“It’s clear that in an unprecedented environment, families are seeking solutions that will reliably meet their health and safety needs, their childcare needs and the learning and socio-emotional needs of their children,” the Census Bureau said in a recent report.
City will Push for 34 Mills Public Safety Levy
The Billings City Council has approved placing a $7.1 million mill levy on the November 2 ballot for public safety. A study has found that public safety is a high priority of citizens, concerned about the increase in crime in Billings.
If it passes the increase in mills will be part of a $434 million budget that was also passed by the Billings City Council. The city’s budget has been bolstered this year by COVID relief funds which allocated money to specific needs that then freed up funds for other needs. The budget includes $11.6 million to purchase the Stillwater Building, as well as $80 million for a new westend water treatment plant and $18 million to construct the Inner Belt Loop and Skyline Trail, and an additional $7 million for the airport expansion.
An increase in the public safety funds will allow an additional $800,000 for the police department, in addition to more funding for enforcement of the recently rewritten building codes, the court system with the development of a law and justice center, and more services for mental health and substance abuse. It will also help fund a new division of the fire department that will be dedicated to responding to Emergency Medical Service calls.
If voters approve the proposed 34 mill increase it will add about $100 a year in property taxes on a $200,000 home in Billings.
Bureau EA Concludes Prairie Reserve for Bison Has No Impact
From the Northern Ag Network
The Bureau of Land Management has released a Draft Environmental Assessment (EA) and Finding of No Significant Impact (FONSI) for a bison grazing proposal from the American Prairie Reserve on 69,000 acres of BLM grazing allotments in Phillips County.
In November of 2017, the APR submitted a proposal to modify terms and conditions of 18 BLM administered permits, which was revised to 7 grazing permits in September of 2019. APR requested from BLM a change in class of livestock for cattle and bison, changes to the authorized seasons-of-use, construction, reconstruction and/or removal of some fences and adjustments to allotments (such as combining pastures).
In the spring of 2018, the BLM conducted public scoping which included meetings in Northcentral Montana. The BLM received 2,497 submissions which they reviewed and considered in determine the issues to be included in the NEPA analysis.
Now the BLM has come back with their analysis of the proposed action and has found that it conforms with their Resource Management Plans. The bureau has determined the changes will not significantly affect the land, wildlife or human environment.
Jay Bodner, Executive Vice President of the Montana Stockgrowers Association told Northern Ag Network that the announcement of this decision raises a lot of concerns from the livestock industry.
“Certainly, from a resource management standpoint, which we take a lot of pride in our stewardship of our rangelands, we’ve moved away from these kind of grazing practices,” Bodner says. “It seems to be moving our grazing systems back 30 years. So, there’s a lot of concern from just the rangeland health standards.”
“Secondly, it looks like if a livestock producer would have made this proposal, I’m not sure if it would have been met with the same kind of decision that this one is dealing with bison.”
Bodner adds that in previous documents that the BLM had released, they had recognized that with year-round grazing and removal of interior fencing there was a high likelihood of resource damage in those riparian areas. However, in this assessment BLM found no significant impacts.
“One of the challenges we see with this proposal,” Bodner says. “is that if you remove a lot of that infrastructure, to be able to address any kind of resource damage, you basically have to rebuild fence to try to move animals around. So that’s going to create a lot of challenges to address any potential challenges that may arise.”
This has been a controversial topic for 4 years now and Bodner says the MSGA membership will be engaging in the discussion and making public comments.
Sidney, MT rancher and President of the Montana Stockgrowers Jim Steinbeisser commented that, “Our organization has consistently provided comments outlining concerns regarding the impacts a request like this can have on rangeland health, riparian areas and economic impacts to the livestock industry. Today’s release of the draft EA and Finding of No Significant Impact is very impactful to ranchers across the state. This assessment may have a much larger ripple effect moving forward on setting precedent for public land grazing permits.”
“The fences represent a significant monetary investment in improvements, and if this change in grazing management proceeds, BLM must analyze what steps will be taken to address any resource damage”,” continued Steinbeisser. “We feel many of the request changes in the draft have significant resource impacts and have not been fully vetted or analyzed by the BLM.”
Before the Environmental Assessment can be finalized the BLM will conduct a public comment period running from July 1st through August 29th. Comments can be submitted online and a virtual public meeting is planned for Wednesday, July 21 from 1-4pm.
The public may comment on the Draft EA and FONSI by visiting the BLM’s ePlanning website at https://eplanning.blm.gov. Search using the NEPA number: DOI-BLM-MT-L010-2018-0007-EA. Public comments may also be submitted via the U.S. Postal Service addressed to: BLM Malta Field Office; Re: APR Grazing Proposal; 501 South 2nd Street East; Malta, MT 59538.
Commissioners Split on Purchase of Miller Building
By Evelyn Pyburn
The prolonged search by Commissioners for a solution to meet Yellowstone County’s space needs for future growth will be resolved with the purchase of the Miller Building in downtown Billings. County Commissioners voted two to one, to proceed with purchasing the building following months of due diligence and an appraisal that came in less than expected.
The decision ends considerations of both city and county officials of jointly developing the Stillwater Building into some kind of arrangement for a centralized local governmental facility.
Commissioner Denis Pitman voted against the purchase saying he wanted to continue exploring the possibility of the county remaining in the Stillwater Building and finding a way the county could partner with the city.
The prospects of pursuing a joint tenancy in the Stillwater Building seemed to strengthen with the news from City Administrator Chris Kukulski that the city had a “handshake” agreement on a price for the Stillwater Building of $17 million with owner Joe Holden of WC Commercial. The County currently has a lease agreement for offices on the third floor of the Stillwater Building, which has four years remaining.
County Commissioner John Ostlund pointed out that the $17 million agreement on the Stillwater Building could not be accepted by the county since state law prohibits the county from making a purchase in excess of appraised value, and the appraisal on the Stillwater building was $13.5 million.
Ostlund urged action on the Miller Building because their Memorandum of Understanding for first right of refusal on the property ends July 1, 2021.
On March 2, 2021, the commissioners offered a non-refundable $33,750 to owner, Miller Trois, LLC (Norman Miller) to take the property off the market until July 1, in a vote that Pitman also opposed. Last fall, the Board approved on the consent agent a contract with Cushing Terrell to analyze the suitability of the property for the County’s future needs. The property inspection found that the property would be sufficient to meet the county’s needs.
An appraisal ordered by the county placed a value of $4,375,000 on the Miller Building on May 21, 2021 – – $125,000 less than the county’s offer in the MOU to pay $4.5 million or the appraised value, which ever was less. Ostlund voiced concern about losing the opportunity to purchase the Miller Building which he believes would greatly diminish their options going forward. He said that the building is in very good condition, with new elevators, parking and more than sufficient space to house all county departments, excluding the courts, which would remain in the Courthouse. The inspections and assessments of the building unveiled no issues that would result in uncertainties or contingencies in the proposed purchase.
Pitman urged that the county work with the city and do what is best for the community. “We have other options,” he said, citing the possibility of building next to the jail or near MetraPark or other spaces in the community not necessarily downtown. He said “we could continue to rent or condo or purchase other property. “We need to have an open discussion on what a partnership would look like.” He noted that there are other costs associated with acquiring the Miller Building, such as hiring more maintenance staff. And, with the county purchasing the Miller Building and if the City purchases the Stillwater building that would be taking two buildings off the tax rolls rather than just one, Pitman pointed out.
Commissioner Don Jones said that the county has spent considerable time – since 2018 when they launched their search for more space – exploring all kinds of options, and this is the point to which it has led. Jones also said that he preferred the Miller Building as opposed to the much larger space available with the Stillwater option, since government has a tendency to grow to fill the space it has and he is opposed to unnecessary growth in government. He likened it to “build it and they will come.. but, we will grow.”
He also pointed out that with either option it will be awhile before the county would be needing the space and with the Stillwater that would mean holding an empty shell of a structure while the Miller Building is occupied with renters who would continue paying rent to the county and in essence helping to defray the cost of acquiring the building.
The County’s Finance Director, Kevan Bryan reported that the County has the capability to completely remodel the building for its use as existing leases term out in the Miller Building. He said that the expansion can be accomplished with no tax increase or need for debt on the County’s part.
Bryan said he would advise the commissioners to look at the numbers over the issue of cooperating with the City. He said, “…we respectfully disagree that the decision here boils down to whether we want to share a physical facility with the City of Billings, or that this shows taxpayers that we in local government can work together. Who can oppose us working together?” Both the city and the county seek the same things, he explained, “efficiencies of operations, common purpose and the wise spending of tax dollars. While the thought of a combined administrative facility on the surface has promise, it’s not necessarily a guarantee of any advantage to either governmental entity, or the taxpayers themselves.”
Bryan reminded that the county’s needs are for long-term space for the inevitable growth of the district and justice courts and the departments that work with the courts. The goal is to keep those services located in one building while moving most other county functions other than the Sheriff’s department to a “Yellowstone County Administration Building.”
The Miller Building presents a “very, very long-term solution for the County,” said Bryan. He said the county tried to work out the possibility of purchasing two floors of the Stillwater building, but its owner sought a selling price “well above market value,” which the county “would not and could not entertain.”
In discussions between city officials and county officials, Kukulski urged the county to postpone their decision and to explore the Stillwater option further. Without the county’s interest in partnering in some manner with the city the potential of the Stillwater deal isn’t as promising, pointed out Kukulski and Mayor Bill Cole, both of whom noted that the final decision is up to the City Council. Kukulski said that the matter would be on the City Council agenda on July 12.
In response to a comment that the city ownership would somehow impact the county’s lease, Kukulski said that the city wanted the county to remain. He said that he was sure the city and county could come to some acceptable arrangement in either leasing or condo-ing the floors of the five story building. He did note that the city has its own due- diligence to do on the Stillwater Building in making sure they understand what would be needed to remodel it for city offices, including using the basement for the City Police.
Ostlund said that the county had been attempting to negotiate with Holden for what has come to be years without success and he didn’t want to delay the matter any longer. He further questioned how it would be beneficial to the city to pay more for space than what they would later lease or sell it to the county.
The Miller Building is a six-story, plus basement building, located on 3rd Avenue between 28th and 29th Streets, downtown. It was the former Security Trust & Savings Bank Building.
The Stillwater Building, located at 316 N. 26th, in downtown Billings, is the former James F. Battin Federal Building, which stood vacant for several years until it was purchased for $3.2 million in 2017 by Holden, who has removed asbestos and prepared it to remodel on a build-to-suit basis for future tenants, the first of which was the county two years ago. Holden also built an adjacent parking garage.
Fort Benton Industrial Park Planned
A proposed new industrial park at Fort Benton has been awarded a $1.7 million grant from the federal government to provide transportation, water, wastewater and stormwater infrastructure. The grant is expected to be matched with $1.7 million in local funds, according to an announcement from U.S. Secretary of Commerce Gina M. Raimondo, Department’s Economic Development Administration (EDA)
The project is projected to create 75 jobs and generate $12 million in private investment.
Raimondo said the expenditure of federal funds “will provide critical infrastructure for a new 105-acre industrial park that will support the growth of the local agricultural industry and diversify the regional economy.”
Governor Greg Gianforte said, “Through infrastructure improvements like these, Fort Benton and Chouteau County will boost their thriving agricultural community and attract businesses to locate, bringing more good-paying Montana jobs to the area.”
This project is being proposed by the Bear Paw Economic Development District (EDD).
Gun Sanctuaries Grow
Most of media is remaining silent on a huge movement sweeping the country regarding gun rights.
States are not only passing strong “Constitutional Carry” laws, but 61 percent of counties are now “Second Amendment sanctuaries”, according to a report in The Epoch Times.
As of June 20, there were 1,930 counties “protected by Second Amendment Sanctuary legislation at either the state or county level.” The count does not include specific cities, townships, boroughs, etc. that has taken action at the local level.
The movement is a grassroots movement from the bottom-up, according to a website called Sanctuary Counties, which notes that becoming a sanctuary county is different from passing Constitutional Carry laws which many states have done, and which has had more media attention. Sanctuary counties or other communities vow not to enforce “new / unconstitutional gun laws.”
Constitutional carry means laws are in place that allow citizen’s to carry a weapon without a permit. Some states have enacted both approaches in support of the Second Amendment which asserts, “the right of the people to keep and bear Arms shall not be infringed.”
Democrats and gun-control organizations usually oppose such legislation, saying it will increase the number of mass shootings and criminal use of firearms.
President Succeeds in Promise to Terminate Keystone XL Pipeline
TC Energy Corporation confirmed that after a comprehensive review of its options, and in consultation with its partner, the Government of Alberta, it has terminated the Keystone XL Pipeline Project.
Construction activities to advance the Project were suspended following the revocation of its Presidential Permit on January 20, 2021. The Company said it will continue to coordinate with regulators, stakeholders and Indigenous groups to meet its environmental and regulatory commitments and ensure a safe termination of and exit from the Project.
Another news report said that the government of Alberta announced that it’s hoping to recover the $1.3 billion in public money the province had invested in the project. How they can do that was not explained, however one Canadian news reported that Premier Jason Kenney called on the Canadian federal government to press the U.S. for compensation as a result of the decision.
The project, which would have been approximately 285 miles, would have passed through six Montana counties Phillips, Valley, McCone, Dawson, Prairie and Fallon.
State and local tax collections in Montana were expected to exceed $65 million annually.
Additionally, an estimated 42,100 jobs with $2 billion in associated earnings throughout the United States would be created, including 3,700 direct construction jobs in Montana garnering approximately $127 million in employment earnings.
It would have had six pump stations in Montana taking Montana petroleum production to market.
The Montana Department of Environmental Quality issued Keystone XL a Certificate of Compliance on April 2, 2012, under the Montana Major Facilities Siting Act.
On Inauguration Day, as one of his first acts in office, President Joe Biden made good on his campaign promise about abolishing the fossil fuel energy industry by cancelling the federal government’s permit.
Most recently, Montana Attorney General Austin Knudsen filed suit declaring President Biden’s executive order unconstitutional. Twenty-three other states had joined the suit. In addition, the government of the Canadian province of Saskatchewan announced it would file an amicus brief in support of the lawsuit, which argues the president unconstitutionally changed energy policy set by Congress, which is granted sole authority to regulate foreign and interstate commerce.
The Montana Petroleum Association recently said that the pipeline would move approximately 830,000 barrels of crude oil per day from where it is produced in Canada and Montana to a large refining hub near the Gulf Coast and supplement refining capacity in Illinois, ensuring a reliable domestic and global energy source, bolstering U.S. energy independence and global leadership.
Governor Gianforte upon learning of the possibility of the company abandoning the project, made a plea to Senator Jon Tester to attempt to convince the President to reinstate the permit. He said, “… this decision has real and devastating consequences in Montana.” He noted thousands of good-paying American jobs, hundreds of millions of dollars in revenue to support our local communities and schools, the opportunity to advance America’s green energy infrastructure, and America’s energy security,”
Governor Gianforte wrote, “With its construction terminated, the oil will still reach markets in the U.S. and around the globe. Without a pipeline, though, it will be transported more slowly by trucks and other means, endangering the environment, delaying delivery and making it more expensive for consumers who are struggling to make ends meet amid the pandemic.”
US Representative Matt Rosendale commented, “President Biden owes Montanans an explanation as to why he decided to pull the Keystone XL Pipeline permit. This killed a project that was going to be critical to Montana. The administration has reversed over a decade of planning for our local governments, cut funding for our school systems, and sacrificed the communities that were dependent on revenue from this project to get through the pandemic. We are already seeing the price of Biden’s war on energy independence, and I fear its impact will only get worse.”
“We remain disappointed and frustrated with the circumstances surrounding the Keystone XL project,” Alberta Premier Jason Kenney said in a statement.
Daniel Turner of Center Square wrote recently that cancelling the pipeline “is a gift to someone.” Besides the rail and trucking industry which will now have to move the oil, Turner said it is a gift to US competitors, such as Russian and Venezuela. Turner dismissed fears expressed by environmental groups regarding the risks of pipelines, pointing out that America is ‘crisscrossed with over 2.6 million miles of pipeline.”
US and Canadian environmental groups fought the project since it was first announced in 2008 described its cancellation as a “landmark moment” in the effort to curb the use of fossil fuels that contribute to climate change.
Anthony Swift, director of the Canada Project at Natural Resources Defense Council, was much more jubilant about the decision, saying, “This is a fantastic day for clean water, safe communities and our climate. The era of building fossil fuel pipelines without scrutiny of their potential impact on climate change and on local communities is over. Keystone XL was a terrible idea from the start. It‘s time to accelerate our transition to the clean energy sources that will power a prosperous future.”
The proposed pipeline over the past 15 years passed through several environmental impact studies which always resulted in being granted state and federal approvals, but were then delayed or rejected for political reasons. Former President Barack Obama rejected permits in 2015, an action reversed by former President Donald Trump who allowed construction to move forward.
Canadian Prime Minister Justin Trudeau was among those critical of President Biden’s inauguration day cancellation of US approval.
TC Energy’s President and Chief Executive Officer, François Poirier:
We value the strong relationships we’ve built through the development of this Project and the experience we’ve gained. We remain grateful to the many organizations that supported the Project and would have shared in its benefits, including our partners, the Government of Alberta and Natural Law Energy, our customers, pipeline building trade unions, local communities, Indigenous groups, elected officials, landowners, the Government of Canada, contractors and suppliers, industry associations and our employees.
Through the process, we developed meaningful Indigenous equity opportunities and a first-of-its-kind, industry leading plan to operate the pipeline with net-zero emissions throughout its lifecycle. We will continue to identify opportunities to apply this level of ingenuity across our business going forward, including our current evaluation of the potential to power existing U.S. assets with renewable energy.
TC Energy’s infrastructure plays a critical role in powering the North American economy, delivering the energy people need every day, safely and responsibly. The Company has $20 billion in projects, with another $7 billion of projects under development.
Montana Program Aimed to Bring Montana’s Progeny Home
A campaign to bring Montana’s progeny back home has been launched.
Governor Greg Gianforte announced a website as part of the administration’s new campaign to encourage Montanans, who have moved to other states, to come back home to Montana.
“For too long, Montana’s most valuable export has been our kids and grandkids,” Gov. Gianforte said. “Our quality of life is second to none, and we’re reminding former residents of what a great place Montana is to live, work, and raise a family. We’re growing opportunities and creating an environment so more Montanans can thrive and prosper. Let’s bring our kids and grandkids back home.”
The campaign and new website, ComeHomeMontana.com, encourage Montanans who have relocated to other states to return to Montana to work remotely, start a business here, or take advantage of job opportunities across the state’s industries.
To bridge the digital divide and make working remotely more accessible than ever, the administration is in early stages of deploying $275 million for broadband expansion.
In addition to highlighting opportunities for remote work and employment, the campaign highlights the value of a Montana education.
Letter Urges DOJ to Continue Investigation
In a joint-letter with governors from South Dakota, North Dakota, Nebraska, Oklahoma, and Iowa, Governor Greg Gianforte has urged the Department of Justice (DOJ) to continue their investigation into serious allegations of anticompetitive behavior in the meatpacking industry.
“Decades of consolidation in meatpacking has significantly limited the options that producers have to market their cattle and has created a situation where one segment of the beef industry has near total control over the entire market,” Governor Gianforte and other governors wrote to U.S. Attorney General Garland. “We urge you to continue to investigate this matter with the urgency it calls for.”
In May 2020, the U.S. Department of Justice launched an investigation into the nation’s four largest meatpackers whose anticompetitive behavior is threatening Montana cattle producers.
As outlined in the letter, the price of cattle has decreased in recent years while the price of boxed beef has skyrocketed. The result is higher prices for consumers at the grocery store and declining profit margins for cattle producers in Montana.
“The loss of the independent cattle producer would devastate not only ranching families and the rural communities they support, but the very health and spirit of our nation,” the governors emphasized. “Producers and consumers deserve fairness and transparency now more than ever.”
Governor Gianforte was joined in signing the letter by South Dakota Governor Kristi Noem, Iowa Governor Kim Reynolds, Nebraska Governor Pete Ricketts, North Dakota Governor Doug Burgum, and Oklahoma Governor Kevin Stitt
