Government

Tax Abatement Programs Encourage Business Capital Investments

8 March 2022
Press Room
No comments

Yellowstone County and Billings’ tax abatement programs encouraged $410.8 million of investment in the community in 2020, involving eleven different businesses, supporting $126.7 million in payrolls and granting $3.3 million in tax savings, reports Steve Simonson, Senior Project Manager for Big Sky Economic Development.

Those totals include abatements granted to Phillips 66 and CHS. Simonson pointed out that the refineries account for two-thirds of all manufacturing that happens in Yellowstone County. Deducting refinery abatements, the total capital invested by other businesses came to $34.3 million who have total payrolls of $26.6 million. Their total tax savings was $154,679.

Simonson highlighted one company’s abatement program that concluded in 2019. Motor Power Equipment invested $2,530,000 in their business increasing its market value from $1,900,000 to $5,400,400, creating an increase of $3,500,400 of new wealth in Yellowstone County. The company’s beginning general tax bill was $42,555 and ended $75,319, an increase in taxes for the county of $32,764.

Other companies with on-going tax abatement programs in the county, extending as far back as 2011, also include Aspen Air, Billings Flying Service, Home 2 Suites by Hilton, Subaru of Billings, Montana Peterbilt, Northwest Scientific and Summit Resource International. In total the companies made capital investments totaling $445 million from 2011 through 2018 and generated 95 jobs from 2019-20.

There are two versions of the abatement program which the Montana Legislature has allowed to cities and counties, both of which strongly focus on job creation.

A five year program reduces tax on remodeling, reconstruction, and/ or expansion of existing real property when the cost of improvements exceeds $500,000.Tax relief comes with only an incremental increase in taxable value on the new value generated by the improvements or additions. The Remodeling, Reconstruction or Expansion Tax Incentive Program allows a reduction of taxes by 100 percent for the first five years after completion of the project. After the fifth year, the property is returned to its full taxable value.

The ten year program, called the New & Expanding Industry Tax Incentive Program, allows tax reductions on the taxable value of the real property up to 50 percent in the first five years, but only for businesses that generate at least 50 percent of their revenues from out of state. The abatement decreases ten percent a year from year six to ten, to the full 100 percent of tax liability in year ten.

In 2017 the state legislature allowed governing bodies the discretion to choose an abatement of either 50 percent or 75 percent in years one to five, and then decrease it 15 percent a year in years six to ten.

MMEC to Hold Course for Excellence

26 February 2022
Press Room
No comments

Are you ready to accelerate your company’s journey towards Operational Excellence? Do you have high potential employees motivated to learn and prepare for Lean certification?

The Montana Manufacturing Extension Center has just added a new session of its Operational Excellence course, which has been updated to reflect the latest core material and test requirements for the Society of Manufacturing Engineers (SME) Bronze Certificate.  The 6-week, in-person course will be offered at MMEC’s main offices in Bozeman, from March 28 to May 10.  It will combine interactive activities, real-world problem solving, and classroom instruction, offering participants solid preparation for certification testing as well as proven strategies that can be immediately applied at work. Participants will:

* Learn essential elements of Lean, Theory of Constraints, and Six Sigma

* Gain professional mentoring and earn professional credentials

* Become engaged leaders in improving company performance

As a manufacturer, your company can benefit from the return on investment from the projects implemented by employees trained in OpEx tools, and expand your efforts toward company-wide, transformational change. For details contact MMEC Business Advisor and OpEx Instructor Alistair Stewart at Alistair. stewart@ montana.edu

Tackling Labor Shortage at The High School Level

25 February 2022
Press Room
No comments

Big Sky Economic Development’s (BSED) workforce development program, BillingsWorks will be implementing the Summer Jobs Program in Yellowstone County this upcoming summer. The Yellowstone County Summer Jobs Program matches participants with a job or paid internship, 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.”- 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, School District 2, Reach Higher Montana, City College at MSUB, Billings Association of Realtors and 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.

Program to Help Businesses Grow

25 February 2022
Press Room
No comments

Governor Greg Gianforte has announced Montana entrepreneurs have a new tool to grow their businesses. Approved by the governor in December, the Montana Down Payment Assistance Program is a public-private partnership between the State of Montana and Montana’s banks, credit unions, and economic development agencies. 

 “Montana entrepreneurs and job creators now have another tool in their toolbox to invest and grow their business, create more good-paying jobs, and meet increasing consumer demands,” Gov. Gianforte said. “I appreciate the private sector leaders who are partnering with the state in this first of its kind program.” 

 The Montana Down Payment Assistance Program will help finance the acquisition of equipment, purchase of real estate or buildings with improvements, and new construction for existing Montana businesses. Loans have a low fixed interest rate for ten years and range in size from $250,000 to $3,000,000. 

 The Governor’s Office of Budget and Program Planning and the Montana Board of Investments developed the program and presented the proposal to the ARPA Economic Transformation and Stabilization and Workforce Development Advisory Commission in December. With the commission’s unanimous, bipartisan recommendation, Gov. Gianforte allocated $37 million for the program to the Montana Board of Investments. 

Program details are available at https:// investmentmt.com/ Loan-Programs/ Programs-

Hert Joins Economic Development Group

23 February 2022
Press Room
No comments

Southeastern Montana Development Corporation (SEMDC) recently hired additional staffing to assist the regional non-profit economic and community development, group. Amber Hert has joined SEMDC as the new Administrative Services Director and will be based in the Colstrip SEMDC Office. Her primary focus will be managing the day-to-day operations within the Colstrip office and directing the multiple SEMDC Revolving Loan Fund (RLF) Programs.

Jim Atchison, SEMDC Executive Director, noted that “We have been looking for the right person to lead our loan programs for the past 1.5 years.“  “We are very pleased to find Amber, who, with her experience, skills, and credibility, will certainly be an asset to SEMDC and our clients.”

Hert, a Colstrip native, brings over 10 years of financial services experience to the job and most recently managed a regional credit union. Hert will work closely with the SEMDC staff, the regional banking community, and small businesses within the nine-county RLF region. Besides working with loan clients to ensure stability, she will also market and grow the SEMDC RLF programs with the regional banking partners to strengthen collaborative efforts.

 “Even with COVID and labor shortages, we have seen a tremendous amount of interest and growth in the regional small business community in the past few years. We know that Hert will take our loan programs to the next level,” added Atchison.

SEMDC is a regional non-profit economic development group established in 1997 to stimulate and encourage economic activity in the four (4) Counties of Custer, Powder River, Rosebud, and Treasure.

Governor Tours Craft Malt

23 February 2022
Press Room
No comments

Governor Greg Gianforte and Christy Clark, director of the Montana Department of Agriculture, toured Montana Craft Malt to highlight how the operation promotes Montana’s high-quality ag products and expands value-added ag opportunities for Montana producers.  

 “As we work to strengthen our state’s number one industry, it’s critical we continue finding ways to help add value to our commodities, capture that premium, and return it to the rightful recipient – Montana producers,” Gov. Gianforte said. “Using locally-sourced ingredients, Montana Craft Malt helps add value to our commodities right here in Montana, while supporting Montana families with good-paying jobs.”

Montana Craft Malt produces 10,000 tonnes of malt annually and adds value to ag supply chains.

 Utilizing a state-of-the-art facility spanning more than 50,000 square feet on nine acres, Montana Craft Malt is strategically positioned at the intersection of two interstate highways and a railway spur to ensure the strength of their supply chain from Montana producers to consumers.

 “Montana Craft Malt is a shining example of value-added agriculture at work,” said Director Christy Clark. “By processing some of the finest Montana-grown barley into artisan malts that are then used in craft beers and spirits, Montana Craft Malt is bringing grain to glass full circle. I look forward to their continued success.”

 The Montana Department of Agriculture is focused on expanding value-added agriculture opportunities in the state. While Montana crops and livestock are already recognized for their superior quality throughout the world, and agriculture remains the backbone of Montana’s economy, the department is working to find innovative ways to add value to these raw commodities, to ensure that Montana can keep pace with a transforming agricultural industry and grow prosperity.    

Promoting value-added agriculture to strengthen the ag industry is a signature element of the governor’s Montana Comeback Plan.

Tax Cuts & Job Act Increased Revenues, Reduced Taxes Across Board

9 February 2022
Press Room
No comments

According to the Tax Foundation, the latest IRS income tax data shows reported income and taxes paid increased in tax year 2019, the second year of the Tax Cuts and Jobs Act and the last year before the onset of the COVID-19 pandemic.

The data demonstrates the U.S. individual income tax continues to be progressive, borne primarily by the highest income earners:

* In 2019, taxpayers filed 148.3 million tax returns, reported earning nearly $11.9 trillion in adjusted gross income, and paid $1.6 trillion in individual income taxes.

* The top 1 percent of taxpayers paid a 25.6 percent average individual income tax rate, which is more than seven times higher than taxpayers in the bottom 50 percent (3.5 percent).

* The share of reported income earned by the top 1 percent of taxpayers fell to 20.1 percent from 20.9 percent in 2018. The top 1 percent’s share of federal individual income taxes paid fell to 38.8 percent from 40.1 percent.

* The top 50 percent of all taxpayers paid 97 percent of all individual income taxes, while the bottom 50 percent paid the remaining 3 percent.

* The top 1 percent paid a greater share of individual income taxes (38.8 percent) than the bottom 90 percent combined (29.2 percent).

* The Tax Cuts and Jobs Act reduced average tax rates across income groups.

METRA’s Mission Statement, Budget & Questions

9 February 2022
Press Room
No comments

By John Ostlund

METRAPARK, a multi-use complex, shall serve the entertainment, trade, athletic, educational and agriculture needs of the Region by providing quality facilities, programs, and events with complete and efficient services to the economic benefit of the Region.

METRA’s budget consists of $2,115,000 of tax revenue and the balance of the $8,000,000 budget is mostly fees for services, rent and, user services like Star-Plex and the Stage-Hands union.

METRA generates 150 million dollars of economic activity into our community annually. With that 2.1 million dollar injection of tax monies, the Taxpayers investment is returned over 70 times to our economy. This includes our hotels, taverns, retailers, restaurants, gas stations, etc. That two million dollars in tax revenue keeps our users rent down, supports community events like our 4-H program, the Nile Fourth Grade Education Program, the Marines Toys for Tots Christmas program, Flakes-giving, the Spay and Neuter Clinics, Law Enforcement Training, Community Shelter in place and helps many more great non-profits who add value to our community. Monies very well spent.  Here are some of the questions I believe we need answers to before a change can be considered. These questions should have been answered at the start of the discussion about privatization.

What problems in METRA management specifically led the Commissioners to look for a private firm to manage METRA?

What are the Commissioners goals and objectives for a private management company?

Do the commissioners want to remove all taxpayer subsidies from METRA’s Budget?

Do the Commissioners then want to rebate those Taxes to our residents?

Is the Mission Statement still valid?

How do we handle non-profit businesses and what will a private operator charge them?

If nonprofits are to still get a reduced rental rate will the County Taxpayers still provide the subsidy?

Will 4H now have to pay fees appropriate to sustain their operation?

How will Toys for Tots, Flakes Giving, Spay and Neuter Clinics, Festival of Trees, Nile, Riverstone Health, High School Association, etc., rentals be funded?

Will community shelter remain available when a crisis calls for it?

Will private management charge all renters and promoters actual costs for setup, tear down, dirt in and out of the buildings, clean up, user services, standard move in and load out days for the set up of shows and tear down of their event? Most events require 2-4 days for setup and tear down. Our METRA staff is complimented daily on their excellent performance.

The big equipment is owned by the County. Will the private management company rent the equipment at a standard rate and provide maintenance for said equipment and a capitol fund to replace that equipment at appropriate cycles?

Will the taxpayers be responsible for the capitol costs and upkeep on the facility and grounds? The buildings and grounds are County owned. What kind of a bond will be required to insure the public that if this experiment fails the Taxpayers will not be left holding the bag?

Will bonding be in place to ensure the Taxpayer is protected?

What assurances do our food and beverage vendors have that their contracts and percentages will be honored?

The booking contract already signed with Oak View Group has no appropriate escape clause, only a material breach can cancel it. If things do not go as planned with the next contract, will the Commissioners require a 30-day notification of cancelation from either party in the contract?

My fellow Commissioners have said this will still provide local control. That statement can only be accurate if the local control is prepared to provide funding for each request for reduced costs.

The Chamber supports privatization without a complete analysis of both public and private options. Will the Chamber with Bed Tax Monies backfill the tax dollars now used to subsidize METRA and reduce costs for all of our users, 4H, State High School Association, Nile, Chase Hawks, Wrangler Team Roping and many other users that drive economic growth in our community?

This is a small start to the many questions I have about this process that I believe should have been researched and answered prior to issuing a Request for Qualification & Information for private management. This board has the cart before the horse continually as we ram forward with no goal-oriented direction. I continue to express my concern about the lack of groundwork done to make a wholesale change this big in the way we do business. I fail to understand the fear my colleagues have with commissioning a third party consultant to complete a thorough review of both options to insure the path we are headed down is indeed the correct one.

Our Taxpayers deserve to know the answers before any decision can be made on any management change or privatization effort.

Like Most Red States, Montana’s Unemployment Rate Plunges

9 February 2022
Press Room
No comments

Montana’s unemployment rate hit a new record low in December, dropping another 0.3 percentage points to end the year at 2.5%, according to the U.S. Bureau of Labor Statistics (BLS). The number of unemployed Montanans is at its lowest level since BLS began the data series in 1976.

Wallet Hub reports that Montana ranks four in the nation as states whose unemployment rates have bounced back the most. And, Montana ranks fifth among states with the lowest unemployment, based on Bureau of Labor data. It is among sixteen of the top 20 states reporting the most jobs recovered since COVID-related lockdowns began in March 2020 – all of which are led by Republican governors.

The State of Montana has not only recovered all jobs lost since the start of the pandemic, but also grown beyond that level, with 531,040 Montanans employed in December 2021 compared to 521,657 in March 2020.

Montana Governor Greg Gianforte credits his Montana Comback Plan. He said, “After just one year, our Montana Comeback Plan is working. Our unemployment rate is the lowest it’s ever been, and more Montanans are working than ever before in our state’s history. With lower taxes and responsible, responsive government, our economy is going again, we’re open for business, and Montanans are back to work. Great work, Montana!”

The number of unemployed Montanans also dropped to a record low of 13,689, falling by 1,719 from November.

Montana’s total employment hit a record high in December at 531,040. Total employment, which includes payroll, agricultural, and self-employed workers, grew by 3,137 in December, the largest single month gain in 2021. Payroll employment also increased by 3,200 with strong job growth in retail.

Since Governor Gianforte was sworn in, total employment has grown by 20,568 jobs.

Montana’s labor force increased to 544,729 in December, the third highest level in the state’s history. The number of available workers in Montana’s labor force, a critical metric during the current labor shortage, increased by 1,418.

The unemployment rate for the U.S. dropped to 3.9%. Overall, 24 Republican-led states reported recovering at least two-thirds of their lost jobs by December 2021, according to BLS data.

The nine states reporting the greatest percentage gains in recovered jobs are all led by Republican governors, according to the Department of Labor’s Bureau of Labor Statistics. In terms of percentage increases, Utah’s 142 percent was the highest, adding 200,000 jobs as of December 2021, surpassing the 140,000 coronavirus-related jobs it lost. The rest are Idaho, Texas, Arizona, Montana, Georgia, Arkansas, Tennessee, and Florida. North Carolina, led by a Democratic governor, rounds out the top 10.

By sheer numbers, Texas reported the most jobs recovered – 1,542,000 by December 2021 – compared to the 1,452,600 jobs lost after March 2020.

Texas Greg Abbott credits Texas’ job growth to pro-growth economic policies, a predictable regulatory environment, and a young, growing, and diverse workforce.

Of the state’s job growth continuing to outperform the nation’s, Florida Gov. Ron DeSantis said, “Month after month, the data continues to show that freedom first economic policies create jobs and keep our economy moving. Our new businesses and workforce growth show that Floridians have the opportunities they need to thrive. We will continue to lead the nation in economic growth because we value the individual freedoms of Floridians and protect the ability for our citizens to succeed.”

According to BLS data, 12 states set new unemployment rate lows (series began in 1976). They include Arkansas (3.1 percent), Georgia (2.6 percent), Idaho (2.4 percent), Indiana (2.7 percent), Kentucky (3.9 percent), Mississippi (4.5 percent), Montana (2.5 percent), Nebraska (1.7 percent), Oklahoma (2.3 percent), Utah (1.9 percent), West Virginia (3.7 percent), and Wisconsin (2.8 percent).

California and Nevada, both led by Democratic governors, had the highest unemployment rates of 6.5 percent and 6.4 percent, respectively.

Overall, Democrat-led states reported an average unemployment rate of 4.9 percent, higher than the national average of 3.9 percent and the 3.4 percent average of 27 Republican-led states was.

The outliers are Alaska and Texas, with the highest unemployment rates of Republican-led states of 5.7 percent and 5 percent, respectively.

According to Wallet Hub Nebraska, Utah, and Oklahoma are the rank above Montana as state’s whose unemployment has bounced back the most, and it ranks New York, California, New Jersey, Nevada and Hawaii as states that have bounced back the least.

Billings Car Thefts Among Highest in Nation

9 February 2022
Press Room
No comments

The Billings metro area has one of the highest motor vehicle theft rates in the United States, reports Center Square. According to data from the FBI, among metro areas, Billings ranks ninth in the nation. There were 998 vehicle thefts in the metro area in 2020, or 543 for every 100,000 people – far higher than the motor vehicle theft rate nationwide of 246 per 100,000 people. Due in large part to the higher than average vehicle theft rate, the overall property crime rate in Billings also exceeds the comparable national rate. There were 3,472 property crimes reported for every 100,000 people in the metro area in 2020, compared to 1,958 per 100,000 nationwide. In general, motor vehicle theft is on the rise in the US. There were a total of 810,400 motor vehicle thefts nationwide in 2020, the most in over a decade.

Motor vehicle theft, one of the most serious offenses tracked by the FBI, is on the rise in the United States. There were a total of 810,400 motor vehicle thefts nationwide in 2020, the most in over a decade.

Motor vehicle theft can be either the theft or attempted theft of a vehicle, such as a car, truck, ATV, or motorcycle. Some experts attribute the rising rates of vehicle theft to the COVID-19 pandemic, which led to vehicles sitting unattended and unused for longer than usual. Additionally, vehicle theft is often committed for monetary gain, and the pandemic sent unemployment soaring and left many Americans struggling financially.

While motorists nationwide now face a greater risk of vehicle theft than they have in many years, in some parts of the country, car owners are far more likely to be victims of car theft than in others.

The Billings metro area, located in Montana, has one of the highest motor vehicle theft rates in the United States. According to data from the FBI, there were 998 vehicle thefts in the metro area in 2020, or 543 for every 100,000 people – far higher than the motor vehicle theft rate nationwide of 246 per 100,000 people.

Motor vehicle theft – along with larceny and burglary – is one of three criminal offenses that comprise the property crime category. Due in large part to the higher than average vehicle theft rate, the overall property crime rate in the metro area also exceeds the comparable national rate. There were 3,472 property crimes reported for every 100,000 people in the metro area in 2020, compared to 1,958 per 100,000 nationwide.

All crime data used in this story is from the FBI’s 2020 Uniform Crime Report. Limited data was available in the 2020 UCR for areas in Alabama, Maryland, Pennsylvania, and Illinois, though these states were not excluded from our analysis. Only metro areas for which the boundaries defined by the FBI match the boundaries defined by the U.S. Census Bureau were considered.