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Committee of Commissioners from Across Montana Meet in Hardin about Economic Development

Government/Politics "It’s a new day in Montana — We are going to see things happen," vowed Lt. Governor John Bohlinger in speaking to county commissioners from around the state at a meeting of the Economic Development Committee for the Montana Association of Counties (MACo) in Hardin, last week. A number of county commissioners from throughout the state and economic development officials spent three days touring, listening to presentations, and discussing issues at a meeting hosted by the Big Horn County Commissioners. The Lt. Governor joined them on the third day.

In a free-wheeling, four-hour discussion the group talked about potential future industries for the state, barriers to their development, tax options, and about some of the things they had learned on their tours of the Westmoreland Coal Mines at Colstrip and Sarpy Creek, and the coal bed natural gas development of Fidelity Oil & Gas at Decker, as well as the coal fired generator and ethanol plant at Hardin.

A reoccurring theme during the tours, they said, is the problem of regulatory barriers. Others noted that they were impressed with what is happening among these natural resource industries and the new light in which they now view them. They seemed particularly impressed with the demonstration of how coal bed methane producers are planning to handle the water that is a byproduct. "I had a tendency to believe the other side of it," said one commissioner, "but what we have been hearing isn’t necessarily true."

Bohlinger told the group, "We see Montana as several economies." He pointed out the dramatic differences from one part of the state to another, and most especially the contrast of rural Montana with "the Boot." The Boot is comprised of the six or seven largest cities in Montana where "the economies are strong and jobs are being provided." From north, to south and then east, the geography of the more prosperous areas of the state forms a boot.

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Draft Economic Development Proposals from MACo

Among the issues being discussed and prioritized by MACo’s (Montana Association of Counties) Economic Development Committee are the following:

1. An improved bidding process at the state level for local value-added businesses. One that would make it easier for small and start-up companies to bid on government contracts. Its proponent, Mike McGinley, Beaverhead County, said that making bid requirements smaller would help. He noted that there is resistance to the idea among state agencies.

2. Encourage somewhere in Montana, the development of a state-of-the-art repository for non-radioactive, liquid and solid hazardous wastes. Dennis Hoyem, Stillwater County, makes the proposal because it’s something Montana businesses need, it would increase the tax base, would be of regional benefit, could attract business to the state, the state has much of the research and development expertise that is necessary, could be newer, safer and more efficient than an existing site in Grandview, Idaho.

3. State sales tax to be phased in over a period of five years, not to exceed the Constitutional cap. Local government entities would have the option to impose a "local" sales tax in addition to the state sales tax. The tax would replace property tax, business equipment tax, and/or income tax, proposed John Jensen of Fergus County.

4. Centralize all financial assistance programs, providing one-stop-shopping for counties. MACo would then work with counties to prepare grants and obtain other financial assistance if the respective county does not have adequate resources at their disposal to do so. Proposed by Mac Cole of Treasure County.

5. A proposal to tax conservation easements using the value of the right to hold it from Cynthia Johnson of Pondera County.

6. Restrict non-for-profit organizations ability to sue over issues that damage the state and/or county economic ability (frivolous lawsuits). The proposal comes from Ken Weber of Jefferson County.

7. Create a Property Class 14 for waste area management properties. This would impose a penalty on property owners who will not clean up a hazardous site and removes the current option of abandoning the property and shifting the problem to county governments. Connie Daniels from Anaconda/Deer Lodge County offers this suggestion.

8. Developing an incumbent worker training program for small employers, a proposal recommended by several members of the committee.

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