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Changes to the Big Sky Economic Development Trust Fund Program (Category I) Funding Award Process:

Good morning everyone. This message is to let you know about some modifications in the way we will be handling BSTF Category I applications going forward.

During the last legislative session Senate Bill 30 was passed. This bill changes the BSTF law to allow a new job that pays the following to qualify for program funding;

* A job that has an average weekly wage ≥ 170% of Montana’s current minimum wage or,

* A job that has an average weekly wage ≥ the current average weekly wage of the county in which the employees are to be principally employed.

* Also, the value of employee benefits (ERISA eligible) can be included to meet the minimum wage threshold.

With the passage of SB30, we will be making the following policy changes that are meant to provide transparency to you by letting you know how we will be evaluating and funding your BSTF Category I applications. I believe these funding changes provide an incentive for Montana companies using this program to create higher paying jobs while still allowing lower paying, basic sector jobs to qualify for funding.

In keeping with the program’s legislative purpose including the provision to create good paying jobs, the Department of Commerce has developed the following criteria when evaluating funding levels for Category I Job Creation applications:

* The maximum award per eligible job created for applicants not in a High-Poverty County is $5,000. [see map of high poverty counties here:] (http://bstf.mt.gov/content/images/HighPovertyMap.pdf)

* The maximum award per eligible job created for applicants in a High-Poverty County is $7,500.

* The maximum figures stated above are inclusive of the maximum 5% awarded for project administration.

* The maximum total award for project administration per project is $30,000.

* A new eligible job that pays at or above the county average wage is potentially eligible for the maximum award.

* A new eligible job that pays at or above the state average wage in a county where the county average wage is above the state average wage is potentially eligible for the maximum award.

* A new eligible job that pays at 170% of the state minimum wage BUT this wage rate is less than the county average wage is potentially eligible for 1/3 of the maximum award. The potential award amount is incrementally increased as the new eligible job wage approaches the county average wage.

When considering funding levels associated with Category I Job Creation Projects the Department will utilize the attached "award calculator". The calculator provides a potentially available funding level for each job based on the above stated criteria, provides an average available award amount per job, and, accounts for rounding as well as the $30,000 grant administration cap.

Thank you for your support and utilization of this important economic development resource. It has funded a number of very important regional and state economic development projects and planning grants. With your help, we will continue to grow Montana’s economy using the Big Sky Trust Fund and other critical financing tools.

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