News
The Montana Economic Developers Association lays out legislative agenda
Many bills of interest to business people in the state are likely to come up in the 2005 Legislature. And business interests are already working over the issues.
One group that has assembled a legislative agenda early is the Montana Economic Developers Association http://www.medamembers.org . MEDA’s part-time administrator, Gloria O’Rourke, said the group, led by a forward-thinking board, has taken a more proactive approach this time around instead of just "waiting to argue with what comes down the pike."
By Dave Burgess
At its annual meeting this spring, MEDA did something it has done before: It had the major-party candidates for governor present, and each addressed key economic development issues facing Montana. MEDA is also sponsoring a debate between the remaining two major candidates Oct. 8 in Missoula.
But for the first time in its 10 years of existence, the organization, which has nearly 200 members, has prepared itself prior to a session of the Legislature with a written list of initiatives it supports. The agenda is based on "what we work with every day," O’Rourke said. Consequently, "we have a great idea of what legislative issues need to be changed so we can do our jobs better."
Drafting the agenda "involved numerous subcommittee meetings, quite a few meetings of the Legislative and Public Policy Committee and two general sessions of the full MEDA body," MEDA says. Getting the legislative agenda done early keeps the group from being left in a position of reacting.
"The great thing is that it gives us time to share it," O’Rourke said. The legislative positions will be presented and discussed with such groups as MACO, the Montana Association of Counties, which includes most county commissioners, with Montana League of Cities and Towns, which includes most city officials, and with chambers of commerce.
MEDA does not have a paid lobbyist, but it says it will be working with candidates and other statewide organizations to advance the ideas in its legislative agenda. The group’s own members are an active resource in that regard also. They are individuals and professionals engaged in economic development from the private and public sectors. The organization says that "MEDA members are committed to expanding economic opportunity in Montana by facilitating professional development and training opportunities, keeping its members informed on issues that affect Montana’s economy and developing public policy positions that support a strong business development environment."
MEDA members will be kept up to date through an e-mail list right through the 2005 session, O’Rourke said
Evan Barrett, executive director of Butte Local Development Corporation, leads MEDA’s legislative committee.
"MEDA does not want to focus on tax issues," Barrett said. "MEDA can support a number of suggested ways for the state to pay for things."
MEDA simply wants to point out to the governor and legislators and what can be done and what should be done, he said.
Below is a shortened version of MEDA’s posted public policy perspectives for the 2005 session of the Legislature. To read the full agenda, go to http://www.medamembers.org.
Bills MEDA would like the Interim Committee on Economic Affairs to initiate and support:
Creation of Economic Development Trust Fund (modified from HB 276, 2003 session)
The economic development trust fund bill passed the House but was killed in Senate Finance Committee. This concept is a top priority for MEDA, as sustained and adequate funding of economic development programs and efforts is an essential element to making Montana competitive in the economic development world.
We would like to see an Economic Development Trust Fund established similar to the Treasure State Endowment with the interest going for economic development purposes. Generally, such purposes could include matching grants to local development organizations for feasibility studies, special projects that create jobs, etc.; providing state support to local Treasure Communities in order to build better local economic development capacity; augmenting the support for Certified Regional Development Corporations, assisting in the funding of serious state, regional and local development projects and possibly helping sustain the state’s economic development marketing effort. While this approach starts small , eventually it can provide a great deal of sustained support for economic development funding. For example, the Treasure State Endowment now, after 11 years, has aggregated about $115 million in the fund.
We see several ways to finance this important Economic Development Trust Fund.
1. Create an internal trust within the Coal Tax Trust Fund, capturing 25 percent of the flow into the trust for use as an internal Economic Development Trust Fund. This could generate approximately $3.75 to $4 million per year for the corpus of the internal trust.
2. Create a 2-mill statewide economic development levy. This could generate approximately $3.5 million per year for the Trust Fund.
3. Create a realty transfer tax of 0.25 percent on residential properties above $75,000. This would generate approximately $3 million per year for the Trust Fund.
4. Use a combination of any and all of these sources.
5. It is also important to look at "jump-starting" this trust fund in order to get some funds allocated. This was done when the Treasure State Endowment was created. Funds were borrowed from the Coal Tax Trust Fund for the jump-start of the TSE and repaid by the flow in the first several years of the TSE. Something similar could be done in this case as well.
Improving the state’s current "new industry" property tax incentives
There are two current forms of property tax incentive for industry growth. Neither works well. Both apply only to new industry, and that new industry is narrowly defined. MEDA would like both laws to be improved to allow a property tax break for the expansion of existing industries as well as for new industry, would like to redefine the industrial definition to make it more broad, and make other changes to make the laws more useful. We believe changing both laws will help with major recruitments of new industry as well as major expansions of existing industry.
Restructuring Governor’s Office of Economic Development
We believe that the current structure and location of the office makes it difficult, if not impossible, to retain skilled employees in the key positions. Also, we believe the efforts need to be beefed up — especially in the area of marketing and recruitment. We see two different approaches to the issue.
Creating a strong Montana business marketing program
Currently the state of Montana does not even get on the playing field with other states when it comes to economic development recruitment. We have done much to improve our state’s appeal to businesses, but we have, to this point, not committed ourselves to telling anyone about it. Keeping our appeal a secret is no way to accomplish growth.
Our initial proposal is to create a Montana Business Development Council.
Financing the Business Development Council marketing program and other efforts
Our initial estimates are that a strong marketing/recruitment effort will cost between $9-$12 million annually. The size of the program is similar to the bed-tax tourism promotion efforts that have proven to be so successful. MEDA is not locked into any particular revenue source for this.
Incumbent worker job training program
Last session, in HB 564, the state created the first job training program utilizing state funds. We were the last state in the nation to have a state program for job training. The state job training assistance (paid for by the taxes that come from new employees) needs to be expanded to existing Montana businesses that need to improve their company by increasing the capabilities of their employees via job training.
Existing "new worker" job training program
The required demonstrated payoff for a loan from the Board of Investments for the job training funds currently needs to come from the individual company receiving the training funds. We believe that the payoff analysis should also be able to be based upon a portfolio-wide analysis once an adequate portfolio of such projects is developed.
Further, we believe that the Board of Investments should not be a second level of review and decision-making regarding such projects. A company seeking job training funding should not have to undergo two reviews — one by the advisory council and one by the Board of Investments.
We also believe that the training should be tied more closely to the Colleges of Technology.
Exempting economic development levies from local government spending cap (similar to HB 596, 2003 session)
Currently, if a local government wishes to impose millage to support local economic development efforts, it can be done two ways: 90-5-112 MCA allows economic development millage, and 7-14-1131 MCA allows Port Authority millage that can be used for economic development purposes.
In either case, the economic development mills must fit within the local government spending cap or the local government is forced to place the levy the ballot in order to institute it.
Bills MEDA will support but not initiate:
n Various venture (equity) capital possibilities (SB 378, 385, 465 and HB 710, 2003 session).
– Energy policy for the State of Montana.
– Eliminating the "trigger" on further business equipment tax valuation reductions (SB 12 and HB 268, 2003 session).
– Creating a statewide Mainstreet Program.
– Allowing local government to retain urban renewal revolving loan funds when tax increment ceases (HB 690, 2003 session).
MATR Supporters (view all)
Sorry, we couldn't find any posts. Please try a different search.