Workforce Training $$ Brings New Growth to Montana

Representative Roger Koopman of Bozeman is on a statewide attack campaign to unduly criticize the successful economic development created through private/public partnerships in Montana. In recent opinion articles, he has wrongly attacked one of Montana’s most progressive companies, Printing-For-Less.com, for receiving state training grant funds for their newly hired employees. Rep. Koopman is wrong in his conclusions and inappropriate in publicly chastising a local business for its expansion efforts. In the process, he has disseminated misleading information about one of Montana’s most successful economic development programs.

Rep. Koopman implied that the Montana Economic Development Advisory Council, of which he is a member, agrees with his sentiments. As Chair of that Council, I have personally spoken to each council member and find broad support for this important state investment in our workforce.

The New Worker Training Grant Program was proposed during the Martz Administration and adopted by the Legislature at that time. It provides up to $5,000 of training funds for each new qualifying job created in Montana. Qualifying companies, which export the majority of their products out of state, must match state funds with company funds. Their employees must be paid at least the statewide or county average wage and the training programs must be approved by the Montana Department of Labor and Industry. These exporting companies provide good local jobs with solid wages and also bring new money into the state of Montana to help grow our economy.

PrintingForLess.com is a shining example of this type of successful, economy-bolstering, local business. Ninety-five percent of PFL’s sales are made outside Montana, while eighty percent of PFL’s employees are hired from within the state. Printing for Less has received just over $500,000 from the State of Montana for employee training over the last four years, leading to over 190 people employed in the Livingston and Bozeman areas. With the current $480,000 training fund commitment, PFL will be hiring an additional 96 employees, bringing their total workforce to over 285 employees. All of the previous training funds have been repaid to the state in the form of new taxes. This most recent round of funding will be repaid to the State in about a year.

Upon taking office, Governor Schweitzer streamlined and expanded the New Worker Training Program to its current successful form. The program continues to draw tremendous bipartisan support today, just as it did when it was initially adopted by a Republican Governor and Legislature.

In order to have a trained and capable workforce for our economic future, we must invest in life-long learning. While much training takes place in our Universities and Colleges of Technology, it also takes place on the shop floors of Montana companies. As private businesses invest in new, state-of-the-art plants, equipment and processes, the need for a skilled workforce is paramount. When the training is not available through our educational system, businesses can turn to the New Worker Training Program. Training grants help local companies expand their workforce by training local people for quality jobs. This program is a wise investment. It is training Montana’s workforce of tomorrow.

In Governor Schweitzer’s first two years, the state invested about $2.6 million in Montana companies for new workforce training. That $2.6 million leveraged new Montana payrolls of more than $80 million. The companies receiving workforce training grants provided an additional $48.5 million in matching funds. New tax revenue paid to the state and local governments from that new employment and plant expansion is estimated at over $4.5 million annually. Therefore, each state dollar invested one-time will return $1.73 every year thereafter in new tax revenue. At Governor Schweitzer’s request, the 2007 Legislature approved $4 million per year for the New Worker Training Program providing a great return on the state’s investment.

Back in 2003, Montana was the last state to provide general fund dollars for workforce training. Companies looking to expand say a top incentive to locate in a state is funding for training of their new workforce. The New Worker Training Program allows Montana to compete for these companies. It also is a key tool to assist existing Montana companies to expand. PrintingForLess.com is a highly successful and adaptable company that could do business from anywhere in the world. They have chosen Livingston, Montana and we have chosen to help them grow there.

Companies receiving new worker training funds from the Schweitzer Administration include: Integrated Solutions in Wolf Point, Printing-for-Less in Livingston, Watkins-Shepard Trucking in Billings, DirecTV in Missoula, Elkhorn Treatment in Jefferson County, AvMax Aviation in Great Falls, Summit Aeronautics in Helena, Centene Corporation in Great Falls, Chinook Wireless in Great Falls, Watkins Shepard Trucking, Inc. in Missoula and TeleTech in Kalispell. All told, these companies will employ nearly 3,000 Montanans in new jobs.

With a record like that, you’d think Rep. Koopman would applaud the program and join the wide majority of legislators of both parties who support it.

Evan D. Barrett

Chief Business Development Officer

Governor’s Office of Economic Development

406-444-5634