Office of Economic Opportunity Weekly Newsletter

In this Issue…
– Montana’s Business Climate
– Office of Economic Opportunity Meets with BNSF
– A Value-Added Proposition
– Upcoming Events
– Notes
Montana’s Business Climate

Creating an environment for positive change

Government actions directly affect Montana citizens and businesses. Montana’s business climate must be competitive in order for our economy to provide good paying jobs. After months of discussion with the citizens of the state in addition to conducting benchmarking analysis with other states around the country, we believe our first priority is to address two areas affecting Montana’s business climate (and surprise, they both involve money) — access to capital and our state’s tax structure. There are many other things that are vitally important, but these are two that can be addressed in the next year and are best suited to our office’s mission.

We do have a lack of capital for certain kinds of businesses at certain stages of their development. We do need to improve the ability of these businesses to get needed financing for growth if we want to diversify and grow our economy. However, we have a number of government programs and a private sector banking and investment banking industry in the state that provide money to many successful businesses. It is important that we carefully define the capital gaps that exist in this state and carefully target any initiatives to filling those gaps.

State government should not become the lender of last resort for poorly conceived or run companies. Many businesses, particularly start-up businesses, fail. This is natural and healthy for an economy. Our objective is to ensure that companies with solid business plans and good management have the same access to capital in Montana as they would in places such as Seattle or Denver. We are working with the state’s financial leaders to propose legislation that can help create better capital availability without compromising good private-sector management principals and competitive returns on investment. We also strongly support the small but growing set of “angel” investing networks that are forming in the state.

In addition to capital availability, Montana’s tax structure must be improved to eliminate the capital gains surcharge and our high top marginal rates. These elements of our tax structure are not competitive with other states and put our economy at a severe disadvantage in attracting and retaining good paying jobs in the new economy. If we want to raise our State’s per capita income we must encourage capital investment. With the highest capital gains tax rate in the country we are severely disadvantaged. We must also accept that with higher incomes people become more mobile. We will not attract or retain the human capital our economy needs without paying close attention to how our tax system treats successful people. Our office is actively supporting the reforms to our tax system that are proven barriers to economic growth.
Full Printable Newsletter Office of Economic Opportunity Meets with BNSF

Last week, members of the Office of Economic Opportunity spent parts of two days in meetings with senior officials from Burlington Northern – Santa Fe Railroad. Discussions centered around rail service for several large projects being proposed in the state and on the role BNSF could, in general, play in the state’s economic development efforts. “Railroads are a vital part of our ability to get products into and out of this state at competitive costs,” Dave Gibson, the state’s Chief Business Officer said.

“Railroad and utility companies have also traditionally been key participants in economic development programs around the country. We are excited about the knowledge and resources BNSF can bring to the table and appreciate their willingness to bring senior executives to the state (in the midst of the season’s first snow storm, no less) to work with us on economic growth projects and strategies.”
Full Printable Newsletter A Value-Added Proposition

Montana grower’s cooperative receives grant to study feasibility of producing oil seed crops for conversion into biodiesel fuel.

Peaks and Prairies Oils Seed Growers Cooperative last week accepted a grant from USDA Rural Development in the amount of $46,300 to pursue a market for biodiesel fuel produced through a partnership between the Montana oils seed cooperative and Sustainable Systems, LLC.

Sustainable Systems, LLC, a Missoula based renewable energy research, development and commercialization company converts various oil seeds that can be grown in Montana into biodiesel used to power a variety of vehicles.

“We are extremely excited about the opportunity for Montana businesses to play a lead role in alternative fuel production and were eager to offer our support to the effort”, said Dave Gibson, Chief Business Officer for the state. “This project is a great example of how groups can take innovative technology from our universities and work together to get things done.”

Assistance for the project has come from all corners of Montana, involving the University of Montana and Montana State University, as well as Mission Mountain Market in Ronan, Montana, Montana Cooperative Development Center, Bear Paw Development in Havre, and Sanders County Community Development in the collaborative effort. “Working together will move this state forward,” said Gibson. “Peaks and Prairies Oils Seed Growers Cooperative in partnership with the research and commercialization expertise at Sustainable Systems, LLC is a great model for progress.”
Full Printable Newsletter Upcoming Events

Dave Gibson will be attending the 3rd meeting of the Task Force, focusing on how to improve the organization and delivery of our 2-year education system.

Where: Room 142 Office of the Commissioner of Higher Education, Helena

When: Friday, November 1; 10:00am – 3:30pm

Mark Lindberg will be attending the MSU Ag appreciation weekend. In addition, he will be attending the Ag Experiment Station advisory board meeting.

Where: MSU Campus, Bozeman, MT

When: November 15, 16

Dave Gibson will attend the annual meeting to congratulate the Jefferson Economic Development Corp. on their 4 years of operation.

Where: Montana City Grill – Montana City

When: November 14 6 – 8pm
Full Printable Newsletter Notes

This newsletter is a work in progress. Comments and suggestions are welcome. Please let us know what you think. What else would you like to see covered? What is good and not so good about the newsletter? Please email or call with your thoughts.

For more information, contact the Governor’s Office of Economic Opportunity at (406) 444 – 5634 or email us at [email protected]

The Governor’s Office of Economic Opportunity’s mission is to provide a vision and a direction through the development of strategies and initiatives to ensure that the expansion of the state’s economy takes place in an efficient and orderly manner.