Report mixed on Montana state income

Montanans’ income grew at a pace last year that nearly topped the nation, but the state remains near the bottom in the money its citizens make, a new federal report shows.

By Bob Anez of The Associated Press The Montana Standard

The Bureau of Economic Analysis said the average income in Montana in 2002 increased 4.3 percent, second only to North Dakota’s 4.6 percent. The national average was a lackluster

1.7 percent growth rate.

However, Montanans still ranked 45th in per-capita income among all the states, unchanged from the year before, the agency said.

The average income of a Montana resident last year was $25,020, compared with $24,044 in 2001. That means Montanans, on average, had 81 cents in income for every dollar made by the typical American with $30,941 in income.

When measured between the final quarter of 2001 and the same period last year, Montana’s total personal income was tied with Alaska as the fastest-growing in the country at 6.3 percent.

The national average was 3.9 percent.

Paul Polzin, director for the Montana Bureau of Business and Economic Research, said Tuesday the state’s improvement in income looks so good because the remainder of the country was in such bad shape last year.

‘‘In the short term, we have been outperforming the nation, not because our economy has improved, but because the rest of the nation was doing worse,” he said.

The fact that Montana made up no ground on other states despite the income growth is a reflection of how far down the income ladder Montana finds itself, Polzin explained.

‘‘Even though we’re doing good in the short term, we still have a large hole to dig out of in remedying Montana’s low per-capita income,” he said. ‘‘We have a long way to go.”

Montana’s average income is in the doldrums because of low wages, a lack of metropolitan areas and a small population

scattered over a large area, Polzin said.

On the brighter side, the reasons behind what income growth the state has had are healthy signs, he said.

Net earnings — what

people make on the job — climbed 5.3 percent last year, the third best showing in the country behind Alaska and Hawaii. ‘‘Net earnings really reflects what’s going on in the economy,” Polzin said.

He noted that almost all of Montana’s major industries contributed to the income growth, another good economic indicator. From farming and construction to retail trade and service businesses, the income improvement was widespread and fared better than the country as a whole.

‘‘Yes, this is good news because we’re making up a little bit of the ground we lost,” Polzin said. ‘‘Yes, this is good news because it’s across the board and not concentrated in any sector.”

Still, he said, it would take years of Montana’s per-capita income growth exceeding the nation’s before the state can improve its ranking.

http://www.mtstandard.com/articles/2003/05/07/newsstate_top/hjjgjejcjahfff.txt