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Published on Monday, October 23, 2006

Gazette Opinion: Timely lesson taught at local economics talk
At a time when Billings police and fire departments have been telling the community that their forces haven't kept pace with growth in Billings, along comes an economist whose data shows Billings local government shrinking as a percentage of the local economy.

In a fast-paced, information-loaded presentation last week, Larry Swanson of the O'Connor Center for the Rocky Mountain West in Missoula told about 300 Billings business people how our community compares with others of similar size and demographics. In 1990, Billings had fewer local government employees and spent less overall on public sector labor than average among 30 West and Midwest peer cities. By 2004, Billings was lower, just a few notches from the bottom of the charts.

Using U.S. Department of Commerce data, Swanson explained that Billings' growth over the past two decades has been in the private sector. That's good news. And there's no reason to want Billings to be near the top in spending on local government (city, county, public schools).

Disturbing trend noted

But there is a disturbing trend to Swanson's data. Billings is spending relatively less on public services as the economy grows. That isn't a wise or sustainable policy over time. Those businesses and people who are growing this city need and want good roads, utilities, public safety, education and recreation.

The interior West was the fastest growing area of the nation during the 1990's. Its growth was fueled by people and businesses who chose to move in. In what Swanson called the "footloose economy," people and jobs are moving around. Midsize cities (like Billings) are growing, especially in attractive areas. The quality of the community, its infrastructure, schools, arts and culture count more in this new economy.

Swanson also reiterated a theme he's discussed in previous Billings lectures. Montana overall, and Yellowstone County in particular, are missing a key demographic: young adults. In Yellowstone County, the portion of the population ages 24 to 40 has declined. The trend is for young adults to leave Montana to seek first jobs elsewhere for higher starting salaries. The higher salaries may be a necessity for young people paying off large college debts.

Community investment

"Within three to four years, labor supply will be the No. 1 issue in the region, probably in the nation," Swanson said. At a time when Montana has a shortage of workers in their prime labor years, it is also experiencing rapid growth in the over-65 population. By 2020, Swanson said, only Arizona, Florida and Wyoming will have older populations than Montana.

Billings and Yellowstone County need to figure out what will make our economy continue strong, steady growth. Key ingredients will be investment in public infrastructure and work-force education. Entrepreneurs and other citizens will have to work together to build success with private resources and get necessary tools from federal, state and local governments.

Swanson's presentation, sponsored by The Gazette and other Celebrate Billings partners, doesn't necessarily answer the city and county tax questions that will be on the Nov. 7 ballot. But he gave Billings citizens an important question to ponder. If Billings doesn't invest in its people, who will?

Copyright © The Billings Gazette, a division of Lee Enterprises.


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Southsider wrote on October 23, 2006 8:00 AM
Well, the Repubicans have been working to shrink government for years and it ha worked in Billings. Our government fails to keep pace with an expanding economy. Take a look at our library and our overcrowded schools for examples. I want a beautiful and safe Billings, and I think those people with million dollar homes should quit griping about property taxes. Vote for the public safety mill levy - that means AGAINST repeal.
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Billings is a great wrote on October 23, 2006 8:32 AM
Billings is a great and beautiful city, it does did LEADERSHIP, trust, especially with School District,
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against the repeal wrote on October 23, 2006 9:17 AM
VOTE against the repeal, lets make Billings a great and beautiful city and get some high tech jobs and manufacturing, these businesses can go anywhere and will only go to nice towns with good schools and parks.
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Frank wrote on October 23, 2006 10:32 AM
If the fire department doesn't have enough people to fight fires, I have a simple solution. Get the fire department out of the first aid business since this is what takes up most of their time these days.
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yes narrow the duties wrote on October 23, 2006 2:15 PM
yes anrrow the duties for firemen to putting out fires, let small trucks, paramedics handle the usual heart attacks, etc. we should still build the country club fire station but incorporate it with another suitable business, lets use our brains and use private and public moenytogether
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Swanson ecomonic presentation

See the presenation by Larry Swanson about economic improvement strategies in the Billings area.


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