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Infrastructure falling behind, economist says
Breakfast group told of need to invest in services, education
While labor income has risen significantly in Yellowstone County in recent years, economist Larry Swanson told a Billings audience Wednesday that the city hasn't invested enough in its roads, sewers and other critical infrastructure to accommodate growth during the next 15 years.

Swanson, director of the O'Connor Center for the Rocky Mountain West at the University of Montana, told a Celebrate Billings breakfast gathering that continued prosperity of the state's largest city depends on improving public services to handle the robust growth.

"Billings is an area where you can invest money and get return," he said. "We're working from a position of strength in Billings."

Starting in 2000, personal income growth in the state rose 17 percent in five years. Montana is above the national average in growth in personal income, including some years when it grew 5 percent, which Swanson called "amazing progress."
Despite that good news, he said the population is aging and the good times in housing and construction won't last forever.

"We're getting a tremendous bump out of construction and construction workers' earning and real estate, but that is leveling out," he said.

Some of the illustrative slides Swanson showed the group indicated that public spending is not keeping pace with private-sector growth.

In one decade, spending from all revenue sources in Billings and Yellowstone County fell from 4.6 percent of total personal income to 3.8 percent in 2002.

The Celebrate Billings partners include The Billings Gazette, St. Vincent Healthcare, Billings Clinic and Montana State University-Billings, which hosted the breakfast meeting. The group's goal is to make Billings a better community in "economic development, civic climate, and education" by the year 2020.

The enthusiastic crowd of about 300 listened as Swanson laid out economic statistics that will affect growth.

The conventional wisdom that the cities are booming and Montana's countryside isn't doesn't hold true anymore, he said. In fact, 70 percent of Montana's residents live within 40 miles of the seven largest cities, according to the 2000 U.S. Census. Increasingly, wages from the "rural" people who work in the cities come back to benefit the surrounding towns, Swanson said.

"They are now distributing to the surrounding counties 12.5 percent of personal employment earnings from jobs in the cities," he said.

As he has in previous talks in Billings, Swanson said Montana depends too much on property taxes.

"As growth continues, it keeps squeezing, squeezing, squeezing public services in terms of the city and schools," he said.

Spending on education also is inadequate and he invited community leaders to attend school board meetings as he has for 10 years.

"Those folks have their backs to the wall and that's not the way to move confidently into the future," Swanson said.

Billings City Administrator Tina Volek pointed out that Billings is serving 6.4 more square miles within its city limits and 12,000 more people than five years ago.

"Yet growth hasn't paid its way," she said. "All the new growth only generated $300,000 last year in property taxes."

John Brewer, executive director of the Billings Area Chamber of Commerce, asked for a local-option tax so that out-of-state tourists could help pay the bills.

"Forty seven other states in our country don't have it wrong. We do," Brewer said. "We need to complete tax reform."

Several speakers, including Big Sky Economic Development Authority Executive Director Joe McClure, called for more job-specific training for workers. Billings needs to increase the amount of money flowing through the local economy and the city's leaders need to direct the future, McClure said.

"If we're going to look to Helena to solve our problems, we're going to be standing around a long time," he said.

College of Technology Dean John Cech said the city is approaching a "perfect storm."

"Montana is probably the fourth-oldest population state," he said, "and by 2030, 26 percent of our population will be 65 and above."

With fewer than half of the state's high school graduates going on to college or post-econdary school, more spending is needed on the Career Center where high-school-age students can learn a trade, several speakers said. The Career Center is packed and turning students away.

Cech announced that the College of Technology has been awarded a federal grant of $1.9 million to train students for jobs in the energy industry. The grant is a done deal, he said, and isn't tied up in congressional budget review.

"The bottom line is, the money is there," Cech said. "It's part of the president's budget."

The loudest applause went to comments made by MSU-Billings Foundation Chief Executive Marilynn Miller. During a question-and-answer period, Miller said the Billings campus needs to have its "Ivy League handcuffs removed."

Whenever Billings wants to add a program to help its people, she said, campus leaders in Bozeman or Missoula say no.

"The programs we need for the people of this city are not allowed in because Bozeman won't allow it," Miller said. "It's turf protection."

MSU-Billings Chancellor Ron Sexton agreed with Miller in an interview.

While he said he understands the need to avoid program duplication and to keep tuition affordable, he said Billings is growing and needs more educational choices.

Sexton's top picks would be a more futuristic graduate-level business education focused on international relations; pure research, especially in the energy sector; and more health care programs to serve an aging population.

"In order for us to grow and develop, we need major programs and a mix of programs in health care," he said. "This is inevitable."

When asked to sum up how Billings is doing in planning its future, Swanson said he attends 80 meetings a year.

"This is one of the best gatherings in the state of Montana in terms of trying to keep the ball moving down the field," Swanson said.

"Billings is well on its way."

Contact Jan Falstad at jfalstad@billingsgazette.com or 657-1306.

Published on Thursday, December 14, 2006.
Last modified on 12/14/2006 at 12:46 am


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MR - A citizen of Billings wrote on December 14, 2006 1:03 AM
Why does Missoula and Bozeman have the say in what Billings does? Ignore Them!
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Yipee! More Taxes! wrote on December 14, 2006 2:07 AM
Uh, oh ... here we go again ... another special interest group lobbying for more SPENDING and MORE TAXES! Sheesh! It doesn't matter how much money we taxpayers shell out to our city, county, state and federal government, each one of them will ALWAYS come back for more - the greedy buggers! Liberals such as Larry Swanson want to add ANOTHER tax to our already heavy tax burden? He and others are being deceptive when they tell you tourists are going to take over some of our tax burden ... A LIE. Billings is a great city but not a lot of tourists come to Billings. Most drive pass Billings by on the interstate and a small number may gas up and some may spend the night in the hotel but they're just passing through. Tourists already pay gas taxes and lodging taxes. Larry Swanson and others will razzle dazzle us with statistics, charts, rah-rah speeches, etc because he and others advocate more money to the government and less money for us. Do you really think the special interest groups such as the Teacher Union Bosses want to do this new sales tax to get the same amount of revenue? Heck no! They know darn well they'll get more money and all of that is coming from OUR WALLETS. So you see folks, the propaganda for another TAX has begun! Why would anyone want to give even more of his/her hard-earned money to the government? Sales tax proponents argue they will lower property taxes to only 4%! They're being deceptive again here folks, be careful! Unless you kill the property tax completely that 4% property tax will slowly creep back up again because in the years to come another special interest group will come down the pike and tell us we need a small increase in our property taxes and/or sales tax for schools, roads, etc. They will argue, "Well its only a SMALL increase" but when they do that every couple years or so it eventually becomes a an even bigger tax. Once you create a NEW tax it will NEVER die, ever. It will start out small but will slowly but surely get BIGGER and BIGGER and BIGGER. Its disappointing that the Billings Gazette chose to give such exposure and for the sales tax advocates. When a business tries to sell a product or service they have to buy advertising in the paper. Here, the Billings Gazette gives free front page advertising for tax proponents to sell their ideas. Will the Billings Gazette be fair to Billings residents and give the same coverage to those who are against this proposed new sales tax? There are many who believe the Billings Gazette has reporters and editors who are liberal and thus generally support bigger government and more taxes. Lets see if the Billings Gazette will be balanced in their coverage and give the same front page coverage to the majority of people who HATE the idea of new taxes!
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Yeah, we know wrote on December 14, 2006 3:26 AM
The streets suck and many are without sidewalks; the water is horrible and getting worse, but we'd rather have a new ballpark.
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Los Cangrejos wrote on December 14, 2006 5:34 AM
Uh oh. Hold on to your wallets.
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Speak Out Against Sales Tax! wrote on December 14, 2006 6:08 AM
If the government and politicians truly wish to help people they can by putting money in the pockets of as many people as possible. The best way to do that is to let Billings residents KEEP THEIR MONEY. Don't force citizens, through more taxation, to give it to greedy government bureacracies that serve only special interest groups. Watch out, folks, these special interest groups are coming after your wallets and have teamed up with the media to sell you on the new sales tax. This is the beginning of their slick, organized sales tax campaign. Keep an eye out for more snake oil propaganda from these sales tax proponents. If you want to prevent these greedy tax and spenders from confiscating more and more of your money you must FIGHT BACK! Don't let other people do your fighting for you because the more we stand up to these tax and spenders the more powerful we become. Speak out against bigger, more expensive government. And don't believe for a second these tourists are going to be footing the bill - we are, 24 hours a day, 7 days a week, 365 days a year.
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Bye John wrote on December 14, 2006 7:02 AM
John Brewer should resign his position with the Chamber of Commerce so that he can pursue his political career. A local option tax is not an option. The gasoline and bed taxes are already collected from the tourists. He is completely out of step with the voters.
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Reality Check wrote on December 14, 2006 7:12 AM
I really love Billings but we have some of the darkest streets I have seen in any city. We are going to have a ball park for our children; not my first choice, but come on friends let it go. What I am concerned about is how dark the streets are at this latitude this time of year when kids are still out and about. We've also had a couple of adult pedestrian accidents lately, usually at night if I remember right. I don't like the property taxes either but our city needs to catch up somehow.
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Yeah, wrote on December 14, 2006 7:28 AM
but we're building a baseball field. Who needs streets and sewers when you have the best ball field in your league?
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Resort Tax wrote on December 14, 2006 7:59 AM
I bet the politicians many year ago were told that the new sales tax they were voting for would only be for specific "resorts." See how taxes start out! Those guys who voted for this resort tax probably told people, "Its only going to be for a couple resorts" Taxes start off slowly then grow like a giant snowball rolled down a hill. Whatever you do, don't let your politicians vote for another new sales tax!
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Tax the Rich State of Montana! wrote on December 14, 2006 8:05 AM
Why tax the people of Billings? We're taxed enough already. Why tax the poor? Go where the money is -- Helena! Creat a new Tax that will only tax the rich state governement. They have over a BILLION dollars of OUR money and they Won't give it back (except maybe 10% of it). So tax the RICH state and federal governments. They got their hands in our bank accounts already so we don't want more tax-hands picking our pockets dry as a bone. Don't tax the poor with your sales tax, tax the very wealthy state of Montana - they took our money already!
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the solutions wrote on December 14, 2006 8:06 AM
local option gambling tax; user fees for new commercial development and subdivisions, $10,000 to $20,000 per house; coal severance moneys -- billings pays for the coal development out of its own pocket, our high schools are crowded and we need a west end water and sewer complex....
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DS wrote on December 14, 2006 8:20 AM
Yep, we needed a new ball park!!!!!
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tired of the same old presentations wrote on December 14, 2006 8:23 AM
reminds me of the xerox commercial with monkeys making color copies, most of presentation is useless at the best, the thing is we need to use coal severance money and development fees NOW. i hope these economist jokers do this for free.... its worth it....
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local wrote on December 14, 2006 8:25 AM
I fully agree that education options at MSU and Rocky are limited. If you want to work on a Masters degree you get to choose out of 4 generic programs, and none of those programs meet the needs of the Billings community. Lame.
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Don't Create a New Tax! wrote on December 14, 2006 8:29 AM
Why is it liberals always whine when our gas prices go up, electricity goes up, cost of medicine goes Way Up, etc but when a NEW tax comes around that will take money away from Montana residents 24/7/365 they actually ADVOCATE for the new tax? We have way too many liberals in this state and They need to be taxed only. They LOVE taxes so they will be happy because they are able to walk the talk and the rest of us will be happy because we can keep our money to pay for food, rent, mortgage, TAXES, college, gas, mediicine, etc. Maybe the high taxes on Libs will push them out of Montana so they can live in LIBERAL states like California which has oodles and oodles of taxes big and small. The libs will be happy there because they are able to pay for all these taxes 24/7. Don't shoot yourself in the foot, kill this tax NOW.
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seperate Billings from MSU wrote on December 14, 2006 8:51 AM
seperate Billings from MSU; it should be University of Billings......
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free key wrote on December 14, 2006 8:51 AM
What's with the right wing nutcase posters? It seems you all don't even read the article before you go on your all knowing, conspiracy theory
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taxes are too low wrote on December 14, 2006 9:14 AM
taxes are too low and we need higher paying jobs and compensation from polluting industries.....
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Los Cangrejos wrote on December 14, 2006 9:23 AM
On the other hand, we keep electing and re-electing these idiots, theives and liars. I love the part about how all this growth hasn't paid for itself. I wonder if it ever will. Probably never with this batch of elected doofusi at the city and county government.
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Annual Tax Increases Stink wrote on December 14, 2006 9:25 AM
Every year some special interest group, teachers union, politicians, et. al. are lining up to suck more and more money from the city, county, and state governments. EVERY YEAR! Any politicians that votes to allow the city of Billings to raise taxes will FEEL THE WRATH of Billings area voters. If they allow this possibility these sales tax proponents will come back every year until finally they get their new sales tax! Any politician that votes for this new sales tax option will be kicked out of office!!!!
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playground first wrote on December 14, 2006 9:30 AM
Ya let's get the ballpark (playground for theVIP) first, be sure and tear down the swimming pool for the kids right away so the old babies can have their fun, oh well we don't need any roads anyway cause very few will support this corncobb anyway, just call it polluted park!! In the end the goodoleboys haveing their way will be the downfall of billings, kinda like cutting their own throats!
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Swanson ecomonic presentation

See the presenation by Larry Swanson about economic improvement strategies in the Billings area. This presentation was originally delivered by Swanson in October 2006.


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