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Published on Thursday, January 08, 2009

Gazette Opinion: Best wishes for federal aid to states
The prospect of a massive federal economic stimulus bill has generated wish lists longer than any letter ever sent to Santa. Asked by President-elect Barack Obama to recommend projects for their states, Wyoming Gov. Dave Freudenthal this week presented a wish list topping $1 billion, while Montana Gov. Brian Schweitzer produced a list of $3.1 billion in projects that could be started within six months of funding approval.

Nobody knows exactly what or how much aid to states will be forthcoming. Congressional leaders and Obama have pledged to enact new legislation designed to shore up the nation's sagging economy within weeks of the presidential inauguration on Jan. 20.

Wyoming and Montana are ready to spend quickly on projects that would create jobs and lasting infrastructure improvements. Most of their proposed projects involve construction. That may be particularly helpful to Montana.

Montana's robust economic growth in recent years has depended heavily on construction, according to information economist Larry Swanson shared with a Billings audience at a Celebrate Community forum last month.

Even though construction peaked nationally in the first quarter of 2006, Montana was among 16 states that actually saw growth in construction labor earnings between the beginning of 2006 and the end of June 2008, according to Swanson's analysis of federal economic data. Between 1990 and June 2008, construction labor earnings grew steadily in Montana from $430 million annually to peak at $1.97 billion.

"In Montana, job growth has been heavily concentrated in construction, with construction jobs increasing by over 19,000 and accounting for almost 20 percent of all job growth in the state during this period," Swanson, director of the O'Connor Center for the Rocky Mountain West, told his Billings audience. "Construction had the second highest increase in labor earnings among sectors. (Only health care sector earnings grew more.) As housing and other construction slow in Montana, as they will, this will have a considerable effect on overall job growth in Montana."

Transportation projects account for about $1.6 billion of the wish list total. That includes funding for Shiloh Road and Bench Boulevard, two long-planned Billings projects. Other Yellowstone County projects on the list include improvements to interstate interchanges at Custer, Pompeys Pillar, Mossmain and Laurel. Projects totaling tens of millions of dollars are listed for rural roads in neighboring counties. Transportation officials estimate that $1.6 billion in road projects would create 66,795 jobs in Montana, The Billings Gazette State Bureau reported.

The Schweitzer administration compiled an impressive list of spending possibilities. A boost in federal funding for public infrastructure projects would put more people to work in a key sector of Montana's economy while creating lasting benefits in better roads and other public facilities. However, the projects on the Schweitzer wish list won't resolve all challenges of this recession. Public health, human services and education will still struggle for operating and infrastructure funding. Not all workers can or will find jobs in construction or in sectors that would soon benefit from a surge in construction.

Montanans need to be realistic about their economic situation and the potential for federal aid.

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





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(1) Comments

observer 4 days ago
Certainly infrastructure improvements would be great. Since Montana's got ill conceived tax policies I guess it'll have to depend on the Feds for the most basic of improvements..

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