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Montana Gov. Wants More Than $20M Endowment for Economic Development
With a state legislature that only meets for 90 days every two years, opportunity for positive change in Montana's public-supported efforts to build a tech-based economy is limited. For the proposed $20 million Big Sky Economic Development Trust Fund - one of new Gov. Brian Schweitzer's largest economic development initiatives - the 90th day, April 26, is fast approaching.
Interest earned on the fund is estimated to total $3 million for the 2006-2007 biennium and to increase in outyears. For the next 20 years, interest would be used to provide grants and loans to local governments and certified regional economic development corporations for projects resulting in new job creation in the state. While rules for the program would be developed by the Montana Department of Commerce, the bill limits allocations to $5,000 per each created job. Language requiring a minimum of five jobs per project has been eliminated in the House Business and Labor Committee, greatly enhancing the fund's potential appeal for assisting start-up firms. Projects not yielding the promised number of jobs would automatically become repayable loans.
The only other legislated restriction on the Economic Development Trust funds would prohibit support of projects involving relocation of companies already within Montana.
If the legislation passes, an initial $20 million deposit to launch the Big Sky Economic Development Fund fund would be made from one-quarter of the coal severance tax bond fund.
House Bill 249 passed the Business and Labor Committee of the Montana House unanimously and the second full reading overwhelmingly, 74-24, on Feb. 9. In favor of the bill were 16 of 20 members of the House Appropriations Committee, including House leadership. Still, the bill has been idle since Feb. 16.
Passage at the third full House reading is required before the bill can be transferred to the Senate for consideration.
More information on H.B. 249 is available at: http://leg.state.mt.us
Montana