Talking points of Gov. JUDY MARTZ
Economic Development Council Meeting
10:00 a.m. / Chamber of Commerce Building
Helena
February 19, 2001

CHECK AGAINST DELIVERY

Thank you for the opportunity to tell you what we’re doing at the state level to spur economic development in Montana. We’ve been talking about it for the past two months in the legislative session, in our State of the State Address, and in cities and towns across Montana. We’re glad you could join us today in the continuing dialogue, Senator Baucus.

I very much look forward to hearing from you as to what you will do at the Federal level, especially when it comes to major western issues like energy prices and guaranteed supply.

Over the next several years, we are planning major efforts at the state level to help Montana grow and prosper.

We will need your help in achieving these goals.

Affordable, Reliable Energy:

A critical element of economic growth is affordable, reliable power. In fact, our economy will not grow without an affordable and steady source of energy.

The energy shortage in California is wreaking havoc on the Intermountain West.

If Montana is to prosper, we must capitalize on our abundant resources to supply our increasing energy needs.

What we will do:

The Major Facilities Siting Act must be a mechanism for meeting our strict environmental standards, not a barrier to building new generation facilities or creating good paying jobs. We will modernize and streamline the MFSA in order to help in the building of new power plants.

We will encourage the construction of new generation facilities with lower tax rates on capital investment in Montana.

We will pursue allowing large industrial users the option of a one-time chance back on the power grid.

The state must be prepared to assure that the default supplier will have long-term contracts in place.

What will the Federal Government do to help us provide affordable energy for our businesses and residential customers?

Environmental Protection and Better Jobs:

Government must be responsive and efficient for all Montanans, including Montana’s job creators.

We need to encourage government agencies to be more accountable by:

Streamlining the permitting processes;

Helping people with environmentally sound business plans to start a business and stay in business;

And protecting taxpayers with responsible bonding requirements that promote environmental stewardship.

What we will do:

The procedures for meeting the requirements of the Montana Environmental Policy Act (MEPA) must be modernized in a manner that promotes environmental stewardship, not that serves as a barrier to responsible job creation. For the sake of Montana, we must cut the red-tape and streamline this process.

Montana citizens deserve protection from anyone who irresponsibly negates their obligations to meet Montana’s tough environmental standards with sound management practices and reclamation.

Montana must actively manage our resources with environmentally sensitive practices in order to create and sustain high paying jobs.

What will the Federal Government do to help us streamline the red-tape and bureaucracy involved in the permitting processes?

Government Reform for Economic Growth:

In order for economic growth to occur, we need business leaders and recruiters working directly with the Governor on a daily basis.

What we will do:

The employees and budgets directly involved in business retention and recruitment within Commerce will come under direct supervision of the Governor.

A clearly defined structure for the new office of business development and retention is in place. It will focus on several areas:

Business Recruitment and Retention
Technology Development
Permitting and Regulatory Processes
Infrastructure Improvement
Workforce and Education Development

We are reorganizing the Department of Commerce to remove the regulatory functions, and make the office strictly a promotional department. The sole focus of the Department of Commerce will be on improving the business climate in Montana, marketing Montana as "open for business" to the world, and guiding new and existing businesses through the financing process

We will work with Washington through our Congressional delegation and through a new staff member in DC from the Governor’s office for:

Reliable and expanded air service to Montana.

I have already written to President Bush, asking his administration to compel Northwest Airlines management and mechanics to stay at the negotiating table. The Bush administration agreed and because of our joint efforts with the Bush administration and the urging of other states, those negotiations will continue, with no one allowed to leave the table, as was going to happen.

We are grateful for an administration that responded to our needs in a rural state where even a few cancelled flights mean a major problem to business and individuals throughout this state.

I urge you, Senator Baucus, to assure that all major airlines serving Montana, particularly those who may be subsidized in any way to serve our small population, to assure that they are living up to the responsibilities that go along with the subsidies they receive.

More and greater grants and federal money to Montana:

Improving the federal permitting process for activities on federal lands.

We will look at establishing several task forces which will look at the following areas:

Regulatory Reform
Tax Reform
Education Funding Reform
Tort Reform

Quality Education and Workforce:

We will capitalize on the outstanding education we provide our young people by promoting accountability in our schools and universities.

We will make job training and vocational education opportunities available to Montana’s young people.

What we will do:

Montana job creators willing to invest in workforce training will receive an incentive for their part in preparing a quality workforce.

We will examine the effectiveness of tuition freezes at vocational institutions to encourage attendance that will give us necessary time to strengthen and expand vocational and technological curriculum.

We will look at ways to make K-12 and higher education more efficient with the dollars they receive.

How will the Federal Government help with our efforts to educate and train our children and our workforce?

Fairer Taxes for Stronger Growth

We must eliminate the death tax, Senator Baucus. Reforming it is not enough. Modification of a raw deal is unacceptable. Eliminating a raw deal is the only right thing to do. Families should not be taxed out of their ranches and small businesses simply because a parent died.

To attract and retain job creators, and to make it easier for Montanans to raise their families and ever improve our quality of life, we need meaningful tax reform that is fairer and simpler.

What we will do:

We will lower our top marginal tax rates that are a major deterrent to retaining and attracting successful entrepreneurs.

We will eliminate the filing requirements for Montanans who live in poverty.

We will look to reduce our uncompetitive capital gains tax rate, which is currently ranked as the 48th worst in the nation.

We will stay the course on complete elimination of the business equipment tax, which has already allowed thousands of Montana businesses to reinvest tax savings in business expansion and new employment.

How will the Federal Government work to reform federal taxes, and let Montanans keep and invest more of what they earn?

Conclusion

We need some immediate help at the federal level, Senator Baucus. Everything we talked about this morning is important. We are actively doing everything we can at the state level to assure affordable energy for our businesses and residential consumers well into the future.

However, if the BPA is going to offer electricity to our northwestern cooperatives in Montana at $400 per megawatt for the summer months, obviously, this is a disaster bigger than our state can solve alone. Montanans cannot afford $400 plus per megawatt, Senator Baucus. We implore you to go to Washington and work diligently with FERC to assure us that Montana businesses can afford to do business in the coming months. Without your cooperation and dedicated investment of your time, Montana will be facing the problem alone. We need every member of our congressional delegation focusing on this crisis.

Everything else we seek to accomplish is at risk. Everything else that we outlined today won’t have much chance of success without affordable, reliable energy supplies.

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