A framework for economic development

38 Pages·2002·4.8 MB·English

by  Martz, Judy

From the Governor
Those of us who have the opportunity to call this From those meetings and discussions, we have The following document is not just an economic
beautiful state home know first-hand the challenges learned that as we move down the road to ensuring framework. It is a challenge to create a new and
and opportunities that businesses face on a daily that Montana is ‘open for business’, we must focus better Montana. It is a guide to economic expan-
basis. We cannot take our economy for granted. A first on our existing businesses and their ability to sion. It is a platform for creative initiatives. Above
vibrant economy, made up of strong businesses, stay and expand in Montana. Through the support all else, it is a tool by which our progress toward
lends itself to healthy communities and a high of our current businesses and traditional industry long-term goals will be managed, monitored and
quality of life. However, if the economy falters, sectors, we have the opportunity to expand our evaluated. This plan does not seek to move our state
business, labor and communities are harmed, economy. Individuals throughout the state also up to ‘average’ in terms of quality of life, personal
revenues decline and our ability to address social suggested that we focus on business creation and income, or business environment. It is instead built
issues such as education and infrastructure becomes incubation. Montanans have a wealth of ideas, and around the vision that our state can be among the
limited. we will make every effort to foster the development top states in the nation in which to live, work, visit
of those ideas into good paying jobs for our citizens. and do business. By working together, we will
The state’s new Chief Business Officer, Dave Gibson,
Finally, it was suggested that we look to attract create an economy to match our unparalleled
has met with businesses and industry leaders
businesses into the state, especially those that quality of life.
throughout Montana for the past 5 months. During
complement either existing industries or the com-
that time, he gained insight from entrepreneurs Over the next few months, we will travel throughout
munities in which they reside.
trying to start a business; small business owners the state to meet again with Montanans as we work
trying to keep their doors open; companies interested From those discussions, we drafted the attached to finalize a Strategic Plan for Economic Develop-
in coming to Montana; and companies thinking of Framework for Economic Development in Montana. ment in Montana. I look forward to your advice and
leaving the state. This is not a complete summary of what we have input as we move forward.
heard throughout the state, nor is it intended to be.
Instead, it is a synopsis of common themes and
ideas that were presented on a consistent basis.
Sincerely,
JUDY MARTZ
Governor
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Table of Contents
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Overview of the Draft Framework
Introduction both in and outside state government, to retain, expand and attract sustainable and
include ideas from across the state. environmentally responsible economic activity
that makes Montana a better place to live and
In the 2001 Legislative Session, Governor Judy The Governor will form an economic advisory
work.
Martz proposed the formation of a statewide group comprised of a small number of leaders
office to coordinate economic development. from throughout the state. This advisory group We begin with an overview of Montana’s
With legislative endorsement, the Office of will provide oversight for further development economy and a discussion of the plan’s vision
Economic Opportunity was created within the and implementation of Montana’s plan. We will — a discussion of the philosophy that guides
Governor’s office. Its mission is to guide the also form a number of small technical groups to our strategic planning process and describes the
state’s economic development efforts to create recommend specific actions to address the role of the public sector in the execution of this
a stronger, more diversified economy in needs of Montana’s economy. plan.
Montana.
Phase II will conclude with a presentation of The draft includes five guiding principles that
The Process the finished strategic plan and the implementa- are essential for broad-based economic prosper-
tion of the specific programs to reach those ity in Montana. One or more goals are associ-
goals. A major theme throughout our effort is ated with each guiding principle, and one or
The draft framework for economic development
accountability. The citizens of Montana will be more strategies are associated with each goal.
that follows is the culmination of Phase I of a
able to measure the progress of each goal.
two-phase process. Phase I began with a study Appendix A identifies the macro-level perfor-
of Montana’s previous strategic plans, the plans Like the draft framework, the final plan will not mance measures that will be a portion of the
of other cities and states around the country sit on the shelf. It will undergo continual benchmarks used to measure the performance
and discussions with many citizens across the assessment, refinement and evaluation as we of each goal.
state. This document presents a vision and move forward.
During the next several months, we will work
serves as a guide to build a more detailed
Overview with citizens, Montana businesses, public
action plan.
entities, and legislators to develop a strategic
With this completed draft, Phase II in building economic plan that represents the best ideas to
This draft is intended to provide a broad frame-
our strategic plan begins. Over the next several move forward. If Montana is to succeed, we
work from which Montana’s public sector can
months, we will involve numerous stakeholders, need ideas and commitment from all
contribute to the state’s economic vitality in the
Montanans.
coming years. The goals and strategies set forth
in this document were developed with one
comprehensive end result in mind: to support,
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Assessment of Montana’s Economy
Overall Economy Value of Goods and Services
During the past five years in Montana, the
Gross State Product (GSP) is the broadest
Between 1986 and 1999, the U.S. economy
value of goods and services produced from the
measure of the economy. It is the value of
grew dramatically. Over this period, real dollar
construction and service sectors increased
goods and services produced by a state.
U.S. Gross State Product expanded by 54%.
dramatically. Moderate growth was realized in
Montana’s GSP was estimated at $19.8 billion in
finance, insurance and real estate (FIRE),
Unfortunately, Montana has not experienced 1998, ranking Montana 49th in the nation in per
wholesale trade, retail trade, manufacturing,
similar increases in our economy and average capita GSP. Montana’s real dollar GSP from
and the transportation, communications and
annual income. Job growth has occurred 1986 to 1999 expanded by only 35%. During
public utility (TCPU) sectors. The value of
disproportionately within the lower-paying, the past five years our annual rate of growth of
goods and services produced by agriculture and
service industry occupations. Good paying jobs 1.2% was the 5th slowest GSP growth rate in
mining declined over this time period.
in mining and manufacturing have declined. the nation.
Montana’s national ranking has steadily de-
Percentage Change in the Value of Goods and Services
Percentage Change inthe Value ofGoodsandServicesProducedby
clined from the top ten to the bottom five over
ProducedIn dbuys tIryndSuecsttoryr inSeMcotonrta inna M199o0n-ta1n99a9, 1990-1999
the past forty years.
113399..33%%
14104%0%
12102%0%
10100%0% 8877.6.6%%
808%0% 7700..55%% 7700..33%% 6688..11%%
606%0% 4411..00%% 3344..44%%
404%0%
202%0% --77..66%%--1133..55%%
0%0%
-2-02%0%
AgricultureAgriculture MiningMining ufacturingnufacturing TCPUTCPU nstructiononstruction FIREFIRE WholesaleWholesale RetailRetail ServicesServices
na oC
aM C
M
Source: U.S.BureauofEconomicAnalysis
Source: US Bureau of Economic Analysis
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Assessment of Montana’s Economy (continued)
Employment
Growth inEmployGmroewntht iSn tEamtepwloiydmeenAtnnualAverag
Statewide Average Annual Employment in Montana 1990-1999
Employmentin Montana1990-1999
In the last decade Montana has realized signifi-
cant population growth, expanding from a
446705,,000000
population of 799,065 in 1990 to 902,195 in
445400,,000000
2000, a 12.9% increase, compared with a
national increase of 13.2%. Along with an 442250,,000000
expanding population, job growth remained
440000,,000000
stronger than the national average, increasing
337850,,000000
1.7% in 1999 to 2000. Montana has realized
employment growth every year since 1995. 335600,0,00000
332450,0,00000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
1990 1991 1992 1993 1994 1995 1996 1997 1998
Income
Source: Montana Department of Labor and Industry
In 1999, a Montanan’s average annual pay was
Growth In Income
$23,253, ranking 50th in the U.S. Montana Regional Comparison of Average Annual Pay, 1998-2000
ranked 42nd in percentage change in average
$40,000
annual pay from 1998 to 1999, with a 2.7% $40,000
iinnccrreeaassee,. compared with a national 4.3% $$$321$$$123000000,,,000,,,000000000000000 $32,248$34,191$37,167 $24,868$26,044$27,709 22,648$23,260$24,264 $22,990$23,751$24,678 $33,076$35,736$37,059 $24,725$25,647$26,837 111221999009909990908
$
$0$-
radoCO dahoID tanaMT orthNkotaD WgtonA WmingY
Source: US Department of Labor, Bureau of Labor Statistics
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A Vision For Economic Prosperity
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Economic development occurs in the
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private sector. Actions taken by
government must foster private devel- aaaaannnnnddddd tttttooooo eeeeennnnnhhhhhaaaaannnnnccccceeeee ttttthhhhheeeee qqqqquuuuuaaaaallllliiiiitttttyyyyy ooooofffff llllliiiiifffffeeeee fffffooooorrrrr aaaaallllllllll ooooouuuuurrrrr ccccciiiiitttttiiiiizzzzzeeeeennnnnsssss.....
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collaboration with private-sector leaders, kkkkknnnnnooooowwwwwllllleeeeedddddgggggeeeee-----bbbbbaaaaassssseeeeeddddd jjjjjooooobbbbbsssss,,,,, uuuuutttttiiiiillllliiiiizzzzziiiiinnnnnggggg llllleeeeeaaaaadddddiiiiinnnnnggggg eeeeedddddgggggeeeee
must facilitate Montana’s growth and
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competitiveness in the new economy.
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Our rural heritage and sense of commu-
nity make us who we are - resilient,
resourceful and determined. If
Montana is to grow in this new century,
This vision is a bold challenge demanding
we must work together. Economic
involvement and commitment. We must
development efforts cannot be accom-
plished without active, responsive fully support existing Montana businesses,
public/private partnerships. Partner- and the creation of new business opportu-
ships among citizens, business, educa- nities for our citizens. It will take the com-
tion and government are critical in mitment of everyone involved to join
addressing economic development, together to build new jobs and a better
including areas such as education, trans-
future for Montana.
portation and growth management.
Together, we will ensure that Montana is
‘open for business.’
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GGuuiiddiinngg PPrriinncciipplleess
To facilitate the development of a strong and 1. Foster a globally competitive business
effective economy in our state, it is essential
environment by enhancing the private sector.
that our efforts follow a coordinated plan.
Government’s role is to foster economic
2. Provide the opportunity for all Montana citizens to
development. We must utilize public-private
partnerships as we grow and diversify the share economic prosperity and a high quality of life
economy. The State of Montana will:
in all regions of the state.
3. Enable economic development by increasing
government responsiveness and efficiency, and by
providing a competitive tax structure.
4. Grow our traditional and existing businesses and
industries.
5. Encourage the startup, expansion and attraction of
businesses that provide sustainable economic
growth and good paying jobs.
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