#MTGov Daily Rundown: Montana's Economy Shrinks Under Bullock's Leadership
Governor Bullock continues to argue that Montana's economy is vibrant and its fiscal situation is sound. However, the facts are beginning to paint a different picture. The Bureau of Economic Analysis reported this week that Montana has now experienced two consecutive quarters of negative economic growth.
"The Montana economy has shrunk for the second straight quarter as oil and gas, timber, mining, agriculture and transportation all reported losses.
"In the final quarter of 2015, the state's gross domestic product shrank 1 percent. It contracted 0.9 percent in the first three months of 2016." -Billings Gazette, 7/29/2016
"Iowa, Nebraska, New Mexico, Oklahoma, Montana, Wyoming, and Alaska had consecutive quarters of negative economic growth in the fourth quarter of 2015 and the first quarter of 2016." -Washington Free Beacon, 7/28/2016
Meanwhile, Governor Bullock continues to argue that Montana's economy is in great shape.
"Our economy is strong," the governor said. "The state's ability to work collaboratively with the private sector has never been better. There is a lot to be excited about." -AP via the Missoulian, 1/28/2016
"But Bullock has said the state is doing pretty well and that he knows how to keep it going in the right direction." -Billings Gazette, 7/20/2016
While Bullock continues to incorrectly claim that Montana has a $300 million rainy day fund, in reality the state is facing steeply declining revenues.
"Revenue flowing into Montana’s coffers has slowed during the past three months, prompting concern from the Capitol to city halls across the state.
Montana’s general fund is nearly 4 percent behind projections, with oil and gas tax receipts down by more than half. The slowdown amounts to more than $67 million the government had counted on." -Associated Press via the Flathead Beacon, 5/10/2016
"Montana’s rainy day fund, which neared $360 million a year ago, could fall as low as $163 million by next summer." -Missoulian, 6/26/2016
This news comes on top of hundreds of layoffs in the coal and timber industries in the last year.
"A Montana coal mine cut 66 jobs and is slashing production amid an industrywide slowdown that's starting to affect the largest coal-producing region of the United States." -AP via US News and World Report 12/31/2016
“The June 22 announcement that timber giant Weyerhaeuser Company was closing two mills in Columbia Falls and eliminating 100 positions is a gruesome testament to the flagging timber industry’s struggle to regain footing in the market after decades of decline.” -Flathead Beacon, 6/28/2016
“Altogether, Altemus [of the Montana Wood Products Association] said timber mills employ approximately 7,000 people in Montana, and 235 mill workers have been laid off this year. Another 280 jobs that were indirectly supported by the timber industry have also been lost.
'So we are down a good 500 jobs this year alone,' she said. 'That’s a pretty big loss.’” -Missoulian 10/13/2015
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