News Release
Chief Business Officer Addresses Joint Business/Labor Committees
8/5/2002
Dave Gibson
406-444-5634
dagibson@state.mt.us
These strategies will result in greater wealth for all Montanans and an increase in the tax base to provide higher quality public services to the state's citizens, according to Gibson.
"It is not the role of economic development programs to create jobs," Gibson said. "The private sector creates jobs. It is the role of this office to support the private sector to
build a stronger economy."
Gibson testified at the request of the two legislative committees, in response to proposals that have been put forward to reduce or eliminate the Office of Economic Opportunity and other important economic development programs in state and local government.
"Montana has fallen more in per capita income in the past 50 years than any other state in the Union," Gibson said. "We must turn the tide of the state's economy with concerted, focused economic development initiatives."
In researching economic development efforts of other successful states, an economic development office in the Governor's office is key to focus those initiatives for all communities, and to provide information that will benefit all communities, Gibson said.
Gibson also noted the critical importance of tax reform to economic development efforts in the state.
"We must create a climate that works for business to grow and expand," Gibson said. "The top 25 companies in terms of business equipment tax revenues also employ 13,000 Montanans and have a combined payroll of $440 million. Increasing their business equipment taxes will hurt Montana families."
A number of companies and local economic development representatives who testified also noted that employment and investment will be hurt if the business equipment tax is increased.
Gibson says that the Office of Economic Opportunity is focused on six key areas:
* Clusters - Clusters are geographically close groups of interconnected companies and associated institutions in a particular field, linked by common technologies and skills.
* Technology Transfer - Montana must capitalize on the technologies created by our research centers and create a system that assists scientists and entrepreneurs in developing start-up companies.
* Workforce Development - Montana's success in diversifying its economy will largely depend on the presence of a highly motivated, strategically educated workforce with a highly developed capacity for critical and innovative thinking.
* Business Climate - Montana's business climate must be competitive in order for our economy to provide good paying jobs.
* Research and Development - Relationships between state government, the Montana University System and the private sector must become stronger for our economy to improve.
* Business Attraction - The attraction of new businesses into an economy can quickly increase the tax base, jobs and the diversity of the state economy.
Gibson also highlighted similar efforts in other states. In South Dakota, for example, their per capita income ranking has gone from 47th to 35th since 1980. This is due in large part to a focused, statewide economic development effort, according to industry leaders in South Dakota. South Dakota's efforts have raised their per capita income over the last 20 years from approximately $1,000 below Montana's to nearly $3,440 above Montana's.
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