Montana Main Street Blog

SEIU Now A Small Business Advocate

Jay Stevens over at Left in the Western Part of Pennsylvania continues his knee-jerk dislike for all things Chamber by promoting a diary entry from John Firehammer of "Montana Change that Works", a political advocacy arm of the Service Employees International Union (SEIU). Firehammer doesn't always identify which Chamber he's talking about, but in this case it doesn't matter because every Chamber I've run into is opposed to the issue he discusses.

I read with some amusement as Firehammer claims to be representing Main Street businesses who want to see the federal government spend billions of new taxpayer dollars on a new federal government bureaucracy as proposed in the Consumer Financial Protection Act (CFPA). Apparently small businesses are just clamoring for this federal financial savior to ward off the evil bankers and Wall Street firms, and chambers of commerce around the state are just not listening to Main Street.

So which specific small businesses are Firehammer and SEIU claiming to represent? Which Montana businesses did Firehammer or Stevens personally talk to that are demanding this new government agency? When was the last time either of them actually talked to a real Montana small business owner who is actually employing people (yes, Jay, a MONTANA small business owner)? How do they know that a majority of small businesses even want this bill passed? Don't forget, these are the same people that oppose small businesses that are organized as a corporation from having free speech rights when it comes to campaign contributions as laid out in recent the Citizens United case.  

As a staff member at the Chamber of Commerce, I have the privilege of hearing from Montana small businesses on a daily basis. Our membership has a higher ratio of small businesses than the statewide average. Our board is made up of all kinds of businesses, both large and small. I don't think I've received a single call, email or message from any Montana business asking for the Consumer Financial Protection Act to pass. Even if I did get one, two or three, should we ignore the hundreds of other members who are opposed to the bill, including small business that are mad about how much the government is spending, or worried this may further dry up credit, or concerned this will end up putting more regulation on their backs?

Coincidently, when I went to find out what "Montana Change That Works" actually was, it brought me to the SEIU homepage where I also saw a nice ad to get the "SEIU for You" Credit Card through Visa. But wait, aren't those credit card companies and Wall Street firms bad news? I suppose not if you get kickbacks from them through credit cards you promote to your membership. Classy.

Federal Attempts to "Create Jobs"

Over the next ten months Congress and the President will be debating budgets, bills, tax revisions and more to supposedly "create jobs." Thomas Oliver of the Atlanta Journal-Constitution has a great article about the difficulties in this line of thinking. The federal government can make all the new tax credits it wants, but that is not going to create jobs.

I don't know who originally coined the axiom, "First, do no harm," but that is what the government needs to do in order to get us even close to thinking about an economic recovery. As Congress debates and the President presses for sweeping changes in health care, climate change (cap & trade), card check, different tax rates for investors, different rates for income tax payers, death tax revisions, huge financial and banking reforms, and record deficit spending, my question is this - who would want the risk of hiring new people in a time of record uncertainty? And not just economic uncertainty, but uncertainty largely created by government officials and regulators.

It's not an easy time to be a business owner right now, especially a small business owner. I think most are thinking they are safer just treading water than trying to expand, and it's due in large part to many things being debated in Congress right now. If we want to get our people back to work, we must first understand what's been keeping businesses from hiring new people. Tax credits aren't going to get people back to work in any large numbers.

New Poll Out on Montanans' Views of Economy, Business and Elections

 

Poll Shows Pulse of Montana Voters

Respondents Give Answers on Economic, Political and Business Issues

The Power Base (P-Base) is an annual scientific poll of 600 Montana voters on a variety of business and political issues with a margin of error of 4.1%. The poll is commissioned by the Montana Chamber of Commerce and other business groups to determine what regular Montanans think about important economic issues facing our state. Here are some of the results:

Economic Development

The unemployment levels are a top concern for Montanans. 40% listed it as the top problem facing our state, and the next highest problem, health care, was a third of that level at 15%. Montanans want to get back to work, and they are looking for businesses, not government, to provide the jobs.

As in prior surveys, the P-base shows Montanans want to see more business growth, especially in high wage businesses like the natural resource industries. For example, 78% of Montana voters want the state to encourage more timber harvesting, 76% want more oil & gas development, 71% want more coal development and 70% want more mining. Almost two-thirds of Montanans say the state Land Board should go forward with the Otter Creek coal tracts leasing as well, which is an issue the Board will take up at its December 21^st meeting.

“The message from the survey is clear: Montanans want to see the state move towards long-term, sustainable growth by increasing natural resource development, improving our business climate, and creating more good-paying jobs,” said Jon Bennion, Government Relations Director for the Montana Chamber.”

Montanans are still pessimistic about the national economy. 53% of voters believe the U.S.’s economy is on the wrong track as opposed to 24% who think we are on the right track. Voters believe the state’s economy is better off with 41% saying we’re on the right track versus 34% saying wrong track. 

Health Care

Respondents in the poll expressed significant satisfaction levels with their own health care insurance. Almost three-quarters of those polled (74%) said they were satisfied, while only 15% said they were dissatisfied. Half of Montanans want Washington, D.C. to scrap the current health care proposals and draft new legislation that would address rising costs.

Concerns of Voters

The P-base is also a good opportunity to see what financial concerns are on the minds of voters. For the fourth straight year, health care costs continue to be a top concern at 24% and high taxes came in second at 18%. Additionally, addressing the unemployment situation is the top issue (18%) voters want addressed in the coming elections, and health care (17%) is a not-so-distant second concern of voters at 15%. 59% said government in general is getting too involved and spending too much money, while only 31% said government wasn’t doing enough on issues like education, health care and the environment. 

Elections

When it comes to candidate endorsements, voters respect candidates who get stamps of approval from business groups, like chambers of commerce, agriculture groups and more.

When asked whether a Montana Chamber endorsement of a candidate would influence their voter, 51% of voters said it would have a positive effect compared with only 16% who said it would have a negative effect (35% net postitive). Even more popular are agriculture groups with 68% positive to only 7% negative (61% net positive). Trial lawyers (-40% net negative), environmental groups (-18% net negative) and labor unions (-9% net negative) scored low in the poll.

When asked about the upcoming elections for the Montana state legislature, voters are more likely (46%) to want to replace their local legislator rather than re-elect them (34%). Additionally, Republicans have a slight edge going into the legislative elections. 32% prefer GOP candidates for the legislature while 25% prefer Democrats.

“Candidates for the legislature need to focus on the economy, jobs, and growing the business sector,” explained Bennion, “Voters are worried about how much the government is trying to do, so candidates need to offer solutions that center around responsible development of our natural resources, controlling government deficits, and free enterprise.”

CO Reduces Minimum Wage, Montana's Stays the Same

Like Montana, Colorado ties it's minimum wage to the CPI-U, a price index of consumer products calculated by the federal government. The CPI-U uses data from all over the country, but it doesn't use any data from Montana, Wyoming, and the two Dakotas. But that's another story.

Colorado's state minimum wage law actually provides for a decrease (not to go below the federal minimum wage) in it's minimum wage if there is a decrease in the CPI-U. This year, the index fell 0.6 percent due to a drop in energy prices. Therefore, the state minimum wage will drop a monsterous 3 cents, fron $7.28 to $7.25.

Montana's state minimum wage will not decrease, despite the drop in the CPI-U. Not only does our law not allow for a decrease in the wage, but it also sets it at the higher rate of the two wages - federal and state. Since Montana currently has its wage at $7.25, which is the federal rate, it wouldn't go lower even with a state provision for a decrease tied to the CPI-U.

So what do you think - should Montana's law allow for a decrease or not?

Centrists Unaware of Card Check Negotiations

Even with 60 votes in the U.S. Senate, Democrats appear unable to pass the "Employee Free Choice Act", or card check, as first proposed. For months now, they have been negotiating behind closed doors as they try and work something out that can actually pass.

Health care has consumed so much of the agenda, however, that few have noticed that big labor's top priority hasn't budged in the U.S. Senate. Based on the recent quotes of some moderate Democrats like Kay Hagan, some senators were hoping the issue was going away:

“From what I understood, the whole card-check issue was dead,” Hagan said.

Others appear to be uninterested or pleasantly oblivious to the negotiations, like Mary Landrieu, Blanche Lincoln and the Senate Majority Leader, Harry Reid:

“Nothing final, to my knowledge, has been finalized, but I know members from both sides have been working on, I guess, a compromise,” said Sen. Mary Landrieu (D-La.). And Sen. Blanche Lincoln (D-Ark.), who faces reelection in 2010 and said earlier this year she would oppose the bill, said she is unaware of any changes. “I haven’t heard or seen anything yet,” Lincoln said. Asked about any deal on the bill, Majority Leader Harry Reid (D-Nev.) said,” I’m not aware of any.”

Montana's two senators, Max Baucus and Jon Tester, have also been rather non-committal on the issue. Two years ago, they were both co-sponsors of the bill. Now that it has a chance of actually passing, however, neither lawmaker has signed on.

I'm not sure what this "compromise" will look like. Many senators right now are pleading ignorance. My guess is that the bill is going to have to be significantly watered down if they are going to come close to getting the 60 votes needed to end debate. And if it isn't done this year, I have a hard time believing they will do it closer to a mid-year election.

Harkin Tight-Lipped On EFCA "Compromise"

With most of the attention focused on health care, big issues like the poorly named "Employee Free Choice Act" have had to take a back seat. But that doesn't mean that card check proponents are not working behind the scenes on a bill that can get the 60 votes necessary to overcome a filibuster. Like with health care, supporters of card check know that they are going to have to try and pass it without bipartisan agreement.

Senator Tom Harkin of Iowa, who will now assume the chairmanship of the Senate HELP Committee following the death of Senator Ted Kennedy, recently made comments about the likelihood of passing card check before Congress recesses in December. He has been working on a "compromise" that can get the votes of moderate Democrats, such as Ben Nelson, Blanche Lincoln, and others. Even former strong supporters like Max Baucus and Jon Tester have refused to co-sponsor the bill this time, so the bill must be watered down before it has any chance of passing.

Harkin would not divulge the details of the proposed compromise: "I will not say because it was closely held and it was never leaked out and it still hasn't. As soon as I've got 60 votes, we'll put it back on the hot burner."

Minimum Wage Going Up This Month, What About January?

Effective Friday, July 24, the minimum wage will be raised, according to the final phase-in of a federal bill passed in 2007.  The current federal minimum wage rate of $6.55 per hour will increase to $7.25 per hour.  However, Montana’s minimum wage is already $6.90 per hour because of voter-passed Initiative 151, which raises the minimum wage according the Consumer Price Index - Urban (CPI-U).  But, when all is said and done, the new minimum wage will be $7.25 per federal law. This is the fourth minimum wage increase (from $5.15 per hour) in just over two years for Montana businesses.

Because the minimum wage in Montana is tied to the CPI-U, the wage could go up every year in January according to the state law. This year, however, it's possible to see the CPI-U go down. Based on the current 12 month change, the CPI-U is down 1.7%. Therefore, if the rates remain similar over the next two months until the August data comes out there may be no increase in the minimum wage. Unfortunately for small businesses, the law does not allow the minimum wage to be reduced if there is a decrease in the CPI-U.

The CPI-U is an interesting index to tie our minimum wage to if you look at how it's calculated. It's put together by taking the price increases of different goods in various locations around the country. The only problem is that it doesn't use any Montana data to calculate it. In fact, it doesn't use any from Wyoming, South Dakota and North Dakota either. Weird way to change the state's minimum wage if you ask me.  

Sign This Petition to Save Montana Mining Jobs

As many of you know, and as we've reported a few times already, GM is seeking to end its contract with Stillwater Mining Company for rhodium and palladium while maintaining its contracts with foreign suppliers in Russia and South Africa. This is after GM received billions in American tax dollars to keep it afloat. Hundreds of good-paying jobs in south-central Montana are at stake here. Representative Denny Rehberg and Governor Brian Schweitzer have already contacted the Obama administration on this issue, but we need Baucus and Tester to do the same.

Please sign this online petition and urge your friends, co-workers and fellow bloggers to do so as well. We need to keep the heat on GM, our federal delegation and the Obama administration. What good is the American Recovery Act and government bailouts if American jobs are lost in this way?

Rushing to Pass Health Care Reform

I realize that health care didn't just become a problem overnight and that many have pushed for reform for years. But sometimes it seems like there is a rush to pass something overnight.

The Senate health committee just barely passed their version of health care reform today. The House Democrats just released their plan yesterday. The Senate Finance has yet to endorse a bill or come up with one of it's own. President Obama has said he wants something on his desk before Congress' August recess, which is just two weeks away.

Can Congress really work out all the differences in these bills, figure out how to cover 46 million Americans, agree on how it will be paid for, and still ensure that we have quality health care in just two weeks? That seems like a stretch to me. There are still so many questions about how much this will cost and how it will be funded.

Anyone think they aren't going to make it by August? Something will pass regarding health care, but it seems fairly rushed to try and railroad it through in the next two weeks.

Rehberg Goes to Bat for Stillwater Mining Jobs

I just learned today that Representative Denny Rehberg has also sent a letter to the Obama administration asking it to review GM's decision to stop its contract with Montana's Stillwater Mining Co.

In the letter, Rehberg points out that Stillwater's tax dollars and the taxes paid by Stillwater's employees went to bail out GM. The decision to not go forward with the contract, while honoring contracts with mining companies in Russia and South Africa is ridiculous.

A big thanks to Rehberg for his prompt work on this important issue. Now, if we could just get Tester and Baucus to act as well...