When times are good caution is warrented
Pub Date: 10/1/2007
These are relatively good times for the hospitality business, as they are for the state of Montana. Governor Brian Schweitzer said as much when he addressed the Montana Tavern Association convention in Kalispell Sept. 12.
But the Governor reminded business owners of Montana's historically cyclical economy: booms followed by busts with moderate prosperity between.
Some of the state's current robust economic fortunes are due to factor's well beyond the influence of anyone within the state's borders: spiking oil, beef and grain prices, a nationwide construction and housing boom (see what the Governor means by cyclical?) that has spurred building in Montana, a national infatuation with places western, rural and wide-open, and more.
A strong and steady national economy usually floats Montana's boat, too, though often not as high or quickly as the rest of the country.
And when the state's economy is rocking and rolling, our hospitality businesses are usually indirect beneficiaries.
But there is more to it than that.
For one, the state tax environment for hospitality businesses, while by no means light, has remained stable. The benefits of that policy simply cannot be overstated.
As well, the regulatory environment has stabilized under the administrations of former Gov. Judy Martz and current Gov. Brian Schweitzer, and under the two terms of Atty. Gen. Mike McGrath.
Montana's small business owners are clever, innovative and resilient: government doesn't need to improve their prospects; just give them a predictable playing field and reasonable rules, then get out of their way and businesses will take care of generating economic growth.
But who knows when oil, cattle and wheat prices might crash?; when the effects of the national housing "melt-down" and "mortgage lending crisis" (as they are now prematurely called by the pundits) will cross our fences?; when employment and payrolls may head south?
Indeed, the Governor was on the money when he advised licensed business owners to "set aside a little money" in order to be in a position to weather whatever economic storm–and any other force beyond our control–may come tearing across the Rockies and bearing down on the plains.
But within our state's micro-economy there are factors that we do control that have every bit as much to do with our prosperity as the monolithic national economic impulses.
We can work to maintain the current stability of our regulatory and tax structures.
The stability Montana hospitality businesses have enjoyed for the last eight years is no accident. Business owners and their association representatives have poured a lot of work and resources into getting their story told; into fully informing the policy wonks, the daily press and bureaucrats; into explaining complex situations–and their consequences–to lawmakers and opinion makers; even into conducting their own scientific research and launching their own social help programs.
But like the national economy, things can change radically and quickly on the homefront political landscape, too.
Soon we will have a new Attorney General who will ultimately determine the gaming regulatory culture. Could it revert to the bad old days of adversarial relationships between the regulated and the regulators?; where the impacts of policy and regulation on 2,300 small Montana businesses and their 24,000 employees are not taken into account?; where, somehow, licensees are seen as suspect until proven otherwise? Oh yes, it can.
Will the next Attorney General appoint an administrator of the Gambling Control Division who is as competent, fair and reasonable as Gene Huntington, and as Jim Oppedahl before him? We can hope so.
Will the new AG make appointments to the ever important Gaming Advisory Council as astutely as has McGrath?
An election for Governor will also be on the 2008 ballot. The Governor has enormous influence over the general–and sometimes specific–direction of the state's business policy and law. Further, that leader makes crucial appointments of department heads who have much to say about legislation, policy, rules and regulations.
Will we get a Governor that has adopted an "open for business" philosophy like the last two? If we're lucky and do our legwork.
Will small Montana hospitality businesses benefit from the even hand of a Department of Revenue Director like Dan Bucks, who oversees tax policy, liquor distribution and licensing? Will that director install a capable and open-minded Liquor Division Administrator like Shauna Helfert? It is certainly our desire.
By remaining deeply involved in our communities, by continuing to cultivate relationships with elected and appointed government officials at the city, county and state levels, by always working to improve our public standing and public relations, particularly through improved responsible retailing practices, we can continue to earn our place at the legislative and policy tables.
We can constructively contribute to a strong Montana economy brought about by a business-friendly and stable regulatory and tax environment.
We will accomplish this through our strong, well organized, amply funded, capably led business associations. Are you a member of one?
If you are, congratulations; much of your businesses' future prospects are within your own hands.
If you're not, not only are you taking a free ride on those who've given so much so you can prosper, but you also, as fates shift, will only be along for the ride while the rest are in the driver's seat.
Source: The Montana Tavern Times, September, 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.