Monitoring Montana through BEA data(Bureau of Economic Analysis)
Montana Business Quarterly, 2007
Amy Joyner
Business people, government officials, and community development planners are but a few of Montana's leaders who must use accurate and current information to complete their daily tasks.
"What data is out there, and how do I access it?" asked Gary W. Smith, emeritus faculty from Washington State University. Smith and other economists answered that question during a daylong Bureau seminar earlier this summer.
While navigating the day's events, Smith was joined by Rob Brown from the Washington, D.C., office of the Bureau of Economic Analysis. They discussed the BEA data and showcased their interactive Web site (www.pnreap.org) on a large classroom screen while the attendees worked hands-on at their own computer workstations.
As author and project developer, Smith began the seminar by explaining the origins and transitions of the information used by the Pacific Northwest Regional Economic Analysis Project Web site. He launched the first rendition of the Web site in 1997 when he was on the faculty as an extension economist at Washington State University. Smith's research provides statistical information needs of key users of economic data in the Northwest.
"We show GDP over 40 years and 60 industries using current and consistent dollars," he said.
He explained that current doesn't mean immediate, however. Metropolitan data are entered into the Web site roughly nine months after year's end. County data come in closer to 16 months after the reference year.
That said, Smith still insisted the entries are the most accurate data. "The U.S. government uses the data to distribute tax dollars.... States use them to develop state government revenue distributions."
"Why so long?" asked fellow presenter Rob Brown as he took center stage. "It's a challenging task to measure who we are, where we do it, and how we do it. There's a lot of scholarship involved."
Brown is Chief of the Bureau of Economic Analysis' Regional Economic Measurement Division. He oversees the gathering of information that helps guide and improve the timeliness and quality of the state and local area personal income estimates.
"BEA's regional data is absolutely crucial for forecasting," Brown added. "It's really good scholarship, and that's why states use the data." He noted that Montana's Indian reservations are included in local government statistics for the state.
He spoke about earned income, property income, and transfer payments, which is money coming into Montana from another state, such as retirementincome earned in California and being sent to a retiree's bank account in Montana.
Locally, economic planners use this BEA data to address employment and housing issues. "It's not about creating local jobs," Brown expanded. "It's about creating jobs locally. That's the way I think of economic development."
Bureau Marketing Director and Event Planner Julie Ehlers said the workshop came together through coincidence, and she saw it as a great opportunity.
"The Bureau is well known for its ability to disseminate data, but hosting this type of workshop allows us to expand our mission into teaching others to utilize data and economic resources," Ehlers said.
Smith had done the same workshop in other areas, and Brown was going to be near Missoula for a separate conference. They were able to develop the UM interactive workshop using a different format, which put nearly 40 attendees in a computer lab to see charts and graphs of specific data on-screen as Brown and Smith spoke. Those who listened and learned were state and local government officials, local real estate agents, public school, and university educators from across Montana.
Current Data Critical for Operations Specialist
Larry Gallagher needs information--data, statistics, numbers. And they have to be as current and reliable as possible.
Gallagher is an operations specialist for the Office of Field Policy and Management within the U.S. Department of Housing and Urban Development's Helena Field Office. He has a long rifle, and it comes with a long list of responsibilities that have a direct impact on how and where many Montanans live.
"I have used information to assist communities to identify the tools and resources available to them for housing and development in Montana cities and Indian reservations," Gallagher said.
After attending the workshop earlier this summer, he went right to work using the Pacific Northwest Regional Economic Analysis Project Web site to cull data on housing proposals for Browning and Poplar.
"In my work throughout the state," he explains, "my task is to know the demographics and the principals of a community." When he has his details in place, he works to secure federal HUD entitlement dollars for a specific community in the form of Community Development Block Grants and HOME investment projects, for instance.
Because HUD has a highly competitive annual application process, Gallagher knows that the validity of his details is essential when competing on a national scale for federal housing funds.
The only Montana cities he does not work with to secure funds are Missoula, Great Falls, and Billings. Because those cities each has a population greater than 50,000, they are considered a Metropolitan Statistical Area based on a formula using the age of local housing and incomes.
Because they are able to leverage adequate local resources, other Montana cities such as Kalispell, Helena, and Bozeman are not entitlement communities, yet they are not Metropolitan Statistical Areas either. "Most of these larger cities and towns have adopted urban renewal laws and projects," Gallagher explains.
Through Gallagher's office, the state oversees programs for all other cities and towns, including the seven Montana reservation areas, which are automatically entitlement areas that share almost $30 million in federal funds each year.
"My job is to work with towns, encourage homeownership, reduce homeless, and even get new housing," Gallagher said.
"I encourage communities to address safe, decent, sanitary neighborhoods and housing," he said. "Through public hearings, a needs assessment is done. The State of Montana does the consolidated plan and holds hearings urging communities to come forward. Smaller communities don't have the staff to come to those meetings."
Because of those resource limits, Gallagher finds it difficult to pull together demographic and resource information.
"There's always a need, but understanding why there's a need--there's often a gap," he said.
He generally acquires statewide information on jobs and employment from Paul Polzin, the Bureau's director. Since attending the workshop, Gallagher has been able to access even more data that is timely and accurate in showcasing long-term and historical trends in the form of pie charts and bar graphs. "You can mine the information to try to get a handle on what's going on," he said.
He goes on to explain, "We try to understand why our nursing homes and senior homes are going vacant." Gallagher admits this is one instance in which his HUD office has always found data roadblocks. The Web site is making his job of deciphering trends much easier.
"We have a lot of stable older communities where we have low out-migration, and state resources are limited," he said. Gallagher needs such information about Montana, the region, and small and large communities to determine how these economies affect housing.
Really, he just wants to know what's going on and why. "You can't have too much information on what's going on with the social, demographic, and economic profiles within Montana," Gallagher said. "Our job is to do what we can to stay abreast."