The following Q&A is from KATQ's County Commissioner Round Table on May 1, 2012. If you'd like to ask Keith a question, please send it to info@keithclawson.com and we'll post the answer here.
Q One concern is infrastructure, including county roads. What do you see as the biggest concern with the county roads at this point?
A The biggest concern I have with county roads is seasonal substructure damage. This time of year, both gravel roads and paved highways develop soft spots. With hundreds of miles of county maintained roads, supplying compaction to those spots is a challenge, and one made more difficult by the recent increase in heavy truck traffic on many of those roadways. Some other concerns I have would include attracting and retaining qualified employees, and the necessity of providing for shift work, to enable winter weather coverage.
Q Another concern is land use and growth policy. The commissioners are holding a public hearing on May 2nd to discuss zoning for non-municipal areas of the county. What are your thoughts on this zoning plan?
A Montana Zoning Laws provide for communities to zone according to their unique circumstances. In our case, it is imperative that we mandate adequate septic systems and waste management. In recent conversations with commissioners in North Dakota counties that have already dealt with this, I've learned that a bed tax is levied by the County, typically $200 per bed, per year, which would mitigate some of the cost of providing services to the people staying at these facilities. Some counties in North Dakota have set up zoning boards, in which serving members are compensated at the rate of $45 per meeting, and $.50 per mile, with use of a County vehicle as an option. I think a local board, made up of members from each of Sheridan County's seven communities, would provide valuable oversight and local control. An ounce of prevention is worth a pound of cure.
Q The County has the same problem as many businesses in the country regarding hiring and keeping employees. It is hard to compete with oilfield wages. What do you think the commisioners can do about this issue?
A Obviously, the County needs to be as competitive as possible. The rate of pay will have to be raised as much as is feasible, and the benefits package needs to be an attractive one in order to compete with oilfield wages. Particularly in the maintainence department, the County is in direct competition with the energy industry for skilled drivers and equipment operators. What the County can offer and should promote is long term stability and perhaps, with the increased demand for services, a flexibility made possible by shift-work and the possibility of comp-time. County positions packaged like this are viable options for people who already have roots and housing in this area, and particularly so for retired county workers, who are allowed up to 800 compensated hours per year.
Q This personnel problem ties in with another issue—emergency and social services. A rapid population increase will put a strain on emergency services like law enforcement and EMTs as well as services like mental health, child and family services, etc. How would you deal with this problem as commissioner?
A The degree to which our transitory population will increase will be in direct proportion to the success energy companies achieve in this area. The tax holiday must be repealed so that the increased need for services can be met using funds from the industry that induced the demand. In 2013, Montana counties stand to lose 21 million dollars as a result of the tax holiday oil companies currently enjoy. Sheridan County's share of that would go a long way toward correcting the anticipated shortfall in funded emergency and social services. In the meantime, continued cooperation between local, state, and federal law enforcement, and the ongoing efforts of families, churches, schools and community organizations will be our stop gap.
Q What are your thoughts about privatization of county services?
A The State of Montana has, over the last several years, discussed the possibility of privatizing the maintenance of state highways; duties that are currently executed by the MDT. The idea has been contested, and so far defeated by the labor unions. Alberta, on the other hand, privatized over a decade ago, and in talking to residents of that province, I've learned they are overall satisified, and feel that they have cleaner, better maintained roadways than ever before. The common theme there is "if you want to see potholes, drive to Saskatchewan." In addition to the profit-based motive for excellence, other benefits of privatization include no funding of retirement programs, no equipment to purchase or maintain, and, as I mentioned before, better service as a result of competition.
If something isn't broken, there is no need to fix it, and if our system works, we should keep it. However, if the County continues to have difficulties attracting and retaining qualified employees, particularily in the maintenance department, some of the maintanence duties could be contracted to private companies, both as a solution to the immediate problem, and as an experimental approach to the feasibility of privatization in general.
Q Another issue is housing. Skyrocketing rents are impacting a lot of residents here, especially those on fixed incomes or in lower paying jobs. Is there anything the commissioners can do?
A Property rights are at issue here, and I think we can agree that as property owners have their income limited or eliminated by a suffering economy, they are entitled to profit in better times. The county should not be in the business of regulating private commerce, but I think the commissioners can and should investigate any and all sources of public and private funding for low income/subsidized housing.
Q Budgeting for growth is a problem, especially because of the oil and gas tax holiday imposed by the state legislature. As a commissioner, how would you handle this? Would you lobby to have the tax holiday repealed or scaled back?
A Just a quick run down for anyone who may be unacquainted with the Oil and Gas Tax Holiday. The tax holiday was originally set in place by the Montana State Legislature in an effort to stimulate energy exploration and economic growth. As it functions, new wells in Montana are not subject to the same oil and gas tax as older wells, for which the rate is 9.76%. For 12 months, vertical wells are taxed at a rate of .76%. Horizontal wells are given a grace period of 18 months at the same rate. During the 2003-2007 period, $258 million was lost that would have benefited the state and individual counties. In 2013, the estimated loss will be over $43 million. Of that, $22 million would have gone to the state, and counties would have received approximately $21 million. The tax holiday was set in place during a time of low oil prices, and economic downturn. I think that it was fine to provide incentives for energy companies when prices were low, but now that prices and profits are high, I would lobby the state to revise the current tax system so that the state, and Sheridan County, get a more equitable portion of oil and gas revenues.
Q What changes, if any, would you like to see with the oil and gas allocation?
A Right now, oil and gas revenues in the County are split, with half going to the school system, and half to be used to fund the County at the discretion of the commissioners. These numbers are fine, but the totals for each are much smaller than they should be, given the current tax holiday. As I mentioned before, the holiday needs to be repealed, and it needs to happen as soon as possible, so the County has the funds to deal with the expected increase in demand for services.
