University of Montana ScholarWorks at University of Montana Graduate Student Theses, Dissertations, & Professional Papers Graduate School 1975 Analysis of the withdrawal impact of the Libby Dam project on local government administration Lincoln County Montana Richard D. Gillmore The University of Montana Follow this and additional works at: https://scholarworks.umt.edu/etd Let us know how access to this document benefits ou.y Recommended Citation Gillmore, Richard D., "Analysis of the withdrawal impact of the Libby Dam project on local government administration Lincoln County Montana" (1975). Graduate Student Theses, Dissertations, & Professional Papers. 5135. https://scholarworks.umt.edu/etd/5135 This Thesis is brought to you for free and open access by the Graduate School at ScholarWorks at University of Montana. It has been accepted for inclusion in Graduate Student Theses, Dissertations, & Professional Papers by an authorized administrator of ScholarWorks at University of Montana. For more information, please contact [email protected]. AN ANALYSIS OF THE WITHDRAWAL IMPACT OF THE LIBBY DAM PROJECT ON LOCAL GOVERNMENT ADMINISTRATION: LINCOLN COUNTY, MONTANA By Richard D. Gillmore B.A., Western Washington State College, 1972 presented in partial fulfillment of the requirements for the degree of Master of Arts UNIVERSITY OF MONTANA 1975 Approved byi Chairman, Board of Examiners __ Deg^l, Graduate School Date UMI Number: EP40599 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. IJMP O teM rtsti* MMistsog UMI EP40599 Published by ProQuest LLC (2014). Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code Pro ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346 A' r t ^ THESIS ABSTRACT Gillmore, Richard D., M.A., March 1976. Political Science An Analysis of the Withdrawal Impact of the Libby Dam Project on Local Government Administration: Lincoln County, Montana (174- pg) D irector: Dr. P eter Koehn The purpose of this study is to analyze the impact of the federally sponsored Libby Dam construction project on the administration of local government units in Lincoln County, Montana. A boom and bust situation occurred in Lincoln County. Rapid population growth was experienced in anticipation of the project, followed by a general economic decline in conjuction with the completion of the project. For the local government units, the consequences of boom and bust were increased service needs relating to the rapid population growth and the problems encountered furnishing these needs. The extent of population loss anticipated following the construction project did not occur, thereby creating financial pressure on the county government to provide increased welfare outlays for unemployed dam workers and their families. Other county and municipal services were also affected by the sustained population growth created by the Libby Dam project. The major conclusion is that the federal and State of Montana governments have not come to the aid of the local governments in Lincoln County to rectify the problems created by each. Related conclusions are that local officials and residents of Lincoln County did not exert as much pressure on the state and federal governments as they were able. However, federal and state governments have political, moral, and legal obligations to aid Lincoln County. Lincoln County local government units thought they were prepared for the dam project, but inadequate federal and state aid rendered them virtually helpless to handle the problems created by the project. The primary method of research was the interview. County and municipal officials were interviewed in terms of their perceptions of the dam project impact. Followup questionnaires were sent, and all returned, to probe deeper into local officials' perceptions concerning the thesis to p ic . Literature surveys were conducted in the areas of local government stru c tu re and functions, boom and bu st, and the Libby Dam project, to furnish a basis for the analysis. The scope of the study is necessarily narrow in terms of federal activity impacts in a rural area. There are, however, implications of this study to other areas experiencing construction project impacts. Colstrip, and surrounding areas of Montana, are the examples discussed in the thesis. TABLE OF CONTENTS ABSTRACT.................................................................................................. i i LIST OF TABLES ................................................................................... iv Chapter I . INTRODUCTION ................................................................................ 1 I I . THE LIBBY DAM AND LAKE KOOCANUSA PROJECT . 10 I I I . BOOM AND BUST.................................................................. 22 IV. LINCOLN COUNTY LOCAL GOVERNMENT .................... ^0 V. PRE-LIBBY DAM CONSTRUCTION ......................................... 56 VI. PERIOD OF CONSTRUCTION ACTIVITY AND IMPACT ON LINCOLN COUNTY GOVERNMENT .................... 68 V II. POST LIBBY DAM CONSTRUCTION: WITHDRAWAL IMPACT ON LINCOLN COUNTY LOCAL GOVERNMENT . 97 V III. EVALUATION OF ADMINISTRATIVE PERFORMANCE IN LINCOLN COUNTY AND RECOMMENDED ALTERNATIVES .128 IX. LESSONS LEARNED FROM LINCOLN COUNTY AND IMPLICATIONS FOR RELATED BOOM EXPERIENCES . 157 BIBLIOGRAPHY 169 LIST OF TABLES 1. Comparison of General Fund Expense and Road Fund Expense: Lincoln County, Montana, 1965-1975 • • • *+6 2 . Lincoln County Expenditure Increase in Ten Years for Sheriff's Dept., Welfare Dept., and Road E x p e n s e s .......................................................................... 5^ 3. County Populations .......... ..................... 7*1 *1. Lincoln County Budget Increases: 1965-1975 • • 78 5. Employment Trends on the Libby Dam P ro ject for the Years 1967-197*1 ........................................................... 82 6 . Libby Budget Increases: 1965-1975 .............................. 88 7# Comparison of Road Maintenance and Road Fund Expense: Lincoln County, Montana 1965-1975 ....................................................................................... 137 iv CHAPTER I INTRODUCTION / The purpose of this thesis is to analyze the effects of a major, federally-funded, construction project on the administration of local government units in Lincoln County, Montana, Between 1966 and 1973 the fed eral government spent approximately $446,000,000 on a hydro-electric dam project seventeen miles north-northeast of Libby, Montana, on the Kootenai River , 1 The Libby Dam project was authorized to provide power generation, flood control, and recreation potential for the area. Between i 960 and 1970, the project created an average of just under 2,000 jobs 2 during the summer months. The creation of jobs for the project brought about a rapid population influx into the area that was measured at 44 percent between i 960 and 3 1970. This population influx put strains on the local government units in the County. According to the three 1The Western News, Libby, Montana, August 21, 1975* 2 Libby Dam employment figures provided by Libby Office of U.S. Army Corps of Engineers, July 14, 1975* 3 •'U.S. Department of Commerce, Bureau of the Census, Characteristics of the Populations Part 28, Montana. 1970, p. 71-73. 1 Lincoln County Commissioners, the influx of people seeking employment created additional needs for certain services Z j, that local government units were unable to furnish. The thesis attempts to demonstrate that, through adequate preparation and outside financial help, a local government can successfully handle the strains placed upon it by the impact of a large construction project. In’ the case of Lincoln County, Montana., and affected municipal governments, there was adequate preparation in terms of impact statem ents and economic and social p ro jec tio n s. These projections, however, were made after the project began. However, outside federal and state aid has proved to be inadequate. It is argued that the federal government had obligations to the Lincoln County area to rectify problems directly attributable to the Libby Dam project. The Lincoln County budget was insufficient to meet requirements for the period of construction activity. This created a condition which necessitated emergency expenditures and budget transfers. The municipal govern­ ments experienced less in the way of budgetary problems during construction activity. The city of Libby, however, has experienced a 400 percent budget increase during the last ten years as a result of the growth trend caused by Interview with Lincoln County Commissioners, June 5. 1975. the dam project. The city did not immediately perceive the need for services as did the County government, as growth was restricted by an ordinance banning mobile homes, as well as an overall housing shortage in the city. (Note: this ordinance was enacted in 193$ in response to fire department concern over the high flammability of trailers at the time'’) . However, financial problems have more recently plagued the city due to a rise in local government costs and loss of tax revenue due to a migration 6 pattern