A new report says cuts to Medicaid will weaken the small business workforce nationwide, potentially shrinking local economies in rural states like West Virginia.

While congressional estimates show the new budget would cost millions their Medicaid coverage, researchers at Georgetown University found one third of Medicaid enrollees are small business owners, workers, or family members.

A small business is officially defined as a company with fewer than 100 employees.

Study co-author David Chase - the vice president of policy and advocacy for Small Business Majority - said owners and employees are often in the same boat, when it comes to health coverage.

"It's not an exaggeration to say we would see hundreds of thousands of small businesses shut their doors if the owners lost Medicaid coverage," said Chase. "And in terms of the nearly 21 million employees and their families who are relying on Medicaid, they too need coverage. They would have to consider resigning their position at a small business where they currently work to find a job, probably at a bigger company that provides job-based coverage."

West Virginia opted in to the Medicaid expansion in 2014, and in the years since, the state's Medicaid participation increased 44%, to over 500,000.

Small businesses face higher costs in the private insurance market, and Medicaid fills the gap by providing options outside of traditional employee-sponsored insurance.

Report authors say it often takes time to build a business to the point the owner can draw a salary, and Medicaid provides vital relief.

The childcare sector is mostly made up of small businesses and is seen as particularly vulnerable to Medicaid cuts.

Melissa Colagrosso owns A Place to Grow Children's Center in Oak Hill, and said childcare access serves a critical function in local economies.

"If there's no childcare available, people can't work," said Colagrosso. "So we take out the opportunities for small businesses to grow, because they want to expand, they need to hire new employees, and they can't access them because those employees can't access child care. It also makes employees less reliable."

Colagrosso said child care is difficult to access in her area and her own wait lists are two years long. She said when people attempt to assess child care capacity, they often overlook child care workers.

"I may have capacity for 150 and licensed, but I'm only able to take 80 because I haven't been able to build the workforce to be reliable enough and sustainable enough because we can't offer those benefits," said Colagrosso. "And when those safety nets are taken away, it even more impacts that low-income caregiving staff."

She said over 50% of her current staff are reliant on the Medicaid expansion for health coverage.

An Indiana-based summit meeting will spotlight how university campuses can help power economic growth across the state.

Indiana University hosts its first Economic Development Summit on August 12. The daylong event will bring together IU leaders, business owners and government officials to explore new partnerships, and look at how some collaborations already in place are working.

Michael Huber, vice president of university relations at Indiana University, said the summit will highlight ways different campuses fuel local development.

"Each Indiana University campus has got different strengths," Huber pointed out. "We're hoping if you're an elected official -- maybe someone from the private sector who already works with IU, or has new solutions for IU -- you're going to be able to come to this conference and see what IU is doing across the state."

Huber hopes the event will help build new statewide partnerships. IU officials said economic growth depends on collaboration. The summit is open to anyone and includes topics like small business growth, workforce development and innovation.

Ken Iwama, vice president of regional campuses and online education at IU, said bringing all the right voices together can spark something bigger.

"To have them come together in one space, you end up sparking and igniting new ideas and new collaborations," Iwama emphasized. "Universities can't do it alone, nonprofits can't do it alone, economic development associates, business can't do it alone. I'm hoping to see that type of energy happen in this particular summit."

Attendees will also hear about current programs to boost career fields, from health care and manufacturing, to bioscience and teaching.


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Women who recently graduated from college are earning significantly less than their male counterparts.

A new study revealed women from Pennsylvania and other states who earned bachelor's degrees within the past seven years earn an average of 18% less than similarly-educated men. Research from the National Association of Colleges and Employers found segregated work environments are the main reason for the disparity.

Mary Gatta, director of research and public policy for the association and co-author of the report, said the problem is so prevalent, job analysts gave it a formal title.

"Some of that, as we see in our survey, is attributed to men and women working in different industries and different types of work," Gatta explained. "We called it 'occupational sex segregation.'"

The Early Career Talent Survey interviewed 1,400 professionals who graduated between 2017 and 2023, including about 500 men and 900 women. It found the gap brings financial challenges for women, who are more likely to have student loans but are less confident of their ability to repay them.

Despite financial disparities, career satisfaction was similar between genders among early-career professionals. Both men and women share comparable views on the speed of their career progression, although they cited different factors affecting their advancement.

Gatta noted it can cause long-term problems.

"The pay gap continues as women continue in their careers, with less money they are paying into Social Security, it's less money they are putting into their retirement," Gatta emphasized. "It has immediate impacts around economic security but also economic security as we age."

Nearly three-quarters of men surveyed work for private-sector companies, while just over half of women do. It found 30% of women work for nonprofits, where compensation is typically lower than in private industries. Gatta argued women need to gain more opportunities to explore nontraditional roles.

"The importance of helping introduce women and men to atypical occupations is really important," Gatta stressed. "Introducing women to STEM at an early age, getting that career exploration, we know that is important in helping to break some of that."

Support for this reporting was provided by Lumina Foundation.


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Groups opposed to NorthWestern Energy's latest rate-hike proposal plan to rally on Monday in Helena.

In an unusual move, the utility giant used a legal loophole to increase electric rates for its Montana customers without approval, just weeks before it was scheduled to argue for approval. Montana's Public Service Commission regulates utilities, including NorthWestern, which serves two-thirds of the state.

After the Public Service Commission failed to act within nine months of a request, NorthWestern announced a 17% rate increase, or more than $200 a year per customer.

Dick Maney, a resident of Butte, said while Montanans elect Public Service Commission members, he worries the commission is not always acting on the consumers' behalf.

"That is the problem," Maney asserted. "I don't think it has a lot to do with NorthWestern Energy. I think it has a lot to do with the regulators on the outside, not on the inside of the company."

The move follows a 28% rate increase in 2023 and precedes arguments starting Monday for another 20% increase. The Monday rally to oppose the hikes is being hosted by a coalition of groups: Montana Conservation Voters, Families for a Livable Climate, Forward Montana, Big Sky 55+, Montana Health Professionals for a Healthy Climate, Montana Sierra Club and Helena Interfaith Climate Advocates.

Maney noted the rate increases are troublesome on top of the many other increasing costs of living in the state. For example, the median residential property in 2023 saw a 21% higher tax bill than the previous year, according to the Montana Free Press.

"We have to deal with property taxes, which have increased substantially over the last couple of years and that is really affecting everyone," Maney pointed out. "An increase in electricity affects us a lot."

In the final days of the legislative session, state lawmakers passed property tax relief measures for most Montanans by raising taxes on second homes.


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