Tim Sheehy, a Republican candidate vying for Montana's Senate seat, faces scrutiny over his company's financial dealings that promised economic growth.
According to Alternet, Sheehy's aerial firefighting business, Bridger Aerospace Group, secured $160 million in bonds from Gallatin County in 2020 under the premise of local expansion and job creation, but the majority of funds were redirected to New York-based investors.
The deal, which gained unanimous approval from county commissioners, has failed to deliver on its promised benefits four years later, raising questions about the candidate's business acumen and commitment to local development.
In 2022, Bridger Aerospace channeled $134 million of the bond money to Blackstone Group, a private equity firm, representing over 83% of the total funds. The company's pledge to construct two new hangars in Gallatin County resulted in only one facility, while their workforce numbers have decreased rather than expanded.
University of Chicago public policy professor Justin Marlowe weighed in on the implications of such business ventures:
When, where and how benefits accrue locally when local governments support these types of business ventures is exactly the right question to ask. If the project fails, it sends a signal about the future of that jurisdiction.
The company's financial health has become increasingly precarious, with losses totaling approximately $150 million since receiving the bond issue in 2022.
Despite Bridger's significant financial losses, Sheehy's compensation as CEO remained substantial. In 2023, while the company recorded $77.4 million in losses, he received a base salary of $149,000 plus a $2.3 million bonus.
The previous year proved even more lucrative for Sheehy personally, as he earned a $450,000 base salary and a $4.4 million bonus, even as the company lost $42.1 million.
An independent auditor has expressed doubts about Bridger's ability to survive beyond 12 months at its current loss rate. While Gallatin County isn't directly responsible for the bonds, a potential bankruptcy could negatively impact its credit rating.
Recent polling data shows Sheehy leading incumbent Senator Jon Tester by up to eight percentage points. The race holds significant implications for Senate control, as Republicans need only to flip either Montana or Ohio to regain the majority, assuming they secure West Virginia's open seat.
Democrats maintain a potential path to retaining their slim majority through competitive races in Florida, Nebraska, or Texas, where recent polls show tight margins within error ranges.
The redirection of $160 million in public bonds meant for local development has emerged as a significant campaign issue for Tim Sheehy's Senate bid. The decision to allocate most funds to Blackstone Group instead of fulfilling promises of job creation and facility expansion has raised concerns about fiscal responsibility and local economic commitment.
While Bridger Aerospace struggles with mounting losses and potential bankruptcy, Sheehy's substantial executive compensation amid company difficulties presents a stark contrast to the unfulfilled economic promises made to Gallatin County residents.
