CHOTEAU - A new study says protecting homes from forest fires in Montana is costing the state millions of dollars extra, and it's only going to get more expensive as more residents settle on large rural lots.

Headwaters Economics, a nonprofit research group in Bozeman, completed the study for the Legislature's Fire Suppression Interim Committee. The Great Falls Tribune reported the study's findings Thursday.

At a committee meeting in Choteau, Patty Gude of Headwaters told lawmakers that subdivisions being approved today in the "wildland-urban interface" will increase the expense of firefighting for years to come.

The report says a growing economy and "Big Sky" appeal have contributed to rapid population growth in rural areas, especially in western Montana.

Gude told the panel Wednesday that "smarter land-use policies" would reduce the costs of protecting those homes from fire.

Among the study's major findings:

n The estimated cost of home protection for all agencies involved in fighting the state's fires in 2006 was $55 million and $36 million in 2007, with the state picking up $13.9 million of the tab in 2006 and $9.2 million in 2007.

n By 2025, the cost of protecting homes in seasons similar to 2006 and 2007, based on the state's rate-of-growth development patterns, could be as high as $79 million, with the state responsible for $31 million,

n As few as 150 threatened homes can drive up a year's fighting costs by $13 million.

n The cost of protecting homes usually exceeds

$1 million per fire.

"What's saving us is we still only have 1 million people," said state Sen. Dave Lewis, R-Helena, after hearing the report.

It comes as state lawmakers are studying ways to reduce firefighting costs in time for the 2009 legislative session.

About $81 million was spent in 2007, of which the state is responsible for $50 million, said Barb Smith of the Legislative Fiscal Division.