By Roby Brock
The state’s unemployment rate increased seven-tenths of a percentage point to 6.4 percent in January.
Also, the December jobless rate was revised from 6.2 percent to 5.7 percent as part of the annual revision process done in accordance with U.S. Department of Labor guidelines. In January 2008, Arkansas’ unemployment rate stood at 4.9 percent.
The U.S. unemployment rate increased four-tenths of a percentage point to 7.6 percent.
The trade, transportation and utilities sectors saw the biggest monthly decline losing 6,800 jobs. Government, manufacturing and construction all recorded big job losses.
Foreclosures rise in Arkansas
Arkansas had 1,616 properties in some form of foreclosure in February, up 6.6 percent over January and up more than 16 percent over February 2008, according to Irvine, Calif.-based RealtyTrac.
Benton County had the highest number of foreclosure actions with 339, or one of every 250 housing units. Arkansas ranked 18th in the country based on the number of foreclosures per housing units. Arkansas had one property in foreclosure activity per 797 housing units.
Nationwide, RealtryTrac found foreclosure action on 290,631 U.S. properties during February, an increase of nearly 6 percent from the previous month and an increase of nearly 30 percent from February 2008.
Lottery amendments are filed
The highly anticipated amendments providing details to implement the state lottery were filed late Wednesday. The two amendments outline the structure and duties of the lottery commission and a retailer advisory board. They also explain how proceeds will be distributed to prize winners and scholarship recipients.
The amendments also spell out 13 key positions for a lottery staff, including the executive director’s post, which pays $141,603 but could be bumped to 2.5 times that salary under special circumstances.
Pastry plant to hire 250 in Searcy
Schulze and Burch Biscuit Co. announced plans to locate a 500,000 square-foot toaster pastry production facility in Searcy. The company said it will hire up to 250 workers but did not disclose its total dollar investment in the facility. Schulze and Burch will locate in a defunct Maytag plant and occupy about half the space.
Schulze and Burch is a privately held corporation based in Chicago. It manufactures and markets Toast’em Pop-ups and Snackin’ Fruits brands. Company officials say they selected Arkansas over locations in Alabama, Tennessee, and Georgia.
Firestone to lay off 71 in Prescott
A Firestone official verified that 71 employees at the Prescott Firestone Building Products facility will be laid off by April 3. The company said that the current economic situation and an “unprecedented decline” in construction led to the cutbacks.
PSC staff for extending deadline for utility plans
The staff of the Arkansas Public Service Commission signed off on a request by several utility companies to extend a deadline requiring reports about their respective plans for comprehensive energy efficiency programs.
In 2007, the PSC issued an order to all utilities based or operating in Arkansas to implement two categories of energy efficiency programs. The “quick start” programs have been developed and implemented by the utilities. Those programs include educating utility customers through “bill stuffers” and other communication outreach efforts, and helping low- to moderate-income homeowners weatherize their homes.
The second phase of the PSC order involves more comprehensive type of programs that would hit every customer of class of every utility. Utility officials said that mixed signals from state and federal officials regarding energy efficiency have made it difficult to craft plans.
Electronic games of skill jump again
Electronic games of skill (EGS) rose significantly in February at Arkansas’ two racetracks that allow the virtual games.
At Southland Greyhound Park in West Memphis, the year-over-year increase was more dramatic rising 29 percent in February to $37.6 million in wagers. One year ago, the West Memphis racing saw EGS wagers of $29.1 million. The February 2009 numbers represent an all-time high for EGS wagers for Southland.
At Oaklawn Park thoroughbred track in Hot Springs, EGS wagers rose a more modest 5.5 percent to $19.2 million in February 2009. Last year, EGS wagers topped $18.2 million in February at the Hot Springs horse track.
Stimulus money rises
Gov. Mike Beebe launched a new Web site to monitor federal stimulus spending in the state – recovery.arkansas.gov. Estimates for what Arkansas may receive from the federal government climbed from $2.1 billion to $2.9 billion, according to the site.
The Web site is interactive and allows users to follow categories of spending. It also notes that cities and counties in Arkansas may receive an additional $11 billion directly from the federal government.
Tyson Foods gets $1 billion credit line
Tyson Foods secured its new $1 billion senior credit facility with JP Morgan Chase bank, a move that will go toward paying down the U.S. meat company’s debt and future financing needs. Also, Tyson Foods said it closed on its previously announced $810 million offering of senior notes at 10.5 percent that are due in 2014.
Tyson and other meat companies have struggled in late 2008 and early 2009 as high feed costs, low meat prices and a drop in sales due to the global recession have hurt business. Later this month, Tyson is due to close on its $80.7 million sale of Lakeside Farm Industries, a Canadian beef processing operation, to XL Foods Ltd. Tyson is concentrating its international efforts in Brazil, China and India.
Murphy Oil sells Ecuador properties
Murphy Oil Corp. announced that it has sold all of its holdings in oil producing properties in the Republic of Ecuador to Repsol YPF Ecuador S.A. The $87 million sale was effective March 1.
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Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net.
