By Roby Brock
This week at the governor’s conference on tourism, industry leaders outlined prospects for Arkansas. Tourism taxes grew 3.8 percent last year, below expectations, but far better than many state counterparts.
While many states are cutting back on their tourism efforts due to economic conditions, Arkansas officials say they are moving into new markets with a message of affordability.
Arkansas tourism director Joe David Rice said that there are no dramatic changes planned for the state’s tourism budget, but a close watch of tourism tax collections in 2009 will determine future spending.
Wal-Mart gives employees bonuses
Wal-Mart’s hourly workers in the U.S. will get an average bonus of nearly $667, part of a plan that company leaders say will result in over $2 billion in added wages this year. Employees who worked for Wal-Mart as of the end of the fiscal year on Jan. 31 will get the bonuses, according to Wal-Mart.
Even hourly employees who were among the 800 laid off at the corporate office in Bentonville in February will get bonus checks. The bonus figures exclude salaried personnel.
Watchdog groups complimented Wal-Mart for the extra pay, but complained that the company should go beyond one-time payouts and lift hourly wages for employees.
Tyson Foods takes stake in pet food company
Tyson Foods will take a minority stake in Freshpet, a New Jersey-based maker of fresh, refrigerated dog food and treats. Freshpet, is a New Jersey-based start-up. Terms of the deal were not disclosed.
Freshpet will use Tyson’s chicken, beef and pork ingredients in production but will not use the Tyson logo on packages. The two groups will also leverage Tyson’s distribution chain to move products to market.
Beebe signs grocery tax relief
Continuing a campaign promise to reduce and ultimately eliminate the state’s grocery tax, Gov. Mike Beebe signed into law a measure that reduced the food tax by another penny. Two years ago, Beebe led the successful effort to knock 3 cents off the tax on groceries. The new one penny reduction will cost the state about $30 million annually in general revenue and another $10 million a year in special revenue.
State has questions on jobless benefit funding
Arkansas has no plans to spend any of its $59 million share of federal stimulus funds earmarked for enhanced jobless benefits until the state receives a written guarantee that any expansion of the benefits can end when the money runs out, Gov. Mike Beebe said Wednesday. The federal government will pay up to 33 weeks of additional unemployment benefits beyond the 26 weeks paid for by the state.
State funding for the unemployment trust fund is in “bad shape” according to workforce officials. It has borrowed $17.8 million from the federal government after the balance reached zero earlier this month. By the end of May, state leaders expect to ask for an additional $65 million in advance payments from the feds to meet state obligations.
Federal funds pay for 100 percent of the additional extensions of unemployment benefits.
Unemployment leaps in metro areas
Preliminary unemployment numbers for the state’s major metropolitan statistical areas (MSAs) rose dramatically between January 2008 and January 2009.
The biggest jumps occurred in the Memphis-West Memphis and Fort Smith MSAs, areas hard hit by layoffs in manufacturing, according to data provided by the U.S. Bureau of Labor Statistics. Unemployment jumped 3 percent in the Memphis-West Memphis MSA, standing at 8.8 percent in January 2009.
In the Fort Smith region, unemployment figures rose 1.8 percent to 7.7 percent in January 2009. Arkansas’ unemployment rate was 6.4 percent in January, up from 4.8 percent in January 2008.
Bill supporters say biodiesel standard could create jobs
Supporters of House Bill 1790 touted their proposal, which they claim could help create 1,500 new jobs in Arkansas. The bill calls for all diesel sold at retail facilities in the state to contain at least five percent biodiesel (B5).
A recent study by the UALR Institute of Economic Advancement projects that a B5 fuel standard will create 1,500 new jobs statewide with average wages of $37,000 and an overall economic benefit to the state of $359 million annually. The new jobs would be created in a variety of areas from agriculture and transportation to construction, retailing and other services across the state.
SWEPCO reports wetlands infringement at construction site
Southwestern Electric Power Co. (SWEPCO) reported to the U.S. Army Corps of Engineers potential impacts to wetlands at the construction site of the controversial John W. Turk Jr. Power Plant in Hempstead County.
SWEPCO says it reported the potential impacts on March 9 and met with Corps officials at the site on March 17. No-work zones near the potentially impacted areas were established and an investigation is underway.
SWEPCO’s $1.6 billion coal-fired power plant at the southwest Arkansas site has resulted in legal objections from environmentalist groups. They called for a complete halt of construction at the site after the disclosure was revealed.
OG&E strikes deal with state regulators
Oklahoma Gas & Electric, the Arkansas Public Service Commission staff and the Arkansas Attorney General’s office have reached an agreement calling for a general rate increase of $13.6 million.
However, if the PSC approves the settlement, it is possible that OG&E’s Arkansas residential customers could see little to no changes in their overall bill. The negotiated settlement calls for new base rates to take effect at the same time OG&E will implement a refund for a $12 million over-collection of fuel charges.
In August 2008, OG&E asked the PSC for a general rate increase of approximately $26 million.
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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.
