By Roby Brock
The latest housing report from the Arkansas Realtors Association shows that statewide home sales fell 10.5 percent in May compared to the previous year.
Pulaski County home sales tumbled 12.7 percent in May 2009 compared to one year ago. Home sales in Washington County actually rose 0.6 percent and Benton County home sales were even with last year’s May numbers.
Average home prices dropped two percent statewide to an average of $149,984. Pulaski County home prices were the highest in the state in May at $188,967.
Verizon layoffs confirmed
A spokesperson for Verizon confirms that layoff announcements were made this week at the company’s Little Rock regional headquarters. The number of jobs reduced was between “40 and 50” in “multiple areas,” according to Verizon Wireless spokesperson Lucie Pathmann.
She said laid off employees would be eligible for other open positions within the company in and out of state. While Verizon is examining redundant positions, it is also hiring new operators for its regional call center.
Retail group opposes Wal-Mart call for employer mandates
Early last week, Wal-Mart joined forces with two liberal groups to voice its support for employer-mandated health insurance. On Wednesday, the National Retail Federation (NRF) said it “strongly opposed” employer-mandated health care coverage, calling it a “tax on jobs” that the nation cannot afford during the current recession. Wal-Mart is not a member of the NRF.
Dillard’s same store sales fall in June
Dillard’s reported a 16 percent decline in overall June sales compared to one year ago. Same-store sales for the Little Rock-based mall retailer fell 14 percent.
For the five weeks ended July 4, 2009, Dillard’s reported total sales of $497.1 million. One year ago, the company reported monthly sales of $593.2 million.
PSC petitions Supreme Court in SWEPCO case
The Arkansas Public Service Commission joined energy provider SWEPCO in petitioning the state Supreme Court to review a Court of Appeals decision rejecting a permit for a coal-fired power plant in Southwest Arkansas.
Earlier this week, Moody’s Investor Service downgraded the bond rating for SWEPCO because of the legal circumstances and environmental concerns regarding the controversial $1.6 billion John W. Turk plant.
In late June, the Court of Appeals ruled that the PSC did not consider all matters related to the SWEPCO facility. The court also said the issue of alternative locations for the plant was not adequately addressed before the PSC granted the certificate.
Entergy unveils new economic development tool
Entergy Arkansas unveiled the Arkansas Site Selection Center, a free web-based research center for economic development and site selection efforts. The site, www.ArkansasSiteSelection.com, is a searchable database of over 200 existing buildings and properties in Arkansas that in-state or out-of-state firms can analyze when looking to locate or expand businesses.
Arkansas cities gain new air service
SeaPort Airlines officially accepted a two-year, $6 million contract to provide passenger service at El Dorado, Harrison, Hot Springs and Jonesboro. The Portland, Ore.-based company was one of five that bid on the federally subsidized service for Arkansas’ smaller airports. SeaPort will offer connecting flights to Memphis and it will offer charter service.
62 hospitals apply for trauma center status
More than 60 hospitals have applied to receive funding for the state’s new trauma system network, which is being funded by newly increased tobacco taxes. Four out-of-state hospitals near Arkansas borders have applied to participate.
Simmons First passes on Fed’s capital program
Simmons First National Corp. will not participate in the U. S. Treasury’s Capital Purchase Program (CPP).
The CPP was unveiled last fall by the federal government in order to strengthen unhealthy bank balance sheets and to provide additional capital funding to healthy banks.
Simmons First, which had received preliminary approval to participate in the program last October, was considered a healthy bank entity.
Citing an improving banking environment, CEO Tommy May noted that Simmons’ officials had asked for a delay in funding. May said that participation in the CPP at this time was not necessary or in shareholders’ best interests.
Lottery Commission approves retailer rules
On Wednesday, the Arkansas Lottery Commission approved rules for retailers who will sell lottery tickets. Retailers who sell Arkansas lottery tickets would receive a commission of 5 cents for every $1 in ticket sales.
Retailers could also receive one cent for every $1 in prize money redeemed and one percent of the prize amount on any ticket redeemed for a prize of $10,000 or more, with the retailers’ commission not to exceed $25,000.
Retailers will be required to cash winning tickets for prizes up to $600. Larger prizes can be collected at the lottery’s central office in Little Rock, at two or three district offices around the state, or by mail.
Highway bids let, severance tax estimates fall short
The Arkansas Highway Commission accepted bids Wednesday on 48 highway projects around the state totaling $29.3 million. The commission also learned that its total revenues for the fiscal year that ended June 30 reached $382.3 million, slightly higher than one year ago.
Part of that small gain was attributed to the new severance tax for roads, which went into effect Jan. 1. However, the severance tax only collected $6.5 million – much less than its original $15 million projection.
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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.
