By Roby Brock
The Blue Ribbon Commission on Highway Funding ended its nearly 18 months of work by approving a number of recommendations to address Arkansas’ estimated $19 billion in road needs.
The group’s proposals include:
—Indexing the gas and diesel excise tax
—Levying a new excise tax on the wholesale price of motor fuels
—Transferring general fund revenues on sales related to automobiles and transportation products
—Proposing a 10-year highway bond program funded by a half-cent increase in the general sales tax
—Increasing state aid to counties through an indexed one cent fuel tax
Wal-Mart earnings rise ahead of holidays
For the third quarter and the first three fiscal quarters of 2010, total revenue for Wal-Mart Stores Inc. is up 2.6 percent and 3.7 percent, respectively, with international sales continuing to support relatively flat revenue growth in the U.S.
The global retail giant reported Tuesday that its third-quarter revenue was $101.951 billion, up 2.6 percent over the 2009 period, and thanks to almost 10 percent growth in Wal-Mart International revenue. Net income in the third quarter was $3.59 billion, up 10 percent compared to 2009. Third-quarter income was boosted by a $191 million tax benefit related to Wal-Mart’s international operations.
The company is not overly optimistic about holiday sales, but did provide a wide guidance range on its Wal-mart U.S. comp store sales. The company expects those sales to range between a 1 percent decrease to a 2 percent increase in the period between Oct. 30 and Jan. 28.
Local leaders unveil ‘Arkadelphia Promise’
Following El Dorado’s lead, community leaders in Arkadelphia unveiled a college scholarship program aimed at helping area students and attracting new residents and business to the region.
Dubbed the “Arkadelphia Promise,” the program will pay the difference between what the Arkansas Academic Challenge Scholarship pays toward college and the total mandatory tuition and fees at any public Arkansas college or university accredited by the Arkansas Department of Higher Education. For two-year schools, the AACS pays $2,500. It pays $5,000 annually for four-year colleges.
Arkadelphia High School graduates starting with the Class of 2011 will be eligible for the new scholarship program. Students can use the financial aid to help pay tuition and mandatory fees at any accredited two-year or four-year college or university in the U.S.
The program will be funded by The Ross Foundation and Southern Bancorp, two Arkadelphia-based organizations.
LR airport officials kick off $53 million expansion
State and city officials kicked off a $53 million expansion of the Little Rock National Airport on Tuesday. The major renovation will give a facelift to the existing terminal facility.
Other improvements slated for the facility include a new inline baggage system, security upgrades, an overhaul of the ticket lobby and energy upgrades. The nearly 40-year old airport terminal will undergo its expansion beginning in early 2011.
The financing for the project will come through a combination of stimulus funds, federal grants, an existing national passenger facility fee and airport revenue. No taxes and no new fees or charges are expected to be added to finance the project.
America’s Car-Mart net income slips
America’s Car-Mart Inc. reported quarterly net income of $6.2 million, or 56 cents a share, compared with $6.3 million, or 53 cents a share, a year ago. Revenue for the quarter ended Oct. 31 rose more than 11 percent to $91.8 million.
Eroding customer credit margins caused concerns with investors and company officials.
“Our financial results for the quarter were solid, but short of our own internal expectations. The uptick in our credit losses means we’ve got to do a better job taking care of our customers,” said Car-Mart President and CEO William “Hank” Henderson.
Tyson Foods to add 250 jobs in Hope
Tyson Foods will spend $13 million to upgrade its Hope chicken processing facility. The move is expected to add 250 jobs to Tyson’s local work force, which will top 1,100.
Springdale-based Tyson made the announcement late Wednesday. The new equipment will consist of product chilling and processing equipment.
“In addition, the Hope complex has also made a slight increase in the size specifications for the chickens raised by contract poultry farmers. This change requires the development of additional chicken houses,” a company statement read.
Arkansas one of 16 states to see economic growth
Arkansas’ 2009 Gross Domestic Product increased 0.6 percent compared to 2008, and the state was one of 16 states to see a gain despite declines in manufacturing.
With a value of $93.015 billion, Arkansas’ year-over-year GDP growth was ranked 8th in the U.S. Arkansas’ GDP gain between 2007 and 2008 was 1 percent.
“It’s a remarkable report. I was expecting 2009 to see a slight decline,” said Michael Pakko, chief economist and state economic forecaster with the Institute for Economic Advancement at the University of Arkansas at Little Rock.
Healthy advances in the areas of mining, banking and information services all contributed to Arkansas’ GDP gains.
CPA firms call off merger
Little Rock-based CPA firm Frost PLLC and Calif.-based Moore Stephens Wurth Frazer and Torbet have called off their previously announced merger. The two firms announced in late 2009 that they would join forces to expand nationally and internationally.
The called-off agreement was described as amiable between the two firms, which had been “testing the waters” for their merger during the last year. Both firms will resume operations under their previous names.
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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.
