By Roby Brock
The state of Arkansas finished its fiscal year in the black with a $94 million surplus, the first time in two years that state revenue officials have seen collections grow over the previous year.
The state finance office reported that personal and corporate income taxes remained ahead of expectations leading to the end result, but gross receipts — which include sales taxes — were tripped up. For the full fiscal year, net available general revenues totaled $4.573 billion, up 5.8 percent over last year and 2.1 percent above forecast. The exact budget surplus for general revenues is pegged at $93.9 million.
Arkansas Best wins appeal in teamsters, YRC case
The 8th U.S. Circuit Court of Appeals in St. Louis ruled Wednesday in favor of Arkansas Best Corp., which returns the company’s lawsuit against YRC and the Teamsters back to a federal district court in Little Rock.
On Nov. 1, Arkansas Best Corp. — the parent company of ABF Freight System — filed a lawsuit seeking $750 million in financial damages from alleged violations of a National Master Freight Agreement (NMFA) by the International Brotherhood of Teamsters and others. On Dec. 16, U.S. District Judge Susan Webber Wright dismissed the suit for lack of subject matter jurisdiction.
A 17-page ruling issued Wednesday by a three-judge panel of the 8th Circuit included several comments that favored the ABF argument that the lawsuit should be heard in the district court. Trucking industry watchers have said a successful lawsuit against YRC could send the troubled trucking company into bankruptcy, a move that would greatly benefit Fort Smith-based ABF.
AT&T shedding wireless jobs in Arkansas
AT&T’s Arkansas operations is shedding jobs in its traditional wireline business, but a company spokesman says that replacement offers will be made throughout other areas of the company. That doesn’t mean that all workers will transfer.
AT&T spokesman Marty Richter said that the Arkansas wireline division is not closing, but jobs are being reduced in the division. He declined to disclose the number of jobs being cut. Richter says that AT&T’s wireless and video divisions continue to grow and will add employees, but the wireline business has struggled like many other companies who have seen a decline.
Griffin unyielding on tax hikes
In a mid-week interview on Talk Business, U.S. Rep. Tim Griffin, R-Little Rock, repeatedly said he is opposed to any potential tax increases — even on the wealthiest Americans — to resolve the debt ceiling and budget crisis in Washington, D.C.
Instead, Griffin said he supported tax reductions on wealthy Americans but also wanted to close deduction loopholes in the nation’s tax system.
“I don’t believe that the American people are taxed too little,” Griffin said. ”This is not a revenue issue … I am an advocate for tax reform that reduces the top rate and closes deductions so that we have a fairer, flatter tax system.”
President Obama and Senate and House leaders are in negotiations to resolve budget issues before a looming deadline when the U.S. is expected to reach its debt ceiling limit.
Yarnell’s ice cream searching for suitor
A week after its surprise closure, Yarnell’s Ice Cream in Searcy appears to be searching for a buyer. When media outlets requested public documents on loans from the Arkansas Development Finance Authority (ADFA), agency director Gene Eagle said certain information could not be released. He said that “efforts to market the company are ongoing” and “several entities have expressed interest in acquiring and operating the facility in Searcy.”
PSC wants utilities to save energy
Late last week, the Arkansas Public Service Commission approved a number of electric and gas utility companies’ energy efficiency plans to meet targeted goals for energy savings related to baseline 2010 annual sales.
For electric companies, the PSC wants to see energy savings of 0.25 percent of 2010 sales in calendar year 2011, 0.5 percent by 2012, and 0.75 percent in 2013. Gas utilities will be required to achieve energy savings tied to their 2010 sales of .2 percent in 2011, .3 percent in 2012 and .4 percent in 2013.
The companies propose to achieve these reductions through a variety of initiatives, including public awareness campaigns for energy efficiency, more consumer demand for energy efficient equipment, weatherization programs, and working with community groups for progress on the subject. The programs will be targeted to residential, small and large commercial, and industrial customers.
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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.
