In his first public forum as CEO of Wal-Mart Stores Inc. Doug McMillon challenged employees and suppliers to innovate, saying he would push the envelope in testing these new ideas that will drive the retailer’s future growth. McMillon and several top executives took the stage in Bentonville on Monday (Feb. 17) for the retailer’s annual Global Sustainability Milestone Meeting.

McMillon told the group that he was in the room 10 years ago when then CEO Lee Scott set three huge sustainability goals. He recalled several awkward conversations at the time as Wal-Mart first began it sustainability journey.

He said it was the first time he remembered the company focusing beyond its two major stakeholders — suppliers and customers. He said the sustainability initiative involved some awkward conversations at first when the retailer began asking other outside groups to critique the retailer’s performance in hopes of making Wal-Mart a better company.

“I remember going home and asking my kids at dinner one night if they thought Wal-mart should focus on being more sustainable,” McMillon said. “Spencer (then 7-years old) looked at me and said ‘duh, we’ll be here longer than you and we’ll need this earth.’”

In the past decade Wal-Mart has made big steps in the direction toward sustainability, but McMillon said the next leap will likely come from innovations that are aided by total-system thinking. He challenged suppliers and employees to figure out what they could do in their role to facilitate a more sustainable Wal-Mart.

BACK STORY
Peter Seligmann, CEO and founder of Conservation International, was in Bentonville for the company’s annual meeting on sustainability. He said the idea that Wal-Mart could be a huge player in sustainability first began years ago with a diving trip off the coast of Costa Rica between he and Wal-Mart board chairman Rob Walton.

He said Walton attended a meeting with him the following day with the President of Costa Rica about how the country was managing its fisheries.

“I told Rob that the president was going to look at me and see an environmentalist ... but, if he were to ask about opportunities for sustainable sourcing of fish for Wal-Mart, the conversation would go better. Within a few months there was a change in the way Costa Rica was managing its resources. I told Rob, who was a board member of (Conservation International) at the time, that if he really wanted to change the world, he had to get Wal-Mart involved,” Seligmann said.
 
He said Walton responded by saying, “Let’s go to Bentonville.” Seligmann said they met Lee Scott and other executives about the role Wal-Mart could play and the excitement became infectious as Wal-Mart “democratized” the broader conversation.

“Sustainability is a story about humanity, it’s a big conversation,” Seligmann said. “With climate shift and 80 million new births annually, the planet is stressed out. The biggest challenges for mankind will be how to take care of these new people with shrinking resources.”

WAL-MART PERFORMANCE
Charles Zimmerman, vice president of product innovation at Wal-Mart, said the three goals set in October 2005 by the retailer simple in theory, but lofty in scope for a 2020 target.
• Be supplied 100% by renewable energy;
• Create zero waste; and
• Sell products that sustain people and environment.

The first two, he said were aspirational goals, precise in nature.

Zimmerman said the energy piece involves sourcing renewable energy where it can, as well as generating renewable energy sources. The company reset its energy efficiency goal last year to reduce its energy consumption by 20% by the year 2020. He said through the third quarter of last year, the company reached a 7.4% reduction, well past the 3% needed at the time to be on track for the new 2020 goal.

“While I get excited about those percentages the real impact is financial. That 7.4% is a savings of $250 million in energy costs annually,” he said.

He said LED innovation is leading the way for these savings and it’s largely through products created with its suppliers, products that have revolutionized the entire lighting industry in the process.

Wal-Mart was quick to find lighting applications such as exit signage, freezer cases and parking lots, but the elephant in the room was the large supercenter sales floors which comprise 90% of the retailer’s lighting costs, according to Zimmerman. He said a year ago only 20% of the store planners had evolved their prototypes to be 100% LED. Today, that’s up to 80%. The technology is something its competitors will be using within two years, but in the meantime, Wal-Mart will build some 2,000 stores using the 100% LED lighting.

Touching on the renewable energy source efforts, Zimmerman highlighted the progress made in its Mexican business unit, where the company doubled the amount of wind turbines that power stores there. By the end of 2014, he said 60% of Walmart de Mexico’s energy needs will be met through renewable sources.

Zimmerman said a zero tolerance policy on waste with 11,000 stores is a huge goal, and many would say, “no way.” He said three of Wal-Mart’s largest markets have already achieved 80% no-waste — Walmart U.S., Seiyu in Japan and Asda in the U.K. 

LOGISTICS GAINS
Chris Sultemeier, executive vice president of Walmart U.S logistics, said his division is known far and wide for its efficiencies dating back to Sam Walton’s distribution methods that allowed him to put stores in rural areas. He said all distribution center warehouses and fulfillment centers are converting to LED lighting that will save $10 million annually in utility costs. The retailer also is using hydrogen fuel cells to power the fork lifts used in the warehouses. 

“We have 2,000 of these in use in our distribution centers in the U.S. and Canada, the largest fleet of its kind in the world,” Sultemeier said. “By doubling the fleet efficiency of our trucking operations we shipped 658 million more cases, driving 300 million less miles and saving 43 million gallons of fuel.”

But the more interesting part of Sultemeier’s presentation involved the forward look toward new technology and fuel innovations the retailer is testing with key suppliers. The company spotlighted efforts to collect waste grease from stores and Sam’s Club that is then used to create biofuel. The company also is working to build hybrid trucks that run more efficiently and create a new prototype for the semi-truck of the future — Walmart WAVE.

Wal-Mart said the new WAVE is still a few years away from mass production.

USED CARDBOARD BOXES
McMillon closed the meeting in a candid conversation with suppliers, employees and other groups attending the annual event. He asked anyone in the room who had stories to shares or suggestions that could help Wal-Mart further its sustainability journey to approach the microphone.

The last attendee to speak was Marty Metro, the CEO of UsedCardboardBoxes.com.

He pointed to a box baler on stage in the Wal-Mart home office auditorium and said that’s what everybody thinks is a sustainable effort, but it’s not.

“What really happens is that these boxes can be broken down and then shipped to China. Twelve years ago we set up a company and infrastructure to buy used cardboard boxes and then resell them to people who reuse them again. We buy millions and millions of boxes from General Mills, Nestle and McCormick Spices and instead of baling them, we break them down, inventory and inspect them, then resell them as used boxes. We do sell a tiny, tiny bit to Wal-Mart, but lots to Target, T.J. Maxx, Ross and Marshalls and all those competitors,” Metro said.

He told McMillon he made the trip from California, hoping to spark an interest from Wal-Mart, a huge venue that is shipping millions of boxes to China, in hopes they could work together in the future. 

“Working with Wal-Mart who gets boxes from the suppliers, we could buy those empty boxes and sell them back to suppliers creating a sustainable loop,” Metro said.

McMillon joked that Metro was the marketer among the group, but then quickly added that he figured out how to pay for the meeting.

“You made it to the right microphone,” McMillon said, before he asked his workforce who was going to be responsible for following up with UsedCardBoardBoxes.com.

Wal-Mart’s reverse logistics group answered the call and McMillion noted it. He then asked Metro if he had any other ideas. Metro smiled and said he can’t solve all the world’s problems, so he’s been focused on cardboard boxes for 12 years and his firm does that really well.

The Fort Smith Public School Board of Education went against the urgings of school administration and a project architect to reverse its previous vote and instead award an almost $1.9 million contract to Turn Key Construction Management for work at Darby Junior High School.

Turn Key was the initial low bidder on work to expand the locker rooms and band room at Darby, but the Board approved a recommendation by project architect Galen Hunter to give the work to Beshears Construction after a subcontractor with Turn Key withdrew from the project.

At issue is a disagreement about a requirement that the plumbing subcontractor on the project have 10 licensed workers. Turn Key had listed Fort Smith-based Chamberlain Mechanical who at the time of the bid process had less than 10 qualified workers for work that includes moving a large “chiller” from the Darby roof.

Sandy Dixon, owner of Turn Key, told the board that Chamberlain handled a $5 million project at Woods Elementary and a $10 million project at Chaffin Junior High with no problems. Dixon said Chamberlain volunteered to withdraw from the project rather than run the risk of losing future business with the school district. Dixon said she soon realized that allowing Chamberlain to withdraw was a mistake because Hunter would then use that against Turn Key.

“I didn’t want to rock the boat. ... But I was blindsided. I didn’t expect this to happen,” Dixon told the board.

Hunter, who is a principal with Fort Smith-based MAHG Architecture, was the focus of questions from several board members who believed Turn Key and Chamberlain were not treated fairly. During the initial questions, Fort Smith Public Schools Superintendent Benny Gooden was quick to advise the board “against negotiating with individual contractors.” He suggested that “if we’re not going to follow our architect” and his guidance, then it did not make sense to pay a professional for their services.

But that did not quiet the board.

Board members Deanie Mehl and Susan McFerran said they doubted it was made clear to all in the bidding process that having the 10 qualified plumbers was an immediate requirement. They noted that five of the seven general contractors used Chamberlain in their bids.

“If this is so clear, then why did five of seven miss it,” Mehl quizzed Hunter.

Hunter responded by saying it was made clear in a pre-bid conference, and that he could not answer as to why the majority of general contractors listed Chamberlain as a subcontractor.

Board member Rick Wade said he did not think it right that the Board require a subcontractor to staff up to a certain number just to bid on a job. His understanding was that companies will staff up to meet the requirement once they get a contract. Wade asked Hunter that if Chamberlain came back with a list of 10 qualified workers, would he accept the bid.

“I have no problem with Chamberlain,” Hunter responded. He noted several times during the meeting that he had no problem with Chamberlain, but was just trying to ensure that the process was fair to all general contractors who submitted bids.

A few minutes later, Sandy Dixon, owner of Turn Key, asked a more pointed question.

“Can 10 work on that chiller at one time,” Dixon asked Hunter.

“No,” he quickly responded, adding that “I think the 10 number was pretty much just arbitrary.”

Wade moved that the Board reconsider its vote to award the Darby work to Beshears. That motion was seconded by David Hunton and approved unanimously. Wade then moved that the work be awarded to Turn Key. That motion was seconded by Mehl and also was unanimously approved.

It's official. Crawford County voters will vote May 20 on ballot titles that would issue bonds to be repaid by a half cent sales tax for the construction of a new county jail and also fund law enforcement operations in the county sheriff's office with a quarter cent sales tax.

The two titles approved by the Crawford County Quorum Court Monday (Feb. 17) will be the fourth time the county's elected officials have asked residents to approve funding for a new county jail, with the last vote coming in 2005, according to Sheriff Ron Brown. While the three previous attempts failed to gain enough traction for passage, Brown said this time will be different, explaining that the county's jail is simply overflowing despite attempts to expand capacity.

"We enclosed three of the four exercise yards, we've manipulated walls — we've done everything we can. Still we're not in compliance (with state law). And I think that we can show, or I know I can show the voting citizens of Crawford County the numbers and the need for this. We're a growing population. We are in the top 12 (counties based on population) and we've got a small jail."

If approved, the sales tax rates in the county's largest cities — Alma and Van Buren — will jump from a current rate of 9.5% to a rate of 10.25%, among the highest local sales tax rates in the United States.

Before voting on placing the sales tax vote on the ballot, which would fund the $20 million jail project, Justice of the Peace James Lane made clear his opposition to the plan, saying that it was cobbled together and not well thought out.

"I feel like we're flying by the seat of our pants building this jail just like the bunch did that built that jail over there," Lane said, pointing to the west side of the room toward Sebastian County.

Lane said the county should have brought in experts in jailing to work with county officials to determine the best course of action, but he said no such action was taken.

In addition to voting on the ballot issues, Brown and Crawford County Judge John Hall for the first time presented various sites under consideration for the jail. The locations, Hall said, were received after the county took out an ad in a local newspaper seeking property for the jail.

While a previous location floated for the jail included the Van Buren Industrial Park, no such location was presented to the media Monday. Instead, there were four locations along Fayetteville Road in Van Buren, with three of those being located close to residential areas and another across the street from a local church. The three Fayetteville Road locations, all north of Interstate 40, are also in close proximity to Northridge Middle School.

In addition to the four locations along Fayetteville Road, there are four locations along U.S. Highway 64 between Van Buren and Alma, as well as a fifth U.S. Highway 64 location near the Alma Walmart Supercenter.

When asked about the possible locations, especially those along Fayetteville Road, Hall was quick to say voters should not expect those locations to be viable.

"I think the sheriff and myself and the people that understands the need to get out, emergency vehicles to travel and everything, I think it would be defeating our purpose to go up 59 Highway (Fayetteville Road). So we've got a property here on Kibler Road, we've got four locations on 64 Highway. ... We've got some good locations that's been offered."

Asked if the potential new jail, which is projected to house more than 250 inmates, would impact property values, especially if located near a residential area, Hall was adamant.

"No. Not in the areas where these properties been located. Because the properties located out on 64, one of them is right beside the Yaffe junk yard. One of them is just an old building. And one of them is Moore's, and there's nothing around it. He's got trailer sales. He's got 15 or 20 acres. There's nothing around it except the interstate on the back. And the other one, Keiwit's on it right now and it's a big construction site, so I don't think it would have any affect on the property values. It's not going to be put in a residential district."

The May 20 sales tax vote will ask voters to approve both sales taxes in separate votes, one for a half-cent for nine years to build the jail and another for a quarter-cent to fund law enforcement operations. Should the construction pass, but operations fail, attorney Ryan Bowman of Friday Eldridge and Clark told the Quorum Court that they could decide to not issue the bonds by a vote of two-thirds majority. Should the operations pass and construction fail, though, he said the Quorum Court would have to put the issue of whether to eliminate the tax to the voters.

House District 76 now officially has a Republican primary and while the last names are the same as 2012, there are no incumbents vying for the seat, only the son of the current incumbent.

Republican Bobby Altes, the son of Rep. Denny Altes, R-Fort Smith, has announced he will seek the seat his father is vacating after this term due to term-limits, setting up a primary challenge with Mat Pitsch, who ran against the elder Altes in the 2012 Republican primary.

A local businessman and a native of Fort Smith, Altes said he was looking forward the campaign and a chance to serve the citizens of the area.

“I am excited to be announcing my candidacy for the office of state representative No. 76 because serving the citizens of Fort Smith has been an important goal of mine,” he said on his Facebook page.

Altes also said he would follow in his father's footsteps, being a consistent conservative voice in the General Assembly.

"Fort Smith deserves to continue with conservative leadership and the pursuit of a value agenda. Those values include limited government, reduced spending and lower taxes and most importantly to make Arkansas a business-friendly environment."

In order to be more business friendly, Altes said Arkansas should "position itself to be more competitive with neighboring states. Current Arkansas practices and laws often discourage new businesses from locating within the state losing precious jobs and revenues.”

Altes also made no bones about his views on Obamacare and alluded to the oft-contentious Private Option, Arkansas' Obamacare solution that takes Medicaid patients and places them on private insurance.

"As a conservative, I am also concerned about forced government health care and the impact on small businesses and full-time jobs. I do not believe in government fixes and feel personal responsibility must play a part in long-term Arkansas solutions."

Altes said he is a lifelong Fort Smith resident, graduating from Southside High School and the University of Arkansas with degrees in business administration and accounting. He has previously worked as a logistics manager for J.B. Hunt Trucking and currently owns Altes Sanitation.

Altes and Pitsch will face in the GOP primary May 20.

A slice of drama was cut from the state capitol on Tuesday as a state senator previously opposed to the private option said she would now vote to fund it. However, the drama will continue after the House on Tuesday afternoon could not muster the 75 votes needed to approve private option funding.

Sen. Jane English, R-North Little Rock, got something in return, however. English, a long-time advocate for restructuring workforce education and training in Arkansas, said she has received support from fellow lawmakers and Gov. Mike Beebe to fundamentally alter programs tied to workforce investment.

“Yes, I am switching,” English told Talk Business during a Tuesday morning (Feb. 18) interview. “And I have the undying support of Governor and the cabinet to make something happen [in jobs training], to make changes. There isn’t a single cabinet person who isn’t on board with this.”

John Brummett, political columnist for the Arkansas Democrat-Gazette, first reported English’s switched vote in his Tuesday column.

English’s vote now gives the Arkansas State Senate the supermajority of 27 votes needed for passage of the private option, the state’s innovative alternative to straight Medicaid expansion crafted last year by Republican lawmakers and Democratic Gov. Mike Beebe.

English, a former director of the state’s Workforce Investment Board at the Department of Workforce Services (DWS) and a one-time project manager at the Arkansas Economic Development Commission (AEDC), said altering workforce training and providing health insurance for working Arkansans are connected.

“My thing is if we don’t do it now, when are we going to do it?” said English. “We’ve got to get to the system where we turn the whole thing upside down and we provide a really good workforce system here that people can access with the kind of skills so that we don’t have to have everybody on food stamps, we don’t have to have everybody in the private option.”

The changes that English has advocated – and that key legislators and administration officials have agreed to – include:
• $15 million in existing DWS and two-year college funding tied to jobs training that will be administered by AEDC to meet existing industry needs;
• A coordinated effort by state agencies and private industries to identify 30,000 potentially unfilled Arkansas jobs;
• An assessment of the skills needed to fill those jobs;
• A reallocation of two-year school resources to put infrastructure and money in key areas of the state where job vacancies exist.

By the 2015 legislative session, the initiative will seek a top-to-bottom review of all job training programs at two-year colleges statewide and a possible realignment of nearly $24 million in workforce training money.

Following are other possible aspects of the “Arkansas Works Fast Track” initiative that the Governor, English and other legislators may propose.
• $16 million into ADEC Industry Training.
• College/Career Readiness — $9.6 million.
• Creation of a Fast Track Working Group — Workforce Cabinet, Business Leaders/Chamber and Legislature.
• Department of Higher Ed — Evaluate existing programs and identify shortage areas and programs. Evaluate existing Workforce 2000 programs and make recommendations for addressing state needs.
• On-going Business Advisory Council — Whose doing what, now and what’s good, what’s bad, and what’s missing.
• Legislature/Workforce Cabinet to present a package in 2015 session to address ongoing funding for workforce education/training: Workforce 2000 funding, Create Rebate, 2-year college funding formula, Ongoing funding for Career Pathways, College and Career Coaches and Adult Education.
• Department of Education and Career Education–Will begin the development of creating a tiered system of high school diplomas, with special emphasis for 16-20-year olds lacking a path under current constructs.

English said her focus for the revamped workforce education initiatives are about helping the whole state, not her legislative district.

“It’s about the state, it’s not just about my district,” English said.

The Arkansas House is expected to consider Tuesday afternoon a bill that includes funding for the private option, but also cuts state advertising to promote the program. House Speaker Davy Carter, R-Cabot, said he is confident that the votes exist in the House and now the Senate to pass the measure, but he was cautious on the timing of the possible passage.

“Whether or not it’s specifically today, I am 100% confident that the bill will pass both chambers,” Carter tells Talk Business.

It was not today.

The Arkansas House of Representatives voted on the funding bill – HB 1150 – that included the private option on Tuesday afternoon. The House failed to pass the measure by a 70-27 vote.

Rep. Bruce Westerman, R-Hot Springs, the House Majority Leader and a GOP candidate for the Fourth Congressional District, spoke against the bill and the private option funding.

“Is Arkansas going to be an enabler of Obamacare?” Westerman said. “There is no doubt in my mind that President Obama and the Obama administration is watching today so we can be their enablers.”

Westerman added, “Let’s make the courageous choice. ... Let’s say no.”

Rep. John Burris, R-Harrison, the former House Majority Leader and the political director for Republican U.S. Senate hopeful U.S. Rep. Tom Cotton, R-Dardanelle, spoke for the measure.

“I would simply say let’s keep it as simple as possible,” said Burris. “The appropriation we have before is has a lot of what we can agree on. It accomplishes a policy that I believe has consensus.”

Other members speaking against the funding included Rep. Terry Rice, R-Waldron, a candidate for the State Senate, and Rep. Charlotte Douglas, R-Alma. Rep. Nate Bell, R-Mena, who drafted the amendments to the funding bill that included the moratorium on state outreach efforts, spoke for the bill in its present form, but he was an opponent of the original measure. Rep. Charlie Collins, R-Fayetteville, also spoke for the bill. House leaders are expected to bring the measure up for consideration again.

The House will need 75 of its 100 members to support the funding in order to pass. Arkansas state law requires a supermajority of 75% of both chambers of the General Assembly to approve budget bills.

House Speaker Davy Carter (R-Cabot) said in a post-vote press conference that the private option funding bill was “non-negotiable.” He said, “We’re going to vote every day – for the next 25 days if that’s what it takes – until we pass the bill.”

Carter added that plenty of time had been allowed for members to contribute changes to the bill, but members who are opposed have not offered viable alternatives to the bill.

January home sales in Crawford and Sebastian Counties posted increases from the same period last year, with both counties posting values more than 40% higher in January 2014 than in January 2013.

Crawford County saw an increase in home sales volume from $2.711 million on 27 homes in January 2013 to $3.89 million on 38 homes in January 2014. That helped the county post a 43.5% increase in volume.

Sebastian County posted a 44.63% increase last month, going from $6.346 million on 52 homes in January 2013 to $9.179 million on 74 homes in January 2014.

According to Owner/Broker Kevin Clifton of Kevin Clifton Real Estate in Van Buren, the driving force in Crawford County home sales was the possible loss of the Rural Development Loan offered by the United States Department of Agriculture.

"We were initially up against a deadline for Rural Development loans to be finalized. It was set to expire (if the Farm Bill was not renewed by Congress)," he said. "A great number of people buying in that time only had 30 days (to get rural development loans in process)."

As a result of what appeared at the time to be a probable loss of the loans, nearly 80% of the 38 homes sold in Crawford County were sold in the city of Van Buren.

Besides Van Buren driving sales, the crunch on buyers getting approved for the loans before they were set to expire may have also driven up home prices, Clifton said. In Crawford County, average sale price on homes sold increased by 1.96%, while Sebastian County only increased 1.63%.

Clifton said the market was simply responding to supply and demand.

"On average, the homes in Crawford County are approximately $3 to $4 per square foot higher in asking price then they were this time last year," he said. "So the sale price typically follows suit with the asking price. The bulk of that is supply and demand. The amount of homes now versus last year plays into that final sale price. If there's less homes to choose from, then the sale price can be a little more."

While the year is off to a good start in both counties, Clifton warned that surprises may be around the corner and it has to do with rules on mortgages. For borrowers who do not put 20% down on a mortgage, the government requires the purchase of mortgage insurance, also known as PMI (a mortgage insurance premium). Clifton said the cost of PMI could impact home sales throughout the rest of this year, potentially taking some buyers out of the market, at least for the short term.

"The FHA (Federal Housing Administration) requirements bump the consumer's payment so much higher (with PMI)," Clifton said. "They may want to wait a little longer and save more down, but the payments will be cheaper on the life of the loan."

As a result, "that particular market may not see as much of an increase in sales as the Rural Development loans, if the buyer that can qualify for the rural development loan."

HOME SALES DATA
• Crawford County
Unit Sales
January 2014: 38
January 2013: 27

Total Sales Volume
January 2014: $3.89 million
January 2013: $2.711 million

Median Sales Price
January 2014: $89,500
January 2013: $89,500

• Sebastian County
Unit Sales
January 2014: 74
January 2013: 52

Total Sales Volume
January 2014: $9.179 million
January 2013: $6.346 million

Media Sales Price
January 2014: $112,000
January 2013: $114,900

Fort Smith could soon be home to Arkansas’ first osteopathic medical school and one of just 31 in the U.S., thanks to a more than $58 million investment from the Fort Smith Regional Healthcare Foundation (FSRHF) and a grant of 200 acres from the Fort Chaffee Redevelopment Authority (FCRA).

Officials with the FSRHF, the FCRA and area cities made the announcement during a Tuesday (Feb. 18) afternoon press conference at the River Valley Nature Center at Chaffee Crossing. More than 85 people attended the press conference.

The possibility of such a medical school estimated to have a $100 million annual economic impact on the region was first reported by The City Wire in December 2013. At the time, Foundation officials were in the feasibility phase of the project.

FSRHF Chairman Kyle Parker told The City Wire that a fully operational school would serve about 600 students, and employ around 65 (full-time equivalent jobs) with an average salary of $103,000. That impact does not include adjunct professors that will be needed for the school, he said.

The school is targeted to accept its first cohort of students in the fall of 2017.

PROJECT HISTORY
Revenue from the 2009 purchase of Fort Smith-based Sparks Health System could be used to help build and operate the medical school. When Naples, Fla.-based Health Management Associates (HMA) acquired Sparks in a deal valued at $138 million, part of the money was used to create the Fort Smith Regional Healthcare Foundation.

Foundation initiatives include supporting scholarships for individuals seeking advanced medical training, the Community Dental Clinic in Fort Smith, health education programs in area schools, and other medical training options.

The osteopathy school plan has has early supporters. The Community Health Centers of Arkansas, which provides medical care in Arkansas’ rural areas, supports the idea, according to Tom Webb, executive director of the FSRHF. Endorsements also have come from the Arkansas Osteopathic Medical Association (AOMA), the Arkansas Society of the American College of Osteopathic Family Physicians (ACOFP), and the Arkansas Osteopathic Foundation (AOF).

Osteopathic medicine, according to the American Osteopathic Association, the practice is “a complete system of medical care with a philosophy that combines the needs of the patient with the current practice of medicine, surgery and obstetrics; that emphasizes the interrelationship between structure and function; and that has an appreciation of the body's ability to heal itself.”

RECENT MOVES
On Tuesday, the FSRHF Board of Trustees voted to move forward with the project and hire a CEO and chief academic officer for the school.

Tuesday afternoon, the FCRA approved providing the school 200 acres near Chad Colley Boulevard, with the land valued at $4 million.

Working with the Arkansas Osteopathic Medical Association (AOMA), the FSRHF has developed several partnerships with regional medical providers. According to the FSRHF statement issued Tuesday, Mercy Health System, Sparks Health System, Cooper Clinic, the Choctaw Nation Health Services Authority and Community Health Centers of Arkansas “have indicated their desire to play integral roles in the clinical rotations and residency education of the proposed college.”

"The AOMA is extremely excited about the development of the proposed Arkansas College of Osteopathic Medicine to be located in Fort Smith,” Dr. James Baker, president of the AOMA, said in the statement. “We will continue to develop, partner with, and support those providing state-wide resources to help advance the Fort Smith Regional Healthcare Foundation's mission of establishing the school."

FCRA Executive Director Ivy Owen also said during the press conference that the FCRA has assisted “off and on for two years” with the project, and that the FCRA Board conducted “a lot of due diligence” before agreeing to provide the land.

Frazier Edwards, executive director of the Arkansas Osteopathic Medical Association, said the association was “extremely excited” to have this school planned for Arkansas, and that the association “will continue to develop and funnel resources” to the school.

Fort Smith Mayor Sandy Sanders called the school a “game changer” for the region.

THE PROJECT
In his remarks and media interview Tuesday afternoon, Parker said FSRHF Trustee Jim Walcott challenged the foundation to “move the needle” on the effort to “fill gaps in healthcare and provide care for the medically underserved regions in Arkansas and Oklahoma.”

The result of Walcott’s challenge could be a 200-acre campus built out in several phases. An initial layout drafted by Oklahoma City-based Crafton Tull shows the campus located immediately east of where a proposed third Fort Smith high school is located. The site is on both sides and just south of the Chad Colley Boulevard entrance into Chaffee Crossing. The plan calls for 87 acres on the west side of the boulevard and 113 acres on the east side.

The first phase of the medical school campus includes a 60,000-square foot building, several smaller buildings, a campus green, main entry, and a proposed pond. A second phase includes a “village green” area with more buildings.

Future development around the campus includes space for a medical office park and commercial and retail development.

Owen said the school is “highly compatible” with the Chaffee Crossing development goals.

“We are very excited to be a part of the plans to build this osteopathic medical university. Their plans dovetail nicely with our plans for this area. The wooded, open space, walkable-style campus is exactly what we want for Chaffee Crossing,” Owen said in the statement.

THE NEED
There are 30 colleges of osteopathic medicine (COMs), offering instruction at 40 locations in 28 states. There is not an osteopathy school in Arkansas. Twenty-four of the COMs are private; six are public. Should the development of an osteopathic school in Fort Smith happen, it would be a private, non-profit institution and not dependent on continuous public funds from the state.

Approximately 60% of practicing osteopathic physicians (DO) practice in the primary care specialties of family medicine, general internal medicine, pediatrics, and obstetrics and gynecology, according to information provided by the FSRHF.

Arkansas ranks 48th in physician accessibility in the United States. The western side of the state, including the Fort Smith region, has been identified as the most underserved area in Arkansas, according to the FSRHF.

“FSRHF was presented the opportunity to increase availability of care within medically underserved areas of the state by addressing the severe shortage of physicians through the development of a college,” noted the FSRHF statement.

In his notes, Parker thanked the following individuals for helping during the research phase of the project.
• Mr. Doug Babb, CEO, Cooper Clinic
• Dr. Cole Goodman, President, Mercy Clinic
• Dr. Jason Hill, Chief Medical Officer, Choctaw Nation Health Services Authority
• Ms. Sip Mouden, CEO, Community Health Centers of Arkansas
• Mr. Charles Stewart, CEO, Sparks Hospital

A recovering economy, more lenders in the subprime auto space and higher charge-offs have thrown a monkey wrench into the operations of America’s Car-Mart, a large buy here, pay here auto dealer.

While the Bentonville-based company is poised for topline growth, the bottomline profits were a big miss in the recent quarter. Late Tuesday (Feb. 18) Car-Mart reported net income of $1.5 million for the third quarter ending Jan. 31. A charge of $4.9 million after tax related to higher than expected charge-offs weighed heavy on net income returns. Profits equated to 16 cents per share, down after the charge, plummeting 80% from the same period last year.

A consensus of five analysts who follow the company predicted Car-Mart would deliver 70 cents a share in net income profits in the quarter, which the auto dealer/finance company failed to do even before the taking extra 52-cent charge.

Revenue grew 3.3% to $122.58 million in the quarter, missing Wall Street’s estimate of $126.7 million.

“Despite the pressure we are feeling in the current competitive environment, we are continuing to see some good growth. We remain committed to growing our business the right way with the realization that so long as the competition does not share our same focus on customer success, our results could continue to be affected somewhat,” CEO Hank Henderson noted in the release.

He said the company is seeing some of its best customers lured away with deals that Car-Mart believes involve impractical terms.

“We will continue to do our very best to set our customers up to succeed so that we will be in a position to earn their repeat business in the future. Anything short of our customers successfully completing the terms of their individual contracts is not acceptable to us and not in line with how we believe this business should operate. Unfortunately, the current environment is contributing to higher levels of charge-offs and we will continue to work hard to reverse these trends," Henderson said.

COMPETITIVE ISSUES
Analysts recently polled by The City Wire noted that the heightened competition Car-Mart faces with each sale is not likely to soon subside as more subprime lenders continue to make credit available at perhaps lower interest rates than the 15% Car-Mart charges.

“Private equity firms and other initial public offering activity with companies like Springleaf Leasing are creating a lot of liquidity in the subprime auto and consumer credit space,” said Martin Kemnec, analyst with Jeffries, who rates America’s Car-Mart as a “hold” with a one-year target price of $38.

“While we believe in the strength of Car-Mart’s management team, they have some delicate balancing to do fending off the competition, growing sales and not incurring more risks in the process,” he said during a recent phone interview.

Jeff Williams, chief financial officer at Car-Mart, recently told The City Wire that the company believes the 15% interest rate charged to all of its customers is fair.

“We try to set everyone up to succeed and feel like the 15% is a good rate even for our very best customers,” Williams said.

That said, the company knows it stands to lose some of its better customers to other dealers willing to offer new cars at similar or even lower interest rates. More independent lenders are making new auto loans to credit challenged borrowers and then packaging the credit pools into portfolios and selling that debt instrument on Wall Street to investors seeking higher yields.

COMPANY EXPANSION CONTINUES
The company opened seven new dealerships in the past nine months with four more on tap before the company’s fiscal year end on April 30.

“Our new dealerships are performing well and we are excited to be adding great new towns to our footprint. We have added almost 4,400 active accounts and are working hard to make these new customers, and our existing customers, fans for life of America's Car-Mart," Henderson said.

WIlliams said because of the stubbornly high net charge-off levels, and the company’s expectation that tough conditions will continue at least over the short-term to mid-term, it was necessary for to increase the allowance for credit losses to 23.5% from 21.5%. 

This action is responsible for the $4.9 million ding to the company’s bottomline profits in the quarter. The last time Car-Mart adjusted its allowance was in April 2012 when it reduced the percentage to 21.5% from 22.0%.

“This non-cash charge will not in any way affect our efforts to help our customers succeed, and our cash on cash returns continue to be very attractive even with higher charge-off levels. We are focused on maximizing efficiencies on the operating expense side of the business and are committed to always being the lowest cost operator," Williams said. “We know we can do better, but the business model is certainly being stress tested by forces outside of our control. We are working hard to continue to grow in a healthy manner so that we are in a good position if conditions change in our favor.” 

Shares of America’s Car-Mart (NASDAQ: CRMT) closed Tuesday at $37.55, up 32 cents. The earnings were released several hours after the close of trading. For the past 52 weeks, shares of Car-Mart have ranged from a low $36.22 to a high $50.59.

Car-Mart management will hold a call with investors and analysts on Wednesday morning (Feb. 19). 

FAST FACTS (year-over-year)
Automobiles sold: 10,735, up 3.2%
Number of dealerships: 129, up 9.3%
Average sales price: $9,739, down 0.6%
Same-store sales: down 2.8% year-over-year
Accounts over 30 days past due: 5.8%, down from 6%
Finance receivables: $400.651 million, up 10.1%

“We have been a very blessed company,” said Joe Donaldson, co-owner and General Manager of Sam’s Furniture in Springdale. “We’ve actually had double-digit increases the last three years in a row.”

Donaldson’s parents started the furniture company back in 1992 with a handful of other employees. Sam’s Furniture now has two locations in northwest Arkansas and employs close to 50 people. Less than two years ago, Donaldson was even ready to expand into central Arkansas with a third location, but his plans changed.

“We would’ve probably already been open in Little Rock with a third store if this whole health care thing wouldn’t have taken place,” said Donaldson. “But it scared the heck out of us.”

Donaldson is, of course, referencing the Affordable Care Act — more commonly known as “Obamacare.”  The ACA was signed into law back in 2010, and with it, so too were several new taxes, including the Health Insurance Tax (HIT), which is set to kick in this year. The HIT is one of the largest tax increases included in the ACA, raising $101.7 billion in the first 10 years and $208 billion in the second 10 years.

While the HIT is not technically a small-business tax, most analysts say it might as well be. The actual tax will be levied on health insurance companies who operate in the fully insured marketplace. Eighty-eight percent (88%) of small businesses purchase their insurance through this particular marketplace, and insurance companies are expected to pass the added expense on to smaller employers like Donaldson.

“It’s taken the entrepreneurship out of the people that have the ability to grow,” said Donaldson, who sits on the board of the Springdale Chamber of Commerce. “And that’s sad.”

“If you remember last fall, whole books of individual policies were being cancelled because they did not meet the minimum essential benefit requirement under the health care reform,” explains Tom Kane, senior vice president with Stephens Insurance. “Well, the small group market is the same kind of thing. If you’re in a non-grandfathered plan in a small group, you have to have a plan that meets the minimum essential benefit requirements, and so some small employers are being forced into plans that have much richer benefits than what they had previously, and that’s also driving up their costs.”

Another headache is the “employer mandate,” which requires small businesses with 50 or more full-time equivalent employees to provide “qualified and affordable” health insurance or pay a penalty.

“Small employers need to be very careful about thinking that I can get up to 48-49 full-time [employees] and then manage hours of a part-time population to avoid that 50 threshold,” warns Kane. “If you’re using a large part-time population and you’ve got 40 full-time employees, you might hit that 50 threshold because it’s 50 full-time equivalent hours.”

The hardship could be even greater for employers with 50-100 employees.

“They have to offer ‘qualified and affordable’ coverage or pay the penalty if they have more than 50 full time employee equivalents,” adds Kane. “They also are subject to the ‘essential benefit’ requirement forcing their insurance to cover more services unless they have a grandfathered plan or more than 100 employees.”

The mandate, originally scheduled to kick in this year, has been pushed back twice now by the Obama administration. Last summer, employers were told the mandate would be delayed until 2015. Earlier this month, the White House announced yet another delay. Employers now have until 2016 to comply before the government starts doling out penalties. But with all of this uncertainty, small businesses are already planning ahead.

“We were at about 56 employees when this whole health care thing started,” explains Donaldson, who estimates the HIT will cost his company tens of thousands of dollars in 2014. “Not only have we grown our volume, but we’ve had to do it with six or seven less people because we had to get under that 50.”

The penalty for not providing coverage is $2,000 per full-time employee, exempting the first thirty. If employers decide it’s easier to simply pay the penalty and tax consequence, their employees may end up paying the price, warns Kane.

“It’s really going to be painful for your higher paid employees to replace that coverage,” said Kane. “If you have a very low paid workforce, the employees may not be as impacted because they can go to the exchange and get premium subsidies based on household incomes. If you’ve got a higher paid income workforce, they may or may not be eligible for any premium subsidies and they are having to access the exchange with post-tax dollars.”

Small business owners won’t be the only ones affected by HIT. According to a study by Doug Holtz-Eakin, former director of the Congressional Budget Office, the HIT will cost each family, on average, about $5,000 in higher premiums over the next decade. That’s about $500 a year. And it won’t stop at premiums either, as Donaldson points out.

“I hate to say that businesses will just raise prices, but – in reality – that’s what is going to happen,” said Donaldson. “We’re either going to have to raise prices to offset the loss of that margin of profit to basically get over that added expense, or they will cut benefits and cut employees.”

So, for now, an expansion into Little Rock – which would add between 30-40 new Arkansas jobs – will have to wait.

“It’s the thumbtack that’s just poking you and pushing you backwards,” adds Donaldson.

The U.S. House and Senate have bills that, if passed, would repeal the HIT, but the odds of getting those through an already gridlocked Congress — in an election year — is easier said than done.

A proposal that would have seen the city of Fort Smith seek to impose fines against Whirlpool Corporation for violating the city's nuisance ordinance by spilling trichloroethylene (TCE) at its site more than 30 years ago, a spill that eventually spread to the neighborhood north of the site, failed at Tuesday's (Feb. 18) meeting.

The plan, which was proposed by attorney Melissa Sims of the Sims Law Office of Princeton, Ill., would have had the firm investigate methods in which is could pursue large fines against the company for, among other things, littering. Whatever fine the firm was able to secure for the city would have had a third of the settlement or fine paid right off the top, with the rest to be used by the city as it saw fit.

In expressing his opposition to the plan, which failed in a 2-5 vote, Vice Mayor Kevin Settle said he felt any pursuit of fines by the city could place current litigation, including a class action lawsuit, in jeopardy for property owners who live above the TCE plume in south Fort Smith. He also said he did not want the city to take action that could change the way businesses operate in the city.

"I don't want this Board to make a policy decision that would greatly affect the way business is done today or greatly affect the businesses that will be here tomorrow. What we don't want to do is create a policy that in essence tells the public, 'Hey, we're going to overstep the reach of our government, of our city government, and try to do more than the state government and federal government already have to do."

Settle said at this point in the clean up, it is time for the city to move out of the way and allow the process to work – regulatory processes and legal processes.

"I've been an advocate of these homeowners in this area. I think they need to be righted as quick as possible. I'm hoping Whirlpool will step up to the plate and do them right. And there are ongoing discussions with that, but ultimately we need to step out of the way and let what happen, happen. If at sometime down the road Whirlpool does not do the right thing, the ADEQ will fine them."

The discussions Settle said are ongoing apparently have not gone far, according to one resident who spoke after the meeting.

Laretha Plunkett, who is resident in the neighborhood north of the now-shuttered facility and a defendant in a lawsuit against the company, confirmed to The City Wire after the vote that Whirlpool had just last week made an offer through her attorney to settle the case for $25,860.

While Plunkett's attorney, Rick Woods of Taylor Law Partners in Fayetteville, told The City Wire Monday (Feb. 17) that any action by the city could impede his and other attorneys' efforts to secure settlements or a positive ruling in court, Plunkett said she was disappointed by the no vote.

"I don't think it would (impact lawsuits against the company)," she said.

Plunkett said she agreed with the stance of City Director Philip Merry, who along with City Director Pam Weber were the only two to vote in favor of the lawsuit. Merry said during the meeting that the city should not pick and choose how the laws are enforced, adding that he believed the city's laws should be enforced on everyone, corporations included.

"This vote to vote against it is to vote against enforcing law that we have. …I don't understand why we are voting on whether or not to enforce the law that our forefathers already put there."

In the end, City Director Keith Lau summed up the collective thinking of the five Board members who voted against pursuing legal action against the company by saying it comes down to the "validity of our ability to prosecute or collect fines" as well as whether pursuing action would promote the city as business friendly.

"I think, for me, I want this city to be perceived as fair and equitable in promoting business, as well as the interests of our citizens. And if we have a manufacturer who inadvertently pollutes the environment, then self reports, and then through the governing entity of the state comes up with a remediation plan to fix the problem, and then for us to come back in after it's all said and done because of outcry from the citizens on that side of the equation — we're not treating that manufacturing group equitably or justly. So what I'm saying is let the courts run their course."

If the city had agreed to contract with the Sims Law Office, no payment would have been required unless the case was won or settled.

A recent poll shows U.S. Rep. Tom Cotton, R-Dardanelle, gaining ground in his bid to unseat Democrat U.S. Sen. Mark Pryor. The poll results also show the Arkansas’ governors race to be tied up, and U.S. Rep. Tim Griffin, R-Little Rock, with an advantage in the race for lieutenant governor.

On Feb. 12, Little Rock-based Impact Management Group polled 1,202 likely Arkansas voters to ask their opinions on the candidates for U.S. Senate, Arkansas governor and Arkansas lieutenant governor. The poll has a margin of error of +/- 2.83%. Poll questions also included voter opinions on Arkansas’ private option plan.

In the U.S. Senate race, Cotton had 46% support from poll respondents and Pryor had 42%. This is a favorable shift for Cotton compared to an Oct. 24 Impact Management poll that had Cotton at 43% and Pryor at 41%.

Pryor was supported by 84% who identified as Democrats, and 8% from Republicans. Cotton was supported by 81% who identified as Republicans, and 7% from Democrats. Also, Cotton leads Pryor, according to the Impact poll, in all four of Arkansas’ Congressional Districts.
District 1
Cotton: 45%
Pryor: 43%

District 2
Cotton: 46%
Pryor: 43%

District 3
Cotton: 44%
Pryor: 41%

District 4
Cotton: 48%
Pryor: 39%

Clint Reed, a partner at Impact Management Group, said the national brand for the Democrat Party is hurting Pryor in Arkansas.

“As the ad war begins to ramp up and the debacle of the of the Obamacare rollout nationally, it appears that Cotton is gaining ground with the electorate. Cotton leads in each congressional district and leads in the large Little Rock media market (+9),” Reed wrote in an analysis for The City Wire. “Cotton’s lead among self identified independent voters (+30) signifies just how bad the national environment is for Democrats.” 

RACE FOR GOVERNOR
The contest between Republican and former U.S. Rep. Asa Hutchinson and Democrat and former U.S. Rep. Mike Ross to succeed a term-limited Gov. Mike Beebe (D) remains locked in a statistical dead heat.

Impact Management poll results show 42% of respondents support Hutchinson and Ross, with 17% undecided.

Among Democrats, Ross has 79% support and 10% support among Republicans. Among Republicans, Hutchinson has 75% support and 7% support among Democrats. Hutchinson does hold a lead over Ross (47% to 29%) among self-identified Independent voters. That could be an important element in the tight race, Reed said.

“Our polling shows this race continues to be a very close race. Hutchinson continues to lead by a wide margin among independent voters (+18) which will be the key voting block heading into the fall election,” he explained.

Hutchinson and Ross also split support among Arkansas’ Congressional Delegations.

District 1
Hutchinson: 43%
Ross: 38%

District 2
Hutchinson: 41%
Ross: 45%

District 3
Hutchinson: 43%
Ross: 40%

District 4
Hutchinson: 41%
Ross: 43%

RACE FOR LT. GOVERNOR
The race for Arkansas’ second highest elected position, but a position that comes with few duties and relatively little power, has taken on a higher-profile than normal. Former Lt. Gov. Mark Darr (R) was pressured to resign after an ethics investigation discovered he misspent more than $44,000 in campaign and state funds.

Democrat and Little Rock businessman John Burkhalter announced June 11, 2013, he would run for the office. Burkhalter and Ross held a joint press conference June 15 to endorse each other. Ross said if elected he would name Burkhalter as chairman of a new cabinet focused on economic development. Burkhalter is the only Democrat to announce for the office.

But it’s been chaotic on the Republican side. Rep. Charlie Collins, R-Fayetteville, said he would run for the office, but on Feb. 8 backed out after learning that Griffin would enter the race. Rep. Debra Hobbs, R-Rogers, exited her bid for governor to enter the lieutenant governors race. Also, Rep. Andy Mayberry, R-Hensley, has said he will run for lieutenant governor.

U.S. Rep Tim Griffin, R-Little Rock, previously announced he was retiring from Congress to spend more time with his family. However, he announced Feb. 13 he would enter the race for lieutenant governor.

The Impact Management poll, conducted three days before Griffin officially entered the race, show that 45% of likely voter respondents support Griffin, compared to 30% for Burkhalter.

“Congressman Tim Griffin is the clear front runner in the race for Lieutenant Governor. Griffin holds a substantial lead most notably across each congressional district and has a 5 to 1 advantage among independent voters,” Reed said.

Following are the breakdowns among the Congressional districts.
District 1
Burkhalter: 33%
Griffin: 40%

District 2
Burkhalter: 33%
Griffin: 49%

District 3
Burkhalter: 26%
Griffin: 44%

District 4
Burkhalter: 27%
Griffin: 47%

GENDER GAP, TURNOUT
The Impact Management poll also shows a split among men and women on candidate support in the statewide races surveyed. For example, female support for Pryor was 48% and 37% for Cotton. Support among men for Pryor was 35%, but was 56% for Cotton.

“The telling story from the Governor and Senate race data is that the gender gap exists. Both Republican candidates (Cotton and Hutchinson) have double digit leads among men while the Democrat candidates (Pryor and Ross) have double digit leads among women. This will be a significant part of the storyline moving forward on who can successful appeal across that gap,” Reed said.

The tight races, especially for the U.S. Senate and Arkansas Governor, will result in a more focused need than normal for all campaigns to focus on getting their supporters to the polls, Reed said.

"The Governor and Senate races, even though nearly nine months away, are all about one thing: Who can get their voters to the polls,” Reed said in his analysis. ‘We always say that voter turnout is key to winning every election, but this polling data indicates that we are looking at one of the largest get-out-the-vote programs in Arkansas’ history.”

Link here for the PDF report of poll results from Impact Management.

Higher-than-expected loan losses prompted America’s Car-Mart to amend its credit agreement with lenders. The 2% adjustment to credit losses cut third quarter earnings by $4.9 million, or 68-cents a share, and sent Car-Mart stock to a 52-week low on Wednesday (Feb. 19).

“We still have $220 million in equity, after the $4.9 million aftertax charge off. We looked at our $400 million in loans owned by our 62,000 customers and estimated that if we didn’t sell another car, we could likely collect 23.5% of the money owed to us. The last time we did this calculation it was 21.5%,” Jeff Williams, chief operating officer for the Car-Mart said in a phone interview Wednesday.

He said the credit loss adjustment is a cautious play made by the company based on the competitive climate they are facing in the deep subprime auto lending market.

Car-Mart execs said some of its mature dealerships are experiencing customers defaulting on their loan, parking the car on the Car-Mart lot after they have purchased another car from a competitor offering a lower monthly payment. 

Williams warns that the lower payment is accomplished by a longer term, out to 60 months or so, which is not in the consumer’s best interest at the high interest rates and higher mileage cars. He said Car-Mart does not play that game but instead works to ensure their customers can own the car outright within two and a half years.

The experts agree that large bank lenders are fronting cash to the subprime auto finance market with the belief they have the technology to collect. Car-Mart executives said technology may be giving these bankers the boldness to lend, but it is not a viable substitute for good collections. 

“Even our best customers will need two or three payment modifications when they may have a repair issue or some other personal finance concern. They may need some local help working through this issues. That’s hard to do unless you have brick and mortar stores and local customer service relationships,” Williams said.

Other costs Car-Mart absorbed in the quarter were $300,000 toward GPS systems in the cars sold. This effort is costly on the front-end and average about $3 to $4 per car per month. Williams said it’s part of the company’s investment in infrastructure costs that will pay off over time.

Williams said the company is experiencing more late payments because of higher utility costs. There were more defaults and repossessions among the company’s mature lots as they are being hit hardest by competitive lenders wooing away some of the best customers.

“The hyper-low interest rate environment is attracting more dollars with the subprime auto lending. We thought the competition might have subsided by now, but it has not. And it looks like it may be with us for some time longer,” Williams said.

For the full nine months of this fiscal year the provision for credit losses increased to $91.6 million, up from $65.83 million. These are reserves set aside for losses should they occur. 

CEO Hank Henderson said the company did not get to where it is today by focusing on one or two quarters, but instead, investing for where the company wants to be five years down the road.

“In the past five years we have grown our finance receivables by nearly $200 million, added 20,000 new customers and are selling about 1,000 more cars each month. I would say that’s pretty impressive. While it’s true we are facing some competitive pressures, that’s always been the case in one fashion or another,” Henderson said in the earnings call on Wednesday. 

Car-Mart continues to repurchase its stock. Since February 2010 Car-Mart has repurchased 3.1 million shares or 27% of the company. 

“We will continue to stay focused on cash returns and aggressive expense management. We believe in the long-term value of our company and will continue to invest in the repurchase program when we believe favorable conditions exist. Our first priority for capital allocation will continue to be to support the healthy growth of the business,” Williams said.

Shares of Car-Mart fell 4.87% to close Wednesday at $35.72. During trading on Wednesday the stock set a new 52-week low of $35.50.

Sebastian County's hopes of possibly leasing out the golf course at Ben Geren Regional Park appear dim as the only proposal from an outside firm for the golf course was a management proposal instead of a multi-year lease.

The management proposal by Cypress Golf Management of Orlando, Fla., comes with large monthly fees. It appears to go contrary to the county's desire to reduce expenditures at the golf course. As reported in September 2013, the golf course loses more than $100,000 a year for the county, which continues to fund operations and capital expenses.

The proposal by Cypress would lock the county into a five year management agreement at a rate of $6,000 per month. The plan would also include travel expenditures of up to $1,700 per month. The proposed plan also outlines how the county will still front costs for the golf course, even though Cypress would be managing the property.

"The Ben Geren Park Golf Course will continue to be responsible for all operating expenses and all approved capital expenditures, just as is the case at present," the proposal reads.

The document also noted that it "will be Sebastian (County's) obligation to insure that there are at all times sufficient funds in the operating account to cover all operating and capital expenses."

Also included in the proposal is an outline of additional fees the county would be responsible for should it hire Cypress to management the golf course. Among the fees is a project management fee for capital improvements, should any projects costing more than $25,000 be approved by the county.

"In the even that such projects may be authorized by Sebastian County, it is the intent of both parties that Manager will provide project planning and management services, provided that Manager, in Sebastian County, has the professional expertise and management capability required by the project. Manager shall receive a project management fee equal to ten percent of the cost of any project over $25,000 and $100,000, or a fee equal to seven percent of the cost of any project that exceeds $100,000 and $200,000, or a fee equal to four percent on any project exceeding $200,000."

Sebastian County Judge David Hudson, whose office oversees the golf course, said since the bid had only been unsealed minutes before answering questions fro the media, he had not yet had time to review its contents or comment on the proposal. But he said a review of the Cypress proposal would happen quickly.

"I'm going to review this with the Park (Advisory) Board and the Golf Stakeholder Committee and develop a report and present it to the Quorum Court," Hudson said, adding that the plan would be made at the March regular meeting.

Asked if he would have preferred to receive proposals that would have spelled out a lease of the property, such as a company leasing the golf course for a set rate, he said the point of the bidding process was to see what was available to the County and then make a decision as to whether contracting with an outside group in some fashion was necessary.

Justice of the Peace Danny Aldridge, whose district includes Ben Geren, was on hand for the opening of the proposal from Cypress and said he was surprised that only one proposal was made as a part of the open bidding process.

"I was hoping for a number of bidders, where we would have a choice that would give us the best opportunities to have good golfing for our citizens and reduced any potential losses that the county might have."

Regardless of what happens, Aldridge said frequent golfers at Ben Geren should have no worries about possible changes at the facility.

"Hopefully we can proceed forward into an excellent Spring golfing season either with county management or some other form."

That was ugly. Not only did Wal-Mart Stores miss by a large margin its fourth-quarter earnings expectations, but the global retailer’s full year net income was down 5.7% compared to the prior year and its overall U.S. comp sales for the year was down 0.4%.

Officials with Bentonville-based Wal-Mart reported fourth-quarter and full year earnings Thursday morning (Feb. 20) prior to the markets opening.

Full year total revenue for the company was $476.294 billion, up 1.6% over the previous year, but below the analysts’ consensus estimate of $476.83 billion. The retailer said it felt a $5 billion negative impact from foreign currency headwinds last year. Operating income was $26.872 billion, down 3.1% compared to the previous fiscal year. Wal-Mart’s fiscal year and fourth quarter end on Jan. 31.

Net income for the year was $16.022 billion, 5.7% less than the previous year. Full year earnings per share was $4.90, well off the analysts’ consensus estimate of $5.11. Global e-Commerce sales, including acquisitions, grew to more than $10 billion during fiscal 2014.

Fourth quarter revenue totaled $129.706 billion, up 1.5% compared to the fourth quarter of the prior year and was below the consensus estimate of $130.23 billion. Operating income during the quarter was $7,347 billion, down 14.4% compared to the previous fourth quarter.

Net income during the quarter was $4.431 billion, down 21% compared to the previous year. Earnings per share of $1.37 missed the consensus estimate of $1.59. However, the company posted one-time charges during the fourth quarter that reduced quarterly earnings by 26 cents per share. The charges were related to tax and employment issues in Brazil, store closures in Brazil and China, a transaction in India, and restructuring of Sam’s Club operations in the U.S.

Nevertheless, Wal-Mart Stores President and CEO Doug McMillon and other executives pushed an optimistic view of the numbers in the company’s earnings report. It’s McMillon’s first earnings report since becoming CEO on Feb. 1.

“Our company grew net sales this year to reach more than $473 billion. Global eCommerce sales, including acquisitions, surpassed the $10 billion mark, a 30 percent increase over last year," McMillon said in the statement. "We will continue to grow our global business by focusing on customers and serving them how they want to be served."

McMillon said Wal-Mart will embrace more change this year as it focuses more intensely on customer relevance.

“We must be more nimble and flexible as we operate our businesses to adapt to changing customer shopping habits. Our focus is to invest in capabilities that connect with customers on their terms,” he said.

CAUTIOUS GUIDANCE
One big takeaway from Wal-Mart’s announcements was the cautious guidance the company gave for this year. The retailer forecast first quarter earnings per share of $1.10 to $1.20 with negative U.S. comparable sales recorded in the first two weeks of February because of weather.

Budd Bugatch, retail analyst with Raymond James & Associates, said that guidance is lower than the $1.26 his firm had predicted.

“Clearly there are macro pressures at work here. The weather impact has been hard for investors to gage. Concretely, the company did say it was facing $330 million in added health care costs this year. We know the SNAP cuts are having an impact as well. I think the company using this macro headwind as a time when it invests for longer term results,” he said.

Wal-Mart Chief Financial Officer Charles Holley said during the first quarter of this year, the company will begin to anniversary the increased costs incurred for Foreign Corrupt Practices Act matters, including compliance program enhancements and the ongoing investigations. These costs are expected to range between $200 million and $240 million for the year. 

The company gave a full-year guidance range of $5.10 and $5.45, a wide gap noted by the retailer and analysts. Joe Feldman, assistant director of research for the Telsey Advisory Group, said although Wal-Mart expects to hit the high-end of the estimate, it’s still below Wall Street consensus.

Investors focused on the weaker guidance and tempered outlook as Wal-Mart stock fell more than 2% after the earnings release. Shares traded at $73.25, down $1.60 in heavy volume during the morning market session. For the past 52 weeks the share price has ranged from a $69.72 low to a high $81.37.

In an effort to rally support among investors, Wal-Mart raised its annual dividend by 2.12% in fiscal 2015. The company will pay $1.92 per share, in four quarterly installments of 48 cents per share. 

Wal-Mart said this is the 41st consecutive time it has increased the dividend for its shareholders. While Wal-Mart is a widely held stock, the largest shareholders are still the Walton family. During fiscal year 2014, the retailer returned $12.8 billion to shareholders in the form of dividends and share repurchases.

WALMART U.S.
The cash cow for Wal-Mart Stores Inc. is its U.S. business comprising 59% of the retailer’s total consolidated sales last year. But the business faces a number of problems which showed up in negative same-store sales quarter after quarter.

Comparable store sales are a key metric in the retail industry. Last year Walmart U.S. posted negative comps of 0.6%, compared to 1.6% positive comps the year before. In the recent 13-week period comp sales slid 0.4%, compared to a 0.3% gain a year ago.

Bill Simon, CEO of Walmart U.S., said about 0.4% of the decline in comp sales in the last quarter relate to SNAP cuts. He expects that impact to continue for the rest of the year as consumers adjust. He said last year it was the 2% payroll tax increase that pressured comp sales and the weather is what it is.

“The weather isn’t an excuse but it did have a short-term effect as we had between 200 and 300 stores (closed) at times because of the winter storms,” Simon said in the media call.

One particular area of concern is the continued decline in store traffic, despite slightly higher overall ticket sales. Simon said they are seeing more consumers stock up at a supercenter, but know they are losing out on the fill-in trips as consumers are going to convenience stores, dollar or drug stores for the loaf of bread or gallon of milk.

"Comp sales improvement is a key priority, and we’ll focus on being even stronger item and category merchants, delivering value and improving our service levels," McMillon said. "Well remain focused on our expense structure, and innovate to improve productivity and aid our ability to deliver every day low prices.”

Simon said the Neighborhood Market format compares favorably for these quick fill-in trips, and is seeing strong comp sales at 5% or better in recent quarters. The company plans to accelerate the expansion of its small-store format this fiscal year.

“In our small formats we’re seeing increased traffic, we think we can compliment the stock-up trip with the small store rollout planned this year,” he said.

Simon was asked about Wal-Mart’s position on raising the minimum wage and he said the company’s stance has not changed as it remains neutral on the issue.

“Less than 1% of our workforce makes minimum wage. In states that have already raised the wage, we see very little overall impact,” Simon said.

CNB analysts said a minimum wage hike is largely a neutral issue for retailers like Wal-Mart who have to ability to pass along the extra cost to consumers.

A larger concern — $330 million this year — is a headwind Wal-Mart said it faces with added health care costs as more of its employees are signing up for coverage because of the Affordable Health Care Act.

INTERNATIONAL CHALLENGES
David Cheesewright, the new CEO of Walmart International, said the division has operated in a challenging global environment, with low inflation, relatively high unemployment and fragile consumer confidence leading to modest consumer spending.

Walmart International grew annual net sales to $136.5 billion, an increase of 1.3%. On a constant currency basis, International net sales would have increased 4.6% to $140.9 billion. Operating income for this segment totaled $5.454 billion, down 17.6% year-over-year.

In the recent quarter, International net sales were $37.7 billion, down 0.4%  On a constant currency basis, sales increased 4.3%. Operating income fell 45.8% from the prior-year period.

Cheesewright said a combination of soft sales, price investments, higher expenses and e-commerce expenditures were reasons for the lower operating results.

“We are especially pleased that in this tough environment, we grew market share in most countries and maintained share in a challenging Mexico market. We did experience share loss in the U.K. and Brazil. Competitors remained very aggressive with vouchering in the U.K., and around the world. We continue to focus on expanding price leadership,” he said.

Bright spots for Walmart International include:
• Solid performance in Central America, where net sales increased by 6.1% with comparable store sales increasing 1.8%.

• Fourth quarter net sales grew 5.3% in Brazil, with total comp sales up 4.6%%Average ticket grew 8%, and traffic declined 3.4%
 
• Walmart China sales grew by 3.7% during the fourth quarter, with comp sales up 0.4%. Comps were driven by an 8.6% increase in ticket, while traffic declined 8.2%, as customer behavior continued to shift towards fewer trips and larger baskets.

STREAMLINING SAM’S
Sam’s Club reported full-year revenue of $57.157 billion last year, up 1.3%, fueled by an increase in membership fees. Operating income, excluding fuel, was $1.949 billion, up 1.9% year-over-year.

In the recent quarter Sam’s Club had total revenue of $14.679 billion, up 1.4% from the year-ago period. Operating income declined 15.7% to $412 million from the same period last year. Those numbers exclude fuel sales.

Sam’s Club grew its membership income 9% in the recent quarter, one of the few positives reported by this division, which is undergoing a streamline effort to reduce overhead, increase online presence and combat declining sales from the burdened small business sector.

Sales charged to the Sam’s Club credit card reached record highs in the quarter resulting in a financial benefit from a profit sharing arrangement with the company’s credit card provider. Sam’s Club also earned $24 million for the sale of two real estate properties. These factors contributed to Sam’s membership and other income growth of 23.4% in the quarter.

Continued severe winter storms have resulted in a soft start to this quarter. Sam’s expects comp sales, without fuel, for the 13-week period from Feb. 1 to May 2, to be flat. For the 13-week period last year, comp sales, excluding fuel, increased 0.2%.

Convenience is what consumers want and officials with Wal-Mart Stores said Thursday (Feb. 20) they committed to giving shoppers what they want by doubling the number of small-format stores the retailer previously announced it would build in the fiscal year.

The retail giant is expanding its original capital forecast provided in October, and now expects to add approximately 270 to 300 small stores during the fiscal year, doubling the initial forecast of 120 to150 stores. Walmart U.S. will continue its plan to open approximately 115 new supercenters this year.

“Customers’ needs and expectations are changing. They want to shop when they want and how they want, and we are transforming our business to meet their expectations,” Bill Simon, Walmart U.S. president and CEO, said in Thursday’s earnings report. “Customers appreciate the broad assortment of our supercenters for their stock-up trips as well as our small store formats for fill-in trips. By unlocking this growth opportunity and further combining our supercenters and small store formats with an unlimited selection available through e-commerce, we provide our customers with anytime, anywhere access to our brand.”

The small store fleet has continued to deliver positive comp sales and traffic increases each quarter. Comp sales for Neighborhood Market stores grew 4% for fiscal year 2014, driven by fresh and pharmacy. This compares to overall U.S. negative same-store sales of 0.4% posted for the past 53-week period.

“Neighborhood Market is performing comparable or favorable to leading grocers,” said Simon. “Our small store expansion, in addition to providing customers access to a wide variety of products, including fresh, pharmacy and fuel, will help us usher in the next generation of retail. This will combine thousands of points of physical access with digital retail experiences that include initiatives such as Site to Store and Pay with Cash.”

Joe Feldman, assistant director of research Telsey Advisory Group, said this is a positive sign for the retailer as it shows the efforts to downsize the format is paying off.

Walmart operates 346 Neighborhood Markets and 20 Walmart Express stores. The Express units have performed well and are being expanded beyond the initial three-market pilot.

Walmart U.S. projects to end fiscal year 2015 with net retail square footage growth of approximately 21 to 23 million square feet across all formats, versus its original projection of approximately 19 to 21 million square feet. The projected capital expenditures and square footage details exclude the impact of future acquisitions.

“We have a healthy pipeline of stores in development, and we systematically work to improve our real estate and construction processes, reduce building costs and shorten the time needed to open our stores,” said Simon. “Our small store expansion will also strengthen our market share and create greater efficiencies in our supply chain through a tethered approach that uses supercenters as a supply chain base, links our resources and provides a unique and connected customer experience.”

To fund this additional growth, the company is revising its capital expenditures forecast for the Walmart U.S. segment to $6.4 billion to $6.9 billion, up from an initial range of $5.8 billion to $6.3 billion. This reflects the increased small store growth and the planned new supercenters, which remain an important part of the company’s strategy. In total, across supercenter and small store formats, Walmart U.S. plans to open 385 to 415 units in fiscal 2015, adding considerably to the more than 4,200 stores now open.

Wal-Mart’s newest test in the small store format will get underway in next two months as the retailer opens it first U.S. convenience store in Bentonville, roughly six blocks from the company’s corporate headquarters and Supercenter No. 100, across the street.

At least two analysts have recently noted that perhaps Wal-Mart should buy its way in to more small format leadership by acquiring Family Dollar or Rite Aid. Other industry experts peg a major U.S. acquisition as unlikely, citing regulatory approval hurdles because of Wal-Mart’s already massive size.

Wal-Mart was asked about the likelihood of an acquisition like Family Dollar on Thursday during the call with the media.

Bill Simon, CEO of Walmart U.S., said the retailer is always looking for the right acquisitions. But he also added Wal-Mart has a very efficient model in place for organic expansion. He said the costs of retrofitting competitor stores for the amount of frozen and fresh product it sells would be very expensive, not to mention the regulatory issues that could arise.

The Walmart Express does about four times the volume of a dollar store and the Neighborhood Market does six times more," Simon said.

A poll conducted this month shows that 43% of voters would vote for an unnamed, generic Republican candidate, while 35% would vote for the Democrat and 22% still have not made up their minds.

The same poll asked respondents to identify the political party they are most closely affiliated with. In response, 39% said Democrat, while only 36% said Republican and 26% said independent.

Conducted on Feb. 12, Little Rock-based Impact Management Group polled 1,202 likely Arkansas voters to ask their opinions on the private option issue and a variety of other questions, as well, including the candidates for U.S. Senate, Arkansas governor and Arkansas lieutenant governor. The poll has a margin of error of +/- 2.83%. Poll questions also included voter opinions on Arkansas’ private option plan.

The numbers, which suggests Arkansas voters are willing to break from political ideology in the 2014 election, do not come as a surprise to Dr. Janine Parry, director of the Arkansas Poll at the University of Arkansas in Fayetteville.

"The first thing that came to my mind is this is just typical," she said of the poll numbers. "Arkansans were revealed to be rather schizophrenic in their politics, most generally in the 1968 general election. So it's nothing new to us."

She referred to the long-known tendency among Arkansas voters to "split" their ballots.

"We've done quite a lot of that. We've been consistently independent in our vote choices since that time (1968), so we're very comfortable and we were doing this before the rest of the country. We are very comfortable voting Republican at the top of the ticket and still pretty comfortable identifying as Democratic and voting Democratic on other positions."

Notable examples of ticket splitting at the top of the ticket in Arkansas include Gov. Winthrop Rockefeller's win in 1966 and Gov. Mike Huckabee's ascension to the lieutenant governor's office in 1993, re-election in 1993, and election to a full term as governor in 1998 and a second full term in 2002. In the case of both Republicans, they held statewide office while the General Assembly was controlled by Democrats.

Another recent example would be the 2010 election, which saw Gov. Mike Beebe sweep all 75 counties in the state while those same voters sent then-U.S. Rep. John Boozman, R-Rogers, to his first term in the U.S. Senate.

Clint Reed, a partner at Impact Management Group, said the numbers in his firm's poll are about more than just ballot splitting. He said right-leaning independents are the key.

Specifically, he pointed to the the number of Independents who said they would vote for the Republican, 46%, versus the 13% who said they would vote for the Democrat and the 41% who said they are still undecided. 

"Those independent numbers and those Democratic numbers, that's how to explain why that is, why (there is) that discrepancy there. Independents are overwhelmingly supporting the generic GOP candidate."

He also said the "independents are the crucial voting block. It is an advantageous election cycle for Republicans across the board." Reed said with so many independents being right-leaning, the party and its candidates "for the first time count them as one of their own."

It is a trend that he sees continuing in this election cycle.

"In Arkansas, Democrats have long held onto the ability to capture the all important white, male voting bloc. Whether (former U.S. Sen. Dale) Bumpers, (former U.S. Sen. David) Pryor, (former President and former Gov. Bill) Clinton, (Gov. Mike) Beebe. But it's just not the case anymore. We started seeing some of that with the first election of Barack Obama, but saw a lot of it after he took office. The so-called liberal policies, cap and trade, universal health care — these things turned those white male voters off in a substantial way. Democrats in Arkansas have not been able to regain that."

As for whether that means Arkansas becomes solidly red like the states of Alabama, Georgia or Mississippi, Reed said that remains to be seen because Arkansas politics tend to have "pendulum swings."

"That trend is matching what you're seeing in Mississippi, Alabama and Georgia. But will it hold? Probably not. It's a pendulum that swings. It's all part of the election cycle. Arkansas has been slower in that pendulum swinging back in the strong candidates we've had in Clinton, David Pryor and Beebe."

The real test, he said, will be the 2016 election and the potential candidacy of former Secretary of State Hillary Clinton, who served as Arkansas first lady during her husband's several terms in the governor's mansion.

"The real test will be a Hillary Clinton candidacy for President and how Arkansas would play into that. …The relationships they have, the home state of the former president. Could they change the outlook of what the independent voters see and look like? It's possible. That's the true test. If she runs, does Arkansas become a swing state, a target state in a presidential campaign? It will be awful hard with potentially four Congressional seats in the R column and two Senate seats (possibly held by Republicans) for the Clintons to make this a swing state. That's a far stretch, but that's where Arkansas is in its political growth, if that makes sense."

Parry said Arkansas will not go solidly red until Independents officially make the full commitment to the Republican Party.

"What I think is interesting is those independent leaners aren't committing to the GOP brand. They certainly aren't committing to the Democratic branch, even though the Democrats are losing (self-identified voters). The independents want a finger in both pies."

She said while poll numbers may be good for Republicans, if the party plans to maintain the momentum it had in 2010 and 2012, the party and its candidates will have to work for it.

"The Republicans should recruit good candidates and not just ride the tide," she said. "Clint Reed and others know they were trying to get a bench of candidates and the national tide (in the last two elections) was good for Republicans. It was a one-two punch of finally breaking through for them."

A looming doctor shortage in the U.S. that Kyle Parker classifies as a “crisis” is one of the primary reasons the Fort Smith Regional Healthcare Foundation is planning to invest more than $58 million to build a college of osteopathic medicine in Fort Smith.

The foundation announced the project Feb. 18, along with an announcement from the Fort Chaffee Redevelopment Authority that it would donate 200 acres – valued at $4 million – to the college. Once fully operational, the college will serve about 600 students,  with about 150 graduating each year. The college is also estimated to employ around 65 (full-time equivalent jobs) with an average salary of $103,000. The school is targeted to accept its first cohort of students in the fall of 2017.

Parker, chairman of the FSRHF, said Tuesday that one of the most frequent questions has been, “Will you be able to recruit students?” The answer to the question, according to Parker, is a definite, “Yes.”

He said there are about 2,500 applications for every opening in U.S. medical schools. He also said the country will have to produce more doctors to push back against a possible shortage of 140,000 doctors by 2030. That number could rise to 250,000 if the federal Affordable Health Care Act if fully implemented.

“We are in a medical crisis in the United States,” Parker told the more than 85 people who attended the Tuesday press conference.

PHYSICIAN ‘BOTTLENECK’
That sense of urgency to expand medical training is also shared by the Association of American Medical Colleges. The group predicts that a shortage of 91,500 doctors by 2020, with the shortage increasing to 130,600 by 2025. Of the 91,500, the AAMC estimates a 45,400 shortage among primary doctors and a 46,100 shortage in surgeons and specialists. The group also estimates 250,000 doctors will retire by 2020.

During a Jan. 14 interview on C-SPAN, Dr. Atul Grover, chief public policy offer for the Association of American Medical Colleges, said the “silver tsunami of baby boomers” will be a big cause of physician shortages. He also said there is a “bottleneck” at the residency level, and he blamed Congress for curbing support of residency training. According to Grover, Congressional passage of the 1997 Balanced Budget Act reduced funds for residency support.

Grover said medical colleges have boosted enrollment a combined 30% since 2006, but residency openings have shown less than 1% growth. He said what Congress has “failed to do is to address a freeze on support for physician training that’s been in place now for 16 years.”

The AAMC website notes that “Medicare support of graduate medical education (GME) includes paying its share of the costs of training, as well as supporting the higher costs of critical care services, such as emergency rooms and burn units, on which communities rely. Without adequate support, the ability of teaching hospitals to provide essential patient care is threatened.”

MEDICALLY UNDERSERVED AREAS
Reports from Kaiser Health and the Pew Center also point to a shortage of doctors.

A Kaiser report notes that the federal Health Resources and Services Administration estimates that 20% of Americans – roughly 55 million – live in areas with too few primary care doctors. The agency also says that 16% of Americans have too few dentists, and 30% live in areas with not enough mental health care doctors and providers.

The Pew Report says federal government estimates are that the number of doctors will grow by 7% in the next 10 years, but the number of Americans over age 65 will grow by 36%. The nation would need more than 15,000 additional providers to meet the target ratio of one primary care practitioner for every 3,500 residents, according to federal estimates. Massachusetts, according to the Pew report, has the most primary care doctors per capita and Mississippi has the fewest.

The Pew report also notes that income may also result in fewer primary care doctors. Primary care physicians earn around $3 million less during their career than their colleagues in specialty fields.

150 TOWARD SOLVING THE PROBLEM
Parker said Tuesday that the new college of osteopathic medicine will play a small role in attempting to address the shortage.

“We’re happy to put out 150 (graduates) a year to help solve that problem,” Parker said.

He also praised area physicians and medical facility managers for working together, “despite being competitors,” to “get clinical rotations worked out” and address other issues to provide enough residency positions in the area to support the new college.

“You can’t say enough about that kind of commitment,” Parker said of the collaboration among area doctors and medical operations.

Sebastian County property owners are among the first in the state to be able to not only pay personal property taxes online, but also receive eStatements and receipts online, as well.

According to Sebastian County Treasurer-Collector Judith Miller, the county's new online system is part of a new $46,000 software package the county purchased from Little Rock-based TaxPro to comply with new state laws dictating municipal and county bookkeeping. The same software package, which went live for Sebastian County at the beginning of 2014, will also be used by Pulaski, Saline and White Counties, though Miller said she believed her office was the first in the state to offer all of the services online for property owners.

The upgrade allows property owners to get the information they need in a quick, timely manner.

"Before we even mail our statements out, these people will get an (e-mail) out from our company saying, 'Ok. This is your statement. Sign in and get it.'"

In order to receive eStatements, Miller said property owners would need to opt-in to the service through the Treasurer-Collector's office.

Even if property owners have not opted-in, Miller said property owners are still able to visit ArkansasTaxSearch.com/Sebastian.html in order to look up past receipts of tax payments or to find out how much is owed instead of calling the office.

Another website, SebastianCountyTax.org, allows property owners to pay their taxes online. The online payments not only provide a convenience to taxpayers, but also saves time and effort of the staff, according to Chief Deputy Collector Kathy Caperton.

"On the day of the deadline, we had to go in and manually enter all of those payments and balance it," she said recalling 2013's tax payment deadline in October. "It took two people a day and a half to do it, to make sure we balance. The way we can do it now — it's downloaded. We can do it in less than five minutes and it's balanced, which saves a lot of time."

Miller also said the amount of time saved with the new online system would allow her office to officially close the books and start pursuing delinquent taxes within days of the personal property tax deadline in October.

"I'd say by the 18th (of October), we normally have everything (done)."

Not only is the county saving money through the electronic bookkeeping done by the new software, but it is also able to seamlessly calculate taxes due by individuals and the site updates automatically once payments are made and clear the bank, removing any chances for human error.

And while the updated software, mandated by the state, came with a large price tag, becoming the state's first completely electronic treasurer-collector's office will allow the county to save money, assuming a large number of taxpayers choose to receive eStatements and conduct their business electronically.

According to Miller, for each piece of paper (i.e. statements, receipts, delinquency notices, etc.) her office sends out, her staff spends 56 cents. The cost includes envelopes, postage, and printing.

With 2,000 property owners already signed up for eStatements and an additional 8,710 property owners who paid their taxes online in 2013, the county has already saved an estimated $5,992. While the figure may seem small — only 13.03% of the overall cost of the new software package — Miller said it could grow to much greater savings should a larger fraction of the county's 94,000 personal property owners choose to go electronic this year and in the years to follow.

And for those early birds wanting to get an early start on their taxes, Caperton said statements for 2013 are already available thanks to the new system. Miller said the books are already open and her office is ready to accept payments, however they are made.

"We want people to really start to use this," she said.

Individuals wanting to opt-in can e-mail jmiller@seb.arcoxmail.com.

A note of thanks, positive home sales in January and the fourth push for a tax to build a new jail in Crawford County are part of the Feb. 21 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• A moment for gratitude
Jim Walcott issued the challenge to make a difference, and here we are now several years later with the reality that a more than $58 million college of osteopathic medicine will be built in Fort Smith. Sure, some last minute goofiness could derail the project, but we’re likely to have an operational medical college by the fall of 2017.

Walcott, serves on the board that emerged from the Sparks Health System Board when the hospital sold to Naples, Fla.-based Health Management Associates. That deal left more than $50 million in a foundation to be used to advance health care needs. Walcott wanted to make a big splash with the money rather than just throw out nickels and dimes.

Kyle Parker, an attorney and Fort Smith resident who is independently wealthy, assumed much of the responsibility for Walcott’s challenge. To be sure, there have been many people involved in the effort to see the college be a reality, but Parker has been a key behind-the-scenes driver to keep the project on track.

If you’ve ever wondered if the folks with financial means are doing something meaningful to leave a positive legacy for the Fort Smith region, well, here you go. Mr. Parker will certainly seek to deflect credit, but he should know we are grateful for someone in Fort Smith who is willing to envision what is possible.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...
• $58 million osteopathic medical college planned for Chaffee Crossing
Fort Smith could soon be home to Arkansas’ first college of osteopathic medicine and one of just 31 in the U.S., thanks to a more than $58 million investment from the Fort Smith Regional Healthcare Foundation (FSRHF) and a grant of 200 acres from the Fort Chaffee Redevelopment Authority (FCRA).

• No action against Whirlpool
A proposal that would have seen the city of Fort Smith seek to impose fines against Whirlpool Corporation for violating the city's nuisance ordinance by spilling trichloroethylene (TCE) at its site more than 30 years ago, a spill that eventually spread to the neighborhood north of the site, failed at Tuesday's (Feb. 18) meeting.

• A good January for area home sales
January home sales in Crawford and Sebastian Counties posted increases from the same period last year, with both counties posting values more than 40% higher in January 2014 than in January 2013.

NUMBERS ON THE WIRE
• 43.5%: The increase in sales volume for Crawford County home sales from January 2013 to January 2014. The values increased to $3.89 million last month from $2.711 million during the same period the year before.

• 2-5: The vote of the Fort Smith Board of Directors on a contract that could have had the city imposing fines against Whirlpool Corporation for polluting not only the company's former manufacturing site on the south side of the city, but also up to 50 surrounding properties that sit above a plume of trichloroethylene (TCE), a toxic chemical that can cause cancer if ingested.

• 42%: Level of support among likely voters for both Mike Ross, the Democrat candidate for Arkansas Governor, and Asa Hutchinson, the Republican candidate for Arkansas Governor. The poll was conducted by Little Rock-based Impact Management Group.

OUTSIDE THE WIRE
• Democrats compare Walker investigation to Christie
For more than three years Wisconsin Gov. Scott Walker avoided political fallout from a criminal investigation that ensnared six of his former aides and associates, winning a recall election even as his opponent ran ads attacking him on the scandal. But with the Republican up for re-election this year and considering a run for president in 2016, questions are intensifying over how much he knew about illegal campaign activity going on in his county executive office as he launched his bid for governor.

• Governors pitching for jobs
As the U.S. economy gains strength and states are in their best financial position in years, governors are proposing unconventional tactics to create jobs, especially in health care and high-tech.

• Keystone ruling favors Obama politically
A Nebraska judge's ruling on the Keystone XL pipeline could let President Barack Obama delay his final decision on the project until after mid-term elections and avoid political damage, analysts say.

WORD ON THE WIRE
"We enclosed three of the four exercise yards, we've manipulated walls — we've done everything we can. Still we're not in compliance (with state law). And I think that we can show, or I know I can show the voting citizens of Crawford County the numbers and the need for this. We're a growing population. We are in the top 12 (counties based on population) and we've got a small jail."
– Crawford County Sheriff Ron Brown explaining why a new $20 million jail is needed in the county

"We've done quite a lot of that. We've been consistently independent in our vote choices since that time (1968), so we're very comfortable and we were doing this before the rest of the country. We are very comfortable voting Republican at the top of the ticket and still pretty comfortable identifying as Democratic and voting Democratic on other positions."
– Dr. Janine Parry, director of the Arkansas Poll, discussing the split among voters self-identified as Democratic but saying they will vote Republican in a poll released this week by Impact Management Group

“We would’ve probably already been open in Little Rock with a third store if this whole health care thing wouldn’t have taken place. But it scared the heck out of us.”
– Joe Donaldson, co-owner and general manager of Sam’s Furniture in Springdale, about the company pulling back expansion plans because of uncertainty surrounding the federal health care law

U.S. Sen. Mark Pryor, D-Ark., endorsed a proposal to raise the state minimum wage incrementally to $8.50 over the next three years, signing a petition to support the ballot effort.

The measure is seeking to collect signatures to qualify for the November 2014 ballot.

“We have a lot of hardworking folks here in Arkansas making minimum wage, and it’s time these families got a raise,” Pryor said in a Little Rock press conference at the Bullock Temple CME Church. “It’s just not acceptable that our state is one of four with a minimum wage set well below the federal level, even as tens of thousands of Arkansas families struggle to get by. Let’s come together and raise Arkansas’ minimum wage. It’s the right thing to do and the right time to do it.”

Give Arkansas A Raise Now (GARN) is the citizen committee pushing for the proposal. The group needs 62,507 qualified voter signatures by July 7th to meet the threshold to qualify for the ballot.

Arkansas is one of four states where the minimum wage is lower than the federal minimum wage. Currently, Arkansas’ state minimum wage is $6.25 per hour, while the federal minimum wage is $7.25.

According to the Arkansas Department of Labor, employers generating less than $500,000 in annual sales and without interstate commerce may pay the state minimum wage versus the federal minimum wage. Efforts to tie the state minimum wage to the federal level have failed in previous legislative attempts, and the last time the state minimum wage was raised was in 2006.

According to information provided by Arkansas Advocates for Children and Families, 168,074 Arkansas workers – roughly 15% of the state’s workforce – would benefit from raising the state minimum wage.

The average salary for an Arkansas worker under the current state minimum wage is $12,750 annually. If the wage were eventually raised to $8.50 per hour, a full-time employee would earn $17,680 annually.

In his weekly address, President Barack Obama advocated for Congress to increase the federal minimum wage to $10.10 for all workers. Obama has already pushed an executive order to raise all federal contract workers’ pay to $10.10 per hour.

Pryor said he was opposed to raising the federal minimum wage.

“I like the Arkansas approach better. I like the phase-in approach,” Pryor said, adding that it was a grassroots effort that required voter approval.

A spokesman for Pryor’s Senate challenger, U.S. Rep. Tom Cotton, R-Dardanelle, said he opposes raising the federal minimum wage and remains undecided on the state minimum wage issue.

“This is a rare issue where Senator Pryor and Tom agree,” said Cotton spokesman David Ray. “A ten-dollar minimum wage imposed by Washington is bad for Arkansas workers and businesses – it would hurt the very people we’re trying to help. Tom believes this issue is best left to the states and it’s a good idea to let Arkansas voters decide the matter. Tom will carefully study this proposal with an open mind and an eye toward making the best policy for Arkansas’s working families.”