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Charlie Collins preps for Arkansas Lt. Gov. race

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Rep. Charlie Collins, R-Fayetteville, is ready to enter the race for Arkansas Lt. Governor – yet another political move caused the domino effect created by U.S. Rep. Tom Cotton.

The soon-to-be announced decision by U.S. Rep. Tom Cotton, R-Dardanelle, to challenge incumbent U.S. Sen. Mark Pryor (D) for his seat in Congress' upper chamber is likely to have many down ballot effects.

As reported last week, Republican Lt. Gov. Mark Darr has all but said he will run for Cotton's seat as soon as Cotton made his Senate run is official.

"But I believe that in the next two to three weeks, it'll be 100%, so I'm pretty sure of what I'm going to be doing," he said.

With it more likely than ever that Darr will now not seek re-election, Collins confirmed Tuesday (Aug. 6) that he will likely enter the race to replace Darr.

"I am 99.9% in. What I want to see is how things unfold after Tom Cotton announces today. if Mark Darr does what I think Mark Darr is going to do, my plan is to get in," he said. "But I'm not going to make it official until Mark Darr makes an announcement."

Little Rock businessman John Burkhalter, a Democrat, has announced he is running for Lt. Governor.

Collins, who has served in the Arkansas House of Representatives since 2011, said instead of running for re-election to his seat, he was confident that his energy would be best suited to Arkansas' number two spot in the executive branch.

He said having a statewide platform would help him and Republicans push not only their political ideas of less government and lower taxes, but it would also allow him to be a bridge between the executive and legislative branches.

"With the experience I have as part of the leadership last (legislative session), I had the opportunity to work with many members of the House and Senate," he said. "I think I would be an extremely effective leader working with both the legislative and executive branch. And from a statewide perch, you have a lot of ability to communicate (your political ideas)."

Collins said during his time in the House, his ideas would largely be confined to his district and would not gain much statewide traction. He said his proposals, which include lower taxes and bringing more jobs to Arkansas, were never able to reach areas south and east of his electoral territory.

"When I first started talking about this in 2010, it was something that was confined to a Fayetteville discussion. A lot of people in Fayetteville and nearby areas came, but it is different if you're talking about somebody's big ideas that will help Arkansans with a statewide perspective. From those two fronts, working with my colleagues plus communicating from a perch to communicate these ideas, I feel I can be even more effective (as lieutenant governor) than in my house seat."

All of his plans to be a bridge between the executive and legislative branches will go even smoother, Collins said, if he is elected to the number two spot along with a Republican governor.

"I actually believe, what I've been talking about the last several years – talking about putting Arkansas into a jobs market and working with people – is something I can help accelerate from the position of lieutenant governor, especially if you consider a partnership with a Republican governor."

Asked what he would do should presumptive Democratic nominee Mike Ross wins the governor's office, Collins said he is prepared to work with him, as well.

"Regardless, we'll be able to move forward and make progress. I've shown that I can work with both the Senate and Gov. Beebe to get plans in place to be good for Arkansas. I have a desire and capability to help Arkansans regardless of who's in office. (As chair of the tax and revenue committee in the House), we passed a series of tax cuts, including the first ever Arkansas reduction in income tax rate which implemented over the next two years will save Arkansans $55 million over the next two years. Plus, we also passed sales tax reduction on food, which will save another $60 million to $70 million per year."

Collins said his career of public service has been about helping everyday Arkansans, something he will continue regardless of his position.

An announcement on his run for lieutenant governor will likely take place shortly after Darr makes his future plans official, Collins said.

Five Star Votes: 
Average: 2.3(3 votes)

Veterans Affairs Sec. Shinseki visits Wal-Mart

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story and photos by Kim Souza
ksouza@thecitywire.com

U.S. Secretary for Veterans Affairs Eric Shinseki made a quick stop in Northwest Arkansas on Tuesday (Aug. 6) to talk jobs with Wal-Mart’s Bill Simon, perhaps one of the nation’s biggest cheerleaders for hiring veterans.

Simon, president of Walmart U.S. and a veteran, first announced the company’s commitment to hire up to 100,000 military veterans returning from war over the next five years. It’s been 60 days since Wal-Mart kicked off its “Welcome Home” commitment to the nation’s veterans. During that time the retailer has processed 30,000 applications and offered jobs to 3,100.

“This is a five-year commitment and just one of several programs we have in place to support veterans. Wal-Mart already employs 100,000 veterans,” said retired Brigadier General Gary Profit, who heads up the company’s military programs.

He said the company is pleased with the 60-day progress report but told the group there is still plenty of work to do.

Shinseki thanked Wal-Mart for their effort to provide job opportunities to any veteran within 12 months of an honorable release, calling it a “tremendous initiative” as he addressed a small group of media at the retailer’s home office in Bentonville. Shinseki said other companies are also actively pursuing veterans as they return from active duty, with about 290,000 veterans and their spouses hired by numerous companies since April. He said they have pledged to hire another 435,000 veterans and spouses by 2018. The Veterans Administration employs 100,000 veterans, roughy 32% of its workforce.

He said in July the unemployment rate among veterans was 6.4%, well below the national rate of 7.4%. For post 9-11 veterans, Shinseki said the unemployment rate is 7.7%, shrinking from 12.1% in 2011.

Shinseki said the Post 911 GI Bill and the IRS tax credit for businesses hiring veterans have helped bring the unemployment rate down among this military demographic. He also credits Wal-Mart and others who are extending a hand and opportunity for employment saying they recognize the character, discipline and sense of purpose that military veterans possess.

Shinseki said the discussions he has had with Wal-Mart and others are a meaningful start in reaching out to an important demographic that can put their talents to work in the private and public sectors as they are reintroduced into the civilian workforce.

Simon has said veterans who return home after fighting for their country should not have to fight for a job as well.

Profit said Wal-Mart does a good job assimilating its new veteran hires into the fold. One military tradition Wal-Mart has adopted for it new veteran hires is the challenge coin. Traditionally, challenge coins that bear military insignia are given to prove membership when challenged and to enhance morale. Challenge coins date back to World War I and provided soldiers with a way to identify themselves as part of a squadron or military branch, when they had been stripped from the uniforms.


Profit said the Wal-Mart challenge coin is given to new veteran hires and by tradition signifies their belonging to the Wal-Mart family.

Earlier in the day Shinseki said he toured the VA in Fayetteville and met with a few Arkansas legislators. These meetings were closed to the media.

Five Star Votes: 
Average: 5(1 vote)

U.S. Rep. Tom Cotton is officially in the U.S. Senate race

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story by Roby Brock, with Talk Business, a content partner with The City Wire
roby@talkbusiness.net

After months of speculation and with great fanfare, U.S. Rep. Tom Cotton, R-Dardanelle, threw his hat in the 2014 U.S. Senate race, challenging incumbent Democrat Sen. Mark Pryor (D), whom he labeled a follower of President Obama and the Washington elite.

Cotton, Arkansas’ first-term 4th District Congressman, made his announcement in his hometown to a crowd of hundreds of supporters in Dardanelle (Yell County) at a community barbecue dinner.

“Today, I’m announcing my candidacy to be your United States Senator,” Cotton said.

A former military veteran of Iraq and Afghanistan, he declared that his announcement was not a cause for celebration, but “a mission.”

“This is a mission briefing,” Cotton told the crowd. “I’m asking you to join me on this mission.”

Cotton will prove a stout rival to Pryor, who has amassed nearly $4 million in contributions to defend his seat. Cotton will transfer more than $1 million in money raised for his Congressional seat to the Senate race.

Many political observers believe the Senate battle could eclipse the nearly $17 million spent in the 2010 race pitting Sen. Blanche Lincoln (D) versus then-U.S. Rep. John Boozman (R).

“There’s absolutely no question that this is going to set a record for political spending in Arkansas. The ferocity we’ve seen in the last 24 hours is just a sign of things to come,” said Dr. Jay Barth, professor of political science at Hendrix College and polling partner with Talk Business Arkansas.

Pryor and Arkansas Democrats have already begun their criticism of Cotton with a new TV ad and web site that highlights controversial votes Cotton has cast in Congress regarding disaster relief, women’s abuse, agricultural policy and student loans.

“People don’t know enough about Tom Cotton, I mean, he’s only been in Congress a few days,” Pryor’s campaign manager Jeff Weaver said in a Politico interview on Monday (Aug. 5). “We felt that it is important let Arkansans see the real Tom Cotton. The ad will highlight what Tom Cotton has done in the short amount of time he has been in Washington.”
In response to the Pryor ad, Cotton’s political director Rep. John Burris said, “It’s a desperate attempt by the Senator to distract the voters from his agreeing with Barack Obama 90% of the time. He should spend his money instead explaining to the voters of Arkansas why he voted for Obamacare, amnesty for illegals, and the failed stimulus program.”

Republicans argue that Pryor is vulnerable due to his consistent votes with President Obama’s legislation, including health care reform and the economic stimulus that was urged under President George W. Bush (R ).

Conservative and liberal groups have already run TV ads this year against Pryor for his connections to Obama and his vote on gun control legislation.

The race will be one of the most high-profile races in the country with potential control of the U.S. Senate at stake. Currently, Democrats hold a 52-46 advantage in the Senate. Two independent senators caucus with the Democrats.

Link here for more analysis of the now official contest between Pryor and Cotton.

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Pryor, Cotton race reflects new political landscape

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story by Ryan Saylor
rsaylor@thecitywire.com

The 2014 general election is about 17 months away, but that has not stopped the race for U.S. Senate from kicking into high gear even before tonight's (Aug. 6) announcement from U.S. Rep. Tom Cotton, R-Dardanelle, that he is officially entering the race against incumbent U.S. Sen. Mark Pryor, a Democrat who has held the seat since 2003.

Dr. Janine Parry, a professor of political science at the University of Arkansas and director of the Arkansas Poll, said that early spending on attack ads and websites by groups against Cotton and outside PACs airing ads across the state attacking Pryor was unusual, but not without precedence in modern Arkansas political history.

"Both parties came out of the gate real fast in 2002, as well," she said. "There were records set in terms of spending and ad buys because of the national climate at the time."

She said what is happening in the 2014 election, even though it is still 2013, all has to do with the current political climate in Arkansas.

CHANGE IN POLITICAL LANDSCAPE
"If the Democrats seem scared, it's because they are. This all has much less to do with specific candidates as it does with this climate. ... There's polling data to suggest that almost any Republican has a good shot at making a run against Pryor. And then there's recent election evidence at any level over multiple cycles. To me, that's more telling. I think that's the real indicator of a new landscape, and a landscape that's deeply threatening to Democrats, even a Pryor."

Parry said the idea of Arkansas going Republican in not only major offices like governor and senate but also in the controlling majorities in the General Assembly shows that Arkansas is no longer the name brand Democrat "with a capital D" and traditionally strong Democratic family names like the Pryors no longer carry the weight that they used to.

"I actually think that the fact that a Pryor is feeling this kind of threat is really emblematic of how dramatically the landscape has changed. If not just that he's a Democrat, but it's also that he's a Pryor. If a Pryor feels threatened, that's telling."

The fear that Pryor is likely feeling could be seen in his first official campaign ad since multiple news sources revealed that Cotton was officially in the race. The ad was a targeted attack on Cotton, a sharp turn from Pryor's previous campaigns, where he has largely remained positive throughout, evoking the famous "Arkansas First" motto, originally made famous by his father, former U.S. Sen. David Pryor, who held the seat in the Senate from 1979 until 1997. Then-U.S. Rep. Tim Hutchinson won Pryor's seat, only to serve one term before being defeated by the younger Pryor in 2002.

‘NOT SHAKING IN MY BOOTS’
Washington County Democratic Central Committee Chairman Tyler Clark said unlike others in his party, he is not afraid of a Cotton challenge.

"I'm not like a lot of Democrats. I'm not shaking in my boots," he said.

Clark said Cotton's brief time in office and his voting record will make him a weak competitor to Pryor.

"I think it's ironic that Congressman Cotton will actually run (for Senate) longer than he's been in office," he said.

Parry said Cotton's voting record could pose a challenge, as he has voted the opposite of the Arkansas Congressional delegation, made up of all Republicans with the exception of Pryor, on many issues that have drawn statewide and national attention.

"The student loan vote surprised me that he broke with the delegation. He'll have to consider any votes that he takes between now and the election," she said.

Parry said while it is too early to tell how this race will shake out, the momentum is on Cotton's side, again because of trends locally and nationally.

"People have shown a willingness to vote for Republicans, which is unprecedented in Arkansas politics. (Republicans winning) multiple branches of government, multiple election cycles, at multiple levels of government - that's what I've been looking for for 15 years and now we have all of those three. That's what makes me think these races will be competitive."

COTTON’S VOTING RECORD
Rep. Justin Harris, R-West Fork, whose state house district straddles Cotton's 4th Congressional District and the 3rd Congressional District of U.S. Rep. Steve Womack, R-Rogers, said even with his breaking with the state's Republican delegation, Cotton's voting record isn't a hindrance to his campaign.

"I think it's what the majority of Arkansans are feeling, maybe not saying, but feeling," he said. "I think when people understand if they take the opportunity to do their due diligence of understanding why he voted why he voted, I think they will completely understand."

Regarding the vote to allow student loans to be handled by private banks instead of the federal government, Harris said the "whole purpose for why he did it was because of the economy."

A statement from Cotton on Aug. 1 explained why he voted against lowering student loan lending rates.

"As students struggle to repay their loans—regardless of the interest rate—taxpayers are on the hook for a $100 billion bailout—a burden hard-working Arkansans shouldn’t have to bear. A better path is to repeal Obamacare, which nationalized the student-loan business, and let Arkansas’s hometown banks work with students and families to finance higher education, just as they do with homes, farms, businesses, and other loans. I'm committed to bringing affordable higher education to every Arkansan and ending the federal-government monopoly on the student-lending business."

Harris said the reason he was standing with Cotton was because of his stand on conservative issues.

"I'm going to be truthful with you, I have two Congressional representatives, Womack and Cotton, that represent my district and they do vote different sometimes. And I do sometimes see the difference. And I always side with Tom Cotton on those votes. ... Womack I've disagreed with on several issues. I know Congressman Cotton, I will agree with 100% of the time and I can trust what he does."

However, Womack issued a statement of support soon after Cotton’s announcement.

“Arkansas's Senate race is critical to shifting the balance of power in Washington, and Tom Cotton's hardline, conservative credentials will undoubtedly serve Arkansans well as we fight a crushing debt and an expansive government. I support his candidacy for the U.S. Senate,” Womack noted in the statement.

Five Star Votes: 
Average: 4.2(5 votes)

Fort Smith Board vote delays business expansion plan

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A Tuesday (Aug. 5) vote by the Fort Smith Board of Directors has put a temporary halt on a business expansion that could create up to seven jobs, according to business owner Josh Niles.

Niles, owner of Absolute Towing and Recovery, sought to expand his business operation by adding a vehicle holding yard on vacant property at 1302 S. Zero St.

To do that, Niles applied to the Fort Smith Planning Commission for a conditional use request. According to a memo from the city's planning department, the land is zoned as "commercial heavy (C-5)," which can consist of the following uses – general commercial, office, research and light industrial, mixed use residential and mixed use employment. The planning commission had a tie vote of 4-4 on the request at its June 17 meeting.

A letter from the planning commission following the vote had said Niles would likely have been able to move his company from its location on Jenny Lind to the new location on Zero Street had he met the following conditions:
• All construction must be built in accordance with the submitted development plan and with any Planning Commission amendments;
• The proposed fence gate at the driveway entrance shall be offset from the street to avoid vehicles stopping/standing within the street right-of-way;
• Fences placed at or in proximity to the right-of-way line must not create a sight obstruction for vehicles exiting the site;
• The proposed fence shall be a six (6) foot privacy fence constructed out of cedar and maintained;
• All site lighting shall comply with the lighting requirements of the UDO (Unified Development Ordinance) - Section 27-602-5;
• All signage shall comply with the UDO General Sign Regulations and Permitted signs in open, commercial and industrial zones - Section 27-704-5 and Section 27-704-3;
• Landscaping shall be required and maintained in accordance with the UDO along the Zero Street frontage; and
• Removal of all broken plastic sign pieces.

Niles appealed the planning commission decision to the Fort Smith Board. In making his case during the Board’s regular meeting on Tuesday, Niles pointed out “similar” developments that were not required to install landscaping and other items the commission asked of him.

“To me, it seems like a double standard. ... One man is approved, one man is denied,” Niles told the board.

Niles said he is not asking the Board to bend the rules, but is just asking for the rules to be applied the same. Niles also became emotional during his appeal, saying he was “the American dream,” a poor kid who worked long hours and seven days a week to build a business that now employs 17 people and provides a legitimate service to banks like Arvest, Chase and Wells Fargo.

Property owner Charles Farnam said he has owned the land for 10 years, and for six years has been unable to rent it. He questioned the city’s claim that Niles’ business was an inappropriate “use” for the zoning.

“I would say any use is better than an empty lot,” Farnam said.

DeWayne Hicks, pastor of the Courage to Change church near property now used by Niles, said Niles “is a very good neighbor.” Hicks said it would be a “shame” to not allow Niles to use the property “where he could put more people to work.”

However, City Director Kevin Settle rejected Niles claims that other similar developments had received different treatment. Settle said they aren’t “apples to apples” comparisons. Settle also suggested there is better use for the property than “for a salvage yard.”

To that, Niles quickly bristled.

“I’m not a salvage yard. ... I’m an established business,” Niles said.

City Director Keith Lau, once a member of the planning commission, said he would respect the commission decision and vote against Niles’ appeal. City Director Philip Merry Jr., reminded the Board that the planning commission vote was a 4-4 tie, and while technically a rejection, did not provide clear guidance on the will of the commission.

Merry, as did City Director George Catsavis, encouraged Niles to reapply and attempt to compromise with the commission on some of recommended property improvements.

However, City Director Pam Weber moved that the Board affirm the planning commission vote and not approve Niles’ conditional use request. City Director Andre Good seconded the motion and it was approved 6-1, with Merry voting against it.

Niles said after the vote he was not sure of his next move.

“I’m disappointed in the Board. ... They think I’m just some salvage operation, but I’m a professional business. ... I pay more than $60,000 a year in insurance and attend multiple conferences to keep all my licenses,” Niles said.

Niles said his expansion plan will add seven jobs. He said the average pay in his company “is about $1,000 a week.”

“That’s seven jobs this town will not have because of this vote,” Hicks said.

Five Star Votes: 
Average: 5(5 votes)

Manufacturing job rebound fades in Arkansas

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story by Michael Tilley
mtilley@thecitywire.com

Recent jobs data shows that Arkansas has not been able to maintain a rebound in manufacturing jobs like has been seen in the U.S. and most neighboring states.

Beginning in early 2010, the U.S. manufacturing sector began to show signs of life, with economists and other market watchers suggesting that gains in the auto and housing sectors were boosting manufacturing employment.

Arkansas’ manufacturing sector was hard hit when the U.S. housing market crashed in 2007-2008, said Grant Tennille, executive director of the Arkansas Economic Development Commission. The state, according to Tennille, was home to numerous forest products and home appliance manufacturers.

“A lot of that went dark during the worst of the housing crunch,” Tennille said of the forest products industry.

In May 2010 national manufacturing sector employment improved past 11.531 million jobs. The sector continued to grow, reaching 11.988 million in February 2013. However, the sector shed an estimated 13,000 jobs between February and July.

Historically, U.S. manufacturing sector employment has ranged between 19 million and 17 million. It reached a high of 19.553 million jobs in June 1979. Sector employment has been stuck below 12 million since May 2009. Prior to May 2009, the last time sector employment was below 12 million was May 1941.

Arkansas initially saw a similar pattern. In early 2010, the state’s manufacturing sector appeared to find a bottom and entered a 14-month period (April 2010-May 2011) in which employment remained above the 160,000 level. By early 2012, sector employment resumed its decline. May and June of 2013 marked the first time employment in the sector was consecutively below the 155,000 level.

The U.S. Bureau of Labor Statistics estimated there were 154,300 manufacturing jobs in Arkansas during June 2013. Employment in the sector is down 24.6% compared to June 2003, and is down almost 38% compared to the sector high of 247,300 set in February 1995.

Arkansas’ three largest metro areas have seen double-digit percentage declines in manufacturing job levels between June 2003 and June 2013. Jobs in the sector are down 23% in central Arkansas, down 34.16% in the Fort Smith region, and down 20.8% in Northwest Arkansas.

MASSIVE INVESTMENTS
Tennille said several industries are returning to Arkansas and are making “fairly massive” investments to retool plants. The investments, which boost productivity by modernizing facilities, don’t always lead to more jobs.

“They are coming back but not with anywhere near the same number of people. ... We’re not getting the jobs back, which is frustrating,” Tennille said.

Also frustrated is Greg Kaza, executive director of the Arkansas Policy Foundation.

“The recovery, as I’ve said many times, is weak at best, and that shows up in the employment numbers,” Kaza said. “It’s better than being in a recession, but it’s nowhere near where it should be in an expansion.”

REGIONAL MANUFACTURING COMPARISON
Between June 2010 and June 2013, Arkansas lost 7,700 manufacturing jobs, a decline of 4.75%. Among Arkansas’ neighboring states, only Mississippi also saw a decline in manufacturing jobs in the same period, but that was just a 500 job loss, or a decline of 0.36%.

During the same three-year period, the manufacturing workforce grew by 3,600 jobs in Louisiana; grew by 9,500 jobs in Missouri; grew by 12,300 jobs in Oklahoma; and grew by an impressive 55,900 jobs in Texas. Nationally, there was a 3.7% gain in manufacturing employment between June 2010 and June 2013. However, all states have seen a manufacturing workforce decline when compared to the previous decade (June 2003).

Arkansas’ durable-goods manufacturing sector GDP has also lagged most of its neighboring states and the country. The GDP figure partially speaks to the value, or productivity, of the sector. The state’s manufacturing sector saw a 0.37% gain during 2012. The durable goods sector GDP was up 0.22% in Louisiana; up 0.68% in Mississippi; up 0.37% in Missouri; up 0.78% in Oklahoma; up 1.08% in Tennessee; up 0.72% in Texas and up 0.55% across the U.S.

FEWER JOBS AND CHANGING SKILL SETS
The dynamic of large capital investments with few jobs is not unique to Arkansas. A report issued June 19, 2013, by Congressional Research Service, indicates that recovery in the manufacturing sector will deliver more output, rising productivity, and fewer jobs.

“Although a variety of forces seem likely to support further growth in domestic manufacturing output over the next few years, including higher labor costs in the emerging economies of Asia, higher international freight transportation costs, and increased concern about disruptions to transoceanic supply chains, evidence suggests that such a resurgence would lead to relatively small job gains within the manufacturing sector,” noted Marc Levinson, report author and a section research manager for CRS.

Levinson also noted that manufacturing jobs included fewer “physical production” jobs and more managerial and technical skills jobs.

“These changes are reflected in increasing skill requirements for manufacturing workers and severely diminished opportunities for workers without education beyond high school,” according to Levinson.

Tennille said company officials considering expansion or relocation are asking more questions about skills and workforce quality. Financial incentives remain important, but if a company can’t find the people, the value of financial incentives diminish.

“A lot of it comes down to, ‘Can you get me the people?’” Tennille said of discussions in trying to recruit a company to Arkansas. “And, ‘What does your training environment look like?’”

‘VIGOROUS DISCUSSION’ NEEDED
Kaza said national economic factors have hit Arkansas hard, but notes that they hit all the states hard. He believes Arkansas’ overall business climate and economic development policies are also to blame for the state’s poor manufacturing numbers compared to nearby states.

He recommends a hard look at the state’s tax code, and specifically noted that Arkansas should more aggressively phase out the capital gains tax. The tax has fallen from 7% to 3.5% since 1995.

“Then you could say to business, ‘We’re one of only 10 states to not have a capital gains tax,’” Kaza said.

Kaza, who is a critic of the Quick Action Closing Fund program utilized by Gov. Mike Beebe to land large jobs projects, wants to see a “vigorous discussion about whether some of these programs are working” with respect to retaining and recruiting manufacturing jobs.

“What they’ve had in place for more than a decade isn’t working. ... Historically it should be producing more, and the sad reality is that we will likely continue to tread water and shed jobs,” Kaza said.

Arkansas legislators have in recent years moved to lower tax rates on manufacturing. Some of the changes include a lowering of the sales tax on utilities paid by manufacturers and exempting repair parts and labor for pollution control machinery and equipment from the state sales tax. The parts and labor exemption is scheduled to begin Oct. 1.

‘CHANGES NEED TO BE RADICAL’
Kaza believes some of the moves are not enough, and believes “radical” ideas should be tried. One of those ideas is what Kaza calls the “Razorback Production Zone.” The zone waives all or most taxes for qualifying manufacturing operations, with state revenues offsetting the loss of property tax revenue for school districts. It’s a concept the Arkansas Policy Foundation has encouraged the AEDC to consider.

“That would have been a powerful incentive to keep Whirlpool in Fort Smith. ... That was an idea we floated, but it didn’t go anywhere,” Kaza explained. “I would argue that we put them (new ideas) out there and see what happens. ... The changes need to be radical. There can’t be any tweaking around the edges.”

Benton Harbor, Mich.-based Whirlpool announced in October 2011 it would close its refrigeration production plant in Fort Smith. The move resulted in about 1,000 lost jobs when the plant closed in June 2012. However, Whirlpool, which employed more than 4,500 at the Fort Smith plant in 2006, moved production out of the plant for several years prior to the closing.

Tennille argues that Arkansas has been aggressive in its efforts. He points to the Big River Steel project as an example. Big River Steel, announced in late January 2012, will eventually be a $1.1 billion investment and provide a minimum of 525 jobs averaging $75,000 a year. It will be built in Mississippi County near Osceola.

Gov. Mike Beebe and AEDC officials pushed for incentives through Amendment 80, which Arkansas voters approved to provide bond financing for large economic development projects. The package was approved by the Arkansas General Assembly in the recent legislative session and provides a revenue stream for the $125 million bond package of incentives and loans for the superproject.

MANUFACTURING IMPORTANCE
Kaza also suggested that some in state government or other circles of influence may believe manufacturing should no longer be a primary focus for economic development efforts. In a state with 1.184 million nonfarm jobs (June 2013), the manufacturing sector is now just a little more than 13% of the job total. At its peak, Arkansas’ manufacturing sector represented almost 25% of all jobs.

“They may just say it’s only 155,000 jobs ... and that maybe the state should instead focus on knowledge-based industries,” Kaza said, adding that he believes it would be a mistake to reduce efforts to support the manufacturing sector.

Maintaining a focus on manufacturing is a point on which Kaza and Tennille agree.

Tennille admitted that he does talk to people “very much into the high-tech space who think they hold the keys to the kingdom.” But he believes manufacturing is an important part of a “diversified approach” to economic development. Tennille also believes a healthy middle class needs a healthy manufacturing sector.

“People making things is what built this country,” Tennille said. “The mechanism by which the middle class was built and sustained, was ripped out of this country” when manufacturing jobs were outsourced.

Levinson, in his Congressional Research Service report, provides an argument to those who might say manufacturing recruitment is not the best approach to increasing jobs.

“As manufacturing processes have changed, factories with large numbers of workers have become much less common than they once were. This suggests that promotion of manufacturing as a tool to stimulate local economies is likely to meet with limited success; even if newly established factories prosper, few are likely to require large amounts of labor,” Levinson wrote.

Kaza believes manufacturing can again be a larger part of the national and state economy. He thinks that will happen only if policy makers look beyond traditional economic development tools.

“I’d like to be positive. I think we can compete. ... We can do it. When people come in with this defeatist attitude that we can’t compete in the U.S., I respectfully disagree. We just have to be willing to try something different. ... The first step to addressing a problem is to admit that you have a problem.”

Five Star Votes: 
Average: 5(1 vote)

U.S. consumer debt load remains high

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story by Kim Souza
ksouza@thecitywire.com

As the economy continues to tip toe toward a healthier state, consumer confidence has risen substantially from a year ago but remains wobbly on a month-to-month basis. This caution heeded in consumer confidence has direct correlations to a rise in debt load and unpredictability in the job market.

A recent National Foundation for Credit Counseling (NFCC) online poll revealed that close to one in five consumers, 18%, believe that carrying credit card debt over from month-to-month is a responsible way to manage finances.

“This data suggests that not only are many Americans are using credit cards to fund a lifestyle their income can’t support, but they are comfortable doing so,” said Gail Cunningham, spokeswoman for the NFCC.  

She urges consumers to be aware of the following consequences associated with continually carrying credit card debt from month to month:
• Interest on a credit card is typically calculated on an average daily balance. For those who carry a balance over from the previous cycle, interest is not only charged on the unpaid balance, but on any new purchases added to the balance. With interested added onto the balance month after month, consumers end up paying interest on the interest.


• Carrying a balance has the potential to negatively impact a person’s debt to credit ratio, one of the main components of credit scores.


• A higher balance decreases the amount of credit available for future purchases.

The average U.S. household credit card debt stands at $7,149, the result of a small number of deeply indebted households forcing up the numbers, said William Bailey, professor of family finance at the University of Arkansas. He said when a consumer’s revolving debt is 16% or more of their net income, they are considered an indebted household. Looking only at indebted households, the average credit card debt owed is $15,325 per household.

U.S. credit card debt reached $856 billion in July, and government statistics indicated roughly 47% of American households owe balances on at least one credit card.

Bailey said a growing number of consumers are living on the edge and financing their life styles with credit cards, which is a slippery slope. He said after the recession in 2009 consumers began paying down their debt, but as the recovery gradually extended year after year, consumer attitudes now reflect more ease with carrying debt.

A separate study by TransUnion indicates that consumers who carry revolving balances are more likely to fall 90-days delinquent. Revolvers, those who carry balances and pay the minimum owed, are three times more riskier on new cards and carry five times more risk than those consumers who pay off their full balances each month. The study ran from March 2011 through 2012 and found that 44% of the new cards issued in this period were to “revolvers,” while 38% of the new bankcard accounts were for “transactors,” those who repay the full balance each month.

Another 18% of consumers were in an inactive status with their cards.

TransUnion also found “revolvers” were three times riskier than “transactors” when opening an auto loan.

Credit counselors said while carrying a debt load has its perils, there may also be disadvantages related to charging too little. In the NFCC poll, 21% of the respondents indicated they didn’t use credit cards at all. Bailey wasn’t surprised to see those results citing older citizens and the unbanked as the primary consumers who don’t use charge cards.

The NFCC report noted that cash and debit card transactions are not typically reported to credit agencies, which can make it difficult for a consumer to build up their credit rating, which is needed in most cases to purchase a car or home.
         
They also say credit cards provide less risk of loss exposure if stolen. Cash is just gone, but most credit card companies have consumer protection features that protect against losses if the card is lost or stolen.

In the NFCC poll, 61% of respondents believed that paying credit card debt in full each month is the only responsible way to manage personal finances. Bailey said those respondents aren’t likely the average consumer, because credit card balances are rising on a per-capita basis.

Five Star Votes: 
Average: 5(1 vote)

Small business growth helps Crawford County

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story by Ryan Saylor
rsaylor@thecitywire.com

It's been a mixed bag for Crawford County's economy this year, with a loss of one major employer even while other employers have been expanding.

The year got off to a rough start in February when Allens Canning Company announced that it would close its canning operation in Van Buren, relocating it to Siloam Springs. The result was a loss of 150 jobs.

While the closure of the facility left a human toll in lost jobs, it also put a dent in unexpected areas, such as municipal utilities. Van Buren Municipal Utilities Director Steve Dufresne said the company consumed as much as 900,000 gallons of water per day, resulting in about $1 million in annual business.

Even though the year may have started with bleak prospects, a $4 million expansion project announced in June at Tankersley Food Service in the Van Buren Industrial Park showed that the local economy was not completely in a slump.

In addition to adding more than 28,000-square feet of freezer space, the company will hire between 20 and 40 additional workers to man the expanded facility. At the time, Drew Williams of the Arkansas Economic Development Commission said business expansion was the big driver of the state's economy.

"We know that about 80% of our job creation is done through existing businesses retention," he said. "We know that's true in Arkansas and the rest of the country."

Jackie Krutsch, executive director of the Van Buren Chamber of Commerce, said she is seeing it all across the economy – not only Van Buren, but all of Crawford County.

"I just think a lot of smaller businesses and some really large businesses are expanding in what I would say are ways that aren't typically covered by the media - adding three people, seven people, 10 people. A lot of times, they don't even tell us."

To the east of Van Buren, Alma Chamber of Commerce Executive Director Lisa Norris said expanding businesses have also been helping the economy of her community, which lies about 20 minutes northeast of Fort Smith and 45 minutes south of Fayetteville.

A specific example she points to is Alma Healthcare and Rehabilitation, which is expanding its facility just off of Interstate 40.

"They're looking to hire at least 20 people. I don't know the average wage, but the majority of jobs they're looking to hire are CNA-type jobs (certified nursing assistants). But they are also looking for speech and physical therapists, a wide range of jobs that are going to be opening. But the majority will be CNA-type jobs."

With the expansions that have taken place, unemployment in the county has dipped considerably lower for the month of June, the most recent month data was available, compared to the peak of the county's unemployment.

In June, the rate was 7.7% unemployed, with 2,175 without jobs. The number of people in the labor force, or those wanting a job, stood at 28,300, with 26,125 currently employed. By contrast, February 2011 saw an unemployment rate of 9.3%, with 2,575 individuals out of a job. The labor force was smaller at that time, with only 27,850 wanting a job and 25,275 employed.

Asked how the county will sustain its more positive numbers as of late, Krutsch said she believes the service sector is where the growth will be.

"In Van Buren, the service sector 10 years ago wasn't really here and now one of our largest employers is Experian with close to 500 employees. I think future growth will be made up of service sector, but will also continue to be a mix (of service sector and manufacturing jobs)."

She said companies like Bekaert Corporation have recently added jobs and facility space, as has Arkansas Poly, a plastic packing manufacturer. With the expansion from those two companies, she thinks it shows the possible resurgence of manufacturing jobs in the county.

The one loss Krutsch said will not hurt the county is the relocation of the HMA service center from Van Buren to Fort Smith, bringing with it possibly hundreds of new jobs. If all goes according to plan and the expansion goes through, the company will be leaving its Van Buren facility behind. But the benefit of the added jobs to the Fort Smith area economy will still benefit Van Buren, she said.

"We didn't see it as job losses. They have roughly 100 people (already working) there and are adding another 300 for a service center. There will be others who live here in Van Buren and Crawford County who drive the 12 minutes to the Phoenix Expo (Center, where the new HMA service center will be housed). We worked with the Fort Smith Chamber in searching for a location and we celebrate that."

Five Star Votes: 
Average: 4.7(3 votes)

UA researchers post record number of inventions

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During a February interview with The City Wire, Jeff Amerine said much of the research conducted by scientists at the University of Arkansas is “potentially groundbreaking.”

On Wednesday (Aug. 7), the University of Arkansas provided statistical evidence to support Amerine’s excitement about the university’s research programs. University officials announced that faculty and staff reported 42 inventions in fiscal year 2013 (July 1, 2012-June 30, 2013).

“There are so many things that happen every day, or that I learn about every day, where I stop and say, ‘Yeah, that could be huge,’” Amerine, director of licensing for the university’s Technology Ventures division, said during the February interview.

In the statement issued Wednesday, Amerine said the record number of intellectual property disclosures by university researchers in the recent year is likely to be surpassed.

“The number is trending up, which is significant,” Amerine said in the statement. “We’ll find in the future that getting more than 40 will be a regular occurrence.”

The 42 disclosures reported in 2013 included 18 by faculty with “dual appointments” at the Fayetteville campus and the University of Arkansas System’s statewide Division of Agriculture, which includes the Arkansas Agricultural Experiment Station and Cooperative Extension Service. The division’s intellectual property is managed by Lisa Childs overseas the Agriculture Division’s Technology Commercialization Office.

“The offices encourage campus researchers to formally report their discoveries, because completing the intellectual property disclosure form is the first step toward transferring their inventions into marketplace products and services. Submitting the form is also required under a patent and copyright policy approved by trustees of the University of Arkansas System,” noted the UA statement.

THE PROCESS
The disclosure process typically begins when a “researcher realizes they have uncovered inventive content, either patentable or protected as a trade secret, or in a rare instance a creation that could be trademarked.”

Amerine said historically the benefit to researchers is to have their work published in a peer-review journal. But in instances of potentially valuable research, university faculty and staff need to go a different route.

“We try to encourage the people who do the research to value this as much as they value publication,” Amerine said. “We want high-quality disclosures, as if they were submitting something that will be reviewed by their peers. We do sympathize with researchers because the IP disclosure is one more thing for them to do. We want them to know we are here to help.”

POTENTIAL VALUE
John Villasenor, writing for Forbes in an article published November 2012, was surprised at results from an informal poll of UCLA graduate students who weren’t aware of the value of intellectual property.

“By obtaining a greater number of patents and then licensing them to industry, universities hope to both boost revenues and speed the introduction of the results of their research into the market. In theory, this will benefit universities, companies, and the broader public,” Villasenor wrote. “But the success of this endeavor relies on the ability of university researchers – who are very often graduate students – to recognize potentially patentable inventions and take the steps necessary to protect them by initiating and participating in the patent prosecution process.”

There can be tremendous value in patents derived from university research. A recent article at Intellectual Asset Management noted that the Microsoft and Apple patents often get the media attention, but smaller companies are also making big profits on patents.

“Lower down the scale in terms of company size, Aware Inc – an R&D-based business which develops and licenses software for the biometrics, telecommunications and healthcare industries, and which employs fewer than 100 staff – generated $91 million from two patent divestments in 2012: one to Intel for $75 million, and the other to TQ Delta LLC for $16 million,” noted the IAM article.

LOCAL VALUE
A local example of this growing value is Springdale-based NanoMech. The company was launched in 2002, and emerged from the university’s nanoscience research.

Nanoscience researchers, led by Dr. Ajay Malshe, found a way to cover cutting tools with cubic boron nitirate – a nano-compound that can extend the life of manufacturing tools by six times. The coating process was patented as TuffTek and has garnered the attention of John Deere, Honda and Caterpillar.

NanoMech’s success was recently noted by Arkansas Gov. Mike Beebe in a commentary about the importance of research to the state’s economy.

“The critical relationship between education and economic growth is demonstrated in its purest form when academic scholarship creates new technologies that carry the potential for new jobs and industry. We've seen this happen when research conducted at colleges and universities evolves into new businesses with new products created by new employees.”

‘CHALLENGING PROCESS’
Amerine said the university works to create relationships with companies or start-ups who may benefit from the research.

“If we get to a point where we think there is something that is valuable and has patentable ground we’ll work with outside patent attorneys and spend the money on a provisional patent,” he said.

Amerine also said it is a “challenging process,” in which the time from initial application to patent award could be four years.

An example of the process is Fayetteville-based Boston Mountain Biotech. Bob Beitle, professor of chemical engineering, Ellen Brune, who earned a doctorate in chemical engineering in May, and Ralph Henry, Distinguished Professor of biology, created a method to “simplify the development and manufacturing of protein therapeutics.” Two researchers at the University of Pittsburgh were also part of the team.

University officials filed a provisional patent application in March 2012 and licensed Boston Mountain to commercialize the technology.

“Moving our technology from the lab bench to a company was an eye-opening experience,” Beitle said in the statement. “The level of detail necessary to complete the PCT application was unexpected and had a steep learning curve. The process was made easier by working with Technology Ventures early so both sides — inventors of the technology, licensees, and those responsible for the grueling paper trail — aligned quickly.”

Five Star Votes: 
Average: 5(1 vote)

On the campaign trail with Tom Cotton

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Roby Brock, editor and owner of Little Rock-based Talk Business, was given access to U.S. Rep. Tom Cotton, R-Dardanelle, on Cotton’s first official day as a candidate for the U.S. Senate. Cotton announced Aug. 6 he would challenge U.S. Sen. Mark Pryor, D-Ark., for the job. Brock is scheduled on Thursday to join Pryor on the campaign trail.

Cotton’s day began early in Fayetteville, and included stops in Springdale, Mountain Home and Jonesboro.

Following is an excerpt of Brock’s reporting during his day with the Cotton campaign.

6:50 am – Fayetteville
On KNWA, Cotton wastes little time explaining why he’s better suited to be a U.S. Senator than Pryor. In an interview with news anchor J.R. Davis, Cotton says it was “sad” that Pryor had to start campaigning against him before he even entered the race.
In response to critics who say Cotton is too ambitious, the new Senate candidate said he viewed that as a positive.

“Some people say I’m a young man in a hurry. With the problems we have, we need someone in a hurry,” he said. “Some people say I haven’t been in Washington long enough, but I’ve been there long enough to know Washington needs to change.”
When asked about some of his controversial votes, Cotton said he follows his own principles.

“I don’t look at what anyone else is doing,” said Cotton. ” The only thing I do when I cast a vote is think about Arkansas first.”

7:45 am – Springdale
A crowd of about 80 supporters has shown up at Neal’s Cafe, a popular breakfast and lunch diner.  More than a dozen local elected officials and candidates for office are in the cafe.  The group includes Tea Party activists, Republican Party leaders, and a few non-party politically active citizens as well.

Judy Blue of Rogers said she’s not at Neal’s for breakfast, she’s here to show support for Cotton.

“I like him because he’s conservative. I like him because he’s right on line with my views,” Blue said.

State Sen. Jon Woods, R-Springdale, said its notable that Cotton’s first day on the campaign trail landed him in Republican-rich northwest Arkansas.

“In this area of the state, there’s a lot of Tom Cotton supporters, a lot of Tom Cotton fans,” Woods said. “I think it’s great to have a statewide candidate here in northwest Arkansas.”

In introducing Cotton to the audience, Woods said a few years ago he and several others tried to convince Cotton to run for state representative.

“I’m so glad he didn’t,” Woods joked.

In speaking to the cafe crowd, Cotton invoked President Obama at least 10 times in a 4-minute stump speech. In what has been and will likely be a repetitive campaign theme, Cotton says Pryor votes with the President 90% of the time.

“Do you agree with Barack Obama 90% of the time?” Cotton asks the crowd. “We need a Senator who will stand up to Barack Obama. We’ve been his staunchest opponents in the House, but the Senate has been his strongest ally.”

While working the crowd, Cotton visited one-on-one with a young lady who supported the Senate immigration bill.  Cotton explained his opposition to the measure.  The two had a civil conversation and agreed to disagree.

10:12 am – Alpena (Boone County)
Pit stop at the Red X-Press convenience store at the Highway 412/62 merger. As any good politician would do, Cotton asks the sales clerks for their votes.

They said they’d think about it.

11:54 am – Mountain Home (Baxter County)
One of the wealthiest counties in Arkansas and a population hub centered on retirees and tourism, Cotton stopped at the Mountain Home Western Sizzlin to visit with a room of about 60 supporters.

As he worked a buffet room, Cotton’s first conversation was with U.S. Navy veteran Jessie Soapes, who exchanged stories with Cotton on his travels around the world.  A second conversation was with Rex Tullis, a younger voter who showed up to learn more about Cotton.  His first question was where Cotton stood on the Second Amendment and gun control legislation.

Cotton said he was opposed to any new controls, which easily satisfied Tullis’ concerns.

”The Second Amendment is every bit as important as the First Amendment,” Cotton said.

In speaking to the group, Cotton returned to his earlier themes of criticizing Washington D.C.’s power culture and Mark Pryor’s support for Obamacare.

“Mark Pryor doesn’t put Arkansas first, he puts Barack Obama first,” Cotton said to a head-nodding, enthusiastic and vocal audience.

A developing comic line in Cotton’s stump speech involves Medicare and the age of many of the older voters in the groups he is speaking to.

“I don’t think any of you in this room are old enough to qualify for Medicare,” Cotton says to some laughter. He then peels into Pryor, who commented on health care reform in a northwest Arkansas TV interview Tuesday.

“Just yesterday, he [Pryor] said in northwest Arkansas that Obamacare was ‘an amazing success,’” Cotton tells the group. “I’ll let all of you judge for yourself if it is a success story.”

12:20 pm – Mountain Home
An audience member asked about the Arkansas legislature’s recently enacted private option, which uses Medicaid expansion funds under the Affordable Care Act to subsidize low income health insurance plans. Cotton’s political director, State Rep. John Burris, R-Harrison, was one of the architects of the state plan.

Said Cotton when asked about his views on the private option: “I’m focused on what I can do in Washington, which is repeal Obamacare entirely. If we repeal Obamacare entirely, we don’t have to worry about it at the state level anymore. I will say that they [the state legislature] did something very different than what Mark Pryor voted for. Mark Pryor voted for a law, Obamacare, that would mandate the states to expand their Medicaid system. And if they didn’t, what would happen? They wouldn’t just lose the additional Medicaid funding, they would lose the entire Medicaid funding. That’s what Mark Pryor voted for. That was so outrageous, such an infringement of state’s sovereign powers that the Supreme Court declared that part of Obamacare unconstitutional. So I’m focused on trying to repeal Obamacare entirely and return more power to the states and to doctors and patients. But what Mark Pryor did was beyond the pale of voting for Obamacare.”

5:10 pm – Jonesboro
Cotton still maintained high energy in his fourth and final stop of the day in Jonesboro.

The crowd at the local Western Sizzlin numbered about 50, including a large number of younger college-age supporters.

Northeast Arkansas has seen Republican growth in the last two election cycles. U.S. Rep. Rick Crawford, a Republican and the 1st District Congressman, is a Jonesboro resident, and Republicans have been competitive and won local elections since 2010.

Joe and Judy McGrath of Jonesboro are supporters of U.S. Sen. John Boozman, R-Ark. They showed up today to meet Cotton for the first time. Self-described conservatives, the McGraths said the U.S. Senate needs to be in Republican control and they felt Cotton – from what they know of him – represents their political viewpoints.

“I haven’t met him until today, but I just agree with his politics. He’s a pro-veteran, pro-life, smaller government, less taxes conservative – he’s my kind of guy,” said Joe McGrath.

“I’m excited. We need somebody else as a Senator,” his wife Judy said. “We don’t need a rubber stamp for Obama.”

John Cooper, a Jonesboro retiree running for House seat 59, currently held by term-limited Democrat Butch Wilkins, introduced Cotton. He said he’s “thrilled” about Cotton’s Senate bid. Cooper said he’s not worried that Democrats will try to tag Cotton as “too extreme.”

“I’m not concerned about that at all, I think he’s what we need,” Cooper said. “I think this region is switching to a more conservative outlook on things and I think Tom will fit in excellent with that.”

Cotton repeated many parts of his stump speech from the day – including his assertion that he has proven he’s willing to stand up to Washington power brokers and his own party’s leadership.

One supporter asked how Cotton planned to counter a Democratic advantage over Republicans of out-organizing and having a superior voter turnout model seen in the Obama 2012 campaign nationally. Cotton disclosed that the Republican National Committee has made “an early commitment” to Arkansas to boost GOP voter registration, identification and organization.

Five Star Votes: 
Average: 5(1 vote)

Sen. Pryor: Obamacare is creating jobs

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story by Roby Brock, with Talk Business, a content partner with The City Wire
roby@talkbusiness.net 

U.S. Sen. Mark Pryor, D-Ark., is not only not backing away from his support of the federal healthcare act some label as Obamacare, but he said Thursday that the new law is a job creator.

Republicans and Pryor’s challenger, U.S. Rep. Tom Cotton, R-Dardanelle, have been and will continue to make Obamacare a central issue in the Senator’s re-election bid.

Cotton has cited Pryor’s vote on the measure as a reason to vote him out of office, and state and national Republican groups have issued numerous press releases on the subject in recent weeks, including today.

Pryor was asked at this morning’s (Aug. 8) Arkansas State Chamber of Commerce meeting if he regretted his vote for the Affordable Care Act.

Here’s a large portion of a transcript of what he said:
Let me say on the front end: the Affordable Care Act is far from perfect. We need to go in and reform it and fix it. By the way, I’ve sponsored and co-sponsored some legislation – we’ve already passed some – and we’ve got more coming that I’m either the lead sponsor or co-sponsor of.

The answer to your question is: I came to the conclusion that the Affordable Care Act was the right thing for Arkansas. I think you can look and see it’s already starting to work, it is working.

Look at what the state legislature did on the Medicaid expansion. Arkansas was creative, we did the private option, the so-called private option. When you add that and the exchanges together, there’s going to be close to 500,000 Arkansans – that’s one-sixth of our population – close to 500,000 Arkansans who are going to have private insurance for the first time or the first time in a long time.

Think about what that’s going to do, the Rand study, when they studied this six months ago, they said this is going to create 6,000 new jobs in Arkansas. People talk about this being job killers – I just went through a list: a 1,000 new jobs at Serco, 150 new jobs at Fidelty, 200 new jobs at Sikes call center, 100 new jobs at Mercy Hospital.

This bill isn’t killing jobs, this bill is creating jobs.

We’ve got a 1,000 new jobs in Rogers, Arkansas directly because of this bill.

Also, there is a vote of conscience there as well. We’re the greatest country in the world, no doubt. But we have a big problem with health care in this country. We’ve got so many people who can’t afford to be in the health care system – they can’t afford it.

Pryor cited a litany of reasons that he said showed the law is working, including:
• Closing the donut hole on Medicare;
• Allowing young adults to stay on parents’ health insurance to age 26;
• Eliminating pre-existing conditions;
• Creating quality care rankings for hospitals to create better consumer demand; and
• Issuing tax credits for small businesses and individuals to have more insurance options.

Pryor added these comments to the State Chamber group audience:
Let’s take the good in the law and build on that. They [Republicans] are not offering a solution. They’re just saying, ‘repeal, repeal, repeal.’ What they were saying a year or two ago was ‘repeal and replace.’

What I told my Republican colleagues in the House and the Senate was, ‘Guys, if you’ll give me something better to vote for, I’ll vote for it. You put something on paper – I’m not talking about a press conference – I’m not talking about a set of talking points – I’m talking about you put legislative language on paper. If it’s better, I’ll vote for it.’

You know what you get out of them? Crickets. Because they won’t put it on paper.

Five Star Votes: 
Average: 5(2 votes)

Whirlpool pushes to begin TCE remediation work

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story by Ryan Saylor
rsaylor@thecitywire.com

Even though Whirlpools' final remedy work plan to clean up toxic, potentially cancer-causing trichloroethylene (TCE) has not yet been approved by the Arkansas Department of Environmental Quality, it has not stopped the company's environmental consultants from moving forward with at least one part of the proposal.

In an e-mail to ADEQ's Division Chief of Hazardous Waste Tammie Hynum, Principal Consultant Greg Gillespie of ENVIRON Corporation said Whirlpool would like for soil vapor monitoring to begin, even before waiting for approval of the final remedy work plan.

"As we discussed during our call last week, Whirlpool would like implement the additional soil gas work defined by the July 16, 2013 Work Plan," he said. "As requested attached is a letter with the relevant section of the work plan included for you to review / approve."

The letter explained that the work would be conducted in the offsite residential area north of Ingersoll Avenue.

"As we discussed during our phone conversation Aug. 1, 2013, the July 16, 2013, Final Remedy Work Plan (Work Plan) submitted by ENVIRON on behalf of Whirlpool presented activities to collect additional soil gas data in the offsite residential area north of Ingersoll Avenue to further substantiate there is no unacceptable risk from vapor intrusion at the site," the letter read.

Gillespie also said the work would "commence independent of the Revised Risk Management Plan (RRMP) and Work Plan currently being reviewed by ADEQ."

In the request to begin off-site soil vapor monitoring, Whirlpool's environmental consultants say that while their data backs up the company's claims that dangerous levels of TCE have not been found in the soil vapor, "Whirlpool concluded that additional soil gas monitoring points should be installed in order to enhance coverage of the off-site plume."

The company said in the letter that it would work with ADEQ to determine locations for the monitoring sites based on two criteria:
1. Proximity to existing off-site groundwater monitoring wells with higher concentrations of TCE; and
2. Proximity to an occupied residential building.

"The idea is to install additional soil gas monitoring points at locations that have higher potential for vapor intrusion to occur compared with other locations in the area," Gillespie said.

If TCE is found at dangerous levels in the soil vapors, he said additional "investigation" would be proposed to ADEQ.

"Such additional investigation may include the collection of sub-slab soil gas samples from under existing residences with concrete slabs. The sub-slab soil gas samples would be used to determine if the vapor intrusion pathway from groundwater actually extends to a particular building foundation and presents a potential for significant soil gas entry through the slab. If the targeted sub slab sampling indicates potential for vapor intrusion into the residence, indoor air data will then be collected."

In the letter, Gillespie claimed that false positives can occur with indoor testing as a result of household items that he said contain TCE as an active ingredient. He said items, including lubricants, adhesives, adhesive removers, automotive and household cleaners, aerosol and liquid spot removers, oven cleaners, silicone lubricants and aerosol gun cleaners all could contain TCE.

"Because of such indoor sources, it is not unusual to find measurable levels of TCE in residential indoor air even when no vapor intrusion is occurring."

In order to prevent impacts from possible indoor sources of TCE, Gillespie said the "industry standard" of gathering of sub-slab soil gas data would be the most effective way to collect the needed information.

A decision by ADEQ on Whirlpool's request has not yet been announced.

Five Star Votes: 
Average: 5(2 votes)

Part-time jobs grow faster than full-time work

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story by Kim Souza
ksouza@thecitywire.com

The part-time workforce continues to expand at a faster rate thanks to several factors in play. While some expect the trend to continue as the new health care law is ushered in this next year, other analysts said it’s part of a gradual shift in the overall employment landscape.

In July, U.S. employers added a disappointing 162,000 jobs and economists quickly said those numbers are skewed toward part-time work in low-wage industries such as retail and food service. Retailers led job gains with 47,000, and restaurants and bars added 38,000, according to Bureau of Labor Statistics data.

A separate survey of employers indicates the ranks of part-time workers have risen by 791,000 since March. The part-time workforce has grown more than four times faster than the full-time segment which expanded by 187,000 jobs since March.

William Bailey, professor of family finance at the University of Arkansas, said households who have to settle for part-time employment over an extended period will likely compromise their ability to save for a home or retirement.

“This really is not a new phenomenon. Some industries like retail and food service have always hired more part-time workers, and while they may offer health insurance or retirement options, the lower wages and 30-hour work week do not provide sufficient income for the worker to take part in those benefits,” Bailey said.

Sophia Koropeckyj, managing economist with Moody’s Analytics, said it’s not usual to see part-time jobs grow faster than full-time given the economy is languishing in recovery mode.

“When an economy is moving slowly, those sectors that are less productive like retail and food service have to add more people. The only way they meet the growing demand is to add people. But, because they typically pay lower wages it’s not as expensive to add them,” Koropeckyj  said.

She said there are several factors at work which has part-time employment growing ahead of full-time.

“The number of folks working more than one job continues to rise and we don’t think that will change anytime soon,” Koropeckyj said. “If they could find one higher paying job they would take it, but until then they will have to moonlight.”


FREELANCE BY CHOICE
Independent economist Jeff Collins said there is a growing number of younger folks who actually prefer to freelance on a part-time by project basis. These are people who are not looking for full-time work.

“These freelancers are often skilled technology engineers that have good job security given the demand for their talent. They command higher wages and often work on a project basis with many different employers,” Collins said.

Wal-Mart is one of the local companies that employs vast numbers of technology freelancers on a project basis. Rockfish Interactive also uses a number of freelancers. Collins said the freelance model makes sense for some businesses, particularly in the area of technology as there is often a talent shortage.

Jason Long owns a small retail consultant firm in St. Louis and said as a small business he prefers to hire some of the services he needs, such as website design or accounting, on an outsource basis.

“It just makes sense for me to outsource certain duties or employ specialists on a contract basis. This allows my business operations to stay nimble,” Long said.

CAUTIOUS ATTITUDE
Collins said it’s too soon to draw the conclusion that the growth in part-time jobs is directly related to the expanded health care law, and he agreed with Koropeckyj that there are also a number of employers who need to bring on extra help with minimal strings as they are still cautious about the economy.

“It’s easier for a company to use temporary staffing or part-time workers to fill an immediate need, and it’s less cumbersome to cut those ties if they should have to pull back in the future,” Collins said.

Georgette Ferus, district director for Staffmark in Bentonville, said she has not seen an abnormal rise in the number of permanent part-time positions yet. But, she has a fair amount of short-term or contract work openings at this time.

“Many of those positions are seasonal as retailers gear up for the holidays. We have warehouse positions and other logistics jobs to help with inventory increases for the holidays,” Ferus said.

A search on the internet job site indeed.com shows numerous opportunities for part-time employment in Northwest Arkansas and Fort Smith within the areas of freight, higher education, retail, medical, clerical, technology, government and nonprofit organizations.

Ferus said employers are still using staffing services to meet added demand because of the deep cuts they made several years ago in their own employment numbers.

LONG-TERM IMPLICATIONS
None of the economists contacted for this story believe the rapid rise in part-time employment will continue indefinitely, but they do expect the numbers to remain elevated as companies usher in the Affordable Care Act, of which some key provisions have been delayed to 2015.

Koropeckyj said while it may be difficult to imagine a thriving economy at this time, she doesn’t believe the slow growth periods of the past three years will persist for over decades. She said there are long-term risks associated with those folks who work multiple half-time jobs over an extended period when they can’t find full-time work in their trained field.

“Employers could be more apt to hire fresh college graduates for those better paying full-time jobs once they open up. I can see employers passing on candidates who have worked outside their field of study because those skills may be rusty,” Koropecky said.

She said there have been studies that show college students who seek jobs after graduation during a down economy earn less money over time than those who graduate during a healthy economy. That is largely because they are forced to accept lower-paying jobs in unrelated fields and it’s much harder for them to move up when the economy does improve.

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Fort Smith family wins $50,000 home efficiency prize

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story and photo by Ryan Saylor
rsaylor@thecitywire.com

A Fort Smith family was given a surprise today (Aug. 8) as the Electric Cooperatives of Arkansas announced that Kyle and Alisha Quenga had won a $50,000 energy efficiency home makeover.

The couple, along with their two children, were under the impression that they had come in second place in the contest, having been told they would be winning a new water heater. But they were surprised when Bret Curry, the manager of residential energy marketing at Electric Cooperatives, announced that the family had won the grand prize.

in choosing the Quenga family home for the makeover, Curry had said the family underwent an energy audit, along with the other finalists, after being selected from more than 2,800 applicants.

"Our diagnostic testing revealed that more than 70 percent of the air volume with the home (built in 1979) was leaking outside every minute of each day," he said. "We also discovered substandard insulation levels, inefficient windows, dramatic ductwork leakage, an older inefficient heating and cooling system and no-Energy Star appliances. Combine all of these circumstances and you have a very uncomfortable home with very high utility bills."

Prior to the surprise announcement, which the Quangas were told would an announcement of their second-place win, Curry said the makeover would be life-altering.

"These people have high bills, they have a very uncomfortable home and they are about to have their lives changed forever."

In the next four to six weeks, various companies will be in and out of the Quenga home to make improvements that will save the family from being not only uncomfortable during both the summer and winter months, but will also save them serious money each month when they pay their utility bill.

The following items will be provided to the family at no cost as winners of the contest:
• An ultra-efficient water furnace geothermal heat pump installed by Rood Heating and Air;
• High-efficiency windows provided by the Harry G. Barr Company;
• Energy Star appliances and a GeoSpring Hybrid water heater provided by General Electric; and
• Demilac Sealaction 500 expanding foam will be installed by Building Performance Solutions in the crawlspace and attic.

Many of the companies involved with the project are Arkansas-based companies, according to Curry, who added that finding and using local businesses was an important part of the contest.

Once the audit is complete, another energy audit will be conducted to determine the home's new level of efficiency.

Alisha Quenga said once the makeover is complete, her family would be able to afford to do more than just pay the ever-increasing utility bill.

"Oh, it's going to make a world of difference for us. We're going to be able to be more comfortable in the house and also save money. We'll be able to do way more stuff we wouldn't have been able to do."

She said with a grin that a trip, possibly to Disneyland, could be on the horizon, depending on how much they family was able save each month with the expected lower monthly bills.

Curry said he hoped the makeover would highlight for other families how they could make changes to their homes that would save them money in the long run.

"Now some of these are expensive and we realize not everyone can win a makeover, however, they can implement these things one at a time. We target the key areas that impact their bills and comfort."

One area he said where a lot of energy escapes is from drafty windows, which is why Curry said replacing inefficient windows and fixing cracks around the window seal is so important.

Running Energy Star-rated appliances is also important to reduce overall energy consumption, according to Curry.

Kyle Quenga said the makeover, which started at his home this afternoon, was more than he could have hoped for and he made sure the Electric Cooperatives knew his appreciation.

"I would like to thank every one of you. This is an absolute blessing. God bless you."

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On the campaign trail with Mark Pryor

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Roby Brock, editor and owner of Little Rock-based Talk Business, was allowed to travel on Thursday (Aug. 8) with U.S. Sen. Mark Pryor, D-Ark, while he made several stops around Arkansas.

On Wednesday, Brock traveled with U.S. Rep. Tom Cotton, R-Dardanelle, during his first day on the campaign trail. Cotton announced Aug. 6 he would challenge Pryor for the Senate seat. (Link here to Brock’s report from the Cotton travels.)

Pryor made headlines on Thursday by saying that Obamacare would be a job creator for Arkansas.

Following is an excerpt of Brock’s reporting during his day with the Pryor campaign.

6:50 am – Little Rock
Pryor started his day on KARK Ch. 4 with an interview on the morning show. Host Matt Moseler asked Pryor if he was surprised that he was being challenged by Cotton.

“It was the worst kept political secret in Arkansas,” Pryor said. “No, I was not surprised to see Cotton get in.”

Pryor once again defended his support for the Affordable Care Act, saying he was not second guessing his decision. “No, actually I’m not,” he said.

He highlighted a new instance of how he sees the health care law being of benefit to consumers. Hospitals now must have their quality outcomes ranked in a transparent manner. Pryor said Conway officials, who scored well on their quality measures, are using the rankings to promote their business.

“That’s huge because it creates consumer choice,” Pryor said.

The Senator also touched on the IRS controversy highlighting that later it was learned that liberal groups as well as conservative groups were targeted for audits.

“The IRS should never play politics,” Pryor said.

He also said that his brand of politics, which he described as “bipartisan,” was attractive to voters.

“People tell me they like my approach to politics,” said Pryor, who noted he’s passed more than 60 bills in his Senate tenure. “I’m up there trying to find solutions.”

8:03 am – Arkansas State Chamber of Commerce in Little Rock
Pryor is talking about 90 business leaders from every corner of the state.

“There’s no better social program than a good job,” Pryor said.

He highlights the need for more inshoring of manufacturing jobs into the U.S. and Arkansas. Pryor said gridlock in the nation’s capital, which he has tried to break through, has created too much uncertainty in America and is dragging on the economy.

“I’m convinced that a lot of the partisanship in Washington is causing uncertainty in the economy,” Pryor said.

He added that recent economic data is showing gains. Factory activity is growing at a faster pace during the past two years, exports are up, home sales are improving, and Moody’s recently restored the country’s credit rating to AAA.

Pryor also said that new jobs announcements, like Bad Boy Mowers and Remington Arms, are more signals of an improving business climate.

Advocating for more domestic energy development, Pryor  said that while he’s not happy about the Mayflower oil spill, he still supports pipeline infrastructure as the safest, most reliable, most cost-effective transportation route for the nation’s fuel supply. He advocated an “all of the above” policy on energy production, saying he supports clean coal, natural gas, solar, and nuclear power development.

When asked about dredging parts of the Arkansas River from 9 feet to 12 feet, Pryor said there are “good meetings” with the Corps of Engineers taking place. He said he had little new to report on progress regarding the issue.

“No breaking news to report on it,” he said. “It would be huge for the state of Arkansas to get the 12-foot channel.”

Pryor warned that the national debt and deficit “continue to be a huge problem.” He wants to see a couple of initiatives aimed at making more of a dent in these issues. He highlighted a recent report that showed the federal government owns 77,000 buildings that are not used or are underused.

“In a smart way, we need to get those off our books,” he said.

Simpson-Bowles provided a blueprint for resolving the debt and deficit crisis, but the political will didn’t exist to move on it, Pryor said.

Pryor also supports a modernization of the federal regulatory system that he says hasn’t been reviewed in nearly 60 years. He and Sen. Rob Portman, R-Ohio, are pushing legislation that would require federal agencies to do cost-benefit analyses and choose the least costly option to get done what they really want to do. The legislation would also force federal agencies to define what statutory power they have to issue regulations.

Furthermore, he said that more investment in rural broadband must be made.
Towards the end of his chamber session, Pryor delicately alluded to his new Senate rival, Tom Cotton, although no one asked him a direct question about his campaign challenger.

Pryor referenced Cotton’s vote against the first Farm Bill when asked about the topic although he did not mention his name. Saying the House’s approved Farm Bill version was “bad policy and bad politics,” Pryor said combining the Farm Bill with the nutrition program known as SNAP is “about counting votes” and “it also makes good policy sense.” He does not see the House’s version of the Farm Bill going anywhere in the Senate.

“They [the House] passed something that is unpassable in the Senate,” he said.

“Tough times require tough decisions,” said Pryor.

He said more elected officials need to stick their necks out politically.

“That’s the kind of senator Ive always tried to be,” he said.

10:35 am – Lonoke
Pryor joined Gov. Mike Beebe and representatives of Remington Arms Co. to announce a $32 million operations expansion that will create 60 new jobs. Remington is the oldest gun and ammunitions maker in the U.S. It has been in Lonoke since 1969.

Pryor played up his hunting roots at the event. He and his son are avid hunters during many of the fall seasons.

“I have a Remington shotgun and I use Remington shells,” Pryor bragged. “As an avid hunter and gun owner, I’m particularly excited to help announce this expansion. Remington has been an economic engine in our state for years, and this will allow them to bring even more jobs and development to central Arkansas.”

A large crowd under a big tent braved 90-degree heat. Pryor, Beebe and other officials – which included legislators such as Republican state Sen. Jonathan Dismang and Democratic Rep. Walls McCrary – toured the Remington plant before leaving.

12:05 pm – Little Rock
Pryor and Brock drove back from Lonoke and conducted an on-the-record interview that Brock will be sharing more of in the coming days.

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Arkansas Best posts quarterly income of $4.8 million

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Second quarter net income of $4.878 million is a welcome sign for officials at Fort Smith-based Arkansas Best Corp., but was less that what Wall Street was expecting.

Per share net income was 18 cents. The consensus analyst estimate was 20 cents per share on total revenue of $572.48 million.

The quarterly net income was down 58.8% compared to the $11.8 million earned in the second quarter of 2012. However, the second quarter 2012 net income included an $8 million tax benefit.

Revenue during the quarter was $576.899 million, well ahead of the $510.543 million during the second quarter of 2012, and also ahead of the consensus estimate.

The second quarter gain followed a first quarter loss of $13.4 million.

"As economic growth remains moderate and inconsistent, Arkansas Best continues to make progress in positioning each of its companies for future success," Arkansas Best President and CEO Judy McReynolds said in the earnings statement. "ABF now looks toward a better future with lower costs and greater operational flexibility. Investments made in emerging, non-asset-based businesses are positively impacting our bottom line by improving the way we go to market as customers seek more end-to-end logistics solutions.”

For the first six months of 2013, the company has a loss of $8.517 million, more than the loss of $6.321 million during the same period in 2012. Operating revenue for the first half of the year is $1.097 billion, better than the $951.41 million during the same period of 2012.

In 2012, the transportation holding company posted a $7.7 million loss, a wide swing from the $6.159 million gain in 2011. The largest subsidiary of Arkansas Best is ABF Freight System, one of the largest less-than-truckload carriers in the U.S.

The company noted a major positive event during the quarter. The International Brotherhood of Teamsters announced June 27 that a new contract was approved, but some supplemental provisions were rejected.

Officials with Arkansas Best and the Teamsters have negotiated the rejected provisions, and the Teamsters announced Aug. 6 that ballots had been mailed to seven “local/area supplements” for approval. The ballot deadline is Aug. 28.

The contract, once fully ratified, will cover about 7,500 ABF employees who are members of the union. Most of those workers are drivers.

Brad Delco, an analyst with Stephens Inc., believes the new contract will be good for the bottom line of ABF Freight. He reiterated his “overweight” rate of Arkansas Best shares and raised the trade target from $18 per share to $30 per share.

However, the benefits of the new contract are not likely to begin until later in the third quarter.

"We achieved a major milestone for our company in recent weeks with the ratification of a national five-year labor contract at ABF and most supplemental agreements,” McReynolds said. “We expect to obtain employee ratification of all remaining supplements in the coming weeks. Once this important process is concluded, it will represent a pivotal moment for Arkansas Best, as we will be able to turn our undivided attention to driving improved profitability at ABF, while continuing the expansion and growth of our emerging businesses.”

The four non-asset based businesses generated 23% of the company’s total revenue during the quarter, and all have posted operating income gains during the first half of 2013.

Arkansas Best has been unable to post two consecutive years of income gains since 2008. The company posted a loss of $7.7 million loss in 2012. Net income for 2011 reached $6.159 million, a huge swing from the $32.693 million loss during 2010. The company posted a net income loss of $127.522 million loss in 2009, with $64 million representing an accounting charge. The company posted net income of $29.168 million in 2008.

Arkansas Best shares (NASDAQ: ABFS) closed Thursday (Aug.8 ) at $19.71. During the past 52 weeks the share price has ranged from a $24 high to a $6.43 low.

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Snowden’s saga touches U.S. flower market

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story by Ben Pollock, special to The City Wire

Fugitive Edward Snowden, Ecuadorian roses and Sam’s Club are yet more examples of the tangled webs created by international politics and international trade.

The trade tiff is small in terms of dollars and it’s possible that consumers will see no impact, but the incident is a reminder of the sometimes surprising connections between world events and local retail shelves.

Snowden, while on the lam and wanted by the U.S. for espionage, was offered refuge by Ecuador and Russia in recent weeks, angering public officials.

U.S. Sen. Robert Menendez, D-N.J., and chairman of the Senate Foreign Relations Committee warned Ecuadoran President Rafael Correa – and Russia – that granting Snowden asylum could jeopardize trade agreements. On June 29, Vice President Joe Biden asked Correa to reject any request for Ecuadoran asylum, according to CBS news.

But Ecuador renounced a trade pact with the U.S. in late June and U.S. lawmakers allowed the treaty to expire before taking their recess Aug. 2. Without the treaty, tariffs on certain Ecuadoran goods will rise, as high as 14.9% for broccoli and 6.8% for certain types of flowers.

The U.S. imports roughly $149 million of cut flowers from Ecuador each year, the majority of which are roses.

According to SamsClub.com, there are 442 different flowers for sale. Some 85% of the roses listed on the site is sourced from Ecuador. There were 62 different varieties of Ecuadoran roses on the site. Other roses offered were predominantly from Colombia.

"Sam’s Club merchants are aware of the tariff issues and continue to provide the premium quality Ecuadorian roses at the great value and seven-day freshness guarantee that our members rely on,” said Carrie Foster, Sam’s spokeswoman in Bentonville.

On Wednesday (Aug. 7) nearly all of the Fayetteville Sam's Club floral department's inventory came from Colombia. Only two varieties came from elsewhere. The lilies and gladiolus were U.S. grown.

Dan Hendrix, president and CEO of the Arkansas World Trade Center, said other Arkansas imports from Ecuador include metal spoons, plastic pallets and retainer rings, but quantifying the individual statistics is difficult as they are reported in aggregate numbers.

“The import data is very difficult to track to specific states and covers only waterborne commerce. We know we are receiving cut flowers from Ecuador but probably through a third-party expeditor," Hendrix said.

An alternate route to avoid tariffs on certain goods from Ecuador by placing them in the Generalized System of Preferences probably won't pass muster. The U.S. Trade Representative's office said a decision on such requests had been deferred, according to Reuters.

Trade is a two-way street and on the flip side, Arkansas businesses exported $15.2 million in goods to Ecuador last year. Half of those sales were agricultural and the remainder were divided among chemicals, primary metal manufacturing and non-electrical machinery.

The treaty that has facilitated trade between the U.S. and Ecuador went into effect in 1991. Then-President George H.W. Bush signed the Andean Trade Promotion and Drug Eradication Act, which allowed Bolivia, Colombia, Ecuador and Peru to sell goods to U.S. companies without paying duties, to discourage cocaine production.

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Brockovich not likely returning to Fort Smith

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story by Ryan Saylor
rsaylor@thecitywire.com

More residents and property owners will soon join two lawsuits previously filed against Whirlpool that seek relief for property damage caused by potentially cancer-causing trichloroethylene (TCE) that Whirlpool admits leaked into the groundwater in and near its former manufacturing facility in Fort Smith.

The news comes on the same day that Debbie Keith, a resident who has been a vocal critic of Whirlpool and solicited the assistance of famed environmental activist Erin Brockovich, said the Brockovich firm would not be coming back to the area and would no longer be a part of the fight against the home appliance maker.

Ross Noland, an attorney with the Little Rock-based McMath Woods Law Firm, said an amended complaint to the one filed in Sebastian County Circuit Court on May 23 would likely be filed within weeks.

"It's no secret that we're about to amend our complaint. We're about to double or triple the number of complaints," he said.

And according to Ketih, that may be the reason Brockovich is pulling out of Fort Smith.

"I've been working with them (the Brockovich firm) all along. But there are local attorneys from Little Rock and Fayetteville that have hit the ground running. They have solicited neighbors and tied up about 60% of the residents."

She said she would not want Brockovich to come back if it was not going to be something in which residents would participate. She said questionnaires were prepared by Brockovich and presented to all residents affected by the plume, but none were returned. People, Keith said, were intimidated by the 18-page document. Keith also made clear that Brockovich was not going to "step on anyone's toes" to represent clients in what could be a long, drawn out battle with Whirlpool.

"Erin and (her colleagues) aren't here to step on anyone's toes and they aren't going to fight about who is going to represent the neighborhood. They are too busy and they don't have to do it."

It was only June 19 when Brockovich herself called The City Wire to respond to an article questioning the firm's perceived lack of communication or action since her first trip to Fort Smith on March 26.

In the June 19 phone call, Brockovich said, "We are coming back and we are still investigating and we have no intention of abandoning the community."

Brockovich also promised that her team would be returning to Fort Smith in July, "either the 26th, 27th, 28th. (We're trying) to get everyone scheduled together and what would be most convenient." Calls to Brockovich have gone unanswered for the last two days, though she previously told The City Wire to call her personal cell phone anytime.

Keith said her concern now is that testing to insure the public is protecting from harmful vapors or chemicals will not be undertaken by Noland or attorneys who may come to represent other residents.

"The local attorneys are just concerned about getting their 33 and a third. That's what I'm upset about. And I wouldn't care who did it as long as the numbers got checked. Whirlpool (now) knows an independent person won't come in and check for that kind of stuff."

Noland said his law firm does have a consultant on retainer to handle environmental testing.

"We do have a consulting geologist that we have worked with in multiple cases and we will be consulting with him throughout the process, but as far as specifics, we haven't made up on mind on specifics (about what to test)."

It is unclear when the lawsuit may go to trial, though Noland has said that he has been in contact with counsel representing Whirlpool.

"We're going to amend that complaint soon. We've been in communication with (attorneys representing) Whirlpool. We'll see where it goes. We are open to negotiating with them. That's it."

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Whirlpool denies that pollution plume is growing

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story by Ryan Saylor
rsaylor@thecitywire.com

Environmental consultants for Whirlpool have challenged the Arkansas Department of Environmental Quality's assertion that a toxic plume of trichloroethylene (TCE) near the company's former manufacturing facility in Fort Smith could be moving.

In an official response dated today, toxicologist Tamara R. House-Knight of ENVIRON Corp. said fluctuations in the plume do not represent a movement of the plume.

"We appreciate ADEQ's observation of the slight changes in concentrations of TCE within the plume, however these fluctuations in the existing southern wells presented in the Monitoring Report do not suggest that there is an expansion of the plume to the south," she wrote. "Although TCE concentrations fluctuate within the plume, the groundwater data for monitoring wells ITMW-05, ITMW-09 and ITMW-10 presented in the 2012-2013 Monitoring Report were generally consistent with data collected in this area during the prior sampling events from 2008 to 2011."

The response comes on the same day an attorney representing several property owners and residents confirmed that the original lawsuits, filed on May 23, would be amended within weeks, likely doubling or tripling the number of plaintiffs seeking damages or other relief from the company for property damage caused by the TCE contamination.

Attorney Ross Noland of the McMath Woods Law Firm in Little Rock said his company would like employee the assistance of a geologist to conduct independent testing of the potentially cancer-causing TCE plume, which resulted from the use of a degreasing solvent at the Whirlpool plant during the 1980s.

"We do have a consulting geologist that we have worked with in multiple cases and we will be consulting with him throughout the process, but as far as specifics, we haven't made up on mind on specifics (about what to test)."

The letter today from House-Knight said TCE had not been found south of the plume in tests done since the year 2000, including during the fall of 2012 and spring of 2013.

"Also, in the monitoring well to the east, ITMW-04, TCE concentrations have been either non-detect or detected below the MCL since 2003 with intermittent TCE concentrations detected above the MCL," she wrote. "These wells assist in bounding the general extent of the plume and show that the plume as perviously delineated has not expanded. … Collectively, these data reaffirm that the defined southern plume is not expanding and continues to be confined to the Whirlpool property."

House-Knight said the company welcomed the "opportunity to discuss this letter and associated concerns with you at the earliest convenience."

No date has yet been set for a discussion between ADEQ and representatives for Whirlpool.

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Dr. Carson urges people to speak up, work together

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story by Ryan Saylor
rsaylor@thecitywire.com

How did a kid who grew up with an illiterate single mother in poverty in Detroit grow up to become a world renowned neurosurgeon?

Supporters of Union Christian Academy found out when Dr. Benjamin Carson, a retired professor of neurosurgery, oncology, plastic surgery and pediatrics at Johns Hopkins School of Medicine, spoke Friday night (Aug. 9) as part of a fundraiser at the Arkansas Best Performing Arts Center at the Fort Smith Convention Center.

The speech, entitled "America the Beautiful," detailed Carson's long road from a kid not making the grades to to head of pediatric neurosurgery at one of the world's leading hospitals.

"My mother was 1 of 24 children. She got married at 13," he said in a matter of fact fashion.

He said he remembers when his parents divorced early in his childhood, which lead to some very tough and troubled years that included a move from his hometown of Detroit to a tenement shared with family in Boston.

During his brief time there, he would experience the shooting deaths of two cousins and would see other violent crime all around him. He said it was during that time that he saw a shooting victim, bleeding out in the street, for the first time.

"I remember thinking the likelihood of living to 25 was slim," he recalled. "But Mom was working two to three jobs. She didn't want to be on welfare."

When his mother, who only had a third grade education, did finally get the family back on their feet after her divorce, the family moved back to Detroit, but Carson was not doing well in school. He did not try to excel and he said it was widely considered that he was stupid when he was in the fifth grade. Carson himself even thought he was stupid.

"One person didn't think I was stupid. … My mother was so concerned," he told the crowd so silent you could hear a pin drop.

According to Carson, his mother took drastic measures for her two sons to succeed. She cut out the television and required both of her sons to read two books from the Detroit Public Library every week and submit a book report to her explaining what they had learned.

"She couldn't read, but we didn't know that," he said with a chuckle. "She would put a checkmark on there and underline some stuff."

Carson said it was not long until the benefit of reading started to show both in his personality and in his classwork.

"I began to enjoy reading the books because I knew stuff no one else knew," he said. "By 7th grade, people began coming to me for answers."

It was at this point that Carson, who went on to use his hands to heal the sick through surgery and medical science, made a startling claim about something he used to hate –poverty.

"Then poverty didn't bother me anymore because it was only temporary."

Carson said he thinks children living in poverty need the same wake up call he got, but he said politics make it hard.

"I do not believe it's too late," he said. "But people who advocate policies try to act like they're your friends, but they're their worst enemies. They want people fighting all the time. The real goal is to divide and conquer."

He said government programs are often times the problem. He specifically called out welfare and also called out the Affordable Care Act (Obamacare) by name.

"Healthcare should never be a political issue."

Whether it is Obamacare or a poor public education system, he told the crowd of Union Christian supporters that it was time to take a stand against poverty, for education and for limited government influence in various aspects of the lives of everyday Americans.

"We need to wake up and let people know it's OK to speak up," he said, adding that if the nation keeps going down the road Carson said it is currently on, the United States could go the way of the Romans, Greeks or Napoleonic France.

"The same thing can happen in this country if we do nothing," he said.

The key, Carson said, to changing the fabric of America will be teamwork, something he knows well. As a neurosurgeon, he was the first doctor in the world to separate Siamese twins attached at the top of the head and have both survive. The operation involved more than 70 doctors and nurses in the operating room.

"This really is the key to success. In this nation, if we can learn to work together, can you imagine where we could be," he asked. "We'd be a nation for, of and by the people, not for, of and by the government."

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