Wal-Mart Stores was among the top five big spenders for U.S. development last year that doled out $66.7 billion for business infrastructure which includes facilities, property and equipment, according a report from the Progressive Policy Institute. 

Since 2011 the top five anted up $198.6 billion in U.S development projects. The five in the Institute report are:
• AT&T: $20.944 billion ($60.509 billion in the past three years)
• Verizon: $15.443 billion ($46.643 billion)
• ExxonMobile: $11.072 billion ($34.929 billion)
• Chevron:$10.562 billion ($31.377 billion)
• Wal-Mart: $8.652 billion ($25.144 billion)

Last year’s U.S. investment among the top 25 big corporate spenders totaled $152 billion, up 1.47% from the year-ago period, said PPI economist Diana Carew. She told The City Wire that the increase was slightly below the 2% to 2.5% rate from the two prior consecutive years.

She said the report’s mission is to draw attention to companies and industries that are investing in America’s future. Carew said companies that invest in the U.S. create opportunities for economic growth. 

“We know government policies can greatly impact corporate investment which is why we’re advocates for policies that encourage spending here among U.S.-based corporations,” she said.

DIGITAL/WIRELESS
Telecom has led in U.S. infrastructure spending over the past three years with competitors AT&T and Verizon forking over a combined $167.652 billion, of which $107 billion was invested into domestic wireline and wireless networks. 

Carew said to put that number in perspective one should consider that all government investment in airports, urban mass transit, and other non-highway transportation projects in the U.S. over the same period came to only $81 billion.

She said as the world becomes more connected via technology the economy must also evolve into one that’s data-driven. Carew does not expect a pullback in spending among telecom and technology companies anytime soon.

Ironically as the world becomes more interconnected, Carew said it is imperative that all types of companies invest more in digital, mobile and other technological advances at home to better compete in the “Internet of Things” world. The Internet of Things is a concept that describes a future where everyday physical objects will be connected to the internet and be able to identify themselves to other devices, according to Techopedia.com.

Wal-Mart, a traditional discount retailer is leading its sector in tech-related spending. Last year roughly $2.5 billion of the $8.862 billion Wal-Mart invested went to technology- related expansion projects in the U.S., according to PPI.

Wal-Mart’s tech spending equaled more than half of the total investments by tech giants Google and Apple at $4.697 billion and $2.807 billion, respectively. Wal-Mart also spent slightly less on its U.S. tech investments than Amazon’s total spending of $2.648 billion last year.

RETAILER SECTOR
Carew said Wal-Mart was the only retailer on the top 25 big spenders list, Amazon which ranked No. 25 is listed as an internet company. 

As a sector, retail ranked sixth out of seventh in terms of U.S. investment last year at roughly $9 billion. Transportation ranked lower at $7 billion with investments by Union Pacific Railroad at $3.496 billion and FedEx’s $3.198 billion, according to PPI.

The report did mention Kroger, Target and CVS as retailers also ramping up their U.S. investments in the last year. In 2013, Kroger’s capital spending was $2.33 billion, CVS spent $1.974 billion and Target spent $1.886 billion.

Coming out of the 2007 recession, the retail-wholesale trade sector curtailed its U.S. investment 11.2% though 2012. Manufacturing investment declined 4% during the same 5-year period.

OIL/GAS
The sector contributing the biggest gains to the nation’s economic recovery post 2007 has been oil and gas exploration amid the natural gas fracking boom. This segment increased U.S. investment 31% between 2007 and 2012, according to PPI. The Telecom, cable and internet sector investment was second with 21.2% growth.

This year’s list also included 10 energy companies either involved in the exploration and production of oil and gas, or involved in energy distribution and power. All told, these 10 companies invested a total of $57 billion in 2013, or 37% of the top 25 investment.

Much of the investment by the oil and gas companies on the list was concentrated on deepwater oil reserves off the Gulf of Mexico. In addition, these companies reported sizeable oil and gas exploration and production investment on reserves in Alaska, California, Louisiana, North Dakota, Ohio, Texas and Wyoming.

More than 350 sales items and 35 woman-owned companies have become Wal-Mart suppliers in the almost two years since Wal-Mart and Walmart.com announced an effort to bring more woman-owned suppliers’ products from around the round to an online marketplace.

The Empowering Women Together program is part of the retailer’s larger Global Women's Economic Empowerment Initiative aimed at helping woman build better lives through sales opportunities, training and promotion, according to Ravi Jariwala, Walmart.com spokesman.

“We've set specific goals for 2016 and are working toward them with good progress,” Jariwala told The City Wire.

He said Walmart.com is now working with 35 woman-owned companies who are supplying more than 350 items for sale via the Empowering Women Together website page on Walmart.com. Sales begin in March 2013 from 19 woman-owned businesses from around the world.

Wal-Mart said by 2016 the dedicated e-commerce site will feature approximately 500 items – from apparel and jewelry, to stationery and accessories – by more than 20,000 women in nearly two dozen countries. The retailer refers to its Empowering Women Together marketplace as a “Store for Good.” 

“Our hope is to provide these hard-working women with opportunities to improve their own lives, while creating new jobs and enhancing the lives of their families and their communities. Each supplier in the Empowering Women Together program is a woman-owned business or an aggregator with the mission of supporting women-owned businesses,” Walmart.com notes on its website.

Wal-Mart said the challenge for many small women-owned businesses – and particularly women artisans – is that they have a good product, but they may not have the size or scale to sell in the retailer’s brick-and-mortar stores.

The Women’s Bean Project based in Denver is a non-profit organization that employs chronically impoverished and unemployed women.

Women in the program make hand-crafted jewelry and food items, all while learning basic life skills, like how to solve problems and how to set goals and job readiness skills like computer skills and attention to detail. It’s more than a paycheck for them, it’s a path to a new life, notes MiKaela Wardlaw Lemmon, vice president at Sam’s Club. Lemmon previously worked as the executive director for the Walmart’s Empowering Women’s Initiative.

“Empowering Women Together has about 35% more suppliers since it began in 2013, and the program continues to grow.  This is just one way Walmart is working to empower women and source $20 billion from women-owned businesses,” Lemmon notes in her blog.

Thousands of miles away in New Deli, India Nimal Designs, run by Babita Gupta and her 25 employees, are at work crafting home furnishings, clothing and accessories.

“They told me I am nobody, but you have made me somebody. Now I dream of making all under privileged woman like me,” notds Usha, one of 10 female employees at Nimal Designs.

Nimal Designs was brought to Walmart.com by a partnership the retailer has with Full Circle Exchange, a non-profit social enterprise brand dedicated to empowering women and whole communities to rise above poverty through design partnerships, innovative products and sustainable economic opportunities. Full Circle Exchange artisans sell products in Walmart, Macy’s, Whole Foods and other regional grocers.

Jariwala told The City Wire that Walmart.com seeks to grow the number of woman-owned suppliers through the Empowering Women Together campaign. He said all eyes and ears at Wal-Mart are open for eligible women-owned business suppliers.

Wal-Mart outlines the following guidelines for potential woman-owned suppliers on its website.

“Internationally, we are concentrating on suppliers with very little or limited access to customers. Most will have revenues of $10 million or less and fewer than 300 stores selling their products. While we help these women-owned businesses grow, we want them to grow with us. So we will continue to work with suppliers who enter the program and grow into higher revenues.”

Polls taken within days of each other place the Arkansas governor's race as either a competitive race between Democrat Mike Ross and Republican Asa Hutchinson or a far lead for Hutchinson with the race in its final two months. But with two national polling firms having such different results in the race, which one should observers of politics and polling trust?

Dr. Jay Barth, a politics professor at Hendrix College in Conway and a pollster for The City Wire content partner Talk Business & Politics, said it is important to look at a collection of polls to get a sense of where an election stands versus looking at a single poll.

"Once you have looked at a number of polls, you can have confidence in trends that are shown," he explained.

While outliers like a poll by Marist College and NBC News – which has Hutchinson up by nine points against Ross – can shift the average slightly, he said looking at "an aggregation" of polls gives a better idea of not only where the election is going but where it has been. An easy and quick way to view an aggregation of polling data is by visiting RealClearPolitics.com, a site that tracks polling in most of the top political races across the country including the race for Arkansas governor.

Dr. Janine Parry, a political science professor at the University of Arkansas in Fayetteville and the director of the Arkansas Poll, said many times there is little movement from poll to poll.

"There are a good many reasons why these polls are far apart since the vast majority of polls confirm the previous polls," she said. "Typically, there's very little movement, so what happened here in an outlier."

Even though focus has been paid to the NBC News/Marist poll with Hutchinson besting Ross by nine points, a recent poll by right-leaning Rasmussen Reports taken just six days before the Marist poll had Ross up by two. Previous polling typically had Hutchinson up by only five or six points with a margin of error around four points. In the case of the NBC Marist poll, the margin of error was 3.9%, while the Rasmussen was 4%.

"In terms of why these are different, sometimes no matter how well a poll is conducted, there's always room for error," she said. "That's why good pollsters and good reporters report the margin of error. Even if the margin is tight … at any given time, we're only 95% sure that the result we arrive at is (the right) number. There's some noise possible in any poll. It could be that one of these polls falls into this category. Or it could be that both do, though it's unlikely."

Parry said political scientists and pollsters like herself and Barth would always look at methodologies when it comes to polling, noting that sampling of likely voters to registered voters impacts results. So does the inclusion of a select number of cell phones and the number of females versus males in a given poll.

"Those are all places you have to look," Parry said. "If those things aren't reported, any polling number should be suspicious. What I emphasize (when I discuss polling information with civic groups) is the more information they give you, the more confident you should feel about results. Samples, margin of error, questions asked, etc.”

Barth noted that polling nearly always sees a large difference in polls that screen for simply registered voters versus likely voters, with some of the pollsters asking specifically if the respondent plans to vote while others go based on voter data to see how many of the last several elections respondents voted in.

Barth and Parry said it is important for political observers to focus on the overall picture instead of depending on one specific poll, with Barth noting that voter turnout is likely to play the biggest roll in the election regardless of what polling data may be showing.

"The big thing I'm seeing in the polls is that if it's more (based on) all registered voters, the Democrats are advantaged. If it's a very narrow likely voter screen, then it really skews Republican. So this means it's really all about turnout. If turnout is especially high for the mid-term and if the electorate is going to show up and vote, Democrats are advantaged. If that does happen (and voter turnout is low), Republicans are advantaged significantly.”

The state of the races in Arkansas, Barth added, varies. In the Senate race, he said it would stay close until the end with polling data barely moving for either Democratic incumbent U.S. Sen. Mark Pryor or his Republican opponent, U.S. Rep. Tom Cotton.

In the race for governor, he said the last two months still provide room for movement for both candidates.

"The governor's race has a little more malleability in it. I think the candidates are still a little less known," he said, adding that as both campaigns continuing pouring money into television and other advertising avenues, polls could start to see more movement.

In the races for Congress, Barth described those races as more "fluid." The state legislative races are also described as fluid, he said, adding that individual voters' partisanship could ultimately decide many of the races.

Parry said whatever happens, political observers and the public wanting to have an idea of what is happening in the races should dive into specifics of polls released in the coming weeks instead of just rely on the talking heads, campaigns and bloggers to dictate the facts.

"But the public should probably pay more attention to evaluating the candidates instead of who is ahead," she added.

The number of bad loans banks are writing off may have dropped in the last year or more, but it does not mean profits are necessarily increasing at Fort Smith area banks.

According to figures provided by the FDIC, Arvest Bank, Benefit Bank, Citizens Bank & Trust of Van Buren, Farmers Bank of Greenwood and First National Bank of Fort Smith reported net income of $67.676 million for the first half of 2014. The total represents a decline of 5.77% from the first half of 2013, when net income for the five banks totaled $71.823 million.

Keith Hefner, president and CEO of Citizens Bank & Trust, said extra costs associated with the federal Dodd-Frank Act have put an undue burden on many banks. As a result of tightening regulations caused by the federal legislation, which was passed in the fallout from the 2008 financial crisis, many banks are having to add staff, outsource compliance operations or both in order to abide by the law, Hefner said.

Named after legislative authors U.S. Sen. Chris Dodd and U.S. Rep. Barney Frank, the “Dodd-Frank Wall Street Reform and Consumer Protection Act” was signed into law on July 21, 2010. Dodd and Frank have since retired from Congress. It was passed in response to the near collapse of several large U.S.-based banking operations in 2007-2008. Democratic leaders in Congress blamed the financial problems on a lack of federal oversight. Advocates of the law say it will prevent banks and other financial institutions from essentially creating a financial house of cards.

"In the past two years, we have added four positions in our bank that we created as a result of compliance with some facet of meeting the requirements of Dodd-Frank," he said. "In addition to that, we have either outsourced or increased our level of reliance on outsourced compliance support as a result of what has been implemented and what we see coming in the next year to two years that we will have to be in compliance with. It's a financial commitment either with people or utilization of support outside your organization.”

It is a story heard across the state, with CEO Don Gibson of Springdale's Legacy Bank noting that the bank has added a full-time compliance professional to try and create a safe haven in the midst of burdensome regulation.

“I recently attended training in Memphis. The very first slide of the training showed the number of pages in the Dodd Frank legislation against all other banking acts. Content wise, Dodd Frank has volumes of requirements that will end up costing consumers more in the long run,” Gibson recently told The City Wire.

At Arvest Bank, which has operations in Arkansas, Kansas, Missouri and Oklahoma, profits have fallen from $69.646 million during the first half of 2013 to $56.644 million during the first half of this year. At First National Bank of Fort Smith, profits have fallen from $8.881 million during the first half of last year to $6.931 million during the same period this year.

Farmers Bank of Greenwood held steady, with $639,000 in profit for the first half of the year versus $635,000 during the first half of last year. Citizens Bank & Trust was an outlier, with profits increasing from $2.125 million during the first half of last year to $2.701 million during the first half of 2014. The other outlier, though on a smaller scale, was Benefit Bank which saw a profit of $761,000 for the first half of 2014, versus $536,000 for the first half of 2013.

As for the drops in profits seen at many area banks, Hefner said adding staff means more than just adding salaries.

"There's greater expenses involved when you add staff with benefits and so there's increased expense on the income side of the bank. That puts a greater burden on the profitability. We are fortunate that we have a $360 million asset size, so we're confident we can absorb the extra cost going forward, particularly as we see the economy improving.”

He said the banks that will be impacted more are those that have far smaller asset portfolios and run razor thin margins.

"There's a real challenge for banks not maybe located in our geographic area that are smaller that I think will struggle mightily with absorbing this. It's a shame because any community needs a good local community bank. I don't think our congressional representatives fully understood the repercussions of what Dodd-Frank would do to the state of Arkansas and the community banks. It was an overreaction to a problem that community banks in Arkansas didn't create, yet we're bearing the burden of.”

And while profits may be down at banks in the region, Hefner pointed to optimism in the local economy, saying that banks like Citizens were starting to see the improvements on their balance sheets.

And that is the case with provisions for loan and lease losses, or the money required to be set aside to cover expected losses.

Arvest's provisions dropped to $1.214 million for the first half of this year versus $2.651 million it had set aside during the same period last year, while Benefit Bank has no money set aside this year and had $60,000 set aside last year.

Citizens set aside $298,000 in provisions during the first half of this year, a significant drop from its 2013 first half of the year provisions of $.155 million.

Farmers Bank is the only bank to increase its provisions, going from no provisions during the first half of last year to $10,000 during the first six months of 2014.

First National Bank has decreased its level of losses significantly since 2011, when it had $11.53 million set aside for losses during the first half of the year compared to only $1.056 million during the first half of 2013 and only $300,000 for the first half of 2014.

In spite of the improved balance sheets, Hefner said a concern that remains going into next year is what happens with Rural Development Loans. He said even though Citizens does not directly service RDLs, the trickle down of a possible loss of the loan option in Van Buren could result in less work for local contractors and vendors who work in new home construction. And that could directly impact bank profitability in the region.

"So the direct impact on our bank is minimal, but it impacts our customers. … It impacts (us) indirectly.”

BANK PROFITS (January-June 2014)
Arvest Bank
2014: $56.644 million
2013: $59.646 million
Return on Assets: 0.78%

Benefit Bank
2014: $761,000
2013: $536,000
Return on Assets: 0.81%

Citizens Bank & Trust
2014: $2.701 million
2013: $2.125 million
Return on Assets: 1.49%

Farmers Bank
2014: $639,000
2013: $635,000
Return on Assets: 0.68%

First National Bank of Fort Smith
2014: $6.931 million
2013: $8.881 million
Return on Assets: 1.18%

Enrollment figures at the University of Arkansas in Fort Smith fell by 4.63% from last year's Fall enrollment of 7,154 students to Fall 2014's enrollment of 6,823 students.

According to the university's new Vice Chancellor for Enrollment Management Julie Burdick, enrollment figures ramped up during the recession and could have been because laid off workers going back to school in an attempt to boost their skill sets and resumes.

"As I looked at what was happening, what this university is going through is typical of the national trend because of the change in the demographics of students and the effects of the economy," she said. "I think any university, and it could have happened here, you're riding that wave and don't quite see what's happening at the time and you are enjoying those big numbers. Like other big universities, the numbers started to level off (at UAFS).”

As a result of the declining enrollment figures, Burdick said she was "hired to right the ship and stabilize and put together an enrollment plan.”

To do that, Burdick said she is doing a complete assessment of everything from staff to processes at the university, equating her job to improving customer service for students at the campus at Waldron and Grand Avenue.

"If a student takes five steps for admissions, I'll question each one. Let's make it simpler and more customer friendly for the student," she said, adding that part of the process of making the campus more customer friendly includes streamlining Compass Tests.

She said making the campus more customer friendly is almost "like sales.”

"The market today is much more competitive and admissions have gotten more like sales, analyzing the numbers and having a strategic plan down to each market segment – traditional high school students, the adult market, online market, out of state market, honors market – all of those.”

To improve the numbers, she is working with admissions staff to tweak travel schedules so the university can get the biggest bang for its buck with a limited budget.

She said the university also offers in-state tuition for students living in states that border Arkansas, though she said little focus has been placed on recruiting out of state students.

"With that said, have we really gone after that (market)? We haven't seen that. We have a rep that goes to Texas, but I think last year was his first year traveling. When you start to travel to different areas – Oklahoma City, Tulsa, Memphis, Tenn. – it takes a while to get your name out, but it builds over time. We are starting to do that and attending national college fairs within a six hour radius.”

The university is also re-evaluating its scholarship offerings as it looks to boost enrollment, with Burdick asking, "How can UAFS be really competitive and help students that have financial need? We have a fairly high Pell (Grant)-eligible population, about 62%. So we need to be aggressive about what we do for students with needs that qualify for college level work.”

The other focus is customer service for the public that visits the campus and encouraging more campus visits.

"It is a campus, I'd say a destination campus, and we know if we can get them here, they're much more likely to come (back as a student). There was one 'Den Day' last fall and now three large preview days," she said, adding that the campus is working to be more parent friendly and is adding one-stop events for financial aid assistance to individuals visiting the campus and making the decision to enroll.

While all the efforts are intended to boost enrollment in the long term, there is still the issue of short term impacts of the 4.63% dip in enrollment this fall. She said no layoffs will occur as a result of the drop in enrollment, but "I do know we've had those talks with the vice chancellor of finance that we may look at positions and scrutinize (the need for any positions) before filling them.”

Darrell Morrison, vice chancellor for finance and administration, said adjustments to the university's budgets are taking place due to the drop in enrollment and said the university may have to use savings to meet some of its immediate needs.

"Enrollment has a direct impact on the university's operating budget since it is our now our major source of revenue as state support has declined through the years. We will be adjusting our budget expenditures in the weeks to come. However, we will probably also have to use reserves in order to continue to offer all services and academic experiences.”

Regardless of whether the university has to dip into reserves, he said, "We are committed to our students and we will ensure that they will be not be impacted in a negative way."

More than 300 people came to a Sebastian County Democratic Party-sponsored barbecue dinner Saturday night (Sept. 13) for a chance to hear from the party's top of the ticket candidates, U.S. Sen. Mark Pryor and gubernatorial hopeful Mike Ross.

Ross brought a well-practiced message of jobs, education, workforce training and tax cuts to the event, held at Economy Trailer on U.S. Highway 71 South in Fort Smith, and took an opportunity to defend against attacks from Republican opponent Asa Hutchinson, who has recently said Ross was misleading the state's voters on his tax cut plan.

"Going around the state promising millions in new or expanded programs and vowing to cut taxes for every group one comes across for political gain is, quite frankly, misleading," Hutchinson said Sept. 8 in a press release, adding that he was committed to "keeping our state financially sound.”

In response, Ross said his plan is not only fiscally conservative, but likened it to Gov. Mike Beebe's tax cuts during his two terms in office on most groceries. He also took a shot at Hutchinson's tax plan, which reduces tax rates from 7% to 6% for those earning between $34,000 to $75,000 a year, and from 6% to 5% for those earning between $20,400 to $33,999 annually. Hutchinson has said the reduction would result in approximately $300 a year savings for up to a half-million taxpayers and would cost about $100 million.

"The difference between Congressman Hutchinson's plan and mine is he's promising to cut $100 million in year one when DF&A (Arkansas Department of Finance & Administration) is estimating that net revenue growth for that year will be $40 million. So that'll leaves us with a $60 million deficit," he said.

"I'm the real fiscal conservative in this race. My plan calls to cut taxes exactly like Gov. Beebe did when he took the sales tax off groceries. We're going to balance the budget first. This is not Washington, money doesn't grow on trees. We don't print money here. We don't deficit spend. We're going to balance the budget first, we're going to fund education, Medicaid and public safety and then as we have revenue growth, and we always do, we are going to begin to implement my plan.”

Ross also discussed recent poll numbers released by NBC News/Marist College and CBS News/The New York Times, which shows Hutchinson up by 9% and 7% respectively, pointing to a poll taken just four days prior to the NBC News/Marist College poll which shows Ross with a lead.

"Well, Rasmussen – which is much more reputable than any of those other polls – was done 10 days ago and said I was leading by two (percentage points). Four days later, there was a poll that said I was down nine. I mean, 11 point swing in four days? Come on. Ask Eric Cantor about polls. His pollster was one of the best in America, said he was going to win by 25 points. He lost by 10," he said, adding that he believes the race for governor is still a toss up between himself and Hutchinson.

"And I think you may see some other polling information in the next day or two that will really reflect where this race really is. We believe it's tied up, we think it's a statistical dead head and I think it stays there all the way to November 4 and it's going to come down to turn out," Ross explained.

Pryor also took a swipe at some of the polling that has taken place in his race for a third term in the Senate, appearing almost dismissive of the data coming out about his race against U.S. Rep. Tom Cotton, R-Dardanelle. The NBC News/Marist poll, with a margin of error of +/- 3.9%, showed Cotton up 5% while a Rasmussen poll showed Pryor up 1% with a margin of error of +/- 4%.

"I really don't put a whole lot of stock in the polls, I mean we've seen the polls be very wrong in a series of races. I mean look, I'm up in some of the polls, too, so I'm not even putting stock in those polls. I'm just saying that this race is about Arkansas and it's about people getting out and voting. This is your chance to allow your voice to be heard."

In a race will end in less than two months, much attention has been paid to advertising done by outside groups and the campaigns themselves. One of Pryor's recent ads, which criticizes Cotton for a vote against a pandemic prevention bill, has brought a national spotlight back to the campaign that has been a focus of the beltway media on and off for much of the last year.

Asked about criticism of the ad, Pryor said the substance of the commercial was accurate.

"Let me say this – the substance of the ad is true and that is he voted against the disaster preparedness when it comes to infectious disease, a pandemic like that. And I chaired two different hearings while I was in the Senate on pandemics. You know, ebola was one of those things," he said, noting that anthrax and sarin gas were also a focus of the hearings.

The two-term senator and former Arkansas attorney general also addressed the situation in Iraq and President Barack Obama's announcement this week of a bombing campaign on ISIS targets in Iraq and Syria, along with training and arming moderate Syrian rebels in the country wracked by a years-long civil war.

"I thought (the President's Sept. 10 speech) brought some clarity. I think people had been waiting on (Obama) to show a little leadership and give us some direction here and I think it's done that and I know that the United States is actively working with a lot of different countries to try to build a true coalition. You know, I'm hopeful that there will be a broad-based coalition and there will be a lot of nearby countries involved and they won't just be supportive, but also putting airplanes and boots on the ground. Whatever needs to happen, they'll be out there on the front lines, so to speak."

The rate of auto repossessions jumped 70% across the U.S. led by subprime and deep subprime borrowers, according to credit agency Experian. It’s a jump expected by officials with Bentonville-based America’s Car-Mart and a trend for which they’ve prepared.

The combined subprime and deep subprime borrowers accounted for more than 12 million of the open auto loans in the second quarter. This accounts for nearly 20% of all open auto loans. Experian notes in their report these risky loans are still smaller than they were at the start of the recession despite hefty increases in the past two years.

Jeff Williams, chief financial officer of America’s Car-Mart, recently told analysts at the C.L. King investor conference in New York, that in the past six years of zero-percent interest more and more lenders have entered the subprime auto space to chase the higher yields. Many of those are new car lenders and their used-car departments, independent auto dealers and traditional tote-the-note lots that write the loans and then sell them off in the secondary market, he said.

Experian considers subprime as borrowers with credit scores of 550 and 619. Deep subprime levels involve credit scores below 550. Williams said Car-Mart’s core customer falls in the deep subprime level. 

That said, Car-Mart’s delinquencies and charge-offs related to repossessions are improving as noted in the company’s recent quarterly earnings report. Car-Mart also holds the loans it makes in-house and works directly with this riskier customer base on collections. The average interest rate charged at Car-Mart is 15%, a rate Williams said it earns given the risks, time and personnel it takes to properly service the loan.

“I think some of these new players in the market offering lower rates are not adequately pricing in the cost to service them after the contract is signed,” Williams said.

One of the ways Car-Mart has invested in tools to help service loans is by equipping each automobile it sells with GPS tracking equipment.

“This is an expense on the front end, but if it helps us track down a borrower when they first become delinquent, we have a better chance to work with them and keep them in the car,” Williams said. “Most of our loans that go delinquent do so in the 11th month of a 28-month contract.”

This compares to the average auto loan that now stretches over 5.5 years with an average payment of $474, according to Experian data.

Car-Mart executives said during their recent earnings call that dealers who stretch out loans for smaller monthly payments aren’t doing the borrowers any favors. Williams said about two quarters ago some of their better customers were courted away by dealers offering lower payments.

“Some of our customers were faced with a decision that looked good at the time. Dealers talked them into turning their cars back into Car-Mart lots and defaulting on our loans. ... The one thing we work to do is get our borrowers some equity on the front-end and own the car outright within 28 months, while there is still plenty of life left in the vehicle,” Williams said.

He said the biggest reason for default is mechanical failure, which is why Car-Mart’s 50 buyers scour their regions for the best possible fleet to stock the 136 lots.

Bill Armstrong, analyst with C.L. King, recently upgraded Car-Mart shares from neutral to a buy position.

“We think credit availability for subprime auto buyers may begin tightening up in the months ahead as industry-wide loss rates continue to increase. At the same time, Car-Mart appears to be more effectively adapting to the still-difficult competitive environment, as evidenced by its improved performance in first quarter,” Armstrong said.

He said the dynamics are a positive for Car-Mart as they represent a reduction in competitive pressure and could drive more traffic to their stores. William’s told investors and analysts that market conditions point to Car-Mart having weathered the worst of this hyper-competitive loan climate. He said the company was keeping a “squeaky clean” balance sheet and focusing on cash flows in case there is another wave of competition.

He said Car-Mart’s loan loss provision is still trending higher than historical levels, but much of that uptick is related to competitive pressures with a small amount being macro-economic woes with its 60,000 customer base.

“Some 10% or more of our market consumers are worse off than they were eight years ago when inflation is factored in,” Williams said. “One reason we grow top line revenue consistently is because we take care of a 60,000 customer base. We are there to lend them support and options when they need it. That is how we earn repeat business and referrals.”

Car-Mart shares closed Friday (Sept. 12) at $41.64, down 80 cents. During the past 52 weeks the share price has ranged from a $47.93 high to a $34.56 low.

Home sales in the Fort Smith area continue to show gains in the northern half of the region, while the southern half's figures are almost flat.

For the first eight months of the year, Crawford County's home sales have increased 33.74% to $47.079 million compared to $35.202 million during the same period a year ago. In Sebastian County, home sales have increased 1.54% to $120.437 million compared to $118.613 million during the first eight months of 2013.

Breaking the numbers down for the month of August, Crawford County is up 4.77% to $6.765 million for the month of August compared to $6.457 million during the same period last year.

Sebastian County's August sales figures declined 24.43% for the month of August, bringing in only $16.559 million last month compared to $21.912 million in August 2013.

Larry Stanfill, a broker with Chuck Fawcett Realty's Greenwood office, said there were a variety of reasons sales could be so lopsided between the counties.

"I do know that in Greenwood, for example, the market is upside down. There's more homes than there are buyers. That's been the case and Greenwood is still in that position. There are just a lot of homes for sale. People are moving to Greenwood, but not in comparison to what's for sale."

The excess inventory may be bad news for homeowners looking to sell, but it is good news for buyers looking for a bargain, Stanfill said.

He noted the median sale price as having been impacted by the current market, with the MSP of Crawford County homes dropping 1.73% from $115,500 last August to $113,500 this August. In Sebastian County, the drop was even steeper, diving 15.95% from $128,500 last August to $108,000 in August 2014.

"Appraisal values are staying steady," he explained. "But it is still a buyer's market and sellers have had homes on the market for a year or longer, so they're doing what they can to move out from under them."

And in many cases, Stanfill said that means slashing the price on homes.

Another factor playing a part in Crawford County's strong performance compared to Sebastian County was the back and fourth on the potential loss of Rural Development loans. It was expected that Van Buren would lose the loans at the end of September following a decision by a local Arkansas office of the United States Department of Agriculture, which stated the city no longer met the qualifications of a rural community due to its close proximity to Fort Smith. USDA Secretary Tom Vilsack later imposed a one-year moratorium on Van Buren and six other communities in Arkansas from losing Rural Development loan eligibility.

"I do know that played a role in (Crawford County's sales figures)," Stanfill said, noting that many people were rushing to get in before the Sept. 30 deadline initially handed down by the USDA. With the one-year delay, the new deadline will be Sept. 30, 2015.

"Rural Development is important to the smaller towns in (the region)," he added. "If we lose rural development, it'll hurt us."

Looking at the rest of the year, Stanfill said market observers and industry insiders should expect the slowdown that is typical of the winter months. But he said if his sales at present are any indication of the rest of the year, the typical winter slowdown may not be as bad as years past.

"We will probably remain steady, but winter months are typically the slower months. As for me, I'm having the best year I've ever had and I still have quite a bit going on for closings in the next month and I'm hoping it holds. But historically, November, December, January, and February are our slowest months. So I'm expecting it (to be the same) this year. Even so, I'm pleasantly surprised it's staying as busy as it is. I'm staying strong on my end."

Home Sales Data (January - August)
• Crawford County
Unit Sales
2014: 407
2013: 323

Total Sales Volume
2014: $47.079 million
2013: $35.202 million

Median Sales Price
2014: $106,000
2013: $106,250

• Sebastian County
Unit Sales
2014: 913
2013: 839

Total Sales Volume
2014: $120.437 million
2013: $118.614 million

Median Sales Price
2014: $114,450
2013: $116,500

The Crawford County Quorum Court voted unanimously Monday night (Sept. 15) to purchase nearly 16 acres of land to house the county's voter-approved $20 million jail project. The land, which is two tracts side-by-side, sits just outside of the Van Buren city limits between Van Buren and Alma along the northbound lanes of U.S. Highway 64.

Justice of the Peace Lloyd Cole, who chairs the Quorum Court's jail committee, said purchasing the additional land east of the eight acres that had already been surveyed and put into contract allowed architects to design the jail with in a way that allowed for easier future expansion.

The original eight acre tract cost $275,000 while the adjoining 7.66 acres was listed for $191,000, for a cumulative total of $466,000 for land acquisition. Should the court only have approved purchase of the original eight acres, Cole noted it would have cost more to build out future expansions than purchasing the land approved at Monday's meeting.

"It'll cost that much just to prepare that land for a (future) structure as (we're paying for) the land we're trying to buy right now,"County Judge John Hall noted during a meeting on the then-proposed land purchase on Sept. 9.

Cole also said expanding the jail to the west on the originally contracted property would have made prisoner escorts through the facility more dangerous since there would not be a direct link between the sheriff's intake center and any future expansion without first having to go through the original jail. Having the additional land will allow the county to build any future expansion closer to intake and reduce the distance inmates would have to be transported.

"If you're bringing a prisoner in, you've got to escort through one controlled facility all the way to get to another facility. Well, as someone who's escorted inmates before, you don't want to escort them any further than you have to. You have a lot of things going on," Cole said. "You've got a control center right here with 350 inmates. There's a lot going on. I don't want to have to transfer them through there. If we come up and make a 'Y' through here, we can purchase this over to the east – the wagon wheel, we call it – and at some point add another facility right here.”

Justice of the Peace Butch Barnes said purchasing the land now when the owner of the 7.66 acres was motivated to unload his investment was a smart move for he county in the long run.

"The smartest thing for us to do is buy this property. I mean, it's a win, win situation. Down the road 10 years from now … we know what happened down the road at this (the county's present) jail. There's no room," he said.

Hall noted that the original budget for land was set at $475,000, meaning that the land purchase was coming in under budget. Had the court only approved funding for the original eight acres, Hall said U.S. Bank - the trustees of $20 million in bond funds to be used for the project - would have been required to let the additional budgeted funds for land sit until the bonds were paid off in nine years, essentially saving the county no money since interest would have been paid on the unused but borrowed funds.

Following the unanimous approval of the ordinance for the land purchase, a spontaneous round of applause filled the circuit courtroom where Monday's meeting was held. Hall said the court's move to approve the land "says a lot about how this county government works for the good of everybody together.”

In other business, the Quorum Court approved an amended budget ordinance that would have originally proved money to the county assessor's office to fulfill terms of a contract for GIS services in the amount of $6,891.85.

County Assessor Ronnie Dale said money was originally removed from his 2014 fiscal year budget by the court in order to balance the budget. Dale said he was told the money would be made available to him to fulfill the contracts his office would undertake during the year.

But Justice of the Peace Elaina Damante had a different recollection of discussions with the assessor.

"I specifically asked him if he would be able to pay his service contracts. He told me yes. None of the other elected officials who we cut a lot more from their budgets have come before us and how he's coming before us. And that is why I'm having a problem because I feel like we're not treating all of our elected officials fairly.”

Hall initially had the court vote on the budget ordinance as presented, which included several other line items for various departments, at which time Justice of the Peace Carrie Jernigan said if the ordinance passed she would like to see the court turn around and remove $6,800 in funding from the assessor's office to make up for the request.

But after the original ordinance failed, a motion was made to amend the ordinance and remove the request from Dale's office. The ordinance then passed nine to four.

Following the meeting, Dale said he had no choice but to not pay the contract, which could result in the county not being able to use services and software provided through the GIS surveyor. Dale said the flyovers and resulting assessments have uncovered $5 million in previously undocumented properties netting the county an additional $50,000 in revenue.

As for the problems between himself and the court, Dale said he believes the court plays favorites with elected officials.

"You see, you've got this little clique up here. They don't like me because I'm not their fan and so anyway, they vote against everything I ask for. They fight me on everything, but this was a contract that was signed by the county judge and me and I just came back to ask for the money to pay for it because they took $15,000 in money out of my service contracts. Well, they didn't give me the money back. They told me they would give it back to me first of the year. They didn't give it back."

Northwest Arkansas’ business development and job production grew by a whopping 5.6 percentage points in 2013 – ranking the area as the 26th fastest-expanding economy in the U.S., according to new statistics released Tuesday (Sept. 16) by the U.S. Bureau of Economic Analysis (BEA).

The closely-watched BEA report from the U.S. Department of Commerce also spotlighted the fact that the Fayetteville-Springdale-Rogers area’s professional and business service sector saw the greatest economic expansion among the nation’s 381 largest metropolitan areas (MSAs) in 2013, increasing real Gross Domestic Product (GDP) growth by 3.33 percentage points.

That doesn’t surprise Kathy Deck, director of the University of Arkansas’ Walton College of Business Center for Business and Economic Research. She has observed the region’s workforce growth for some time, and the BLS report further confirms the university’s own research.

“This is wonderful news, but it is consistent in what we are seeing in the (Arkansas) labor numbers and consistent with what we have been seeing in one of the key industries in Northwest Arkansas – the growth of the professional and business service sector,” said the University of Arkansas economist.

‘SUPER SECTOR’
Deck added that over the past decade, jobs in this high-paying, fast-growing sector have grown more quickly than other sectors of the region’s economy. According to the most recent employment report from the state Department of Workforce Services (AWS), there are 129,400 professional and business service sector jobs on Arkansas payrolls, up 600 from just a month ago and 2,400 from the same period in 2013.

In the Fayetteville-Springdale-Rogers area, there are 41,600 payroll jobs in the professional and business service sector, up 1,000 from a year ago. Also, the AWS forecasts in its long-term workforce forecast that this “super sector” will add 12,548 addition jobs to the state’s economy by 2022.

“That sector now represents 20 percent of the employment in (Northwest Arkansas), when just a few years ago is was only 15 percent” Deck said. “I have said in the past that economies don’t change on a dime, but the rapid growth in this sector is really driving the (expansion) we have seen in this region.”

ARKANSAS METRO REPORTS
Overall, economic activity in most of Arkansas’ MSAs is expanding, except in Texarkana and Pine Bluff. For example, the Little Rock-North Little Rock-Conway and Fayetteville-Springdale-Rogers MSAs ranked among the nation’s top 100 in GDP growth in 2013, coming in at 65th and 97th, respectively.

However, the Little Rock area only grew year-over-year by 0.7%, ranking the state’s largest economy at 239th by percentage growth in the U.S. By comparison, the Little Rock economy generated $40.9 billion in GDP growth versus $23.8 billion of economic activity in Northwest Arkansas.

Additionally, the Jonesboro, Fort Smith, and Hot Springs MSAs also saw positive economic momentum in 2013, expanding their economies by 2%, 1.8% and 0.8%, respectively. Texarkana and Pine Bluff, however, declined by 2.7% and 3.3%. The Memphis metropolitan area, which also includes West Memphis and other parts of Northeast Arkansas, contracted by 0.1 percentage points and ranked as the 46th largest metropolitan area by GDP.

NATIONAL GROWTH
Nationwide, Arkansas and the rest of the nation appear to be emerging from the drawn out Great Recession as real GDP increased in 292 of the nation’s 381 metropolitan areas in 2013, led by widespread growth in finance, insurance, real estate, rental, and leasing, nondurable-goods manufacturing, and professional and business services. Collectively, real GDP for U.S. metro areas increased 1.7% in 2013 after increasing 2.6% in 2012.

Last month, the BLS reported that Arkansas’ economic base grew by three percent in the fourth quarter of 2013, pushed upward largely on the strength by the state’s blue collar manufacturing base.

Greg Kaza, executive director and economist at the Arkansas Policy Foundation, said the stand-out for Arkansas’ economy was the state’s non-durable manufacturing sector – which produces “soft goods” that are immediately consumed or last less than three years.

“That one really stands out in terms of growth,” Kaza said. “It is not really sexy, but it is really important for our state’s economy.”

SECTOR HIGHLIGHTS
Below are additional highlights of the Bureau’s analysis of economic growth in the nation’s largest metropolitan areas.

• Finance, insurance, real estate, rental and leasing contributed 0.36 percentage point to U.S. metropolitan area real GDP growth in 2013. Growth in this industry accounted for more than half of real GDP growth in 61 metropolitan areas, and contributed more than one percentage point to growth in 55 metropolitan areas, most notably in Williamsport, Pa. (3.49 percentage points); State College, Pa. (3.02 percentage points); and Bloomington, Ill. (2.87 percentage points).

• Nondurable-goods manufacturing contributed 0.32 percentage point to U.S. metropolitan area real GDP growth in 2013. This industry contributed to growth in 273 metropolitan areas and contributed more than one percentage point to growth in 45 metropolitan areas. Strong contributions from this industry fueled growth in many areas, including in the nation’s fastest growing metropolitan area—Mount Vernon-Anacortes, Wash. – which grew 10.6%.

• Professional and business services contributed 0.24 percentage point to U.S. metropolitan area real GDP growth in 2013. This industry contributed to growth in 245 metropolitan areas and contributed more than one percentage point to growth in 19 metropolitan areas. The largest contributions from this industry occurred in Fayetteville-Springdale-Rogers, Ark. and Janesville-Beloit, Wisc. (2.61 percentage points).

• Although natural resources and mining was not a major contributor to growth for the nation, this industry contributed to strong growth in several metropolitan areas. Mining in the Utica and Marcellus shale formations led to notable contributions to growth for natural resources and mining in Beckley, W.Va. (11.49 percentage points); Wheeling, W.Va. (8.50 percentage points); and Charleston, W.Va. (3.63 percentage points). Mining in the Niobrara shale formation contributed significantly to the 10.1% increase in total real GDP for Greeley, Colo.

• The government sector subtracted 0.12 percentage point from U.S. metropolitan area real GDP growth in 2013. This sector subtracted from growth in 292 metropolitan areas. The largest subtractions occurred in Hinesville, Ga. (4.12 percentage points); Jacksonville, N.C. (3.00 percentage points); and Warner Robins, GA (2.05 percentage points).

Retail is king in Northwest Arkansas, but the logistics sector is growing. Total Quality Logistics (TQL), one of the largest freight brokerage firms in the nation, announced Tuesday (Sept. 16) plans to open an office in Lowell that could house up to 50 jobs.

According to a statement from the Arkansas Economic Development Commission, hiring for sales jobs will begin immediately, and the initial investment is $250,000.

“We’re pleased to add the state of Arkansas to our footprint. This new location will give us access to the outstanding professional talent in Northwest Arkansas,” TQL Executive Vice President Kerry Byrne said in the statement.

Cincinnati-based TQL was founded in 1997 by Ken Oaks, a former shipper in the fresh produce industry. In 2013, the company moved more than 815,000 loads, including fresh fruits and vegetables, meat and poultry, building supplies, and machinery and equipment. The company has grown from $1 million in sales in 1997 to more than $1.6 billion in 2013. The company has more than 30 offices in 15 states.

TQL is a non-asset based freight brokerage company, which means it does not own equipment but connects those who need goods shipped with operators of the various modes of transportation. The company notes on its website that it works with more than 50,000 carriers in North America to move 3,500 “different types of commodities.”

TQL’s sales team ranked four years in a row as one of the “50 Best Companies to Sell For” by Selling Power Magazine. TQL is a 10-time honoree on the Inc. 500|5000 list and recipient of numerous workplace and industry awards.

“Northwest Arkansas has a strong reputation as a hub for logistics, so it’s only fitting for a company like Total Quality Logistics to be drawn here,” Gov. Mike Beebe said. “They should have no problem finding the sales force they need among the region’s well-educated workforce.”

According to the AEDC statement, TQL was the first freight brokers in the nation to introduce mobile freight finding applications to the trucking industry. The company’s “Carrier Dashboard” app allows approved carriers to search for TQL loads and set up alerts to notify them when loads for lanes they want become available. “TQL TRAX” allows shippers to look up specified loads by PO number and track status, as well as easily communicate with their personal account executive from their mobile phone or tablet.

“Rogers and Lowell have a long history of working together to welcome new companies to the Northwest Arkansas business family,” Raymond Burns, president and CEO of the Rogers-Lowell Chamber of Commerce, said in the statement. “The entire area is glad to see a strong company such as TQL planting roots in Lowell, and we are looking forward to seeing the company grow and prosper here.”

NEAR THE HUNT GIANT
TQL opens its office next to one of the biggest players in the sector – Lowell-based J.B. Hunt Transport Inc.

Hunt, which began in 1961 as a small trucking operation, is now one of the world’s largest transportation services and logistics operations. Unlike TQL, Hunt not only provides logistics services but owns assets. With more than 66,000 units, the company has the largest private container fleet in North America. Hunt also works with more than 28,000 transportation companies to provide shipping and delivery services.

For the first six months of fiscal 2014, intermodal operations represented 60% of J.B. Hunt revenue and 76% of the company’s operating income.

Hunt’s Integrated Capacity Solutions segment is also growing. The segment employee count at the end of the first half of 2014 was 540, well ahead of the 440 during the same period in fiscal 2013. The number of third-party carriers used in the segment grew from 33,400 in the first half of fiscal 2013 to to 36,300 in the same period of 2014.

“We continue to execute our branch network growth strategy and opened two new branches during the quarter, bringing the total branch count to 26,” Hunt noted in its second quarter earnings report released July 15.

UNIVERSITY SUPPORT
Growth in the industry sector has resulted in Hunt working with the University of Arkansas to develop a training program. In April, Hunt and the UA announced the J.B. Hunt Supply Chain University program. Almost 300 J.B. Hunt sales executives gathered during the summer of 2013 at the UA for the company’s supply chain forum.

“The J.B. Hunt Supply Chain University will expand the forum’s scope and reach by developing an innovative learning curriculum to empower J.B. Hunt employees with current supply chain knowledge focused on helping them create additional value for their customers,” noted a UA statement on the new program.

The Walton College of Business at the UA offers degree programs in transportation and logistics, supply chain management and supply chain management with a retail focus.

Grant Tennille, executive director of the Arkansas Economic Development Commission, has said that Arkansas is in a position to be a global leader in logistics services and training. He said in an April speech to members of the Fort Smith Regional Chamber of Commerce that the state's logistics industry is a primary example of what Arkansas innovation has done to change the world.

"Logistics was invented in Arkansas. Before Sam Walton and David Glass and J.B. Hunt, what we now know as logistics was just people driving things around in trucks,” Tennille said. “There is now incredible science behind how we move goods around the world. The concept of 'just in time delivery'– which if you're in business in this room, I promise you understand 'just in time.' That's the way the world runs now — that was invented in Bentonville, Arkansas."

An announced settlement in a class action lawsuit against Whirlpool Corporation related to property damages from trichloroethylene (TCE) contamination has hit a snag following an objection filed by attorneys representing residents affected by the contamination.

The agreement to settle the class action lawsuit on July 3 would have provided property owners in an area bound by a plume of TCE a dollar figure equal to what their properties were devalued by Sebastian County Assessor Becky Yandell in 2013. Property owners living outside the area would have received $5,000 and possibly more in the future if TCE was detected above regulatory levels in groundwater beneath properties.

In an objection to the agreement filed Friday in the United States District Court Western District of Arkansas in Fort Smith, attorney Sam Ledbetter of the Little Rock firm McMath Woods said the deal was "great" for Whirlpool and leaves plaintiffs as the "losers in the proposal."

"The proposed settlement is a great deal for defendant in that it eliminates its exposure to additional types of damages, including punitive damages, avoids any expense associated with litigation, including having to engage in discovery, and allows it to encumber and access private property as if it were a government actor in a condemnation action, thereby avoiding significant expense associated with cleaning up the mess it has made," Ledbetter wrote.

He added, "In other words, for little or no effort, putative class counsel stands to reap a handsome fee."

Ledbetter said the one-time payment offered by Whirlpool as a part of the settlement agreement was "based on an arbitrary and flawed valuation methodology," further alleging that the properties will "likely never (be) cleaned up."

In a statement to The City Wire, Whirlpool's Senior Manager of Global Public Relations Krstine M. Vernier called Ledbetter's filed objections to the settlement were "self-serving."

"Mr. Ledbetter's 'objections' are a self-serving attempt to prevent affected property owners in Fort Smith from having the opportunity to decide for themselves if they want to accept Whirlpool's substantial financial offer through the class resolution," she said.

She also said the court had been able to review the terms of the offer made to residents in the affected area and said residents had not yet received information on the settlement for consideration.

"Ledbetter's objections are also a poor replacement for constructive solutions, which this particular set of plaintiff's attorneys (have) been unwilling to offer over many months of negotiations," Vernier said.

Attorney Ross Noland, another McMath Woods attorney representing clients affected by the plume, said in statement to The City Wire that 29 residents filed objections to the proposed settlement between Whirlpool and property owners.

"Instead of recognizing the flaws in its settlement proposal and treating everyone fairly, Whirlpool Corporation has decided to attack the residents and their attorneys," he said. "This is typical behavior one would expect from a corporation more interested in its bottom line than doing right."

He said if Whirlpool was concerned with being a good corporate citizen, it would "pay the property owners and residents adequate compensation for having ruined their property values instead of an arbitrary and unfair amount."

Vernier said the settlement off would "be reviewed by the federal court to ensure that the Judge agrees that it is fair," adding that residents choosing to not take part in the lawsuit are allowed to opt out.

"If property owners opt out of the class, they can continue the costly, time-consuming and uncertain path of protracted litigation," she added.

She said Whirlpool believes the court will approve the settlement and "enable us to move forward with payments to the class members as swiftly as the legal process will allow."

Turns out, there is an app for returning more than $2 million to Walmart shoppers.

Wal-Mart is proud of its Savings Catcher program that promises to scout competitor’s sales prices on groceries and selected general merchandise for its shoppers based on receipts scanned into the retailer's shopping app.

"So far since inception we have helped our customers capture more than $2 million by using Savings Catcher. Immediately after the August 4 rollout the app was the No. 1 downloaded lifestyle app from the iTunes App store," said Molly Blakeman, Wal-Mart spokeswoman.

Wal-Mart declined to say how it will report these savings at year-end as gift cards will be given to consumers for accrued and unused credits. Wal-Mart spokesman Randy Hargrove told The City Wire that the retailer has budgeted for Savings Catcher and has no plans to share the debits and credits involved on the company’s profit and loss ledger because they are not deemed financially material.

For instance, the retailer's U.S. sales totaled more than $279 billion last year so a few million in gift card expenses related to Savings Catcher won't likely move the needle that much. Then why might Wal-Mart be so bullish on this program?

SHOPPER INSIGHT
Matt Kistler, senior vice president of global consumer insights and analytics at Wal-Mart,  recently shared with suppliers that Wal-Mart is mining data from customers and Savings Catcher is a tool that can help the retailer monitor competitor prices and provide deeper shopper insights.

Analysts have said the Savings Catcher and soon-to-be-offered e-receipts will give the retailer more insight into individual shopper purchases that can be used to create shopping lists in the coming months.

“The best shopping lists are those you don’t have to create yourself,” said Gibu Thomas, senior vice president of mobile and global e-commerce.

Thomas said during the retailer’s June shareholder meeting that Wal-Mart will continue to use technology in exciting ways to get closer to the customer. 

Suppliers recently asked Kistler when and if Wal-Mart planned to share those deep consumer insights. 

“We are just now starting to get meaningful data on the Savings Catcher program. I suspect we will continue mining and analyzing it and at some point will share relevant data our supplier partners” he said.

SHOPPER REVIEW
Jamie Smith of Elkins likes using the program. The one drawback is that it takes three days to get the results. Smith, who has done freelance work for The City Wire, has saved $3 in her last three trips to Wal-Mart.

Jennifer Ragland, a school teacher in Waco, has received $8 from Savings Catcher and admits to being somewhat obsessed with scanning the receipt as soon as she gets it. Another shopper in Fayetteville said she has $10 in her Savings Catcher account, which she is saving to buy diapers.

Peggy Knight, a former executive with Sam’s Club, loves the program and has amassed $15 in savings. The drawback she sees is that many of cashiers have not been trained on redeeming the credits.

“I had to call a supervisor,” Knight said.

None of the shoppers interviewed by The City Wire said were concerned about the data Wal-Mart is collecting on their buying habits. Knight, now a retail consultant based in Rogers, said Sam’s Club and other retailers’ loyalty programs do the same thing in capturing shopping data which is most frequently used for marketing purposes.

She said the retail space is hyper competitive with nearly everyone trying new ways to woo shoppers.

“Target has a 5% discount card if you attach it to your debit card,” Knight said.

ANALYSTS WEIGH-IN
Jason Long, CEO of St. Louis-based Shift Marketing Group, said psychologically Savings Catcher is resonating with the customers because it takes the price comparison work off their plate. He said it hasn’t been that long ago when Wal-Mart was the clear leader in low prices in the minds of most consumers. But Dollar Stores, Aldi and aggressive pricing from Kroger, HEB and other grocers have nipped away at that image.

Others agree with Long.

“The genius of Wal-Mart’s Savings Catcher program is that it adds a new dimension to its price match guarantee while continuing to make it incumbent upon shoppers to take the initiative. Wal-Mart can satisfy shoppers who are truly price sensitive and message value and price transparency to everyone else without lowering prices across the board. It offers the best of both worlds,” said Carol Spieckerman, CEO of newmarketbuilders.

Analysts with Cleveland Research said of Savings Catcher: “It’s basically the same thing as the Ad Match Guarantee but it takes the work out of the hands of the consumer.”

The Sebastian County Quorum Court ran into problems Tuesday night (Sept. 16) due to a request by County Judge David Hudson to meet with individual justices of the peace individually to discuss budget priorities prior to the start of the annual budget hearings, with the prosecuting attorney saying the meetings could violate the Arkansas Freedom of Information Act.

In a separate meeting Tuesday, the Fort Smith Board of Directors approved the waiving of building permit fees for the Arkansas Colleges of Health Education, saving the institution more than $63,000 on the construction of a multi-million campus at Chaffee Crossing.

In Sebastian County, Justice of the Peace Linda Murry questioned a letter attached to individual meeting packets distributed to members of the Quorum Court in which Hudson requested individual meetings to discuss the 2015 budget.

"In order to have a focused discussion concerning 2015 budget planning, I would like to meet with each Quorum Court member individually at a mutually convenient time," Hudson wrote. "The purpose of this individual meeting is to receive your input and perspective on 2015 budget planning and further discuss the budget issues.”

Murry raised two points, the first being that she would like any meetings to be "committee of the whole" meetings so she and other justices could hear the input of the entire court regarding budget priorities. She also questioned whether an Attorney General's opinion was needed to determine if the meetings were within the letter of the law.

Sebastian County Prosecuting Attorney Dan Shue, who serves as legal counsel to the court, said he had not yet seen the letter Murry was referencing but advised against the individual meetings. Reviewing a copy of the letter following Tuesday's meeting, Shue said his advice would remain the same.

"I've done this in the past, but there have been a lot of FOI business and maybe it's not appropriate. I don't know," Hudson said in response to the issue being raised.

Shue said one of the issues with the individual meetings is whether the opinions of the individual Quorum Court members could be influenced through the meetings with Hudson even though he said the meetings are purely informational in nature. He said if opinions started being expressed or ascertained, it could constitute polling of the court which is a violation of the FOIA.

Justice of the Peace Danny Aldridge asked whether there was a legal definition of polling that Shue could provide the court.

"The problem is if you go too far, then it's a polling situation. It's one of those things that (information presented or discussed) convinces you, but (another justice) never gets to hear it. The thing that convinced you, she never gets to hear. So I think that's the point. Information should be just that, information, not exchange of ideas.”

The letter in question was not included in meeting packets provided to the media, but was provided upon request. Jeanne Wright, executive assistant to Hudson, said the letters were originally set to be mailed to justices, but were delivered taped to the packets instead to save on postage, explaining why the letter was not originally provided to the media.

Hudson withdrew his request for one-on-one meetings with individual justices following the discussion between the court and Shue.

In other business, the court tabled until next month the request of Treasurer/Collector Judith Miller to increase her pay and provide backpay for her years in office tied to the additional responsibilities of serving in two positions. A letter she said states salary minimums and maximums statewide for the positions was requested for distribution to the court, as well as a legal opinion from Shue on whether she is entitled to a raise of more than $3,400 starting with the 2015 fiscal year, was requested by October's regularly scheduled meeting.

It was also announced during Tuesday's meeting that the court would be going all electronic for meeting packets starting in October. For Tuesday's meeting, Hudson said only 20 packets were printed instead of the normal 60. At 158 pages each for Tuesday's meeting, the county would have saved 6,320 sheets of paper, as well as undisclosed costs for printing.

FORT SMITH ACTION
At the city of Fort Smith, the Board waved $63,500 in fees tied to the construction of the Arkansas Colleges of Health Education, which will house the Arkansas College of Osteopathic Medicine at Chaffee Crossing. According to a memo written by City Administrator Ray Gosack, the fees include $50,000 for building permits and inspections, $13,050 for sewer ties on fees, $350 for a planning/zoning application and $100 for a grading permit.

"In the past, the city has waived fees for similar developments which have significant job creation and investment," he wrote.

Thomas Webb, executive director of The Degen Foundation – the organization providing much of the funding for the new medical school – said in his letter to Gosack requesting the waiver that the school would employ 80 to 90 employees including several doctors of osteopathic medicine and Ph.D.'s with an average annual salary of $100,000. He also noted that the school's economic impact upon completion and once fully operational was expected to be $100 million annually.

"While this remains a mission driven plan, we continue to enlist the help and assistance of those who see this as a true game changer for our area," Webb wrote.

Construction of the first $31 million building to house the osteopathic school, administrative offices and possibly a future physicians assistant school was scheduled to let bids Monday (Sept. 15), with an expected construction completion by April 2016.

If accredited as expected, the school plans to begin its first classes in August 2016.

Voters in the Greenwood Public School district Tuesday (Sept. 16) approved a millage hike that will be used to construct a new freshman center adjacent to Greenwood High School. An unofficial tally reported by the Sebastian County Election Commission showed of 1,718 votes cast, the 1.9 mil increase passed by a vote of 933 (54.31%) to 785 (45.69%).

Speaking after the votes were counted, Superintendent John Ciesla said the new facility to be built as a result of the millage hike would be a benefit to the district for decades to come.

"We're so excited for our students," he said. "For the future of Greenwood, it will impact generations. That's what you build facilities for and that's what we're excited for and what it will mean for this community.”

With the rate hike approved Tuesday, Ciesla said the district would issue bonds to fund the new $10 million to $12 million freshman center. The millage increase is expected to bring revenues of about $590,000 per year to the district, which will be used to pay off the 30 year bonds, he said.

Bonds should be issued by January with construction scheduled to begin shortly thereafter on the 53,000 square foot facility that will be able to house 400 students, according to Ciesla, who noted that work could take place even earlier.

"We hope to (start construction) by the first of the year, but we do have preliminary site work we can do to get the plan moving along with some demo work and such. But as far as the process, January 1 is our target date.”

The facility, which will house 23 classrooms – 15 regular classrooms and seven labs for science and computer labs, as well as large groups – will relieve capacity issues at the district's lower level schools. Since the 2001-2002 school year, Ciesla said the district has seen enrollment growth of 568 students.

The new freshman center would remove freshman from Greenwood Junior High and allow the district to move fifth graders from the district's two elementary schools to a new fifth and sixth grade middle school, shifting seventh graders to a new seventh and eighth grade junior high.

The configuration of the sophomore through senior high school would remain the same, though the high school's amenities would be used by the freshman center, Ciesla said, indicating that the cafeteria, performing arts center and other facilities would be used by all four grades and would save the district money by not constructing those as part of the new campus.

Of the millions needed for the project, the state has already committed $2.3 million to the project through matching funds, Ciesla said, due to overcrowding issues in the district.

Ciesla said the Greenwood School Board approved a construction manager contract with Beshears Construction last week to construct the freshman center.

"They've done all of (our construction projects) since I've been here and this is the start of my ninth year," he added.

Before Beshears can begin and before ground can be broken, Ciesla said Tuesday that architecture and engineering work must still be completed.

"We've just had the renderings that you were able to see, so that'll take some time. But we'll immediately start work on that. It'll be (done) as quick as possible due to the fact that we're in a crunch.”

The approval of the millage hike goes against a previous millage increase requested by the district in March 2010. Voters rejected – 58% against to 42% for – a 2.8 mil increase that would have funded a third elementary building estimated then to cost $14.2 million.

Voters in Fort Smith also recently rejected a millage increase that would have funded expanded services at the city's public library. The request for a two mil increase was rejected by a vote of 64.02% against to 35.98% for.

Ciesla said he was thrilled to have the positive outcome on Tuesday night.

"We just appreciate the support and I know our students will benefit for many years to come and we just appreciate the support."

The rumble of motorcycles may soon be a more regular sound along Garrison Avenue in downtown Fort Smith. A motorcycle parade will take place in two weeks and a planned large-scale motorcycle rally benefitting local non-profits is planned for next year.

Dennis Snow, organizer of the motorcycle rally and the host of Thunder TV, said the events would introduce Fort Smith to a new group of tourists and locals who love to ride.

The first event, the Heroes Salute motorcycle parade, will take place Sept. 27, with staging at 9 a.m. at Fort Smith Park on Riverfront Drive, Snow said. The ride will start at 10 a.m. "with kickstands up" and follow a police escort to downtown, following A Street to Immaculate Conception Catholic Church and then down Garrison.

The ride will end at the Fort Smith National Cemetery, where an event will take place to welcome the cemetery's new director Adriene Benton and lay wreaths at the graves of veterans.

"We'll have a real quick ceremony there to lay wreaths on the graves of all Army, Air Force, Navy, Marines, and first responders," Snow said. "We'll have taps played and then bagpipes (will play) 'Amazing Grace.'"

Snow said the event is free to all who choose to participate and said he would expects "a conservative" estimate of 1,000 riders to attend the event, which will continue on to Bikes, Blues and Barbecue in Fayetteville following the ceremony at the National Cemetery.

STEEL HORSE RALLY
The Heroes Salute is the first of two planned events in the downtown area, he said. The second event is planned for May 1 and May 2 and will be known as the Steel Horse Rally.

"I've had it in my mind for 20 years," he said. "It's sort of like working your entire life to get to this moment."

Snow, who has previous experience organizing rallies in Hot Springs and has been involved with the Bikes, Blues and Barbecue rally in Fayetteville, said the Fort Smith area is primed for a motorcycle rally that would bring in people from not only the region but across the United States. The BBB rally in Northwest Arkansas has acclimated hundreds of thousands of motorcycle enthusiasts to much of Arkansas.

"People know the roads (leading to Bikes, Blues and Barbecue). Now people can stay down here, experience the Talimena Drive, go to Hot Springs. People know about the Pig Trail and Highway 23."

He said one of the primary draws from the perspective of potential rally attendees and participants is the width of Garrison Avenue, which he said is one of the widest main streets in a downtown area in America. With such width, more bikes and tourists can fit into the central business district for the event.

"People coming in already know about the inherent beauty of the area, but we have so much more room for bikers to be set up. And we have requested to close Garrison Avenue for two nights. We asked for it four months ago and they were positive about everything. Everyone I've talked to has been excited about this."

NON-PROFIT, TOURISM SUPPORT
To take part in the event, Snow – a former board member of the Riverfront Blues Festival – said a non-profit Steel Horse Rally Foundation has been formed that will organize the rally for an admission fee and then disseminate the funds to other area non-profit organizations.

With admission, guests will be able to enjoy the stream of motorcycles up and down Garrison, as well as enjoy concerts on both nights of the event.

"We will have a motorcycle demonstration team to come in and bring in family-based entertainment during the daytime for a family-friendly environment. When the sun goes down and bikers come back in (from riding), that's when we will launch the entertainment at other locations, including bars and restaurants. This is a win, win for everyone, including the city of Fort Smith."

He said the event does not compete with Bikes, Blues and Barbecue, but instead builds upon he Northwest Arkansas event in a way that should boost tourism in the Fort Smith area.

"It seems like people have forgotten about it, but there's history here and so much more than just western history," he said. "It's a great time to come in and explore and we will give them so much more than the Steel Horse Rally."

Admission, he said, would be tax deductible and while ticket prices have yet to be set, "it won't break people's banks or anything."

Snow said there will be volunteer opportunities, as well, which would come with free admission to the event and could include perks, such as event t-shirts, depending on the volunteer position.

For more information on the rally, visit ThunderTV.net.

Arkansas’ three largest metro areas showed either improvements or stability during the second quarter of 2014 compared to the same period in 2013, according to The Compass Report’s analysis of second quarter data.

The quarterly Compass Report is managed by The City Wire. The report is the only independent analysis of economic conditions in Arkansas’ three largest metro areas.

Compared to the second quarter of 2013, economic conditions in Northwest Arkansas and the Fort Smith metro area were stable (no change), and conditions in central Arkansas improved.

To underscore the impact of the three largest metro areas, for June of this year the unemployment rate for the rest of the state was 7.4%, down 1.7% from June 2013. The statewide unemployment rate with the three largest metros added back in was 6.3%, down 1.4% June-on-June.

New to The Compass Report is sponsorship of the Fort Smith analysis by Arvest Bank-Fort Smith and River Valley Region.

“Arvest is excited to partner with The City Wire, the Fort Smith Regional Chamber of Commerce and Cox Communications to provide the community leaders in the River Valley the most usable, up to date information on economic indicators that the Compass Report provides,” said Rodney Shepard, president and CEO of Arvest Bank of the Fort Smith and River Valley Region. “Arvest’s mission statement is ‘People helping people find financial solutions for life.’ When people are better informed, better decisions are made in our communities.”

NORTHWEST ARKANSAS
Continued employment gains and building activity continued from the first quarter inot the second quarter of 2014 for Northwest Arkansas. The second quarter 2014 grade of B was better than the B- in the first quarter of 2014 and unchanged compared to the second quarter of 2013.

The grade of B indicates an economy that is growing. Non-farm employment in the region was 216,900 in June, well ahead of the 213,700 in June 2013. Building permit values in the region totaled $181.395 million in the second quarter, up over the $138.505 million in the second quarter of 2013. Construction sector employment was 8,900 in June, up compared to 8,400 in June 2013.

Despite the growth, Collins said the pace of growth in Northwest Arkansas is slowing.

“The Northwest Arkansas regional economy slowed noticably in the first half of the year. In the last two years the local growth rate exceeded 2% in all but seven months. Five of the seven have occurred since January,” Collins said.

Collins also said the slowing pace of growth combined with continued growth in commercial and residential construction could prove problematic.

“Finally, at the risk of sounding alarmist, slowing job creation coupled and accelerating real estate development is not sustainable. Both markets bear close scrutiny,” Collins wrote.

FORT SMITH REGION
The Compass Report for the Fort Smith area posted a C grade for the second quarter, unchanged compared to the first quarter of 2014 and unchanged compared to the second quarter of 2013.

A key factor in preventing the region from posting gains is the continued decline in employment.

Non-farm employment in the metro area hit 115,800 in June, down from 116,000 in June 2013. Tthe metro jobless rate fell from 8.2% in June 2013 to 6.4% in June 2014, but the number of employed did not gain.

“The regional economy had added employment for six straight months prior to the start of the second quarter. The statistical evidence suggests that the local labor market has stabilized but is clearly not out of the woods,” Collins wrote.

Continuing, Collins said: “The improvement in the unemployment rate was based on the decline in the number of unemployed (-2,726) relative to the decline in the labor force.  The number of employed also declined (-2,775).  These data indicate the local labor market is improving primarily due to people either leaving the area or choosing not to look for work. Either way, it would be difficult to conclude the employment situation is improving in the Fort Smith area despite the declining unemployment rate.”

An emerging positive was in tax collections. Tax collections in Fort Smith totaled $10.389 million in the second quarter, better than the $9.956 million in the same quarter of 2013. Tax collection numbers, a sign of consumer confidence and spending, have not been positive in recent quarters.

Overall, Collins said the Fort Smith metro economy is stable, but possibly struggling.

“Given economic performance at the state and local levels, the data for the Fort Smith area economy imply the region has performed relatively well compared to most other metros and the state as a whole,” Collins said. “Data for the third quarter will be closely examined to determine if the soft second quarter was an anomaly or indicative of a regional economy struggling to regain its footing.”

CENTRAL ARKANSAS
Economic conditions in central Arkansas, the state’s largest metro area, received a grade of C, an improvement over the first quarter of 2014 and better than the C- in the second quarter of 2013.

Improvements in overall employment and a better showing in construction sector jobs helped push the better grade. Non-farm employment stood at 348,600 in June, better than the 344,400 in June 2013. There were an estimated 17,400 jobs in the region’s construction sector in June, up compared to 16,800 in June 2013.

“Given recent job creation data for the Central Arkansas metro, this was a modestly improved showing. By comparison, the Northwest Arkansas regional economy added 3,200 or 1.5 percent while the Fort Smith regional economy was essentially flat June-on-June (-200 jobs) during the same period,” Collins said.

However, building permit values declined in the quarter.

Overall, the recent growth in central Arkansas is not reflective of what is possible in the metro area, according to Collins.

“The Central Arkansas regional economy continues to mimic the national economy, growing but at a pace that fails to impress. This is likely due to continued weak national growth and the impact of reduced state and local government spending,” he said.

NATIONAL ECONOMY
Nationwide, overall economic indicators improved during the second quarter of the year.

“The economy was hard hit in the first quarter by the effects of severe winter weather. However, it rebounded substantially in the second quarter,” noted economist Jeff Collins, who conducts data collection and analysis for The Compass Report. “The outlook for the remainder of the year is for solid but unspectacular growth.”

Other national economic notes from Collins’ included:
• Business investment had been one of the bright spots for the national economy. The outlook is for business spending to continue to grow through the remainder of the year. Growth is expected to be especially strong in structures and equipment.

• Unemployment rates were lower in 359 of 372 metropolitan areas and higher in just 10 according to the most recent data available. The labor force had been growing consistently through the recovery until recently. The data suggests that the labor force has been essentially flat for the last two quarters.

• Employment growth has been and will continue to be relatively strong in the services sector, particularly in hospitality, retail trade, professional and business services, and education and health care services.

• With the exception of fluctuations in the highly volatile energy sector, prices have been stable for some time. The lack of inflationary pressure has allowed short and long-term interest rates to remain at or near historic lows. Short-term rates are expected to remain low until the unemployment rate improves substantially and/or inflation rises above 2%.

• Real disposable income grew roughly 3.3% compound annual growth quarter-on-quarter while retail sales data indicate a relatively good second quarter. The forecast for the remainder of the year is for retail sales to accelerate along with growth in disposable income.

REGIONAL GRADE HISTORY
FORT SMITH REGION– Fort Smith regional economy
2Q 2014: C
1Q 2014: C
4Q 2013: C+
3Q 2013: C+
2Q 2013: C
1Q 2013: C-
4Q 2012: C
3Q 2012: C-
2Q 2012: C-
1Q 2012: C-
4Q 2011: C-
3Q 2011: C
2Q 2011: C
1Q 2011: C-
4Q 2010: C-/D+
3Q 2010: C-
2Q 2010: C-
1Q 2010: C-
4Q 2009: D
3Q 2009: D
2Q 2009: D-
1Q 2009: D+

NORTHWEST ARKANSAS– Northwest Arkansas regional economy
2Q 2014: B
1Q 2014: B-
4Q 2013: B+
3Q 2013: B+
2Q 2013: B
1Q 2013: B
4Q 2012: C
3Q 2012: B+
2Q 2012: B-
1Q 2012: B-

CENTRAL ARKANSAS– Central Arkansas regional economy
2Q 2014: C
1Q 2014: C-
4Q 2013: C-
3Q 2013: C-
2Q 2013: C-
1Q 2013: C-
4Q 2012: B-
3Q 2012: C-
2Q 2012: C+
1Q 2012: C-

DATA AND REPORT DOCUMENTS
Link here for the raw data used to prepare The Compass Report for the three metro areas.

Link here for more narrative about regional and national economic conditions.

UNDERSTANDING THE COMPASS REPORT GRADES
A key factor in understanding The Compass is in understanding the “grading” approach used to measure the current and leading economic indicators.

The strategy is to place the most recent data in historical context. Average values for the percent change over the referenced time period were calculated, as were standard deviations for each measure.

The more similar current values are to historic averages the more likely the indicator grade is to be a “C.”

The farther away the observed value, as measured by the standard deviation of the data, the more divergent the grade from “C.” In other words, “C” reflects no change in economic activity. The grades “B” or “A” indicate improvement above the historical average, and “D” and “F” indicate a decline in economic activity compared to the historical average.

NanoMech announced Wednesday it has secured an additional $12 million in capital for its Series B Financing round to continue growth as a global nanoscale manufacturer. The latest round of investors include Meadow Lane Investments, Hendricks Investment Holdings, Advantage Capital Partners and Spring Creek Investments.

Building on continued momentum, NanoMech said it will use the financing to expand its global reach, invest in additional sales and marketing resources and increase investment in its market platforms – nGlide, TuffTek, and nGuard.

In order to take advantage of opportunities immediately available, the company also has approximately 60 days to consider additional private placements of its stock in this round. The proceeds will be used to increase its sales and marketing infrastructure and activities, continue to expand and protect its intellectual property, and for working capital.

“The additional capital proceeds are for accelerating awareness and demand for our industry transformative nGlide and TuffTek products and expanding our physical presence in the energy manufacturing and transportation markets,” said CEO Jim Phillips.

He add that over the past year NanoMech has reached a critical milestone in having its core patents issued by the USPTO and several key international patent offices. The issuance of these patents fortifies the company’s position as a leader in the lubricant additives industry, a market valued at $300 billion as it serves multiple industries that use machinery. Additionally, winning these patents increases the company’s intellectual property in providing the most wear resistant cutting tools and wear parts in the global $25 billion cutting tool industry, the release states.

NanoMech is shipping products globally to Fortune 100 companies as well as to emerging companies in a number of industries from manufacturing to Indy and NASCAR racing as well as agriculture, construction and military applications.

The company said it’s also finalizing the construction of a 25,000 square foot production expansion to triple the size of current operations which will serve as the its world headquarters. The construction is expected to be completed in October. While the new facility will connect to the existing building, NanoMech has purchased the adjacent 7.3-acre tract for future development providing the company with the ability to expand on a contiguous 9 acre campus.

Dr. Ajay Malshe, chief technology officer and founder, said, "Our new nanofactory and expanded headquarters will also allow us to meet current demand for our products while advancing ongoing research and development efforts. The state-of-the-art, smart manufacturing facility and laboratories will further position our products and scientists as some of the best and most innovative in the world. This advanced facility will allow us to accelerate the development and commercialization of innovative products that people have only dreamed of before.”

Van Buren Public Schools' top administrator is calling accusations that students at a city elementary school participated in a faculty-lead prayer during the school day inaccurate.

The accusations were originally leveled in a letter from the Freedom From Religion Foundation to Interim Superintendent Kerry Schneider, in which the group alleges staff at Central Elementary School "announced, over the intercom, that there was an assembly for students where there would be games and snacks."

The letter went on to allege that the assembly was conducted by "school staff, who asked the children to raise their hands in response to various religious questions, such is if they believed in God, if they went to church, and if they had never been to church."

"They then reportedly told the students to ask other students 'if they had Jesus in their hearts,' and told the kids if they didn't know Jesus, the staff members could help them," the letter continued. (Link here for a PDF copy of the letter.)

The letter, signed by Freedom From Religion Staff Attorney Patrick Elliott, detailed a variety of U.S. Supreme Court cases in which prayer, Bible lessons and other religious activities have been ruled unconstitutional in public schools before requesting an investigation into the matter. Elliott also requested Van Buren administrators ensure staff members are aware of restrictions on religious activities per the Establishment Clause of the Constitution.

Schneider said in his investigation of what happened, he was able to determine that some of the actions alleged in Elliott's letter were "not accurate."

"It said it happened during the school day, but the meeting they are talking about was at 7:30 in the morning. Our school day is from 8 (a.m.) to 3 (p.m.)," he said.

The assembly, he said, was actually a meeting of a student organization called Students With A Testimony (SWAT), which he said was similar to Fellowship of Christian Athletes for middle school and high school students.

"It's not compulsory, it's all voluntary and before school," he added.

Even though he said the meeting in question was a student organization and not an assembly, he said faculty members do sponsor student groups, including SWAT and said students were notified of the meeting during a once-weekly "Rise and Shine" assembly.

"The answer is yes (there are faculty sponsors). We don't have any organizations in our district that don't have an employee sponsor. As far as how kids know about the meeting, it was announced at 'Rise and Shine' that the meeting would be the following week," he said.

Asked whether other student groups were also announced at the "Rise and Shine" event, Schneider said he was not certain.

"'Rise and Shine' is generally an activity to get the kids more involved in school. I'm sure there's a segment of the program where they do announcements for what's coming up. But I'm not sure that this (announcement was) just for this meeting, or if all organizations (are announced) over the course of time."

Schneider said training does occur each year with district faculty and staff regarding "what is and isn't allowed" with regard to organized religion within the public public school setting.

He said a meeting of school administrators was also convened following the accusations by the Freedom From Religion Foundation.

"We've already addressed it with district-level administrators and addressed it in a meeting on Sept. 10. Our administrative council, they meet once a month and we addressed it in that meeting and (administrators were instructed) to go back to their buildings to address it again with faculty and staff. It was just a reminder of what is and is not allowed."

Scott Van Laningham is “surprised” at the double-digit enplanement growth at the Northwest Arkansas Regional Airport (XNA). He didn’t think the pace of growth would return so soon. The pace for the first eight months of 2014 is also positive at the Fort Smith Regional Airport.

Arkansas commercial airport trends that began early in 2014 have continued through August, with traffic increases at XNA and Fort Smith and enplanement declines in Little Rock.

Travelers flying out of XNA during August totaled 57,273, up 12.81% compared to the 50,771 during August 2013. For the first seven months of 2014, enplanements at XNA total 430,220, up 10.73% compared to the same period in 2013.

The January-August 2014 traffic is up 7.93% compared to the same period in 2007, the year XNA reached record enplanements of 598,886. Enplanements at XNA fell to 540,918 in 2009 after reaching the 2007 high.

Van Laningham, executive director of XNA, said an improving regional economy and moderation in air fares are at least two reasons for increased traffic.

“Clearly there is increased economic activity throughout this region, and I think that is part of it. But also, looking at airfare comparisons (with other commercial airports in a competing region) the (price) differentials are getting smaller which tells me we are recapturing some of the loss that we were seeing, primarily to Tulsa,” he said.

Another factor is that the airlines are using larger planes on some of the XNA routes.

“There is more capacity also with those extra seats, and they are absolutely filling those up,” he said.

For all of 2013, XNA enplanements totaled 579,679, up 2.58% compared to the same period in 2012. The enplanement growth remained stable through the year, with enplanements up 2.42% at the end of the first quarter of 2013.

Enplanements at XNA totaled 565,045 during 2012, up just 0.4% compared to 2011. Although slight, the gain prevented XNA from posting two-consecutive years of enplanement declines. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

FORT SMITH TRAFFIC
The Fort Smith Regional Airport, served by flights from Atlanta and Dallas-Fort Worth, posted August enplanements of 7,646, up 5.7% compared to August 2013.

Enplanements for the first seven months of 2014 total 60,803, up 6.77% compared to the same period in 2013.

For all of 2013, enplanements at the airport totaled 84,520, down 2.46% compared to the same period in 2012. The decline ended three consecutive years of enplanement gains at the airport.

Based on monthly averages, Fort Smith enplanements could reach more than 91,000 in 2014. The last time enplanements were above 100,000 was in 2005, with 102,607. The last year enplanements were above 90,000 was in 2007, with 99,217.

With 34,902 enplanements for the first eight months of 2014, American Airlines accounts for 57.4% of commercial traffic out of Fort Smith. Delta Air Lines had the remaining market share – 25,901 enplanements – for the first eight months of 2014.

American enplanements out of Fort Smith are up 5% for the first eight months of 2014 compared to the same period of 2013, and Delta enplanements are up 9.23%.

LITTLE ROCK NUMBERS
Enplanements at the Bill & Hillary Clinton National Airport (Little Rock National Airport) totaled 87,230 in August, down 2.88% compared to August 2013. Enplanements for the first eight months of 2014 were 702,284, down 4.99% compared to the same period of 2013.

Enplanements in 2013 totaled 1.085 million, down 5.45% compared to 2012. Enplanements in 2012 totaled 1.147 million, up 4.07% compared to 2011. The 2012 numbers ended five consecutive years of enplanement declines at Arkansas’ largest commercial field.

Among the top three carriers in Little Rock, only one has posted enplanement gains between January and August. Southwest, the largest carrier, has seen enplanements decline 14.23% in the first eight months. American, the second largest, has posted a 3.35% gain in the period, while Delta has a 2.35% decline in enplanements during the first seven months of 2014.