The number of employed during November in the Fort Smith metro area reached a new high for 2014, but the number is still below the 2013 monthly average and the size of the regional workforce is also well below historic trends.

Fort Smith’s metro jobless rate ticked up to 5.5% in November compared to 5.4% in October. The rate was lower than the 7.1% in November 2013, according to figures released Tuesday (Dec. 30) from the U.S. Bureau of Labor Statistics.

November’s data is subject to revision in future reports from the U.S. Bureau of Labor Statistics.

The size of the Fort Smith regional workforce during November was 126,795, up from 125,938 during October, but below the 129,806 during November 2013. The labor force reached a revised high of 140,253 in June 2007, meaning the November workforce size is down 9.6% from the peak number.

The number of employed in the Fort Smith region totaled 119,870 in November, up from 119,169 in October, and just slightly below the 120,536 employed in November 2013. The number of employed in the metro area is down 9.91% compared to the high of 133,061 in June 2006 – or 13,191 fewer jobs than the peak metro employment.

All of the eight metro areas in or connected to Arkansas had jobless rate declines in November compared to November 2013. Four metro areas (Fort Smith, Hot Springs, Jonesboro and Memphis-West Memphis) had jobless rate increases compared to October, and three metro areas (Northwest Arkansas, central Arkansas and Pine Bluff) were unchanged compared to October. Only the Texarkana metro area had a jobless rate decline compared to October and November 2013.

During November, the lowest metro jobless rate in the state was 3.9% in Northwest Arkansas and the highest rate was 7.6% in the Memphis-West Memphis area.

FORT SMITH METRO NUMBERS
Unemployed persons in the region totaled an estimated 6,925 during November, down from the 6,769 during October, and well below the 9,270 during November 2013.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 25,100 in November, up from 24,300 in October, and above the 24,600 during November 2013. Employment in the sector reached a high of 25,700 in December 2007.

The Fort Smith area manufacturing sector employed an estimated 17,800 in November, unchanged compared to October, and below the 18,400 in November 2013. Sector employment is down more than 37% from a decade ago when November 2004 manufacturing employment in the metro area stood at 28,600. Annual average monthly employment in manufacturing has fallen from 28,900 in 2005, 19,200 in 2012, and to 18,300 in 2013.

Employment in the region’s tourism industry was 9,800 during November, down from unchanged from October and above the 9,400 in November 2013. The sector reached an employment high of 9,900 in August and September.

In Education & Health Services, employment was 16,500 during November, up from 16,400 in October and below the 16,700 during November 2013. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,000, but fell slightly to 16,800 in 2013. Employment in the sector reached a record 17,300 in November 2012.

In the Government sector, employment was 19,600 during November, up from 19,500 in October and unchanged compared to November 2013.

NATIONAL NUMBERS
Unemployment rates were lower in November than a year earlier in 341 of the 372 metropolitan areas, higher in 27 areas, and unchanged in four areas, noted the broad BLS report.

The U.S. unemployment rate in November was 5.8%, unchanged from October and down from 7% from a year earlier. Arkansas’ jobless rate was 5.8% in November, down from 6.1% in October and down from 7.5% in November 2013.

Oklahoma’s jobless rate during November was 4.4%, down from 4.5% in October, and down compared to 5.5% in November 2013. The Missouri jobless rate during November was 5.6%, down from 5.9% in October and below the 6.1% in November 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
Nov. 2014: 3.9%
Oct. 2014: 3.9%
Nov. 2013: 5%

Fort Smith
Nov. 2014: 5.5%
Oct. 2014: 5.4%
Nov. 2013: 7.1%

Hot Springs
Nov. 2014: 5.8%
Oct. 2014: 5.6%
Nov. 2013: 7.4%

Jonesboro
Nov. 2014: 4.8%
Oct. 2014: 4.7%
Nov. 2013: 6.4%

Little Rock-North Little Rock-Conway
Nov. 2014: 4.8%
Oct. 2014: 4.8%
Nov. 2013: 6.4%

Memphis-West Memphis
Nov. 2014: 7.6%
Oct. 2014: 7.5%
Nov. 2013: 8.7%

Pine Bluff
Nov. 2014: 6.8%
Oct. 2014: 6.8%
Nov. 2013: 9.5%

Texarkana
Nov. 2014: 5.3%
Oct. 2014: 5.5%
Nov. 2013: 6.9%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2013: 8%
2012: 7.7%
2011: 8.3%
2010: 8.2%
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%

The cattle markets are set to ring up another record year for producers and packers even with tightening supplies expected to continue through 2019.

Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, said retail beef prices are up 15% to 20%, following a 5%-to 6% gain in 2013. Boxed beef wholesale values are up about 25% from one year ago, over the 4-to 8% increase in 2013.  

Fed cattle prices are up 28% after a 5% increase in 2013. Feeder cattle (750-800 lb. steer) prices are roughly 43% higher than one year ago after climbing 13% in 2013.  Most dramatic of all, (450-500 lb. steer) calf prices are up 53% this year on top of a 30% increase in 2013.

“Market conditions will be generally the same in 2015 with tight supplies continuing to be the major driver of cattle and beef markets. Beef production will decrease again in 2015 but considerably less than the 6% year over year decrease in 2014,” Peel said.

He said beef trade conditions are negative as high U.S. prices and a strong U.S. dollar will likely mean less U.S. beef is exported in 2015 following what turned out to be a strong year in 2014.

TYSON SENTIMENT
Peel said with prices moving higher there are demand concerns for packers and the U.S. industry at large. Despite a sharp increase in retail beef prices in 2014, not all the wholesale beef price pressure is reflected in retail prices and consumers have already began shifting away from beef to chicken and lower-priced meats, according to Tyson Foods CEO Donnie Smith. 

Smith recently said Tyson had predicted this shift many months ago, and it’s now being seen. He said the price barrier, coupled with the fact that Millennials tend to favor chicken indicate there will be less demand for beef among U.S. consumers in 2015 and beyond.

He does not believe consumers will buy more beef at the grocery store with savings from lower fuel prices. Smith said consumers are likely to eat out more, and white tablecloth restaurants could fare better while gas prices are lower. Longer term, Smith said more consumers are likely to chose chicken over beef.

While Tyson expects its chicken segment to benefit, it’s beef business will bear brunt of the switch. Tyson’s beef operation is a “spread” business model as it does not raise cattle, but acquires cattle for processing from feed lots and cattle marketers.

Peel said packers will feel added pressures in 2015 from higher fixed cattle prices and an inability to raise prices because of added supplies in chicken and pork, the competing proteins.

Analysts recently asked Tyson if they expected plant closures among packers in 2015. Tyson execs said they had no plans to shutter production because their facilities are located in the areas where there is the most available cattle. However, Tyson admitted that production levels in 2015 will be less than those in 2014 given the shrinking herd numbers overall.

ANALYSTS INSIGHT
Cattle and beef markets will start 2015 with record or near record prices and carry them through the year. Peel sees little risk of any major market break and annual average cattle and beef prices will be higher than 2014. That said, it may be hard to extend the impressive market gains in 2014 for cattle farmers and feedlots. Seasonal price peaks for live cattle that exceed 2014 records are possible, perhaps even likely, but may be harder to sustain, Peel said. 

He expects 2015 to be more of a sideways market, albeit with prices at times higher than record levels in 2014.

Brett Hundley, meat analyst with BB&T Capital Markets, said meat packers hoping to boost margins could be in the market to acquire a further-processor as way to diversify their meat business, much like Tyson Foods did with the recent purchase of Hillshire Farms.

Hundley said Oscar Mayer, owned by Kraft Foods, offers a well-known cold cuts line, including a "Selects" offering that plays off the removal of artificial ingredients. It also produces bacon, hot dogs and its Lunchables line, the latter of which is believed to be over $700 million in annual sales. Hundley said some estimates put Oscar Mayer’s margins at 15% to 20%. The company has also moved into adult protein snacking.

“Kraft certainly has cold chain sales into the back of the store, however we think that Oscar Mayer may prove more leverageable by a more integrated protein player,” he wrote.

Hundley also believes that Bob Evans’ BEF Foods segment that makes packaged meats and homestyle food products under the Bob Evans, Owens and Country Creek brands could be targeted for acquisition by Pilgrim’s Pride, which is owned by beef giant JBS and a large competitor to Tyson Foods. He estimates annual revenues near $370 million with margins around 10%.

“We think that a larger player could improve margins considerably. That said, we question brand strength,” Hundley wrote.
Lastly, Hundley said Smithfield’s packaged food business which is owned by WH Group, could be a good fit for Tyson Foods or Pilgrim’s and JBS.

Smithfield's packaged meats business is estimated to have annual revenues around $6.5 billion with roughly 8% margins. There are a number of brands under this umbrella that could be sectioned off, including Farmland (over $1.3 billion in annual revenues), Smithfield (over $1 billion), Armour-Eckrich (over $930 million), John Morrell (over $400 million), Cook's (over 330 million) and Gwaltney (over $290 million), according to Hundley.

“We think that WH Group may be open to this, given stated desires to work down debt,” he wrote, noting most of these brands are produced in the Midwest, making them leverageable for Tyson Foods or Pilgrim’s Pride.

It would have required one helluva crystal ball in early 2014 to bet that two struggling Arkansas-based trucking companies would see their stock price more than double by year end. Ditto for a bet that the equity markets would add more value in 2014 to two retailers with share prices already flying high at the end of 2013.

But that’s what happened in 2014, and such moves were part of a year that saw share price gains for 13 of 17 publicly held companies based in Arkansas. (The markets officially close out 2014 with a shortened trading day on Wednesday.)

Tontitown-based P.A.M. Transportation (NASDAQ: PTSI) began the year with a share price of $20.75 and a lackluster history in 2013. The share price closed Tuesday (Dec. 30) at $49.51, thanks to an improving national freight environment that boosted the company’s business. Through the first nine months of 2014 P.A.M. had net income of $11.358 million, up 145% from the $4.619 million earned in the same period last year.

The better freight environment also boosted the fortunes of Van Buren-based USA Truck. The trucking company began the year fending off a hostile takeover attempt by Knight Transportation. The share price for USA Truck (NASDAQ: USAK) began the year at $12.59. But financial performance improved during 2014, with the company on track to end five consecutive years of losses. The result is a Dec. 30 closing price of $28.19.

For the first nine months of 2014, the trucking company posted $1.85 million in net income, a wide swing from the $4.474 million loss during the same period of 2013. Total revenue for the first nine months is $452.405 million, better than the $413.587 million in the same period of 2013.

RETAIL GAINS
Little Rock-based Dillard’s (NYSE: DDS) begin the year with a share price of $96.85, and despite somewhat flat 2014 financials compared to a hot 2013, the equity markets boosted the share price to $124.21 on Tuesday.

Net income for the specialty retailer was $201.4 million during the first three fiscal quarters of 2014, just below the $204.6 million during the same period of 2013. Total revenue was $4.6 billion in the three quarters, down from $4.613 billion during the same period of 2013.

Bentonville-based Wal-Mart Stores (NYSE: WMT) was able to make small improvements in 2014 to its same-store U.S. sales. However, the markets must have liked what new CEO Doug McMillon was doing and saying about the global retailer’s future. The share price, which began the year at a respectable $78.91, clawed higher through the year to close Dec. 30 at $86.79 – near a 52-week high of $88.09.

Revenue for the first three fiscal quarters of the year is $354.086 billion, better than the $346.588 billion during the same period of 2013.

Although slight, the world’s largest retailer was able to reverse its comp store sales trend with U.S. stores during the fiscal third quarter. It was the first net positive increase since 2012. Same store sales in the U.S. – including Sam’s Club – were up 0.5% compared to a decline of 0.1% during the same quarter of 2013. Same stores sales among Neighborhood Markets – the company’s leading small-store format – were up 5.5%. The company also reported that e-commerce sales worldwide were up 21%.

OTHER TRUCKERS
The markets were also kind to Lowell-based J.B. Hunt Transport (NASDAQ: JBHT) and Fort Smith-based ArcBest (NASDAQ: ARCB).

J.B. Hunt, through its growing intermodal and logistics businesses, boosted revenue and income during the first three quarters of the year. Net income during the first nine months of 2014 was $264.486 million, ahead of the $250.518 million during the same period of 2013. The Hunt share price began 2014 at a healthy $76.60, and closed on Dec. 30 at $84.68.

The story was similar at ArcBest, the parent company of ABF Freight System, one of the nation’s largest less-than-truckload carriers. For the first nine months of the year, ArcBest recorded net income of $31.633 million, considerably better than the $5.465 million in the same period of 2013. Total revenue for the first nine months of 2014 is $1.947 billion, up 11.6% compared to the 2013 nine-month period.

ArcBest shares began the year at $33.82, and closed Tuesday at $46.29.

CARS, BANKS AND TECHNOLOGY

With concerns about consumer sentiment and competition from the subprime loan market, 2014 didn’t begin well for Bentonville-based America’s Car-Mart (NASDAQ: CRMT).

However, for the first half of fiscal 2015 Car-Mart had earnings totaled $14.75 million, up over $13.32 million during the prior year period. Revenue totaled $261.21 million, up 7% from the $243.97 million recorded in the same period last year.

The buy here, pay here used car company began 2014 with a share price of $41.96, and closed Tuesday at $52.48.

It continued to be a year of acquisition and integration for Conway-based Home Bancshares, (NASDAQ: HOMB) the parent company of Centennial Bank. For the first three fiscal quarters of 2014, the bank holding company reported $83.137 million in net income, well ahead of the $53.57 million during the same period in 2013.

Loan growth and acquisitions drove the positive news. In July, Home Bancshares completed its buyout and merger with Florida-based Traditions Bank.

However, the markets are hesitant to reward the aggressive acquisition pace and net income growth. The bank began the year with a $36.36 share price, and closed Tuesday at $32.09, down 11.7%.

Little Rock-based Acxiom Corp. (NASDAQ: ACXM) struggled to reinvent itself during 2014. The company reported three straight quarterly losses during the year. Third quarter revenue slid from $267.77 million one year ago to $260.04 in the most recent quarter. The data and digital marketer posted a $1.54 million loss – a departure from a $9.84 million profit in the previous year.

Acxiom has altered its company model, in part, to adapt to new marketing strategies for clients who have shifted away from traditional direct mail consumer contact to utilizing digital products and outreach.

The company began the year with a $36.58 share price and closed Tuesday at $20.54, down almost 44%.

The popularity of holiday gift cards continues to rise to an estimated $31.74 billion this year, according to the National Retail Federation. Yet, nearly $1 billion of those will go unused according to industry researchers.

That’s one of the reasons retail giant Wal-Mart launched a program it is testing that allows consumers to exchange gift cards of other retailers for an e-gift card that can be used at Walmart’s stores or Walmart.com.

Wal-Mart unveiled the pilot card exchange on Christmas Day, and it’s expected to run for the next few weeks as the retailer reviews consumer reaction and use of the program. Wal-Mart’s test exchange will accept cards from more than 200 retailers, restaurants and airlines, which can be traded in for up to 97 cents for each dollar of the gift card.

The retailer partnered with CardCash.com on the pilot program. While there are other card exchange sites, Wal-Mart is the first major retailer to test a broad exchange. 

"We have seen tremendous volume and are very happy with the success and impact of the partnership," said CardCash.com CEO Elliot Bohm.

He said the exchange offers on Walmart.cardcash.com average 5% higher better than competitors' offers.

Retail analyst Carol Spieckerman, CEO of newmarketbuilders.com, called the test another bold move by Wal-Mart that’s just in time for the “second holiday” shopping season. She said although the program’s premise is somewhat unique in retail, it follows a pattern that Wal-Mart has established as of late — taking calculated “hits” in order to increase market share and drive incremental sales, and without resorting to margin-gobbling mark-downs. 

“Once again, Wal-Mart has crafted a seemingly straightforward program that nonetheless accomplishes many goals. The competing retailers with the most to lose will be those with a narrower category focus. A guy who received a J. Crew gift card might prefer a power saw over a sweater, for example,” Spieckerman told The City Wire.

Consumers polled by The City Wire gave the program mixed reviews. The majority of responders said they would likely re-gift a card they didn’t plan to use, rather than trade into Wal-Mart for lesser face value.

But Nikki Perritt of Fort Smith said she recently took advantage of Wal-Mart’s gift card exchange. 

“I traded a Sears card for Wal-Mart. I wanted a waffle maker and Sears prices are ridiculous. Wal-Mart had the same waffle maker for a lot cheaper. So I traded my Sears gift card for the Wal-Mart one. Wal-Mart took $3.22 of my card but it was worth it to me,” Perritt said. “I can always find something I want at Wal-Mart.”

Overall Spieckerman said Wal-Mart’s multi-category proposition, combined with everyday low prices that stand up to scrutiny, will make the trade-in a no-brainer for many and a pre-calculated gain for Wal-Mart. 

“The program is perfectly timed as shoppers redeem gift cards and do so voraciously 
as post-Christmas sales proliferate. The temptation for gift-card-wielding shoppers to spend “over-the-limit” will be mighty and Wal-Mart will benefit every time. Clean up on aisle everything,” she added.

The Independent Citizens Commission charged with setting salaries for legislators, constitutional officers, and judges hopes to hear from some of those people at its next meeting Jan. 7.

At its second meeting Tuesday (Dec. 30), commission members decided to request appearances by Speaker of the House Jeremy Gilliam, R-Judsonia, and Senate Pro Tempore Jonathan Dismang, R-Beebe, to discuss legislators’ compensation and expenses. They also hope to hear from a representative from the judiciary as well as someone who can speak to salaries of constitutional officers. Additionally, the commission plans to hear a report comparing salaries from peer states.

The commission was created by voter passage of Amendment 94 in November. The amendment also extended term limits, prohibited gifts from lobbyists, prohibited campaign donations from corporations and unions, and required legislators to wait two years before registering as lobbyists.

By Feb. 2, it must present a salary review and make recommendations regarding reimbursements for per diem and mileage expenses. The commission ultimately will set salaries following a public review process. Under the amendment, the Legislature is not bound by the commission’s recommendations for expense reimbursements.

That’s a tight timeline. Commission Chairman Larry Ross said during the meeting that the commission could consider later making recommendations retroactive to the Feb. 2 deadline.

The commission is required to consider the state’s economic condition when setting salaries. Dr. John Shelnutt with the state Department of Finance and Administration told commission members that Arkansas’ recovery has been modest compared to recoveries from previous recessions. Inflation is low, and interest rates are not expected to rise in the near future. He said Arkansas’ cost of living is 12.4% below the national average, ranking it 49th.

The commission is hampered by a lack of funding and is relying on staff resources borrowed from the attorney general, the auditor, and the Bureau of Legislative Research.

Gov. Mike Beebe’s salary is $87,758.88, according to Transparency.Arkansas.gov. Attorney General Dustin McDaniel is paid $73,131.84. The base pay for Arkansas legislators is $15,869, not counting expenses.

Longtime journalist Ernie Dumas gave legislators a historical review of elected officials’ salaries. Under the 1874 Constitution, the governor originally was paid a yearly salary of $4,000, while legislators were not paid a salary but did earn $6 a day in per diem reimbursements when they were in session along with 20 cents a mile.

“I guess you had to feed the mule,” Dumas told the panel.

By 1946, the governor was paid $10,000 – among the lowest in the country and far lower than in other states – while the attorney general was paid $6,000 and the state’s other full-time constitutional officers were paid $5,000. The lieutenant governor was paid $2,500, while legislators were paid $600 a year plus $6 per diem and 5 cents per mile. Those figures stood until 1974.

Dumas told commission members that, “This is the most powerful commission in many ways in the history of the state.” That’s because, unlike almost everything else spent by state government, the money will not be appropriated by the Legislature. The commission’s decisions are final.

Gov.-elect Asa Hutchinson named Dr. Greg Bledsoe as the state’s new Surgeon General. He replaces Dr. Joe Thompson, who was told in late November that he would not remain in the position.

Bledsoe will join the faculty of the University of Arkansas for Medical Sciences (UAMS) as an Associate Professor in the Department of Emergency Medicine in the College of Medicine on January 26, 2015, according to a press release from Hutchinson.

Bledsoe is board certified in Emergency Medicine and is chairman, Department of Emergency Medicine of Marshall Medical Center South in Alabama.

He completed medical school and residency at UAMS in 2002. He then spent five years on faculty in the Department of Emergency Medicine at the Johns Hopkins University School of Medicine, completing a two-year fellowship in International Emergency Medicine and a Masters in Public Health (MPH) from the Johns Hopkins Bloomberg School of Public Health.

Bledsoe’s international medical experience includes time in Honduras, Tanzania, Sudan, China, Qatar, Antarctica, and the Arctic, including the North Pole. He was also the personal physician to former President Bill Clinton during Clinton’s tour of Africa in 2002 and has served as an instructor and medical consultant for the United States Secret Service.

He is the son of Dr. James Bledsoe and Arkansas State Senator Cecile Bledsoe.

“Over the course of his career, Dr. Greg Bledsoe has experienced tremendous success, both nationally and internationally — just some of the many reasons I am pleased to announce him as Arkansas’s new Surgeon General. I have had the pleasure of knowing Greg for some time, and there is no doubt that he will serve our state and people well in this new role,” Hutchinson said.

Also on Tuesday (Dec. 30), John Andrews was informed that he would not be retained as director of the Arkansas Department of Rural Services.

Andrews confirmed the news to Talk Business & Politics.

The Department of Rural Services was established in 1991 under the name Office of Rural Advocacy to “serve as a single point of contact for all organizations and individuals with a desire to enhance the quality of life for our rural citizens,” according to the agency’s web site. The agency works with grant funding, research, and information and educational programming through regional forums and the annual Arkansas Rural Development Conference.

Andrews is a native of Walnut Ridge and served on the Arkansas Farm Bureau board of directors for 10 years and was the Secretary-Treasurer for 6 years.

Gov.-elect Asa Hutchinson ended 2014 with an announcement that he will keep two agency directors and bring back a Huckabee administrator to a third one.

On Wednesday, Hutchinson said Amy Fecher would be the new Director of the Department of Rural Services. She replaces John Andrews, who confirmed on Tuesday (Dec. 30), he would not be retained.

“I am pleased to announce Amy Fecher as the new Director of Rural Services. Amy understands rural Arkansas, and her experience, background and familiarity with this department makes her the obvious choice to lead the department and its mission. I have no doubt that she will help enhance the quality of life for rural Arkansans and serve the state well.”

Fecher is the former Deputy Director of the Arkansas Department of Rural Services under Gov. Mike Huckabee. She is currently the Manager of Campaign Research for the Voices for Healthy Kids Team with the American Heart Association, a position she has held since 2013. Prior to that, she worked for the international non-profit, Save the Children, for six years.

In addition, Hutchinson said he will retain Lawrence “Larry” Bengal as Director of the Oil and Gas Commission and John Felts as Chairman of the Arkansas Parole Board.

“Natural resources are critically important to our state, and Larry understands that better than anyone. He has done an outstanding job as Director of the Arkansas Oil and Gas Commission for the last 10 years, and I am pleased to announce that he has agreed to continue in that position in my administration,” Hutchinson said of Bengal.

Bengal is the director of the Arkansas Oil and Gas Commission, a position he has held since 2004.

Regarding Felts, Hutchinson said, “Keeping our communities safe, while giving those, who deserve it, a second chance is a vital part of growing a robust economy. John has shown fine leadership in this department as Chairman of the Arkansas Parole Board, and I am pleased to announce that he will continue that role in my administration.”

Felts is the chairman of the Arkansas Parole Board, a full-time position he has held since 2011. He was first appointed to the board in 1998 by then Gov. Mike Huckabee. He was reappointed by Gov. Beebe to a new 7-year term in 2012, which runs until 2019.

Early reports suggest retail efforts to combine e-commerce orders with in-store pickup have yet to create systems to best capture what could be a lucrative and competitive edge in the dynamic challenge to monetize changing consumer trends.

Retail analysts have repeatedly said retailers who figure out how to best bridge e-commerce orders with brick and mortar operations for heightened consumer convenience will be a clear winner in the next generation of retail. While hoards of retailers offer site-to-store pickup options for reduced or free shipping of online orders, recent research indicates the convenience and time savings for consumers is questionable.

According to a study by StellaService site-to store pickups among 11 retailers (including Wal-Mart and Best Buy) takes an average of 5.4 minutes before entering the store and checking out. This was less than three minutes of time savings compared to the 7 minutes spent on average locating the item in the store and checking out, according to the study.

StellaService said it visited two stores from each of the 11 retailers during the week of Oct. 27. Walk-in and e-commerce shoppers picking up their orders in store entered the retailer at the same time for the purpose of this study.

The study found e-commerce shoppers spent the least amount of time (2 minutes) in Office Depot, while Home Depot and Macy’s logged the longest time at 8.5 minutes each. The study also found there was typically a brief time savings for the shoppers picking up their online orders among the majority of the retailers. The exceptions were Home Depot, Macy’s and Nordstrom, who each posted a faster in-store shopping time versus the pickup.

MIXED SENTIMENT
An informal survey by The City Wire found consumers were mixed on the site-to-store option. Kathy Campanirio of Taunton, Mass., used the site-to-store option offered at Walmart which she found to be efficient and there were no shipping costs.

Jami Dennis of southwest Missouri did not have a pleasant experience at the retail giant. Dennis, a Walmart fan, said there was a major snafu with her Walmart.com order during the pre-Black Friday sales. She ordered items on special and was told she could pick them up at a Walmart by noon the following day. Her credit card was charged for the purchases and she got a confirmation email.

“I was so excited to get some awesome deals. My husband drove 25 miles to the Walmart that had our order only to be told that they sold them all by accident and that they would refund our money within 10 days. Although the manager was very kind and apologetic for the issue, he said that the system was not fast enough to notify the stores to hold goods that may have been purchased online for site to store,” Dennis said.

Dennis said the moral to her story is that special deals should be purchased in-store or shipped directly to the home when ordered online, because she ended up empty-handed and had to wait nearly two weeks for a refund.

StellaService said retailers did a good job sending confirmations as items were available for pickup in just over an hour on average. Macy’s logged the longest wait time for the availability confirmation at 2 hours and 26 minutes, slightly longer than Sears at 2 hours 20 minutes. Best Buy and Lowe’s posted the shortest time for availability confirmation at just 10 minutes after the order was placed. Home Depot was the only retailer that allowed shoppers to schedule a pickup time.

Carlos Collier of Tulsa, Okla., told The City Wire that he also took advantage of an online deal for television at Best Buy, which was to be picked-up in-store two weeks after the order was placed.

“I was fine with the wait, for the price” Collier said. “When the time came to pickup, we were prompted by an email to schedule a pickup location by calling a toll free number, which was a nightmare.”

Collier said the random call center was oblivious to Best Buy’s operations.

“Nonetheless, we called a store location and they told us to come pick it up. When we got to the store we were told it had to be picked up across town. We drove to that store only to be told it was at the store we have just left so we had to literally drive back across town. They knocked $100 off the price for our trouble, so I suppose it was worth it, but it was not a good experience,” Collier said.

CHECKOUT CONCERNS
StellaService noted in their study that the checkout process for in-store pickup varies across the retail spectrum. Wal-Mart is testing lockers in Northwest Arkansas and a few other markets. This locker system is designed to speed up the collection process and is for items ordered online and paid for online. There is no check-out process needed in this instance. The locker code is contained in the email confirmation that is sent to the purchaser.

Wal-Mart told The City Wire it does not ship e-commerce orders to the stores unless payment is already received. The only wait time incurred by shoppers picking up their online orders in-store is at the Walmart.com counter located at the back of the store at most supercenters, but upfront in the new Neighborhood Market formats.

StellaService found that Best Buy, Lowe’s and Target each had dedicated pickup areas in the front of their stores. Nordstrom allows shoppers to pickup online orders at any service desk. The bulk of time spent by the online shoppers was at the checkout desk or pickup center as these stations can be thinly staffed. The average time spent at checkout among the 11 retailers was 3.1 minutes, according to StellaService.

Fayetteville resident Anna Shultz said in November ordered sandals for a special occasion online at Payless.com. She opted for in-store pickup to save the shipping costs. A few days later, she got a confirmation text and phone call from the store that the shoes were ready for pickup. When Shultz went to the store the following day the clerk could not find them. She waited for more than 20 minutes while the clerk searched for the order in the back of the store. Shultz said she ordered the sandals online because they were out of season at the time.

EFFICIENCY, STAFF TRAINING ISSUES
Kevon Hills, research analyst with StellaService, said there is work to be done by retailers to speed up the in-store pickup process. 

"If in-store pickup proves popular with consumers, you can expect retailers to continue to invest in a more efficient process,” Hills said.

The Walmart Supercenter in Bentonville is constructing an additional holding room for online orders to be picked up in-store, according to store manager Scott Swenson. The structure is located in the parking lot adjacent to the pharmacy drive-through lanes. Swenson told The City Wire that more storage was needed for online orders routed to the supercenter.

David Dorf, senior director of technology strategy at Oracle Retail, said in-store pickup options may not save that much time when the item is in stock, but it only takes one wasted trip to frustrate and possibly lose a customer.

Critics of the StellaService study said the report misses the point on some level because many times the main objective with in-store pick-up is to save the shipping costs or eliminate boxes being left unattended on at their front door during the day.

Toni Fenton of Rogers said she might consider site-to-store pickups if there was a drive-through option, but she doesn’t want to deal with sales clerks who don’t understand the process.

Kevin Graff, president of Graff Retail, writes that the in-store pickup experiences of his own have been satisfying and frustrating at times.

“The technology worked great every time with ease. However, the in-store pickup was less than smooth. Lines were sometimes this issue, but the biggest frustration came because staff were unprepared for the pickups and time was wasted as they had to sort things out,” Graff said. 

He said a bigger frustration is from the retailer's side. 

“Not once did anyone attempt to sell me anything else at the point of pick up. Isn't the point of getting me to come to the store to get me to buy something else?”

He said retailers will need to do a better job of training their staff and implementing systems that streamline the pick up, and at the same time increase add-on sales.

Gov.-elect Asa Hutchinson made plenty of news in a pre-session Q&A with reporters at the state capitol on Tuesday (Jan. 6).

Saying he wanted a “quick start” to his legislative agenda, Hutchinson touched on issues ranging from tax cuts to prison overcrowding to health care reform and education.

“I hope to accomplish the agenda I campaigned on,” Hutchinson told reporters at a capitol forum sponsored by the Arkansas Associated Press Managing Editors.

Hutchinson also discussed at length his positions on the state lottery, highway funding, and ethics and elections reforms.

The Gov.-elect said he wanted to pass his $100 million middle-class tax cut plan early in the session. He said he didn’t think the cost impact would undercut the state budget, but he did say that some forthcoming tax cuts “may be on the table for discussion or delay.”

He also said his income tax cut proposal was not “draconian.” He did not envision a scenario where the cuts would undermine the state budget like Kansas officials experienced last year.

“You can’t compare what they did in Kansas with what I want to do here in Arkansas,” said Hutchinson. “We can handle it with our growth in our normal budget.”

PRISON OVERCROWDING
Hutchinson spent a large bulk of his hour with reporters discussing prison concerns. The state is dealing with major prison overcrowding and Hutchinson said that it was a budget problem and societal problem to address.

His preliminary inquiries show that the state prison population is currently around 17,800, about 3,500 over capacity. Another 2,100 prisoners are backed up in county jails. Hutchinson said about 90% of those in state prison are previous offenders and 10% are new offenders. Pledging more money for parole programs, he said another 1,000 inmates eligible for parole have no housing options if they are released.

“You’re incarcerating repeat, repeat offenders,” said Hutchinson, noting that providing better re-entry programs and changing the behavior of parolees has to be a big priority. He said he wants to heighten discussions with faith-based organizations and nonprofits to improve re-entry program options.

“That’s where you have to change behaviors and break that cycle,” Hutchinson said. “That is my objective in criminal justice reforms.”

Declaring a $100 million new prison unlikely, Hutchinson said he’s open to housing prisoners in Louisiana as a temporary fix and he said that outsourcing prison functions to private enterprises would need to be studied carefully as the state has had poor experiences with them in the past.

EDUCATION
On the education front, Hutchinson said he hoped to move quickly on his computer coding initiative that was a centerpiece of his gubernatorial campaign.

On the issue of Common Core, he said he would convene a task force to study the controversial initiative. Hutchinson said his task force would include teachers, educators and parents.

He also said he would support a new examination of the 350-student threshold for school consolidation, an outcome of the historic Lake View decision.

The Gov.-elect said there should be factors that would contribute to a waiver on the student number threshold such as academically and financially sound schools where consolidation could create long bus rides for students. Stopping short of specifics, Hutchinson generalized that there should be factors in a review or repeal of school consolidation.

HEALTH CARE, LOTTERY, ETHICS, ROADS
The private option and other health care reforms will be front-and-center in the 90th General Assembly. Hutchinson has said previously he would wait until late January to make his positions known on the PO and other efforts.

At Tuesday’s Q&A, Hutchinson said he would make a major speech on health care reform that would outline his positions on these items.

“Legislators want to see a bigger picture of not just the private option, but healthcare reform and the long-term impact,” he said.

Hutchinson is supportive of legislative efforts to change the Arkansas Scholarship Lottery. While he said the lottery would operate better in the executive branch of government, he said he thinks the Department of Finance and Administration might be a “better fit” than the Department of Higher Education, where legislators are considering placing the lottery’s staff.

The Gov.-elect also said he hoped there would be significant efforts made on ethics and election reforms.

“I think there’s a need for election reform and a broader discussion about ethics reform,” he said. Claiming he wants “bipartisan solutions,” Hutchinson said he supports online filing for statewide candidates and raising individual limits on campaign contributions, which are currently $2,000 per person per election.

Hutchinson didn’t specify how much he hoped individual contributions would be raised, but he expressed concern about outside group spending, which aren’t subject to as many disclosure rules.

Hutchinson said he would not propose a highway funding plan in the regular session, citing a need for a consensus between economic developers, higher education and the highway industry.

Van Buren and other wholesale water customers of the Fort Smith water system will not see their rates change to help pay for the estimated $480 million Fort Smith will have to invest by 2026 as part of an agreement with the federal government.

Settling with the Environmental Protection Agency and the federal Department of Justice on problems related to the city’s violations of the Clean Water Act could result in a tripling by 2026 sewer bills for all city customers on the Fort Smith system. Sewer bills for Fort Smith residents could grow from an average of $40 per month to up to $120 by 2026. If a sales and use tax is implemented in 2020, the monthly rate may only increase to $103 by 2026.

The EPA alleged that the city violated the Clean Water Act because of failure to properly operate and maintain its sewer collection and treatment system. Since 2004, Fort Smith has had more than 2,000 discharges of untreated sewage from its municipal sewage system, resulting in more than 119 million gallons of raw sewage flowing into local waterways, including the Arkansas River, according to an EPA statement.

Fixing the failures won’t be cheap. The estimated $480 million settlement includes $375 million in capital costs. Of that, 39% ($145 million) is for defect remediation, 17% ($63 million) for capacity remediation, 12% ($45 million) for pumping improvement and 10% ($37 million) for engineering and professional services. Treatment, capacity assessment and current projects are also included in the capital costs.

In January 2014, Fort Smith Deputy Administrator Jeff Dingman said future negotiations with wholesale customers of the Fort Smith water supply may include rate increases to help pay for a future settlement with the EPA and DOJ.

"As we're working more toward the consent decree that will (demand more) of the city, we will need to go through all of our rate structures and sewer (rates). It will include revisiting how wholesale agreements with Van Buren and all other wholesale customers work,” Dingman said in January.

However, Dingman said recently the emphasis of the settlement shifted entirely to sewer issues which does not include water customers.

“Considerably more is now known about the final scope of the consent order than was known in January,” Dingman noted in an e-mail to The City Wire. “There will definitely be sewer rate modelling and proposals for adjustments to sewer rates based on the consent decree, but there is no reason to believe that this sewer rate work will have an impact on wholesale water sales agreements already in place.”

According to Dingman, 27% of total Fort Smith water revenue was from wholesale users in 2013. He said that is “pretty typical” of annual usage.

A new session of Congress started Tuesday, as two new congressmen and a new senator made history as an all-Republican Arkansas delegation took office.

The state’s congressional delegation – U.S. Sens. John Boozman, R-Ark., and Tom Cotton, R-Ark.; and U.S> Reps. Rick Crawford, R-Jonesboro, French Hill, R-Little Rock, Steve Womack, R-Rogers, and Bruce Westerman, R-Hot Springs – were sworn in around lunchtime during sessions in the U.S. House and Senate.

Cotton, who defeated incumbent Sen. Mark Pryor, D-Ark., in the November general election, was among the third group of four senators each to raise their hands before Vice President Joe Biden.

“It is a great honor to be a member of the United States Senate. I’m humbled by the support of my fellow Arkansans and am grateful they’ve given me the privilege to represent our great state. Now, we turn to governing and putting Arkansas and America on a path of growth, opportunity, and security. I look forward to the important work that lies ahead,” Cotton said.

Boozman, who is now the state’s senior senator and is up for re-election next year, said the delegation will work on fiscal issues in the new session.

“This is an exciting time for the people of Arkansas, our nation and the future of the United States. The Arkansas delegation is committed to doing what’s best for our state and I’m excited to work with our new members to promote policies that encourage job growth,” Boozman said. “A Republican-led Congress will push to make our tax code fairer and simpler for all Americans, cut spending to address the debt that is hurting the future for our children and grandchildren and stop regulations that are inefficient, ineffective and unnecessary.”

HOUSE MEMBERS
The state’s House delegation echoed the statement made by Boozman Tuesday.

Crawford, who defeated Democrat Jackie McPherson last fall, said the opportunity to serve often begins simply with the raising of a right hand.

“Today’s oath of office starts a new chapter for congressional members to support and defend the U.S. Constitution, and I began my third term serving the First District of Arkansas, taking that oath with great responsibility, privilege and honor,” Crawford said. “My priorities for the 114th Congress include new responsibilities within the House Agriculture Committee and legislation to limit the federal government’s out-of-control spending problem, and I’m eager to work toward common sense solutions that advance our country, state and district.”

Hill, who defeated Democrat Patrick Henry Hays in November, said the message sent by voters was clear and to the point.

“I am honored to serve Arkansas’ Second Congressional District, and I am humbled by the support of the hardworking Arkansans who entrusted me with this responsibility,” Hill said. “This past election, the American people made clear their opposition to the President’s go-it-along approach to governing, and I am ready to work with my colleagues in the House and the new Senate majority to fight against the President’s failed policies. I pledge to work for solutions that eliminate wasteful government spending, strengthen our foreign policy and national security, achieve greater accountability, promote economic success for all Americans, repeal Obamacare and allow Arkansas’ families and businesses to thrive.”

Womack, who presided over debate Tuesday afternoon involving House rules, said having a Republican majority in the House and Senate gives his party a chance for leadership and to find solutions to problems.

“Serving Third District Arkansans is an honor and a privilege, and as your representative, your priorities are my priorities,” Womack said. “This new Congress is an unprecedented opportunity to address the many challenges America faces today, and I look forward to working with the Republican majorities in the House – and now the Senate – to not only find these solutions and fight to restore fiscal responsibility and government accountability in Washington, but also promote the conservative values we hold dear.”

Westerman, a former state representative, challenged the Obama administration to provide leadership on a series of issues.

“It is a great honor and privilege to serve the hardworking taxpayers of Arkansas in their Fourth District office. As we start the 114th Congress, I look forward to fighting for more freedom for my constituents who have seen nothing but hassles from President Obama and his administration’s record of overreach,” Westerman, who defeated Democrat James Lee Witt last November, said. “This Congress will force the President to make a choice – whether to listen to people or follow his own personal agenda. I am looking forward to his choice.”

Gov.-elect Asa Hutchinson and soon-to-be First Lady Susan Hutchinson held their first two pre-inauguration events in their “home” regions of Northwest Arkansas and Fort Smith, with the Gov.-elect using the events to announce top appointments and speak about his future role as the state’s chief executive.

His most recent appointment was Tuesday night during the Fort Smith event where it was announced that Fort Smith businessman Mike Carroll would be appointed to the Arkansas Economic Development Commission. Carroll is the senior partner of Fort Smith-based accounting firm of Beall Barclay & Co., and also served on Hutchinson’s gubernatorial transition team.

“Fort Smith is a critical part of our state’s economy and its success as a whole. The potential for economic growth and job creation here and across Arkansas is incredible, and it is imperative that we put good people in place to help facilitate that growth. This is why I am pleased to announce the appointment of Mike Carroll to the Arkansas Economic Development Commission,” Hutchinson said in a statement. “I have no doubt Mike’s success and experience in the private sector will greatly benefit the AEDC, and, what’s more, his perspective and knowledge of the Fort Smith area will help in achieving our economic goals.”

ROGERS AUDIENCE
More than 200 people attended the function in Rogers where Hutchinson announced three appointments from the Northwest Arkansas region, his home off and on since he grew up in Springdale. Jim Von Gremp was reappointed to the University of Arkansas Board of Trustees; Philip Taldo was appointed to the Arkansas Economic Development Commission; and Neff Basore was appointed to the Arkansas State Police Commission.

Hutchinson said he went to high school with Taldo and he looks forward to the contributions Taldo, a small business owner, Realtor and real estate developer will make to the Arkansas Economic Development Commission. Hutchinson also recognized his former classmates from Springdale High School who were in attendance at the Rogers dinner. He thanked them for their support over the years noting that they was still a lot work to be done as he takes office next week.
"I have to make 250 appointments by Jan. 31, so we will hit the ground running next week as we look forward to serving this state," Hutchinson said.

One of his top priorities is increased technology requirements for all Arkansas school children. Hutchinson said his reappointment of Von Gremp was made because of the critical work the university system is undertaking to expand technology learning and the importance that plays in a thriving economy.

Hutchinson said for years Northwest Arkansas has wanted and needed more representation in Little Rock, a day which has finally arrived. Hutchinson, who makes his home in Rogers, said he will continue to look at Northwest Arkansas professionals for other appointments in the coming days.

"Susan and I are keeping our home in Rogers, even though we will be moving to public housing next week, Hutchinson joked.

He also commended Arkansas' First Lady Ginger Beebe for her work to help renovate and maintain the Arkansas Governor's Mansion for public events.

FORT SMITH MESSAGE
In Fort Smith on Tuesday night, Hutchinson addressed around 300 who gathered at the Fort Smith Convention Center. He noted that he and Susan lived in Fort Smith for 19 years where they raised a family. He thanked the Fort Smith area supporters who “won with us and lost with us” during previous elections. As he did in Rogers the previous night, Hutchinson said he hope to better represent Fort Smith in Little Rock, and promised to “think of Fort Smith when leadership is needed” in Little Rock.

Hutchinson said the November election, in which Republicans gained solid control of the Arkansas Legislature and all Constitutional offices, was a message from Arkansans that they “wanted a more conservative government.” The other side of that message, Hutchinson said, is that Republicans now “have a responsibility for leadership” and will be accountable as to how they govern.

The pre-inauguration events include a stop Jan. 7 in Jonesboro, and Jan. 8 in El Dorado.

A light agenda gave way to a spirited town hall session at the Jan. 6 meeting of the Fort Smith Board of Directors, and there was one main topic on everyone’s mind: a consent decree that could end up tripling the sewer volume usage charge on monthly water department bills by 2026.

The City Wire received a redacted water bill from city staff that is due on Jan. 16. The bill, for $44.39, contains approximately $9.63 in sewer volume usage charges. It’s this number that could triple by 2026, thus resulting in a 43% increase of the the same bill to $63.65.

Rate increases would not be the same for every citizen and could vary in amount.

Ten Fort Smith residents signed up to speak out against the increases. They were backed with a roomful of applause as they questioned how city leaders could “kick the can down the road” for so long.

Jack Swink began with a call for “transparency and accountability.”

“Fort Smith families have the lowest median household income compared to all other similar-sized Arkansas cities,” Swink said. “Many of these families are on limited incomes and strict budgets, and these families have more than fulfilled their obligation not only in providing sales tax revenue to fix the wastewater and sewage to date, but also the revenue to fund pension program departments at city hall that are now inadequate. Any additional rate hike or tax increases should be unacceptable to the citizens of Fort Smith and should not be allowed.”

Swink said on Feb. 1 he and others from the Take Back the Fort 2015 Facebook group would begin petition efforts to change the city’s form of government to one where “the Mayor would have actual decision-making authority and, because he is directly elected by the citizens, he would be accountable to the people.”

Fort Smith operates through an elected board of directors and appointed City Administrator Ray Gosack, who was absent at Tuesday night’s meeting. It’s commonly referred to as a city administrator form of government.

The Facebook page featured 336 likes as of Tuesday night. Petitioners would need 2,517 signatures to trigger a special election to change the city’s form of government.

Citizen Pat Lynch noted that the city administrator system, present in Fort Smith since 1967, had been responsible for “kicking the ball down the field.” While stopping short of saying it was time to change the form of government, he did say that “if the present form of government wants to stay here, they’re going to have to take a hard look at the budget priorities in everything they do, every department.”

“There are some places that I’ve found recently that have been subject to overreach and underperformance. A lot of this code enforcement is driving people to live somewhere else other than Fort Smith,” Lynch said.

Lynch said he believes the city is relying too much on “professional administrators” and that a “mayoral form of government might be more responsive to the people.”

Don Bales inquired as to whether the city had looked at federal grant money and aid to help with the $480 million EPA settlement so the brunt of the costs weren’t taken on by city residents. To this Deputy City Administrator Jeff Dingman, sitting in for Gosack, said that the city had not.

“The consent decree has just recently been filed,” Dingman said, “so the problem for us at this point has just recently been defined. Whether there are grants available or not, I am not aware. But we haven’t done any investigation to examine that at this point.”

Asked if the city had inquired about any monies that might be available, Dingman said, “I do not believe so.”

On Monday, the EPA released details of the settlement noting that over the next 12 years, it would cost the city of Fort Smith $255 million “plus the cost of routine operation and maintenance” (an additional $225 million) to correct violations of the Clean Water Act.

Also Tuesday night, Mayor Sandy Sanders and Directors Tracy Pennartz, Kevin Settle, and Don Hutchings were sworn in with Settle being reappointed as Vice-Mayor.

Directors unanimously approved a resolution certifying local government endorsement of ArcBest Corporation into the Tax Back Program along with a number of rezoning ordinances. The measure is a formality in providing state incentives to assist in a $30 million expansion of the ArcBest corporate presence in Fort Smith. That expansion is expected to add just under 1,000 jobs.

Directors voted against an ordinance establishing prices and fees for grave spaces and services at Oak Cemetery. That ordinance failed 5-2.

The leaders of the Arkansas House and Senate hope the Legislature takes quick action on Gov.-elect Asa Hutchinson’s middle class tax cut and on the private option, and both say there is little interest in the Legislature for building a $100 million prison.

Senate President Pro Tempore Jonathan Dismang, R-Searcy, and Speaker of the House Jeremy Gillam, R-Judsonia, said Hutchinson’s $100 million tax cut plan will be an early priority, one that Dismang said the Legislature “might could get behind us in the first couple of weeks of the session.”

The two legislators, both White County residents and both graduates of Beebe High School, spoke to reporters Tuesday during a capitol forum sponsored by the Arkansas Associated Press Managing Editors.

Both also hope the private option is settled early in the session. The program, which uses federal dollars to purchase private health insurance for lower-income Arkansans through the state’s insurance exchange, was barely passed in 2013 and barely reauthorized in 2014.

Dismang, one of the program’s primary architects, said new legislators are still gathering information on the program. He said it’s “too early to say” if a path to reauthorization exists.

“I have faith in my colleagues – not faith that they’re going to reauthorize the program, but I think that they’re going to be diligent in how they approach the program,” he said.

Dismang said the Legislature will pass a package of Medicaid reforms “with or without the private option.” He said greater emphasis will be placed on the Office of the Medicaid Inspector General, created by the Legislature in 2013.

Ahead of the Q&A with Dismang and Gillam, Hutchinson told reporters that he would make a major speech on health care reform that would outline his positions on these items.

Both said they have talked to no members who support a proposed $100 million state prison but have heard from a number who oppose it. They both said they also oppose it.

Jerry Glidewell has been concerned for more than six months about the small amounts of cancer-causing TCE pollution from Whirlpool’s Fort Smith plant found under the Evans Boys & Girls Club property, but said so far he is “comfortable” that the pollution is not a threat to the hundreds of children, parents and club employees who use the facility.

Glidewell, executive director of the Fort Smith Boys & Girls Club, said other groups, including high school baseball and softball teams, also use the facility, which is one of four club locations in the city.

When the existence of trichloroethylene (TCE) became more broadly known, Whirlpool officials said a groundwater well ban in the vicinity was all that was necessary to deal with the issue. However, more was learned about the pollution plume and the size of contamination has grown and moved in and around the area near Whirlpool’s closed manufacturing plant in south Fort Smith. Whirlpool closed its Fort Smith refrigerator manufacturing plant in June 2012.

The Arkansas Department of Environmental Quality issued on Dec. 19, 2014, a revised plan for addressing pollution in and around Whirlpool’s Fort Smith plant that says pollution has reached the Fort Smith Boys and Girls Club facility but does not necessarily present a direct health hazard.

Glidewell said he and the club’s Board first learned of the potential for pollution near and underneath the Evans site in July. He said Jeff Noel, Whirlpool’s vice president of communications and public affairs, and Mike Ellis, an engineer with Environ, met with the Club Board in August. Environ is the environmental engineering firm hired by Whirlpool to monitor the pollution.

“They’ve been pretty good about communicating the situation out there,” Glidewell said of Noel and Ellis. “But our top question was, and really is, ‘Is it 100% safe out there?’”

Glidewell said he and the Board were not 100% sure what to think about the pollution issue until the Arkansas Department of Environmental Quality said it was safe. The Dec. 19 report from ADEQ noted that none of the chemicals in the analysis “exceed USEPA (Environmental Protection Agency) acceptable cancer risk range of 1E-06 to 1E-04.” The report said “on-site routine workers” and construction workers could be exposed to the chemicals via “vapor intrusion” and “on-site groundwater.”

“I feel comfortable with that,” Glidewell said of the ADEQ’s initial determination that the trace amounts of TCE are not a direct threat. “I can see where Whirlpool and their hired consultant would say one thing, but I I do feel comfortable with the fact that the ADEQ has said that (no direct threat).”

Glidewell added that he and the Board “do like the fact that they (ADEQ) are making them (Whirlpool) clean it up back to the way it should be.”

Although they are comfortable with the information supplied by ADEQ, Glidewell said he is aware knowledge about the pollution may change.

“We are concerned about the (pollution) spread in the future and we will closely monitor that and keep getting the reports,” Glidewell said.

Having the pollution come in contact with the club property changed Glidewell’s perspective on the broader problem of Whirlpool pollution in the area.

“You know, we just have this small amount (of TCE) around our place. It really makes me empathize with the residents out there who have their homes in the plume that have really been impacted,” Glidewell said.

To save more money is a common New Year’s resolution made by many, but financial consultant Joel Doelger of Credit Counseling of Arkansas said few people put an actionable savings plan in place.

That is evidenced by the fact that just 38% of American’s have enough savings to handle a $500 emergency, according to Bankrate.com. Recent data from the U.S. Bureau of Economic Analysis shows that U.S. consumers are setting aside 4.4% of disposable personal income, or just a little more than 4 cents on every dollar. 

Bankrate analysts note that consumers who have not saved the $500 would most likely charge an unexpected expense such as car repair or seek to payout any medical expenses they encounter. At the same time, the average household credit card debt is $6,800, which can take an average 7 years to retire, if no more charges were added.

Doelger said the most critical aspect to saving money for rainy day funds is to create a plan and then follow through with concrete actions.

“Tax season is not that far away and consumers expecting a refund can get a good start by planning to set aside part of their refund to a rainy day fund instead of buying a big screen television, for instance,” he said.

With lower fuel prices putting added money into consumers pockets, Doelger likes the idea of consumers socking those savings away into a savings account. Whether it’s $20 or $50 saved per fill-up, the savings could be set aside without being missed.

Retailers and restaurant owners are hoping the average $1,150 annual fuel savings per average family will be spent, but saving that money could mean the family has the added funds to take a longer vacation or make large purchase needed for their home.

Financial experts at CNN Money suggest using mobile applications like Acorns, that automatically round up debit card purchases to the next whole dollar, and sets aside that change into an investment account with very low fees and no minimums. Bank of America has a similar program called Keep the Change, which takes the change from the rounded dollar amount and puts it in a savings account.

Doelger said some people need to fool themselves into saving with these automatic roundup programs, because that may be the only way the money gets set aside.

Kit Yarrow, a marketing professor at Golden State University, said what people need in order to meet a savings goal is a sense of control and a progress. She recommends separating out funds for various savings goals as it can allow for easier tracking and prioritization.

“It can also keep you motivated and you'll be less apt to raid the ‘Trip to Paris’ or ‘Replace the fridge’ funds for an impulse buy,” she noted. “Dividing your savings into different buckets or accounts, one for each goal, is one solution that can help jump-start savings.”

Programs like Smartypig.com allows consumers to set up individual savings goals that are tied to online savings bank accounts which are funded by direct deposits from a consumer’s checking account at whatever interval and the consumer choses. This program also helps consumers calculate how much to save to reach a certain goal by a specific timeframe.

Doelger said having short-term goals that can be met within a few months is a good moral booster and could help build disciplined savings habits over time. He likes to see consumers set up automatic drafts to savings accounts or investment funds from payroll direct or through their bank. 

“It gets back to paying yourself first. If you don’t do that, chances are there will be nothing left when the month is over,” Doelger said.

When the 90th General Assembly convenes next week, the ghosts of Arkansas’ political past won’t recognize the party make-up of the state capitol.

Republicans will control 23 of 35 seats in the State Senate; 64 of the 100 seats in the Arkansas House; and all seven of the state’s constitutional offices, including the most powerful position in state government, Arkansas Governor.

Asa Hutchinson will be sworn in on January 13th as the state’s 46th governor – a position that will allow the former Congressman to eventually control thousands of appointments, the reins of nearly all state agencies, and a platform to promote a legislative agenda to shape the next four years of public policy.

With near supermajorities for GOP control in both chambers of the Arkansas Legislature, Gov. Hutchinson should have an easy time passing a conservative agenda, and he will for the most part. Already, legislative leaders are deferring their leadership agenda to the new governor similar to how Democratic majorities allowed their Democratic governors to set the tempo for statewide public goals.

Thankfully for Hutchinson, he has a good rapport with Senate President Jonathan Dismang, R-Searcy, and Speaker of the House Jeremy Gillam, R-Judsonia.

So what issues are likely to garner the most attention this session? Start with these.

ECONOMY
Hutchinson campaigned to be the “jobs governor” and the respective leaders of the Legislature say the economy is a top priority for the session. This wide-open topic nets a variety of subject matter: the state budget, tax cuts, the private option, and education reform to name a few.

More specifically, expect big pieces of this public policy to focus on Hutchinson’s goal for $100 million in tax cuts for the middle class. It was the biggest promise he made in his campaign and he’ll have to deliver to maintain credibility. So far, lawmakers appear solidly behind him, even if it means not passing other smaller tax cuts that are of importance to local interests.

Workforce education will be another crucial element in efforts to push the economy forward. State leaders have been reviewing these programs for potential changes – many of which may be made at the executive level – in order to match job applicants with the skills needed for available jobs. Optimizing these programs for the best results is the state equivalent of the Da Vinci code – unlock the puzzle and unemployment could set a record low.

Other crucial debates that will center on economic development likely entail the salary for the next director of the Arkansas Economic Development Commission, the agency charged with recruiting and expanding jobs. Currently, the salary level is $140,000, but times have changed and other states are in an arms race to recruit the best – much like college football coaches. Hutchinson has suggested raising the salary to $200,000, supplemented by private foundation funding, but the pay may need more tacked on to compete.

With a change in gubernatorial leadership, there will likely be a thorough review of the state’s economic development incentives. With another superproject waiting in the wings and other projects in the pipeline, Arkansas will have to do its best to keep up with the Jones’, those other states who are willing to go pretty far with enticements to recruit the next jobs producer to its borders.

PRIVATE OPTION
It will be different, but no one can really paint the full picture of what Private Option 2.0 will look like. For starters, the political wrangling may determine various aspects of the PO’s final reveal.

Shrouded in controversy since its inception in 2013, the Private Option takes federal Medicaid expansion dollars and allows the state to use it for private health insurance for lower income workers. It is much more complicated than that distilled concept, but lawmakers will need a three-fourths vote from both chambers of the legislature to fund its continuation.

Other states have emulated Arkansas’ novel approach and have tailored it with additional conservative elements, such as tying insurance availability to searching for work. Gov.-elect Hutchinson said he will deliver a major speech on the subject by the end of January.

Look for a robust debate and a plethora of proposed changes from lawmakers eager to find a way to keep the program’s money in place while implementing conservative health care reforms. The PO is crucial to the state’s balanced budget projections and with many Republican newcomers having campaigned to shut down the program, the politics on this subject will be fascinating and a huge challenge for Hutchinson and legislative leaders.

PRISONS
Estimates suggest that a new $80-$100 million state prison needs to be built to house overflowing lock-up facilities and overcrowded county jails. But this isn’t your father’s Legislature. With a more conservative bent, spending money to lock up criminals isn’t going to be the first choice for lawmakers to consider.

Already a study has come back that offers a blueprint for what legislators and Gov. Hutchinson may propose. In late November, the Bureau of Legislative Research returned a report that suggests a review of Act 570, which altered sentencing guidelines. There is interest in privatizing corrections management in an effort to save money as well as utilizing intervention and re-entry programs. And, lawmakers are exploring an expansion of the highly successful drug court program.

“At the end of the day, the bad people need to go jail,” said Sen. Eddie Joe Williams, R-Cabot, a Senate leader on the issue. “If we try these alternatives and we still need a 1,000 bed facility, then we’ll take that up. But until we look at alternatives to our current process, if we build a 1,000 bed facility, guess what we’re going to do? We’re going to fill it up. And then we’re going to want another 1,000 beds and another 1,000 beds.”

In a pre-session discussion with reporters, Hutchinson explained that improving outcomes in this arena would be a crusade for him. Several of his first announcements of agency directors centered on corrections and the state police. With his background in law enforcement and prosecution, expect significant action on this front.

EDUCATION
Education issues abound in the 90th General Assembly. In addition to the aforementioned workforce education reorganization that could take place, K-12 and higher education account for nearly 70% of state tax dollars spent.

Controversy is brewing among supporters and detractors of Common Core, a set of common standards in math and in English language arts that were at one time adapted by 45 states. Business leaders approve of the goals, while a growing number of disbelievers view it as taking away from local control. Lawmakers will have their hands full with both sides of the Common Core argument. Look for emotional and heated committee meetings on the subject.

ARE-ON is another education related subject that will enlist controversy. ARE-ON is the Arkansas Research Education Optical Network, a private network used by universities and hospitals but prohibited by Act 1050 of 2011 from being used by public schools. A group of broadband expansion supporters want the law changed to allow K-12 access to ARE-ON, while another coalition of broadband expansion supporters that includes the state’s Internet companies claims the shortfalls are exaggerated and that private industry solutions exist more cost-effectively.

Hutchinson should get a signature piece of education legislation through the General Assembly. He campaigned to expand computer coding in the state’s public schools – you may remember his granddaughter Ella Beth’s commercial – and lawmakers are likely to pass a bill with little controversy. The price tag is expected to be low, the goal is worthy, and the logistics for implementation should be achievable.

The other high-profile education issue that should stir further controversy involves the insurance program for the state’s public school employees. Already, lawmakers have met twice in a special session to make changes to the program that was in serious financial jeopardy. Additional alterations are being contemplated, including subsidizing new teacher insurance plans, but the system is in better shape due to fewer catastrophic claims. Lawmakers will still want to go further, but with Democrats controlling 10 of the 20 seats on the House Education Committee and the House Insurance and Commerce Committee, they will have some muscle to make sure that any changes have bipartisan support.

LOTTERY
State Sen. Jimmy Hickey, R-Texarkana, has been leading the charge to change the state’s scholarship lottery. He and other lawmakers have been frustrated by declining lottery revenues, and therefore, scholarships. The independent nature of the Arkansas Scholarship Lottery and its governance board has also compounded the situation despite legislative oversight.

Recent legislative reports on the lottery have criticized its lack of business planning, its marketing decisions, and its underperformance compared to other states. Lottery officials say they are making changes and pushing reforms, but it doesn’t seem to be quick enough to meet legislative demands.

Hickey wants to pull the lottery business into the state Department of Higher Education. Hutchinson has suggested it might be a better fit under the Department of Finance and Administration. It appears something is going to change.

ETHICS, ISSUE No. 3
The newly passed Issue No. 3, an ethics and term limits measure, has caused tremendous consternation for the existing capitol culture. Many legislators and lobbyists are confused as to how extensive the new rules apply, what is prohibited during a legislative session, and no one wants to get fined or reprimanded.

But the amendment passed by voters doesn’t spell out all the answers to questions raised. Legislators will have to pass enabling legislation, defer rulemaking to the Arkansas Ethics Commission, and possibly wait for that months-long rulemaking process (that now has to be approved by the Legislature) to unfold.

The bottom line: the rules of engagement will be unclear at the state capitol during the 2015 regular session. Add to the mix the fact that the Ethics Commission was already seeking more funding as its investigatory duties have grown in recent years and you have a recipe for a variety of ethics debates.

AGRICULTURE
The Turner Grain debacle this summer sent shockwaves through the state’s agricultural community. The controversy centered on Turner Grain Merchandising, a commodities dealer located in Brinkley. Turner did not pay or delayed payments on crops to farmers that it was supposed to process, leaving many farmers to find alternative brokerage sources or walk away from their yields.

Arkansas has no laws pertaining to grain dealers. It does have laws pertaining to warehouses, but warehouse owners can choose to be certified by state or federal authorities.

Look for an effort to be made to put inspectors in the field to try to identify “Turner Grain” problems before they reach the widespread proportions they did in 2014.

PRESIDENTIAL PRIMARY
A number of Deep South states are looking to move up their presidential primaries to March 1, 2016 in an effort to create a “Southern Super Tuesday,” which would come on the heels of early primaries and caucuses in Iowa, New Hampshire, and South Carolina.

The state tried this in 2008, but it was an effort to force more attention on Arkansas as a primary state. It didn’t work well and the law was reversed in the next session.

In 2016 there could be benefit for a GOP candidate, particularly one with ties to the South (Mike Huckabee), for an early Southern primary. With Republicans in control of the state Legislature, it should be an easy deal. However, some Republicans will argue that it is a sorry use of taxpayer money and if Democrats want to throw a monkey wrench in the plan, they hold half the seats in the Senate State Agencies Committee, which would likely be the committee that would debate the issue.

HIGHWAYS
There will be talk of highway funding in the 90th General Assembly, but there is no early consensus on what might occur. Traditionally, state highway money largely comes from sales taxes collected on motor fuels, but that’s been a declining revenue source thanks to better fuel efficiencies.

Some highway supporters have advocated taking growth revenue from general revenues tied to auto-related products and services and earmarking that money for road funding. But no one has taken a leadership role on this issue with enough sway to lead it through the legislature.

Legislative leaders say they don’t see an appetite to raise taxes for roads or add more money to a recently-passed half-cent sales tax, and Hutchinson said he does not plan to propose a highway program in the regular session.

TORT REFORM
This is a big business issue for the next regular session. The Arkansas State Chamber of Commerce, one of the most powerful business lobbying groups in the state, has hired a full-time employee to work on tort reform at the grassroots level. There is plenty of legislative sentiment for curtailing judicial activism and the penalties that get levied on businesses through the courts.

Gov.-elect Hutchinson said he wanted to lead on tort reform during the campaign, so there is a good chance the subject gets hotly debated. However, Democrats have largely opposed tort reform efforts – arguing that it is overreaching and takes away from due process. To reinforce their positioning on this, they could prevent a constitutional amendment from clearing the Senate State Agencies Committee where they hold four of the eight seats. They also stacked an alternative committee, the Senate Judiciary, with four of eight members.

LEGAL CONTROVERSIES
A number of non-economic issues will likely dominate the early days of the session. They include social issues impacting abortion, gun control, voter ID, and same-sex marriage.

All of these issues were raised in lawsuits or the threat of lawsuits in the interim between the 2013 session and the coming one. They are hot-button issues with Republican voters – and some Democrats – so expect them to come fast and furious in 2015.

Gov.-elect Asa Hutchinson will give a “health care reform address” Jan. 22, he said Tuesday to a packed Arkansas House of Representatives chamber after taking the oath of office as the state’s 46th governor.

Speaking to members of the House and Senate, Hutchinson avoided using the word “private option” during that part of his 15 minute address. Legislators are divided about whether to retain the program, which was created in 2013 and now serves about 200,000 Arkansans. (See the provided transcript of Hutchinson’s speech at the end of the this story.)

The state’s “first order of business” is economic development and job growth, which are the keys to other state priorities such as schools and highways, he said. To encourage that growth, he said the middle class tax cut upon which he campaigned will be presented to legislators later this week.

Hutchinson said he would present a balanced budget to the Legislature by the end of the month that will include areas of savings and inefficiencies but will fully fund education.

Regarding education, he repeated his campaign pledge to ensure that all Arkansas high schools offer computer science. He said it “will give us an opportunity not to lag behind the nation, but to lead the nation.”

Hutchinson was greeted warmly as he and the state’s new first lady, Susan Hutchinson, made their way into the chamber. He recited the oath of office administered by Chief Justice Jim Hannah while she held the Bible – his late father’s – upon which his hand rested. Earlier, the state’s other constitutional officers were sworn into office.

In his speech, Hutchinson called for criminal justice reform that will address a prison population that is 3,500 inmates above capacity. He pointed out that 3,500 is also the size of the increase of parole revocations from 2013 to 2014 after reforms were enacted to make it less likely that prisoners would be paroled.

Hutchinson said a friend in south Arkansas had told him that he should respond to his larger-than-expected victory by being “bold in your leadership.” He said Arkansas is in the midst of a time of change. Change is often resisted because it is uncertain and because it requires people to wrestle with their convictions, he said.

“But sometimes change is resisted because we are content and comfortable in the status quo, and let me tell you, friends and colleagues, that the status quo for Arkansas is not acceptable,” he said.

Hutchinson warned that if Arkansas does not adapt to new realities, the next generation of Arkansans will call other cities home.

“I challenge myself, the citizens of this state and my colleagues in this room to embrace the energy of change and growth,” he said.

He called for legislators to work together to address the issues that will come before them.

“Governing is not about which political party is in the majority. Governing is about setting aside differences and searching for common ground,” he said. “And as we search for the common ground, we realize quickly that our differences are smaller than we thought, and our hearts are larger than we imagined.”

Later this evening, Hutchinson will participate in the Governor’s Inaugural Ball at the Statehouse Convention Center in Little Rock.

Vince Insalaco, chairman of the Democratic Party of Arkansas, released this statement after Hutchinson’s inaugural address: “Arkansas Democrats continue to follow Gov. Hutchinson's indecisiveness regarding the Private Option. We urge our new Governor to look at the facts. Taxes were cut in a compromise between Democrats and Republicans to create the Private Option, but Gov. Hutchinson is now reconsidering those bi-partisan tax cuts. Now, a year later, over 200,000 working Arkansans have insurance. Now, a year later, our rural hospitals in Arkansas are still open because of the private option – providing critical services for rural communities and jobs for Arkansans. We urge our new Governor to look closely at the Private Option that has become a win-win for Arkansas.”

TRANSCRIPT OF GOV. ASA HUTCHINSON’S INAUGURAL SPEECH
Gov. Tucker, Gov. Huckabee, Sen. Pryor, Mr. Chief Justice, distinguished guests, and, most importantly, to my fellow Arkansans,

Thank you.

I am humbled by the opportunity and the responsibility that you, the people of Arkansas, have bestowed upon me. Today, I accept that responsibility as the 46th elected Governor of this great state.

There are moments in life that stand apart. This is one of those moments. For me, it is my highest public honor. . . . But, more importantly, it is a tribute to the miracle of democracy that we witness every election cycle in the U.S.—the orderly transfer of authority. And it is the envy of the world—this moment here on the steps of our state Capitol. It is a reminder of why we are all so blessed to be Americans.

And we are especially privileged to be Arkansans, and to live in a state with so much natural beauty and so many wonderful people—a state with a rich history and unbounded promise. Yes, we are the Natural State.  And while I am from the Ozark hills, I know the beauty of a Delta sunrise and the vast timberland of the South. And so while we enjoy the natural bounty of our geography, we also continue as the Land of Opportunity. And today we are presented with unprecedented economic opportunity during time of great change in the world.

In fact, we live in a time of consistent change. Political change. Demographic change. New technologies. Our challenge in the years ahead will be to adapt our agriculture, our government services, our health-care system and our industry to our changing world without forsaking our values. In other words, let’s embrace the energy of change and all the opportunity it brings without forsaking our foundation. Our most reliable foundation is truth, our faith and confidence in Almighty God as He guides our nation and state.

It is truly a new day in Arkansas. An historic day. A day that many of us never thought we would see in our lifetimes. The Republican majorities are evidence of the realization that a new day requires a new look.  A new look at how government works; how we create jobs; how we partner with faith-based and nonprofit organizations, and how we adapt in every walk of life to changing technology.

But governing is not about which political party is in the majority. Governing is about setting aside differences and searching for common ground. And as we search for the common ground, we realize that our differences are smaller than we thought and our hearts are larger than we imagined. We realize that we all care about the state we love and that we can work together to accomplish even more to enhance freedom and the spirit that is uniquely American and, yes, uniquely Arkansas.

And when we come to work tomorrow in this magnificent building behind me, our charge will be the same: to build a new foundation for job creation and economic growth. My top priority is to grow the economy of this state, to create jobs, and for Arkansas to enter a time of sustained economic power and influence. This is no easy task. But we accept these challenges. We embrace them. After all, we are Arkansans. There is no moment too big for us.

We can compete and win in this global marketplace by lowering our tax rates, starting with the middle class; by improving job skill training in our high schools and two-year colleges; by offering computer science in every high school; and by reducing the burden of unreasonable regulations on our businesses.

As governor, I want people to work; and when they work, they should be better off; and when they work hard enough, they should move up the economic ladder. These are common sense values that give Arkansans hope.  Hope for a better life. "We have every right to dream heroic dreams," Ronald Reagan said in his first inaugural address.

And while we strive to work and get ahead, we must not forget our responsibility to provide a safety net for those particularly in need. And I am grateful for those who are working every day to protect neglected and abused children.

I want to take a moment to acknowledge the military veterans who are here today and our men and women in uniform serving all over the world. They remind us of the sacrifice necessary to maintain freedom. And they remind us of Arkansas's strong contributions and link to the world—our important place in the world. What we do here matters to people all over the globe.  Just consider:

Our agriculture nourishes the world.

Our homegrown businesses, like Walmart, Murphy Oil, Dillard's and Tyson, clothe and feed the world.

Our world-class academic institutions, like UAMS not far from here, educate the world.

Our arts, from the one-of-a-kind exhibits at Crystal Bridges in Bentonville to the talented artisans of the Delta such as Miller's Mud in Dumas, are among the joys of the world.

Our writers and musicians entertain and inspire. I noticed just the other day that the great soul singer Al Green of Forrest City was honored by the Kennedy Center. We are so blessed with talent.

I don't know if you're familiar with the gentleman who sang the national anthem, Dwight Clyde "D.C." Washington, but he's one of the most recognized singers of the anthem in the United States. He now lives in Springfield, Virginia, but he grew up in McGehee, Arkansas.

Considering the size of our state and our national and global influence, what Arkansas has done is nothing short of amazing. And that's why I'm so optimistic about our future together. Arkansans can do anything because, well, we have done everything.

And we're just getting started because it is a New Day in Arkansas!

Thank you, God bless you, and God bless the people of Arkansas.

China, an important U.S. trade partner for the U.S. poultry industry, has once again shut off imports following the discovery of avian influenza in backyard poultry and wild birds in the Pacific Northwest.

This move surprised the U.S. poultry industry because the H5N8 virus detections uncovered in backyard hens in Oregon along with wild birds in Washington State and California last month did not involve commercial poultry farms.

“There’s absolutely no justification for China to take such a drastic action,” said Jim Sumner, president of the USA Poultry & Egg Export Council. “In fact, these isolated and remote incidents are hundreds if not thousands of miles away from major poultry and egg production areas. Most all of our other trading partners have taken some sort of regionalized approach and have limited their restrictions to the state or, in some cases, to the county. We would have expected China to do the same.” 

From January through November last year, U.S. exports to China – a key export market for U.S. chicken, turkey and duck products – reached nearly $272 million, according to the export council.

The nation’s largest chicken company, Tyson Foods Inc., does considerable exports with China and operates inside the country with a vertically integrated chicken business of its own.

In 2013, Tyson exported $368 million of chicken products to China, which was 16% of its international poultry sales. Tyson’s business inside China is not profitable, which has caused the company to stall plans for expansion until market demand in China improves, Tyson CEO Donnie Smith noted in the November earnings call.

Tyson’s export sales grew in 2014, but the operating margins for its internationally run chicken business were down 8.8% as plants ran at just 67% capacity. The meat giant recently sold off its Mexican and Brazilian chicken business to competitor Pilgrim’s Pride, which likely could have been used to fill some orders in China during this ban.

Tyson declined to estimate what this ban could cost, given there is no way to know how long it will last and there are plenty of other countries accepting U.S. poultry exports.

“Since Avian Influenza hasn’t been found in any commercial U.S. poultry flock, we’re disappointed about China banning poultry products. There may be some impact to our business, but we believe the volume will be absorbed by other global markets," said Tyson Foods spokesman Worth Sparkman.

U.S. industry insiders say China’s move to impose a nationwide ban in response to isolated incidents of avian flu goes against international guidelines established by the World Organization for Animal Health (OIE). 

The U.S. Department of Agriculture reports that the H5N8 virus was contained to the affected premises and has not been found in commercial poultry. State and federal officials have increased ongoing surveillance of commercial poultry and backyard flocks in the Pacific Northwest, the agency said.

Sumner adds that China’s restrictions are not only affecting U.S. poultry exporters they are also hindering it’s own domestic business because the U.S. is China’s main source of breeding stock which provides the eggs and chicks needed to maintain production.

If you ask Conner Eldridge about his political future don’t expect an answer. The 37-year-old Prosecuting Attorney for the Western District of Arkansas responds to political questions with a wide grin, twinkling eyes and initial silence. One gets the sense he is flattered by the question but the political animal inside that may one day propel him to other heights has the discipline to convert the lull of flattery into the safety of sincerity.

“I am focused on doing this job every single day. I love this job. I wish I could do it for a long, long time,” Eldridge said. “I will probably have another job in my career. But whatever job that is, I think that I will always consider my time here to be so rewarding, and I hopefully have a lot of time left here.”

You want to believe him. He’s got that eastern Arkansas way of speaking – a little bit of long draw on the consonants and vowels with a reassuring lilt that almost places the listener in a mental beach hammock. Others possessing similar linguistic subtleties include Messrs. Pryor (David), Clinton and Huckabee.

Just a few days before the interview for this story, Eldridge sat across a federal court room from a lawyer who not only once held his job, but was just a few days away from being elected the next Arkansas Governor. Gov.-elect Asa Hutchinson was 31 when he became the Prosecuting Attorney for the Western District of Arkansas. Eldridge was 33, and his background is considerably more political, and possibly broad, than was the young Hutchinson.

A BRIEF BIO
William Conner Eldridge Jr. was born in Fayetteville in 1977. He lived in Augusta, Ark., through the sixth grade. Mary Tull and Bill Eldridge then moved the family to Lonoke, where Conner would complete high school. He graduated Davidson College – a private, Presbyterian institution in North Carolina –  in 1999 with a bachelor’s degree in English. He earned his juris doctorate in 2003 from the Arkansas School of Law. (Hutchinson graduated from Bob Jones University, a private evangelical college in South Carolina, before graduating from the Arkansas School of Law.)

Following law school, Eldridge was a clerk for U.S. District Judge G. Thomas Eisele of the United States District Court for the Eastern District of Arkansas. He has interned for U.S. Sen. David Pryor, D-Ark. and worked on the senate campaign of U.S. Sen. Blanche Lincoln, D-Ark. He also worked with U.S. Rep. Marion Berry. Other short clerking stints include the Prosecuting Attorney for Washington County and the prominent law firms of Wright, Lindsey and Jennings, and Mitchell Williams

Eldridge also worked as a special deputy prosecutor for the Clark County Prosecuting Attorney’s office.

After marrying into the family (Whipple) with a controlling interest in Arkadelphia-based Summit Bancorp, Eldridge worked at Summit Bank and would become the bank’s CEO in 2008 – a year before being nominated by Democratic U.S. Sens. Blanche Lincoln and Mark Pryor for Western District Prosecutor.

Not only did he pack much activity into the years between graduating Davidson and becoming a U.S. Prosecuting Attorney, but each step expanded his connections to Arkansas’ upper echelon of business and politics.

And in Arkansas it’s safe to add to his political resume his passion for duck and deer hunting.
 
THE FEDERAL JOB
He’s now four years into a job that has him and 20 assistant U.S. attorneys – and a total staff of around 45 – responsible to represent the government in a 34-county district. Eldridge said he worked hard to know as much as possible about the office prior to taking the job in December 2010.

“There is no time for on-the-job-training with this job,” Eldridge said.

Some of his priorities as the top prosecutor for the district was to “cultivate a culture that does the right thing,” to be aware of all the cases handled by the office and to also be the lead attorney on some of the cases. Many U.S. Attorneys do not handle cases.

“That was really important to me, particularly coming in relatively young, I wanted everybody to know I was here, and am here, to work cases along side everybody here and not just to be a figurehead. I’m here to be a prosecutor.”

Eldridge said he was not fully prepared for all aspects of the job.

“You don’t really understand the weight and the greatness of the responsibility that comes with being a federal prosecutor,” Eldridge said. “And that cuts both ways. Great and weighty in that you got to make a decision about whether to charge somebody or not. And the way you stay true is making that for the right reasons like we discussed earlier.”

DEALING WITH ‘THE HORRIBLE THINGS’
He’s also “astounded” at the number of pedophile cases and “the horrible things that people do to little, little kids.”

While a prosecutor’s office may be seen as reactive, Eldridge said his office will work in 2015 to be proactive with respect to pushing back against child abuse in the district. He said the office is “uniquely positioned” to provide info to parents about how to protect their child and to be an advocate for the communities on child abuse. The effort will include tough conversations with the public, because “as gruesome as the details can be” the public needs to know what people are capable of. He also plans to help people detect child abuse situations, Eldridge said.

“When you see (videos) of small children being raped and that stuff put on the Internet … those cases really are tough but I feel very convicted about them. It’s not enough for us to go throw the person in jail for the rest of their life, that’s our primary responsibility … but also we need to go out and really tell those stories.”

Those stories hit close to home. Eldridge and his wife, Mary Elizabeth, have three boys – Will (7), Henry (3) and Tull (2). But Eldridge has an advantage over other parents. While the acts against children do anger him, he is able to redirect that anger.

“(I)t’s hard to prosecute a child pornography case and go home. That’s tough, and to think about what somebody has done to some other kid that’s the same age as one of my kids. … But the great part of this job is you get to be convicted and say, ‘You know what? Not only do I think that’s one of the worst crimes I’ve ever seen, but I get to wake up and do something about that.’ … So, you channel it (anger) into aggressively prosecuting those folks who commit those crimes.”

THE BARBER CASE
To Eldridge’s chagrin, the media was more attentive to the financial fraud case involving Brandon Barber than they have been with the child abuse cases.

Barber, once a high-profile and popular developer during the heady days of seemingly non-stop Northwest Arkansas commercial development, was arrested March 20, 2013, on several federal charges. Barber in July 2013 admitted guilt in various schemes to prop up his Northwest Arkansas real estate and development company between 2005 and 2009. The charges Barber plead guilty to included conspiracy to commit bankruptcy fraud, conspiracy to commit bank fraud and money laundering. He was sentenced in October 2014 to five years and five months in prison. The sentence was almost half of what Eldridge’s office sought. Based on possible reductions in the sentence and his time served, Barber’s sentence could fall to a little more than three years.

Eldridge said his time as a bank officer – rare among federal prosecutors – served him well during the Barber investigation.

“Having worked at the bank allowed me to really look in and see what happened with each of these loans, really pinpoint the fraud in each of those situations. So I definitely feel like that was a great strength,” Eldridge said. “There is a lot of financial evidence and you really have to get into the minutiae of how loans are approved, how developers function. Because our job is not to prosecute folks, who, for whatever reason have a bad business deal. Our job is to prosecute crime, and there is a huge difference. You’ve got to be really intellectually honest to parse that difference.”

Barber’s actions did not make him popular in Arkansas’ banking circles, but Eldridge said he never felt pressure from banker friends to go hard after Barber. He said the people “who know me will know that I’m going to shut that (pressure) down pretty quick.”

NO JERSEYS
While Eldridge’s political work has been with Democrats, his historic role model in the legal world is Abraham Lincoln. And two prominent Republicans, Gov.-elect Hutchinson and former Eastern District of Arkansas Prosecuting Attorney Bud Cummins, have been among those he has sought out for advice.

“I’ve definitely developed a good relationship with him (Hutchinson) the couple of years before coming here, and we had a number of conversations about the approach to the job. You know, no one has done more in federal law enforcement in our state’s history, I’d venture to say, than him. I mean, with running DEA and being at Homeland Security, so he not only had a perspective on this job, but also a perspective on those law enforcement agencies. And that was really helpful to me as I thought about what I was going to do.”

Politics has never been a part of the support he received before and during his latest job. He said there is a political process to get the job, but that’s where it stops.

“You have all this political talk about we need to check the jerseys at the door. The jerseys really are checked the door in this job. They really are, and they should be. … It is completely apolitical. It is completely intellectually honest. And like I’ve said, that is really rewarding work. For folks that care about making a difference and don’t care about all the rigamarole that comes with the bickering that goes on, there is probably no environment better than this for really looking at, and I know I’m sounding like a broken record, but looking at the facts, looking at the law and then doing what’s right.”

He said part of the great environment also includes getting to know law enforcement officials and community leaders in the 34 counties in the district.

“That is incredible work to me. … To be able to do that, I don’t want to take a day of that for granted. I cannot overemphasize that I really love this job,” he said.

Several years of work of building connections in the 34 counties also sounds like a great way to build a political base for future careers.

Eldridge doesn’t take the bait with the question. His body language is open but his mouth is closed. He just grins. He may be quiet about his future, but his future is likely to be anything but.