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Fort Smith-native enters 4th District race

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A Fort Smith native and graduate of Southside High School is the newest Republican vying for a chance to replace U.S. Rep. Tom Cotton, R-Dardanelle, in Congress.

Tommy Moll, who now lives in Hot Springs, describes himself as a "conservative businessman," officially threw his hat in the ring this morning.

In a statement, Moll took a similar stance to fellow 4th District Republican candidates, Lt. Gov. Mark Darr and House Majority Leader Bruce Westerman, also of Hot Springs, in vowing to fight what Moll says is an out of control federal government.

"I’m running for Congress to defend our freedoms from a federal government that is out of control. The Fourth District needs a leader in Washington with a business background who understands how the private sector creates jobs and how government intervention harms economic growth."

Moll said his top priorities will be jobs and the economy, saying that unemployment in the 4th District was 8.4%, leaving nearly 27,000 district residents unemployed.

"The federal government has only made the problem worse by recklessly passing job-killing laws like Obamacare, while piling up a national debt so large it threatens every American with the prospect of economic calamity."

Moll will soon begin a tour of the district's 33 counties in coming weeks to introduce himself to the district. He holds a bachelor's degree from the College of William and Mary in Williamsburg, Va., a master's degree from the London School of Economics and a law degree from Columbia University in New York.

Moll is the son of Mary and Mark Moll of Fort Smith. Mark is an attorney with Fort Smith-based Jones, Jackson & Moll law firm.

In addition to Darr, Moll and Westerman, Hot Springs educator Janis Percefull is the only announced Democrat in the 4th District race. Senate Minority Whip Bobby Pierce, D-Sheridan, has previously acknowledged meeting with national Democratic Party about a possible run, though he has not announced a decision on whether he would seek the party's nomination. A call to Pierce was not been returned.

Following redistricting based on the 2010 census, the Fort Smith metro area is split between the 3rd and 4th Congressional Districts.

Crawford County is split almost evenly down the middle with the western half in the 3rd District and the eastern half in the 4th. The city of Alma is split down the middle, with two city precincts voting in the 3rd District and 2 precincts voting in the 4th District. Franklin County was moved out of the 3rd District and into the 4th District. Lavaca and environs in the northeastern corner of Sebastian County are now in the 4th District. Roughly one-third of Sebastian County below Greenwood and below Fort Chaffee and Chaffee Crossing is in the 4th District.

Five Star Votes: 
Average: 4.2(5 votes)

Number of Arkansans employed down 1.8% in July

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Editor’s note: This story is a component of The Compass Report. The quarterly Compass Report is managed by The City Wire and presented by Fort Smith-based Benefit Bank. Other supporting sponsors of The Compass Report are Cox Communications and the Fort Smith Regional Chamber of Commerce.

Arkansas’ jobless rate has ticked higher during 2013, with the July unemployment rate rising to 7.4% from the 7.3% in June. The rate is unchanged compared to July 2012.

Although the jobless rate remained the same compared to July 2012, the size of Arkansas’ labor force fell 1.8%, and the number of employed fell by an estimated 22,771, or down 1.8%.

The number of employed in Arkansas during July was 1.229 million, down compared to the 1.252 million in July 2012, according to the Monday (Aug. 19) report from the U.S. Bureau of Labor Statistics.

The number of unemployed fell from 99,493 in July 2012 to an estimated 97,806 in July 2013. The number of unemployed increased by an estimated 37 between May and July.

The workforce size shrank from an estimated 1.352 million in July 2012 to 1.327 million in July.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to 7.3% during 2012. In July, Arkansas was one of nine states to see a jobless rate increase compared to July 2012. Also, July marked the 54th consecutive month that Arkansas’ jobless rate has been at or above 7%.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during July was an estimated 251,600, up from 251,400 in June and well ahead of the 241,100 during July 2012.

Manufacturing jobs in Arkansas during July totaled 153,900, down from the 154,400 in June and below the 155,800 in July 2012. Employment in the manufacturing sector fell in 2012 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during July was 214,800, down from 214,900 in June and below the 215,700 during July 2012.

The state’s Education and Health Services sector during July had 176,900 jobs, up from the 174,200 during June and up from 170,800 during July 2012. Employment in the sector is up almost 27% compared to July 2003.

Arkansas’ tourism sector (leisure & hospitality) employed 101,500 during July, down from revised 102,000 during June, and below the 102,100 during July 2012. At a revised 103,700, January 2013 marked a new employment high in the sector.

NATIONAL DATA
The BLS report also noted that 36 states had unemployment rate decreases from a year earlier, nine states had increases, and five states had no change. The national jobless rate during July was at 7.4%, and was down from the 8.2% in July 2012.

Nevada had the highest unemployment rate among the states in July at 9.5%. The next highest rate was in Illinois with 9.2%. North Dakota again had the lowest jobless rate, 3%.

The July jobless rate in Oklahoma was 5.3%, up from 5.2% in June and unchanged compared to July 2012.

Missouri’s jobless rate during July was 7.1%, up from 6.9% in June and unchanged compared to July 2012.

Five Star Votes: 
Average: 5(1 vote)

Walton Foundation gives $2 million to Marshals Museum

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The Walton Family Foundation is donating $2 million to help fund construction and operation of the U.S. Marshals Museum planned for downtown Fort Smith.

Announced Monday (Aug. 19), the $2 million is the single largest gift from the public toward the 52,260-square-foot museum.

In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the national museum. The cost to build the museum — including exhibit work — is estimated at around $53 million. Although the announcement was made in 2007, formal fundraising activities did not begin until the latter part of 2009.

Museum officials have said they hope to break ground on Sept. 24, 2014, the 225th anniversary of the U.S. Marshals founding by President George Washington.

“The Walton Family Foundation’s enthusiasm and support for the U.S. Marshals Museum is extremely exciting,” Jim Dunn, president and CEO, U.S. Marshals Museum, said in a statement “After learning about the plan, they came onboard and have been very interested in how they could boost this worthwhile national project. We are delighted to count them as part of the Museum effort and thank them for their vision.”

Updated info: Dunn said the Foundation was not asked for a specific amount. Museum staff made a presentation to Foundation officials in January requesting some level of support. Dunn also said having the Walton Family Foundation support sends a signal of legitimacy to other foundations and individuals who have been asked to support the museum.

“I think the gift from the Walton Family Foundation brings the museum much closer to reality, and the value of their gift likely goes beyond the $2 million,” Dunn said.

He said the museum effort needs between $10 million and $15 million more to reach the “threshold” of between $30 million and $35 million needed to break ground and begin construction. Dunn is confident they will meet the September 2014 date.

“I stop short of saying it’s 100% (certain). ... But I am optimistic about our pace of fundraising and the prospects we have on the horizon,” Dunn said.

As a sign of the optimism, the museum is in the process of hiring a curator, and have re-engaged architects to begin converting conceptual drawings into construction plans.

Richard Davies, executive director of the Arkansas Department of Parks and Tourism, said the museum will help boost tourism traffic statewide.

“The U.S. Marshals Museum will be an outstanding attraction for Fort Smith and all of Arkansas. It will complement the Clinton Presidential Center in Little Rock and the Crystal Bridges Museum of American Art to give us a threesome of great nationally recognized museums that will bring visitors from all over the country,” Davies said in the statement.

Based in Bentonville, the Walton Family Foundation was created by the Helen and Sam Walton family and today has three primary goals: To support K-12 education reform; support freshwater and marine conservation; and fund qualify of life initiatives.

In 2012, the foundation awards $432.672 million in grants.

The City Wire will have more on this story later today.

Five Star Votes: 
Average: 4.9(7 votes)

College textbook rental programs showing growth

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story by Kim Souza
ksouza@thecitywire.com

College students on average are racking up thousands of dollars in debt thanks to escalating tuition and textbook prices as they return to class over the next week. But several organizations said those costs can be reduced by renting textbooks instead of buying them.

The National Association of College Bookstores said students spent an average of $662 on textbooks last year, up slightly from $655 the prior year. That cost could easily run students more than $1,000 annually, as one textbook can cost $300, but more students have begun renting their books for a lower cost than buying, said Charles Schmidt, corporate spokesman for the NACB, trade group.

His organization estimates students saved more than $450 million in textbook costs last year because they chose to rent the books. He said renting is not new and neither is the competition college bookstores get from online services like eBay, Amazon, Chegg or Direct Textbook. He said the number of college stores offering textbook rental over the past four years as skyrocketed from only 300 in the fall 2009 to roughly 3,000 today.

“Such print-version rental programs can save a student between 45% - 65% off the price of a new print textbook, and is often less expensive than digital formats,” Schmidt said.

Debbie Miller, a recent graduate student at John Brown University, used the textbook rental program when the online book she ordered from Amazon did not arrive before classes began. Miller said she found the business textbook from a third-party seller on Amazon’s site and ordered what she thought was a “great deal” nearly two weeks before classes started.

When classes began, the book had not arrived so she rented the textbook from the college store.

Miller said when the textbook arrived from the third party seller, it was a photocopied version of the textbook she had rented, which was stamped “For sale only in Bangladesh” as an economy edition. She contacted the seller to say she was not satisfied with the book and was offered a free study guide, but no return option. After contacting Amazon, Miller said the third-party seller agreed to refund her money and told her to keep the book.

“I didn’t feel right about using a copied version and renting the textbook was a great option for me in this instance. I particularly like the fact that renters are allowed to highlight in the books, with no penalty,” Miller said.

Schmidt said piracy does occur in the textbook business, which is another reason why buying or renting locally is a good idea.

He said consumers think there are huge savings from ordering online, but many college bookstores around the country have instituted priced-matching, free shipping, guaranteed buyback and custom-published products that can provide values for the consumer.

“Stores also are investing in price comparison software, demonstrating how price-competitive they are with outside, for-profit companies,” he said.
 
Direct Texbook is a third party search engine that helps students compare prices between more than 200 reputable vendors.

"Direct Textbook is a completely free way for students to find the lowest-priced textbooks, compare special offers and coupons, sign up for textbook price alert notifications, sell their textbooks for a good price and even get cash back," said Morgan MacArthur, chief technology officer for Direct Textbook. "We're thrilled to have helped more than 20 million parents and students save millions of dollars on textbooks to-date, and we look forward to continuing to help make college more affordable for everyone."

MacArthur said students can save anywhere from 20% to 70% when they order online.

Schmidt said many college bookstores now offer online ordering as well and some report sales are up among certain income demographics. He said the cost of textbooks are high, but the idea that college bookstores have padded margins is not the case. He adds that local stores often provide jobs for students and local transactions have a positive impact on sales tax collections.

Roughly one-fifth of a textbook's price goes to the store where it is sold to cover personnel and operating costs, while more than three-quarters goes straight to the publisher, according to a report from U.S. News & World Report.

Both groups cited in the story agree the costs for college textbooks continues to escalate, rising 812% in the past decade, outpacing the rise in medical care and college tuition up 575% and 559%, respectively, according to U.S. Census data. They also agree that renting provides the most upfront savings and students should take advantage of price comparisons and price matching programs between local and online services.

Five Star Votes: 
Average: 5(1 vote)

FCC Commissioner wants faster Internet for schools

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

With Arkansas pursuing expanded broadband in its public schools, an FCC commissioner says she wants her agency to be a catalyst for meeting the state’s goals and pushing for greater bandwidth.

“The issue is no longer connection, it’s capacity,” said Jessica Rosenworcel, President Obama’s 2012 appointee to the Federal Communications Commission. “We want to make sure that every school has really high-speed broadband. If we make some changes to the E-Rate program, we can do that.”

Rosenworcel was in Little Rock and Cabot on Monday (Aug. 19) at the request of Sen. Mark Pryor, D-Ark., who conducted a field hearing in his capacity as chairman of a Senate Commerce subcommittee on communications, technology and the Internet.

“Arkansas really does serve well as a microcosm for looking at all of these issues,” Pryor said. “We have all of the challenges that you see otherwise. We have very rural, we have poor, we have seniors. It [broadband] is needed in health care and education. We have urban and suburban areas.”

The E-Rate program is a FCC program that pays up to 90% of the costs associated with installing or upgrading Internet access in the nation’s schools and libraries. It is funded primarily from fees collected by phone companies that provide interstate or international telecommunications services.

Rosenworcel said when the program was started in 1996 only 14% of the nation’s public schools were connected to the Internet. Today, more than 95% of them are.

Pryor and Rosenworcel heard from large and small telecom representatives regarding Arkansas’ current state of broadband and its future needs. Large firms such as AT&T, Windstream and Verizon were represented as were smaller firms like Ritter Communications, South Arkansas Telephone Co., and Aristotle, Inc.

Elizabeth Bowles, president of Little Rock-based Aristotle, touted her company’s ability to cheaply and quickly broaden and speed up Internet access through fixed wireless technology. Bowles said that fixed wireless, as opposed to wireline and fiber solutions, are capable of reliable service and high speeds and can be installed within a week to 30 days depending on proper licensing. She also said Aristotle only needs 40-120 customers to justify moving into an area.

“Fixed wireless can serve as the last-mile delivery mechanism while fiber is being trenched,” Bowles testified. “And fixed wireless broadband can and should serve as a backup for wireline solutions to ensure that broadband connectivity is not lost.”

E-RATE CHANGES
Gov. Mike Beebe (D) has convened a task force known as FASTER to study what it will take to achieve broadband speeds of 100 mps per 1,000 students in Arkansas’ public schools.

Jeff Gardner, Windstream CEO and a member of the FASTER group, testified that his firm is already meeting and exceeding that goal in some areas of the state.

“Education institutions are important Windstream customers. For example, we deliver 1 gigabit service to both North Little Rock high schools. Windstream understands the importance of replicating this service elsewhere,” Gardner said.

A second working group, the Quality Digital Learning Study (QDLS) committee, is also working with educators and Internet service providers to find solutions.

The 100 mps threshold may be too low, according to some task force members, who said that 400 mps might need to be the new goal for the task force’s work.

Rosenworcel said she’s focused on making sure the FCC encourages optimum use of the E-Rate program. She said the Arkansas field hearing reinforced her belief that two primary goals need to be the focus for the agency and policy she guides.

“I’d really like to see us simplify the program. Over time, it’s gotten much more bureaucratic and I’m afraid that the bureaucracy is deterring small and rural schools from participating and applying, and even companies from participating and providing the broadband,” she said.

Secondly, Rosenworcel has a goal for the 2015 school year – just one year away.

“We have to absolutely re-think the program and make sure that capacity is a part of it,” Rosenworcel said. “I want to see 100 megabits to every school per 1,000 students by the 2015 school year. And then I want to see a gigabit to every school per 1,000 students by the end of the decade. I call that ‘dream likely’ and ‘dream big.’”

Five Star Votes: 
Average: 5(1 vote)

America's Car-Mart posts thinner profits

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story by Kim Souza
ksouza@thecitywire.com

America’s Car-Mart Inc. said higher than expected credit losses curbed its earnings in the company’s fiscal first quarter ending July 31. But the Bentonville-based firm still managed to deliver healthy top line results.

The buy here, pay here dealer posted net income of $7.541 million, 7% less than $8.118 million earned in the year-ago period. Car-Mart’s net profits equaled 79 cents per share, missing Wall Street expectations by 9 cents and 4 cents less than a year ago. The earnings report was released after the market closed on Monday (Aug. 19).

Top line revenue in the quarter totaled $122.5 million, up nearly 11% from a year ago. That revenue included sales and interest income, which is generated from its in-house finance operations.

Same-store sales, a key metric in retail performance, were up a healthy 5.6%, said CEO Hank Henderson.

"We are very pleased with our top line growth for the quarter. Our general managers continue to work hard at helping our customers succeed and are meeting the challenges of the current competitive environment head–on,” Henderson said.

"Even though our revenues were up, we feel like we could have done even better as we believe that increased funding to the sub-prime auto industry continues to have a negative effect on our business especially on the provision for credit losses line,” he added.

The company has said over the past few quarters that it continues to see more competition for its better customers, which prompted it to slightly extend loan terms and have to ante up more money to loan loss provisions. Loan loss provisions are the cushion the company has against defaulting loans as it finances each auto that it sells in-house. Car-Mart has some 59,000 active accounts with a finance balance sheet totaling $379.92 million, up 15% from a year ago.

The company’s loan loss provision was $26.53 million in the recent quarter, up 22% from a year ago. The accounts over 30 days past due rose to 5.4% in the quarter, up from 4% a year ago, amid a somewhat sluggish macroeconomic climate, according to Jeff Williams, chief financial officer for Car-Mart.

Operating expenses also rose 10% in the quarter from a year ago as there were 10 more dealerships in operation in the recent quarter compared the year-ago period. The company continues to expand its footprint at a robust clip of 10 to 12 new dealerships per year.

“We remain convinced that the business model will continue to support significant unit volume expansion. We are excited about our future and we will continue to fight to retain our better customers," Henderson said.

The firm reported a 2.6% increase in the average retail sales price of the automobiles sold in the quarter, when compared to the same period in 2012. Car-Mart customers paid an average $9,836 for vehicle purchases in the quarter. This compared to $9,584 a year ago.

Shares of America’s Car-Mar closed Monday at $43.11, down 39% the prior trading day. There was no activity in after-market trading session on Monday. Over the past 52 weeks the share price of America’s Car-Mart Inc. (NASDAQ: CRMT) has ranged from a $35.89 to $50.59.

At 10 a.m. on Tuesday (Aug. 20) Car-Mart’s corporate executives will conduct a conference call with investors and analysts to discuss the recent quarterly results. The City Wire will update this story following that call.

FINANCIALS (quarter ending July 31)
Gross Revenue
2013: $122.54 million
2012: $110 million

Net Income
2013: $7.531 million
2012: $8.108 million

Earnings Per Share
2013: 79 cents
2012: 83 cents

Five Star Votes: 
Average: 5(2 votes)

Bekaert may add 45 jobs at Van Buren plant

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story by Ryan Saylor
rsaylor@thecitywire.com

Forty-five jobs could be on the way to Van Buren following action taken by the town's city council tonight (Aug. 19).

At the meeting, the council approved an application for a state grant that would help pay for part of an expansion at the Bekaert Corporation's Van Buren facility. The grant, an Arkansas Community and Economic Development Grant, would be used to expand a parking lot, according to Mayor Bob Freeman.

"(The grant would be) $265,000 for expansion and improvements of their parking lot," he said. "The application, as you're aware, is done by the city of Van Buren but it's actually a Bekaert application process, but we need a resolution to do that."

The grant, if approved, would be given to the city and then administered out.

Shortly after approving the application for the grant, the council passed a resolution authorizing Western Arkansas Planning and Development District to assist the city with administration of the grant. The organization, Freeman said, would primarily be responsible for not only administering the grant, but also ensuring that the company fulfilled the jobs component of the grant.

Information from Bekaert on the company's expansion plans were not immediately known, such as the overall money to be spent on the expansion, when the expansion may take place or whether the company will still expand regardless of whether or not the grant is approved by the state.

Freeman was unsure of when the city may find out whether the grant has been approved.

Bekaert, based in Belgium, produces in Van Buren wire cord for various products. The company employs around 27,000 people in 120 countries.

PARKS WORK
In other business, the city approved a resolution authorizing the city to apply for a 50/50 matching grant to purchase $170,000 in parks and recreation equipment to be installed at three sites across the city.

The projects are diverse, from the installation of pickle ball courts (a racquet sport that combines various aspects of badminton, tennis, and table tennis) at a park in the Rolling Hills neighborhood, installation of new restroom facilities at Dr. Louis Peer Memorial City Park and playground equipment at the Field of Dreams complex off interstate 40.

Director of City Planning Joe Hurst said building these projects through the 50/50 matching grant program offered by the Arkansas Department of Parks and Tourism's Outdoor Recreation Program was the first step in fulfilling the vision citizens shared with the city through various public meetings held in June.

"We had a lot of good ideas and we got to hear different needs and priorities. A lot of those needs and priorities that were at that particular meeting were more long-term, I think, but they were good ideas and I think they're something we can plan for in the future."

The proposed projects presented tonight are what Hurst calls short-term ideas, "things we can tackle now and really begin investing, continuing to invest in our parks."

PROJECT DETAILS
In explaining the various projects, Hurst said the developments would take place on land already available for park development. On the site of the proposed pickleball court is a basketball court, which Hurst said could be split in half and then house the basketball court, along with two of the pickleball courts. A parking lot would be built for about eight vehicles at a total cost of about $25,000.

The restroom facility would be south of the old pool house at the city's main park, which is home to the city pool, golf course, a small lake and the Boys and Girls Clubs. The total cost, which includes burying overhead power lines as required by the grant, would total about $75,000.

The final project is $40,000 for playground equipment to be used by families while at the Field of Dreams. In addition to the playground equipment, the improvements at the Field of Dreams would also include the addition of two pavilions at a cost of $15,000 each.

In all, Hurst said the city would only end up paying a total of $85,000 once the state reimbursed the city's costs.

Freeman said it was possible the city could continue applying for the grant year after year to help with other projects, as well, but he said the Department of Parks and Tourism would look at three different criteria:
• Taking care of equipment previously purchased through the 50/50 matching grant;
• Using the funds for the projects proposed in the application; and
• Completing projects before the next application is due.

As with the grant for Bekaert, it is unknown when the grant could be approved, though Hurst said the city should be notified of a decision by the end of the year. A timeline on construction would be determined following approval of the grant, Freeman said.

Five Star Votes: 
Average: 4.5(2 votes)

Fort Smith area home sales up 38% in July

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story by Ryan Saylor
rsaylor@thecitywire.com

Area home sales continue to show signs of strength as July's home sales report shows a jump in sales in July that is 38% higher than July 2012.

Sebastian County showed the biggest improvement, with 123 homes sold this July versus 85 homes sold in July 2012. The total value of this year's sales were $18.209 million, a 48% spike.

In Crawford County, 48 homes were sold in July, an improvement from July 2012 when only 38 homes were sold. In all, the value of homes sold increased by 12.8% to $5.501 million last month.

Realtor Clif Warnock, principal broker at Warnock Real Estate in Fort Smith, said the jump in not only the number of homes sold, but also in the total values, was due to increasing interest rates.

"The difference has been movement in those interest rates. It's not been good that interest rates have gone up slightly, but any movement in interest rates prompt people to take action," he said.

With interest rates still near historic lows, many buyers are not only jumping due to the expected rise in interest rates, but they are also jumping to buy more home at a lower monthly cost.

"The interest rates, which is a driving force in real estate sales no matter what, (have been the key to the rise in number of homes sold and the values) since over 95% of the people buying homes have to finance them."

As interest rates increase, whether at a large or slow pace, Warnock is convinced that the market in both counties will continue to show spikes.

"For just a short amount of time, it does cause people that were sitting on the fence to go ahead and make a decision. The other part of that is, and there still are a lot of people who are undecided and sit and wait to see what turn the economy is going to take. Will it stay like it is or continue to get a little better? With each incremental increase with the (interest rates), I think you'll see people see that trend going to buy homes."

And even though July's numbers have shown growth in both counties, the total year-to-date numbers are still mixed. In Crawford County, there have only been 267 homes sold this year, versus 309 sold during he same period in 2012, resulting in $36.451 million in sales volume last year versus $28.628 million this year.

In Sebastian County, the numbers have remained in the positive, with growth in both the number of home sold and the volume, with 688 homes having been sold so far this year with a total value of $95.055 million, while only 617 homes were sold in the same period in 2012 with a value of only $83.58 million.

In order to keep the growth in home sales from reaching a plateau or possibly sliding back into negative territory, Warnock said economic development in the region must not only continue, but pick up pace.

"The one thing that (the area) has to deal with is the jobs that are in Fort Smith - without a job, without an income, you can't buy a home," he said. "I think that's what has got to spur more activity, is just an increase a number of jobs in Fort Smith to sustain that increase."

Home Sales Data
(January-July)
• Crawford County
Unit Sales
2013: 267
2012: 309

Total Sales Volume
2013: $28.628 million
2012: $36.451 million

Median Sales Price
2013: $102,950
2012: $110,000

• Sebastian County
Unit Sales
2013: 688
2012: 617

Total Sales Volume
2013: $95.055 million
2012: $83.580 million

Median Sales Price
2013: $114,900
2012: $115,000

Five Star Votes: 
Average: 5(1 vote)

NWA, Fort Smith area legislative seats set to change

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story by Ryan Saylor
rsaylor@thecitywire.com

It seems like you can't go anywhere these days without hearing about the race for U.S. Senate, pitting Republican U.S. Rep. Tom Cotton, barely seven months into his first term as 4th District Congressman, against incumbent Democratic Sen. Mark Pryor.

Or the race for governor, which has seen three different Democrats enter the race, only to see former U.S. Rep. Mike Ross be the last man standing, at least for now. On the right, three candidates are still in the race, though members of the general public could be forgiven for not knowing a race was even underway as former U.S. Rep. Asa Hutchinson is the only Republican with statewide name recognition competing for the nomination.

While much attention has been placed on the statewide races, or the dominos that have fallen through the ranks of the Republican Party as a result of Cotton's decision to run for Senate, lost in the shuffle has been the candidates that have already announced for state house and state senate races in the Fort Smith and Northwest Arkansas areas, along with the future plans of term-limited members of the general assembly. (Link here for information on the 24 Arkansas House districts and nine Senate districts that cover the Fort Smith and Northwest Arkansas areas.)

FORT SMITH AREA
Among those to be term limited is Rep. Terry Rice, R-Waldron, who represents District 21. In an interview with The City Wire last week, Rice said he does not have plans to seek a state Senate seat, though he admitted that the old cliché "never say never" seemed to apply to his political career.

"When I ran in 2008, they called me the third day of filing after it opened and I told them absolutely no," he said, adding with a laugh that he found himself filing his paperwork to run 48 hours later. "I am a wild card to do anything. It's not in my plans right now, but you never know. I have not been out campaigning and not politicking other than trying to take care of some stuff in the interim. But I don't foresee running for anything in this next election cycle."

Thus far, no candidates have come forward to announce plans to run for Rice's seat.

In district 77, term limited Rep. Stephanie Malone, R-Fort Smith, has confirmed that she has no plans to run for higher office, either, instead focusing on her position at the Fort Chaffee Development Authority, where she manages communications.

Fort Smith City Director Philip Merry had flirted with running to replace her, though he has said he is now contemplating a run for Fort Smith Mayor.

Sources have confirmed that Republican Danny Aldridge, a member of the Sebastian County Quorum Court, has been contemplating a bid for Malone's seat, as well, though he has privately told political backers that he will not make a decision on a run for at least another two weeks.

NORTHWEST ARKANSAS SHIFTS
One House member who is staying put, even though many of his colleagues are jumping into races for Congress or other higher profile offices, is Rep. Justin Harris, R-West Fork, who represents District 81. So far, no challengers have come forward to oppose him.

The same is true of District 78 Rep. George McGill, D-Fort Smith; District  85 Rep. David Whitaker, D-Fayetteville; District 86 Rep. Greg Leding, D-Fayetteville; and District 4 Sen. Uvalde Lindsey, D-Fayetteville. All four were confirmed to seek re-election, according to Democratic Party of Arkansas Executive Director Candace Martin.

While the aforementioned representatives and senator do not yet have competitors, a competitive primary already seems to be underway in district 87, where Republicans Robin Lundstrum and Lucas Roebuck are competing to replace Rep. Jonathan Barnett, R-Siloam Springs. Lundstrum was the first candidate in the state to announce in January and now her Republican opponent is literally trying to keep up the pace by starting a different type of race to raise the profile of his campaign.

"We need to stop government from intruding on personal freedoms. Some believe government should be responsible for personal health, telling you how much soda you are allowed to drink, and so on. Instead of relying on government, I believe we need to encourage personal responsibility. The running team is that belief in action," Roebuck said, adding that he and supporters would compete in numerous races throughout the campaign.

One seat that is wide open, but not due to term limits, is the district 84 seat held by Rep. Charlie Collins, R-Fayetteville. Collins recently announced a run for lieutenant governor. While no candidates have officially entered the race, Democratic party insiders have confirmed that Fayetteville Alderman Justin Tennant has been approached by leaders in the party to run for the seat that encompasses parts of north and east Fayetteville, along with rural parts of Washington County.

Tennant, the son-in-law of Fayetteville Chamber of Commerce President and CEO Steve Clark, would be able to mount a formidable campaign should he choose to run, being well connected as a member of the Walton Arts Center, Botanical Gardens of the Ozarks, Northwest Arkansas Young Professions and as a board member at the Juvenile Diabetes Research Foundation.

But should Tennant forgo an election and no other Democrat jumps in, Fayetteville Alderman Adella Gray, who lost to Collins in the 2012 election, has told members of the Washington County Democratic Party that she would run again.

THE REPUBLICAN PUSH
And while the Democratic bench has not yet filled in, Republicans are rapidly adding their names to the list of candidates, with Communications Director David Ray of the Republican Party of Arkansas confirming the following candidates in various Northwest Arkansas house races:
• House District 71: Ken Henderson
• House District 76: Bobby Altes and Matt Pitsch
• House District 90: Jana Della Rosa and Mike Whitmore
• House District 92: Kurt Maddox and Kim Hendren
• House District 94: Rob Dothit
• House District 96: Carlos Chicas and Damon Wallace
• House District 98: Jeff Bogg
• House District 100: Nelda Speaks

The only candidate to not be confirmed by Ray was Dane Zimmerman, who previously announced his primary challenge against Rep. Sue Scott, R-Rogers, on July 1. Since announcing, Zimmerman has remained quiet on his platform and why he is challenging Scott, only to say that the district needs a representative with energy.

With six Republican primaries already announced nine months from the primary in May, one thing is for sure - while a lot of attention will be focused on the bigger federal and statewide races, there will not be a lack of action in the races to fill the state capitol in Little Rock next year.

Five Star Votes: 
Average: 4.3(3 votes)

Farm bill work a tough challenge for Sen. Boozman

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story from Talk Business, a TCW content partner 

He won’t be on the ballot in 2014, but U.S. Sen. John Boozman, R-Ark., has plenty on his plate at the moment.

Boozman, who’s in the middle of his first term in the Senate, was recently tapped to serve as one of 12 conferees on the farm bill conference committee. The bipartisan group will work to reconcile the differences between farm bill legislation passed by the Senate and House.

“The farm bill is not only important to Arkansans, but it’s important to the whole country,” said Boozman in a live interview with KNWA Tuesday morning (Aug. 20), adding that the bill’s passage is more “about stability” than anything else.

“If [farmers] don’t know what the rules are going to be for the next five years, it’s very difficult for them to make the plans, hire the help they need – get the bank loans they need.”

Here’s the situation: The Senate passed a farm bill in June authorizing funding for commodities and nutrition programs, 80 percent of which went towards food stamps. The House-passed bill, on the other hand, only authorized funding for commodities programs, making it the first time since 1973 that food stamps failed to be included in the farm bill.

For Boozman and his fellow conferees, this will be the toughest debate. The conference committee will have to reconcile these approaches into one bill that can pass both chambers on the way to the president’s desk. Therein lies the problem. A compromise in which the committee favors a robust food stamps program will certainly pass the Senate, but not the House. However, if they move forward with deeps cuts to the program, the bill’s chances of getting out of the Senate are slim to none.

But Boozman remains positive. He believes all 12 conferees are eager to find a compromise, but admits the route in which to get there is a bit blurry.

“I don’t know exactly how we’re going to do it,” said Boozman. “This is not a Republican or Democratic thing, with the farm bill, it’s all about regional agriculture, making sure that you have a program – not one-size-fits-all, but puts the safety net in for all of our farmers.”

The committee has until Sept. 30, less than 6-weeks, to come up with a viable compromise before the current extension of the farm bill expires.

As for 2014 – Boozman, who ran a nationally covered campaign of his own in 2010, already sees a big difference in the race between U.S. Sen. Mark Pryor, D-Ark., and U.S. Rep. Tom Cotton, R-Dardanelle.

“I jumped in very late in the race in January [2010], but this thing has started so early,” said Boozman. “It’s early now, and it’s been going on a couple of months already, and so it’s going to be a hard fought campaign.”

Boozman said the differences between the two men are very distinct, and that Cotton’s entry into the race makes Arkansas’s 2014 election season as a whole one to watch.

“All of the dominoes are kind of falling,” added Boozman. “In another month or so, all of this should settle out where we exactly know who’s running for what. ... I think that at the end of the day the voters are going to hear a lot.”

Five Star Votes: 
Average: 2.8(5 votes)

Fort Smith Board gives hire-fire power to administrator

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After more than 30 minutes of discussion at their regular meeting, the Fort Smith Board of Directors on Tuesday (Aug. 20) reversed a city policy in place more than 45 years and gave the city administrator position the hire-fire authority over department heads.

The only positions not under the city administrator authority are the internal auditor and district court clerk. The Fort Smith police chief and fire chief fall under the city administrators new authority.

Three Fort Smith residents rose to speak against the ordinance. David Harris said the policy has worked for decades and he did not see a problem that required a change. He told Board members they should maintain their oversight over key city personnel.

“You are the only link to the people of Fort Smith,” Harris said. “I don’t think the system is broken. I don’t think you need to fix it.”

Doug Skokos argued that changing the ordinance grants too much power to the city administrator. He said that power will put pressure on the city administrator to grant favors, adding that it will create a “more efficient way to stick their (favor-seekers) hands in the cookie jar.”

City Directors Andre Good, Mike Lorenz, Philip Merry Jr., and Pam Weber spoke at length about the need to change the rule and give the city administrator hire-fire authority. Lorenz said if the city administrator has the responsibility to manage, the position “should have the authority.”

Weber said she supported the change, but said it will make “more difficult” the job of City Administrator Ray Gosack. Good challenged those who said if the system isn’t broke to not fix it. He said just because something isn’t broken “doesn’t mean that it couldn’t be better.”

HIRE-FIRE HISTORY
Good opposed granting the city administrator hire-fire authority in 2009 when it was proposed by then-City Administrator Dennis Kelly. So why the change of heart?

“That’s pretty much what it was, a change of heart,” Good said after Tuesday’s vote, adding that he feels bad for not learning more about employment law when the issue was considered in 2009.

The issue has been a sensitive political topic following an early 2008 attempt by then-City Administrator Randy Reed to fire Fort Smith Police Chief Kevin Lindsey. The resulting controversy resulted in a quasi-demonstration at a city board meeting, Reed’s resignation and the resignation of City Director Velvet Medlock. Lindsey retained his job and remains the city’s top police officer.

Kelly first publicly presented his request to shift the hire/fire authority to the city administrator during a May 12, 2009, study session. Then-Fort Smith Mayor Ray Baker strongly opposed the attempt, even calling Kelly’s idea “petty stuff.”

‘MAJORITY OF SEVEN’
City Director and Vice Mayor Kevin Settle opposed changing the policy. He said Tuesday night those who voted to change the form of government in 1967 had good reasons to not put too much power in the hands of one person. Settle also opposed Kelly’s attempt to change the hire-fire authority.

A “majority of seven should have the responsibility, and not the one,” Settle said in reading from prepared remarks.

Eventually, a majority of seven gave the responsibility to the one. City Director Keith Lau moved that the ordinance be approved, and Good seconded. Voting for the ordinance were Directors Good, Lau, Lorenz, Merry and Weber. Directors Settle and George Catsavis voted against the ordinance.

Five Star Votes: 
Average: 4.8(9 votes)

Sebastian County JPs appoint school board members

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story by Ryan Saylor
rsaylor@thecitywire.com

The Sebastian County Quorum Court appointed nearly an entire school board at Tuesday’s (Aug. 20) regularly scheduled meeting at the Greenwood courthouse.

The Court appointed Sharon Ford, Gary Raines, Marty Blanchard and Erin Lanman to the Hartford School Board at the recommendation of the school's legal counsel and with the approval of prosecuting attorney Dan Shue, who serves as legal counsel to the Court.

According to Arkansas Code § 6-13-611, "If, as a result of several vacancies on the board, only a minority of the directors remain or if the remaining directors fail to fill vacancies within thirty (30) days, the vacancies shall be filled by appointment by the county quorum court."

The issue arose after the filing deadline came and went for the five school board seats with no candidates declared.

"One of the five-member Board did not wish to run again for their position," wrote Hartford Superintendent Teresa Ragsdale in a letter to County Judge David Hudson. "Two of the board members were not appointed until June 13 and did not know of the deadline to file. The filing deadline 'snuck up' on the other two members."

The law states that any appointed board members would only be allowed to serve until the next annual school election, "at which time the electors shall select in the usual manner directors to service the unexpired terms of the vacating directors."

PUBLIC COMMENT CHANGE
In other business, the Court voted to move the public comment section from the end of Quorum Court meetings to the beginning of each meeting.

The change is necessary, Hudson said, in order to comply with Arkansas Code § 14-14-109, which states, "…entity shall adopt rules for conducting the meeting which afford citizens a reasonable opportunity to participate prior to the final decision."

In discussing the change, the judge advised all Court members that the solution would be an immediate fix to be in compliance with the law, adding that changes could be made at a later time.

For an example of changes that could be made, Hudson provided members with Ordinance No. 24-10 from the city of Fort Smith, which spells out the city's public comment policy. In short, public comment at the city of Fort Smith is taken on each agenda item prior to a vote.

Justice of the Peace Bob Schwartz said while he thought the current law "worked just fine," he said any changes to the law should include more than just moving the comments from the end of the meeting to the beginning.

"If we're going to do this, we need to do it right. We need to put some teeth in it because … everybody that comes up there is different, and not all are going to be the same."

Schwartz was alluding to the possibility of setting some sort of limits, such as three minutes to speak on a topic.

What he was advocating resonated with JP Danny Aldridge, who said while the ordinance passed may bring the county into compliance with the law, the county should have looked at doing more to include the public in public meetings.

"Something more like the city where from the beginning people will know we have three minutes to present our views so we don't have one person trying to take 30 minutes to talk about an item. That's an agenda item. If it's not an agenda item, they can have a different amount of time … I know Dan (Shue) said we could do what we wanted to do. I agree with him. It addresses the wording of the law, but I think the spirit is for public input before every vote and we have input that's respectful for the taxpayers each time that we vote."

Hudson said regardless of what the Court ultimately decides to do, he said the public comment policy of the past has been more than obliging to various issues that demanded public comment and moving comment to the beginning of the meeting would also accommodate openness to the public.

"If it's a controversial matter, you know, I think we've been very generous and liberal and considerate to the public and I'm sure the body will want to continue to do that."

Five Star Votes: 
Average: 5(4 votes)

Cooper Clinic sues Mercy Fort Smith, Mercy doctors

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story by Michael Tilley
mtilley@thecitywire.com

A lawsuit filed Aug. 2 by Fort Smith-based Cooper Clinic against Mercy Fort Smith and St. Louis-based Sisters of Mercy Health System not only more fully reveals a contentious relationship between former medical sector partners, it may signal an end to the hospital-clinic relationships that have been part of area medicine for almost a century.

In the 17-page complaint filed in Sebastian County Circuit Court, Cooper Clinic officials allege that Mercy and its parent company used their economic power to recruit 15 physicians away from Cooper and to the Mercy Clinic between Oct. 31, 2010 and Aug. 1, 2013.

The physicians who left Cooper Clinic are (in order of departure): Ivelesse Dupree; Merle McClain; Tony Flippin; Douglas Buckley; John Smith; Garreth Carrick; Lane Wilson; David Hunton; Kurt Mehl; Donald Shows; Chris Coleman; Greg Pineau; Robert Nowlin; Jennifer Burks; and John Werner.

Cooper’s complaint also includes Drs. Burks, Nowlin, Shows and Werner as defendants.

“Some or all of the above physicians were contacted prior to the expiration of their contracts with Cooper and actively recruited to come to work for Mercy Entities, notwithstanding the existing contractual obligations between Cooper and said physicians which were known to the Mercy Entities,” notes the Cooper complaint.

The complaint alleges that the loss of physicians “created problems in serving patients” in primary care and several specialties, which “caused harm to Cooper’s financial condition.” By recruiting Cooper physicians, Cooper Clinic officials also allege that Mercy and its parent company “were attempting to economically harm Cooper and punish it for not selling its business to Mercy Entities.”

MERCY RESPONSE
In a response to questions from The City Wire, Mercy on Tuesday provided this statement: “Mercy has been served with a summons and a complaint filed against it by Cooper Clinic. Those documents have been referred to our counsel for an evaluation and a response. It is our belief that Mercy has done nothing wrong or illegal and will defend itself vigorously against the allegations made by Cooper Clinic in the complaint.”

In a Dec. 8, 2010 letter, Doug Babb, CEO of Cooper Clinic, asked Jeff Johnston, then the CEO of what is now Mercy Fort Smith, to “refrain from further negotiations with Cooper Clinic physicians under executory employment agreements.” The letter also said Cooper preferred to work with Mercy but would not shy away from legal action if necessary.

Babb sent a letter to Johnston on Jan. 21, 2011, to again ask Mercy to stop recruiting its physicians.

“While I appreciated your kind words and warm Christmas wishes in your December 21, 2010 letter, you and your staff nevertheless are continuing to attempt to get at least six more Cooper Clinic physicians to break their employment contracts notwithstanding my request that you stop this anticompetitive practice,” Babb wrote.

POSSIBLE MERGER WITH MERCY, SPARKS
The complaint also reveals that Cooper negotiated with Mercy and with Sparks Health System – and its parent company, Naples, Fla.-based Health Management Associates –   about a possible merger, acquisition or “integration” with Cooper physicians.

In a July 25 letter from Mercy (Kim Day, president of Mercy Central Communities; Ryan Gehrig, president of Mercy Hospital Fort Smith; and Dr. Cole Goodman, president of Mercy Clinic Fort Smith) to Babb and Dr. Michael Callaway, chairman of the Cooper Clinic Board of Directors, Mercy offered to “stand still” on negotiations with Cooper Clinic physicians if Cooper would not continue “further discussions with Sparks, HMA, equity investors” or any other group that would create a “Competing Transaction” to Mercy.

Babb responded July 30 with a letter noting that Cooper officials interpreted the Mercy letter as “both a threat and ultimatum” that if Cooper did not accept the terms then more physicians would be lost to Mercy.

“Please be informed that the Clinic has retained counsel to seek redress from this continued pattern of intentionally and tortiously interfering with our physician employment agreements and engaging in anticompetitive and predatory business practices,” Babb concluded in his July 30 response letter.

Cooper’s lawsuit seeks compensatory and punitive damages under six counts: Breach of Contract; Tortious Interference; Violation of Arkansas Deceptive Trade Practices Act; Unjust Enrichment; Civil Conspiracy; and Breach of Contract-Compensation Reimbursement.

COOPER CLINIC STATEMENT
In a response to questions from The City Wire, officials at Cooper Clinic provided this statement:
“While it would be inappropriate to comment outside of court regarding the specifics of this lawsuit, we can provide a brief summary of the actions that led us to seek legal recourse. Locally owned by our doctors since 1920, Cooper Clinic is important to the health of our patients as well as the strength of our community; however, our Clinic is being threatened by Mercy’s continued recruiting of our physicians. Repeatedly, Mercy has negotiated with physicians who are under contract with Cooper Clinic, leading doctors to terminate their employment agreements and join Mercy to accept financial incentives. Despite our requests that these actions cease, Mercy’s actions have continued. This has negatively impacted Cooper Clinic and been disruptive to patient care. Cooper Clinic has been a vital part of our local medical community for more than 90 years. It is crucial that we protect our organization against these practices to secure our independence and our future.”

FIRST HINTS OF TROUBLE
Although well known for several years in regional medical circles, the schism between Cooper Clinic and Mercy bubbled up to the public in early 2012.

Prior to 2012, physicians with Fort Smith-based Cooper Clinic have for decades had privileges only at St. Edward Mercy Medical Center (now Mercy) – part of a two-hospital town dynamic that often saw clinics affiliated entirely with St. Edward or Sparks Health System.

However, a Jan. 31, 2012 letter from Cooper Clinic Drs. Dale Asbury and Jeffrey Medlock informed patients that physicians with Eastside Family Practice are now making rounds at Sparks.

“Whenever possible, we would prefer that our patients who must be hospitalized choose Sparks Regional Medical Center so we can oversee your hospital care,” the two physicians noted in the letter.

Babb said at the time that the letter from Drs. Asbury and Medlock is “information for a specific group of patients and does not reflect a Clinic-wide shift from service at one hospital to the other.” However, Babb noted then in a letter to The City Wire that “this is a shift in the way our doctors have practiced traditionally.”

In a Sept. 7, 2012 address during a Fort Smith Regional Chamber of Commerce event, Babb said the historically pleasant relationship between Cooper and Mercy had become “tense.”

“Cooper Clinic and Mercy, in the 1990s, were very much quasi-partners, and very much working closely with each other, but that’s evolved over time,” Babb said at the chamber event. “The main reason is that HMA and Mercy have different system strategies. HMA wants to work with independent physicians, while Mercy has chosen, and this is not to be critical, to have integrated physicians. In other words, they want physicians to be employees, and that creates tension. ... We have been forced to work with Sparks and be as independent as we can, and not to rely just on Mercy. So that relationship has evolved from a partnership to actual competition.”

MERCY EXPANSION
Mercy officials have not been shy about their plans to expand facilities, services and add physicians in the Fort Smith market.

Officials with the St. Louis-based Sisters of Mercy announced in August 2011 a plan to invest about $192 million in Mercy facilities in the Fort Smith region as part of a 10-year plan to invest $4.8 billion in its operations in Arkansas, Kansas, Missouri and Oklahoma.

“Assuming Mercy’s growth in spending and wages increases at a modest 2% annually over the next 10 years, Mercy will generate almost $3.5 billion in total economic benefits for the city during this time period,” noted the executive summary of a Mercy impact report released in October 2012.

Part of that impact includes the hospital’s continued recruitment of new doctors. Goodman, the Mercy Clinic CEO, said in October 2010 that the clinic plans to add 80 new physicians in the next three to five years, with at least 50 of those being specialists. Those doctors will require a support staff of about 280, which will result in added annual payroll of about $19.7 million.

Five Star Votes: 
Average: 4.6(16 votes)

U.S. freight tonnage levels dip in July

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Two closely watched indices measuring the health of the U.S. freight sector during the first half of the year have pointed to slow and uncertain economic growth in the nation’s economy. The July reports from the American Trucking Associations’ and the Cass Freight Index were more of the same.

The American Trucking Associations’ Truck Tonnage Index fell 0.4% in July after a scant 0.1% rise in June. Year-to-date, the index is up 4.7% compared to the same period in 2012.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, equaled 129.6 in June, which was 3% above the previous month.
 
“After gaining a total of 2.2% in May and June, it isn’t surprising that tonnage slipped a little in July,” ATA Chief Economist Bob Costello said in a statement. “The decrease corresponds with the small decline in manufacturing output during July reported by the Federal Reserve last week.”

Trucking serves as a barometer of the U.S. economy, representing 67% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.2 billion tons of freight in 2011. Motor carriers collected $603.9 billion, or 80.9% of total revenue earned by all transport modes.

Based on an expectation of continued growth in the energy industry and auto sector, Costello believes tonnage numbers will be positive in the second half of 2013.

“Despite the small reprieve in July, we expect solid tonnage numbers during the second half of the year as sectors that generate heavy freight, like oil and gas and autos, continue with robust growth,” Costello said. “Home construction generates a significant amount of tonnage, but as mortgage rates and home prices rise, growth in housing starts will decelerate slightly in the second half of the year, but still be a positive for truck freight volumes. Tonnage gains in the second half of the year are likely to overstate the strength in the economy as these heavy freight sectors continue to outperform the economy overall.”

RETAIL IMPACT?
One of those economic areas to see less freight shipped could be retail. In recent weeks, most major U.S. retailers have lowered their sales guidance for the second half of the year based on a reduction in consumer spending. Execs with Wal-Mart Stores recently cut the company’s growth projections for this fiscal year by 50% based on what they see as a “challenging” retail environment.

Costello told The City Wire that the retail sector pull back will have an impact on freight, but not enough to pull the amount of tonnage into negative territory compared to 2012. A shipment of retail goods, Costello explained, typically weighs less than a shipment of components for the housing, energy or auto sectors.

Costello’s view of tonnage gains for the remainder of 2013 is supported by an Aug. 15 report from Little Rock-based Stephens Inc. about the health of the less-than-truckload (LTL) sector of the trucking industry. The report, written by Stephens’ transportation industry analyst Brad Delco, and research associate Ben Hearnsberger, suggest that tonnage levels in the LTL began to improve the latter part of the second quarter and into the third fiscal quarter.

“(T)he tonnage trends throughout the second quarter were encouraging as many carriers that reported negative tonnage this quarter were seeing flat to positive tonnage in their monthly June/July figures,” noted the Stephens report.

CASS DECLINE
The Cass Freight Index fell 2.3% in July, but was a drop “in line with seasonal trends,” according to Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., who provides economic analysis for the Cass Freight Index.

Cass uses data from $22 billion in annual freight transactions processed by its information processing division to create the Index. The data comes from a Cass client base of 350 large shippers.

Despite being down in June and July, shipment volume between January and July is up 3.4% above the same period in 2012.

Wilson’s report included the following info about shipping segments:
• Railroads led the way in declines with drops in carloadings and intermodal shipments in the last four weeks. Carloadings were down 3.6% and intermodal loadings fell 2.5%.

• The decrease in intermodal rail is consistent with the decline in imports and weak exports, which limited the number of trailers to be moved.

• The trucking sector showed some signs of capacity constriction, but it is too early to determine if or to what extent this is being caused by the new Hours of Service Rules.

Wilson said the U.S. economy “is still showing signs of slow growth,” with the GDP second quarter growth estimated at 1.7%, up from a first quarter revised growth rate of 1.1%. Another positive sign, according to Wilson, is improvement in U.S. manufacturing orders in June.

“Future prospects from a freight point of view look largely the same as they did last month. Volume is strong enough to make use of the equipment we have deployed, but not growing at a rate sufficient to cause stress in the system,” Wilson said.

Five Star Votes: 
Average: 5(1 vote)

Retailers gear up for holiday showdown

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story by Kim Souza
ksouza@thecitywire.com

The back-to-school sales are not even in books yet and retailers from Wal-Mart to Toys R Us are already unveiling new incentives to woo holiday shoppers.

Wal-Mart Stores Inc. said Wednesday (Aug. 22) at the retailer’s annual holiday meeting in Orlando that it ditched the $5 layaway set-up fee this year and will give its Facebook fans a 2-day head start on holiday layaway beginning Sept. 11. In prior years, Wal-Mart refunded the start-up fee with a gift card when the layaway paid in full. This year the program is free, no strings attached.

That said, layaway cancelations will incur a $10 charge this year, except in the states of Ohio, Maryland, Rhode Island and the District of Columbia. There was no cancelation charge in 2012.

The program officially kicks off Sept 13 and runs for 90 days and will operate similarly to last year, absent the set-up fee.

“Times are tough and it’s not easy for many Americans – they are watching every penny,” said Duncan Mac Naughton, chief merchandising officer for Walmart U.S.
 “All year long, but especially during the holidays, our customers need a low price leader. This year, we are committed to doing everything we did last year to help Americans save money – plus more. More savings, more layaway items and our commitment that they can give their families a great Christmas on a budget."

Wal-Mart said there are 35,500 eligible layaway items this year, up by about 1,000 items from a year ago. This year’s eligible merchandise includes Apple’s iPad, the Samsung Galaxy and PlayStation 4, as well as toys, jewelry, small appliances, select sporting goods and automotive stereo and speaker systems.


The retailer phased out its layaway plan in September 2006 — roughly a year before the recession began — with the exception of jewelry. But Wal-Mart brought back the program for the holiday season in 2011 and said it’s been widely used by its customer base.


Toy giant Toys R Us is expanding its price match guarantee this holiday season to include online pricing from Wal-Mart, Target, Best Buy and Amazon on identical in-store items.

"We want to take away any concerns our customers might have about maximizing their budgets," said Toys R Us Chief Merchandising Officer Richard Barry.

Getting customers into stores is more than half the battle for retailers during the important holiday season. Analysts estimate holiday sales can account for 40% of a retailers total annual revenue.


Wal-Mart, Target, Macy’s and other retailers recently reporting earnings have given cautious outlooks, trimming sales and profit estimates for the balance of this year. Walmart U.S. CEO Bill Simon said recently that the consumer is still quite value- conscious. He added that consumers will likely spend for the holidays, while they may cut back on other things between now and then. Target executives said Wednesday (Aug. 22) their shoppers may have been willing to dole out for large-ticket items like new cars in recent months, at the expense of other discretionary spending.

Lori Cross, analyst with Cross Ledge, said there is plenty of evidence that consumers are spending more on big ticket items from robust auto sales to Home Depot’s recent note that the “$900 and up projects” rose 15% from a year ago for the big box giant.

“That’s equal to lots of smaller trips not taken to Wal-Mart or Target,” she said.

Other analysts agree the higher payroll taxes which took effect in January to the tune of $1,000 a year for households earning $50,000, are still being felt by some consumers. They said consumer income has also been dinged by rising health insurance costs and stagnant wages.

“Let’s hope by the end of this year, consumers are figuring out how to adjust to those higher taxes,” said Courtney Reagan, retail analyst with CNBC.

Last year holiday shoppers spent almost $579 billion, rising 3% from the prior year. A holiday survey by Baynote found 60% of retailers are forecasting revenue growth of 10% for the 2013 holiday season.

The report also suggests that 30% of retailers will begin their pre-holiday promotions prior to October 1, with more than 40% waiting only until early November.

"We wanted to take the pulse of the retail industry as it prepares for the 2013 holiday season and gain a deeper understanding of how marketers plan to increase holiday season revenue and profitability," said Dan Darnell, VP of marketing and product, Baynote. "The inaugural survey provides a benchmark for retailers finalizing promotional strategies for the upcoming holiday season.”

The survey also revealed that most retailers believe shoppers will spend later in the year, despite their efforts to price match and provide extended layaway programs.

Five Star Votes: 
Average: 5(1 vote)

Rep. Mullin: Arkansas River locks in poor shape (Updated)

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story by Ryan Saylor
rsaylor@thecitywire.com

It was a meeting that ranged from sequestration to the Affordable Care Act to the federal budget deficit and U.S. Rep. Markwayne Mullin, R-Westville, who represents much of eastern Oklahoma in Congress, was there to answer every question at the Wagon Wheel Express in Muldrow.

Constituents did not waste time asking about national issues that have trickled down to impact people on the ground in Oklahoma, including the recent closure of some parks and recreation areas managed by the U.S. Army Corps of Engineers.

Mullin said the closures were a result of "the government at its best," adding that sequestration, or a budget cut across all areas of government versus targeted cuts, was not the ideal way to deal with the budget deficit or the Congress' inability to pass a budget.

Even though he does not support the method used to cut the Corps' budget, Mullin said the Corps job is not recreation, but is instead to focus on the movement of commerce, something he says is at risk along the Arkansas River through Oklahoma and Arkansas.

"Their main job is to open the water ways for our commerce to be transported from point A to point B, so we have to prioritize where they spend money," Mullin said. "Our locks on the navigational channel has a 50/50 chance of failing at any given day. If any of those locks close and fail, that's around $2 million per day to Oklahoma's economy of commerce getting in and out. So they have to prioritize."

The freshman congressman said meetings with groups from Oklahoma and Arkansas have taken place to address the problems with the locks on the navigation system, which begins in Catoosa, Okla., and ends where the Arkansas River meets the Mississippi River.

Mullin said the Corps has also been aggressively lobbying Congress for funding for the system, recalling his first meetings with the Corps in January.

"They've been to DC, we've been to their office, they've been to locations, we've been to locations with them, I've personally been multiple times with them," he said, adding that the Corps' budget simply does not allow for much in the way of maintenance, much less recreation items.

"When I got their numbers, they don't even have the funds to build or make the repairs needed to the locks. And so we're in discussion with Arkansas, and two weeks ago we met with Arkansas and Oklahoma - our delegations came together to work with the Corps to say, 'If a lock closes down, the Corps doesn't have the funds. The states and local businesses can be able to come together and form the money and equipment to get those locks back open because it's our economy that's going to suffer."

Chief of Public Affairs Martie Cenkci of the U.S. Army Corps of Engineers said by telephone from Dallas that there have been several meetings between the Corps and outside groups.

UPDATED INFO: Cenkci provided this statement about the recent meetings:
The Corps of Engineers held a working meeting with affected MKARNS stakeholders in Fort Smith, Ark.,  Aug. 20-21 to discuss the future of the MKARNS and joint efforts to make the MKARNS a resilient, reliable, sustainable waterborne transportation system. The locks are, in fact,  approaching the end of their design life; it will require future investment by all parties to sustain and improve them.

We engage in risk-based decision making in all our projects, and any determination about risk of failure depends on a budget prioritization process.

We will continue to work with industry, government, and other stakeholders to develop ways to ensure that this vital waterborne commerce system is available for both current and  future users. This effort underscores the Corps of Engineers commitment to working with stakeholders and local communities to ensure that we continue to provide value to the region and to the nation.

In addition to questions about the U.S. Army Corps of Engineers, residents from across Sequoyah County asked questions on the ACA (Obamacare), religious freedoms and a possible government shutdown:

Obamacare
• "Now I don't know great, a solution to replace it with, to come up with something else, but I shouldn't. I'm an elected official that came out of the construction world. If we want to get it right, let's bring in doctors, hospitals, nurses and patients. Let's have them bring (a plan together) and then let the American people vote on it. If the American people want to pay for it, they should have a voice on it. It shouldn't be crammed down the throat of people that are saying they don't want it."

• "If you look at the medical world, was it that bad? I'll tell you what messed it up was when the government started getting more involved in it and started setting the rates for the doctors on how much the could get reimbursed. Started forcing the hospitals to take patients regardless of if they could pay for it or not and couldn't ask any questions. Couldn't find out if they were legal or not. When they started getting involved in it and putting all these mandates on the healthcare industry, our coverage started going down."

Religious freedoms
• "For some reason, we get caught up in this whole thing of being silent and turning the other cheek. I've never been real good about turning the other cheek. I never understood why we had to turn the other cheek. If you're willing to make me feel uncomfortable because of the way that you choose to act or your own views, then I have no problem making you feel uncomfortable and saying, ‘No, you're wrong.’ Or giving you a choice to move someplace else. And we, as Christians, have kept our mouth shut. You know, I don't quite understand because someone else is speaking out, our traditional values we allow to be pushed constantly."

Threat of a government shutdown on Sept. 30
• "I don't think we're going to have a government shutdown. We have not been on conference about this. I think tomorrow evening, we've got a phone conference with a conference as a whole that we're supposed to get on. I don't know the topics. I don't know if this will be discussed. But just thinking through this in my head, and through some people I have talked to but not in leadership, what will probably happen - there is already a bill in place if we were to run up against a government shutdown, that the essential roles of government would be funded - military, law enforcement, social security checks would still go out, payment for military beneficiaries would still go out. But maybe some of the parks would be affected EPA - God forbid - would be shut down for a day. That'd be horrible. But the essential roles of government would be put in place."

Five Star Votes: 
Average: 4(2 votes)

U.S. Manufacturing Summit 'just a start'

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story by Kim Souza
ksouza@thecitywire.com

Some of the most influential business and public policy leaders in the country took the stage today in Orlando, at Wal-Mart's U.S. Manufacturing Summit to discuss what it will take to bring more manufacturing jobs back to the U.S.

“We need to make things again in America, manufacturing represents middle class jobs that this country needs. We can’t just be a service economy,” Bill Simon, CEO of Walmart U.S., said in his opening remarks.

He said there was a time when a job at a local manufacturer meant a ticket to the middle class, but many of those labor intensive jobs went off-shore chasing lower wages, and the end-result has been a canyon, a hollowed-out middle in the U.S. workforce.

The two-day summit sponsored by Wal-Mart and the National Retail Federation was an attempt to get the right people in the same room to discuss how to rebuild America’s manufacturing sector. More than 600 suppliers and economic development teams from 36 states attended.

During the conference, suppliers announced more than 1,000 new U.S. jobs with investments in excess of $70 million from the likes of GE, Element Electronics and sock makers Kayser-Roth and Renfro.

“This is just a start as this economic transformation is taking place and the need to make things closer to the areas of consumption,” Simon said.

ONSHORE REALITY
Hal Sirkin, Boston Consulting Group Senior Partner, made a strong case for U.S. manufacturing, citing that American companies have had to get more productive or go out of business.

“The U.S. produces 2.5 times as much manufacturing value added as we did 40 years ago, and we do so with 30% less labor. We are one of the most productive countries in the world,” Sirkin said.

He said wages have risen in China over the past 13 years which have dramatically altered the economic case for manufacturing there. Sirkin said in 2000 labor costs in China were 25% of those in the U.S., and today they are 50% and expected to rise to 63% in the next two years. When adding component and raw material sourcing, shipping and overhead costs, Sirkin said the U.S. trumps China for lower overall manufacturing costs of many products.

Vlad Kazhdan, vice president of Element Electronics, said his family-owned firm met with Wal-Mart earlier this year at the company’s ‘Year Beginning Meeting” as they were planning to build a U.S. plant that makes televisions for Wal-Mart. He said the company had a three-year roll-out plan but Wal-Mart challenged them to be done in nine months. At that time he met with South Carolina Gov. Nikki Haley and together the three interested parties are getting it done. He said before the end of the year the new plant in Winnsboro, S.C., will be up and running, providing 500 new jobs in that community.

“The long term commitment for demand was answered by Wal-Mart, and South Carolina came through with the shorter-term incentives to get the plant operational," Kazhdan said.

Jeff Immelt, chairman and CEO of General Electric, said now is the time to onshore manufacturing where 25% of the cost is labor. He said refrigerators are another example of a product that could easily be made in the U.S. at a competitive rate today. Some 65% of GE profits come from outside the U.S., so Immelt said he regularly travels the globe. He’s found other nation’s are taking notice of the U.S. and this renewed interest in re-building its manufacturing base.

He said GE is expanding plants in Ohio and Illinois that will provide energy-efficient light bulbs for Wal-Mart. This $30 million investment is creating an additional 120 jobs.

EXPANSION HEADWINDS
Richard Fisher, president of the Federal Reserve Bank of Dallas, told the group that business owners and manufacturers he’s talked with in the past two years are confounded by the uncertainty in fiscal and regulatory policy. He said America should rebuild its manufacturing centers, but in spite of the compelling evidence to expand and take advantage of the cheapest money supply in the country’s 237-year history, manufacturers remain cautious because of taxes and unwanted regulation.

Several state governors took the stage on Thursday, including Arkansas Gov. Mike Beebe. Each state pitted their benefits against the other and the governors candidly discussed some of the perceived challenges manufacturers face when on-shoring jobs. Beebe said having the right workforce is essential to recruiting and retaining companies to a region.

“Sometimes that means you have to work with universities and community colleges to make sure they are offering the kind of programs local manufactures require,” Beebe said.

New Mexico Gov. Susana Martinez said in her state many high school students train simultaneously for vocational trades during their last two years of high school. 

“We found our manufacturers needed engineering techs and other skilled support staff which are being educated while still in high school. They graduate with a diploma, an associate’s degree and a job rating certificate,” Martinez said.

Beebe said it’s not just the education level, but also the work ethic that manufacturers consider.

Several governors agreed that businesses need less state and federal regulation in addition to incentive programs to attract domestic and foreign manufactures.

WAL-MART’S STAKE
Critics might ask what is Wal-Mart’s stake in this initiative. As a retailer offering the lowest prices Wal-Mart buys its fair share of products made outside the U.S. The retailer has committed to source an additional $50 billion in products made in the U.S. over the next 10 years. This is less than 20% of the company’s U.S. sales totaling $274 billion last year.

Wal-Mart may be a global company, but its U.S. division accounts for 65% of the company’s total sales revenue.

Wal-Mart said the $50 billion is just a start, and the bigger piece of the story is found in small communities like Griffin, Ga., where people have gone back to work at 1888 Mills making towels sold at Wal-Mart. Earlier this year Wal-Mart said it worked with 1888 Mills on a long-term commitment that gave them the incentive needed to reopen a plant in rural Georgia years after virtually all textile manufacturing moved off-shore. Towels made in the USA were unheard of until 1888 Mills made that first step back on U.S. soil last year. However, the 1888 Mills plant employs less than 50 in the town of more than 23,000 people, and a majority of the company's operations are located overseas.

Duncan Mac Naugton, chief merchandising officer with Walmart U.S., said Wal-Mart sells a lot of towels, but the 1888 Mills “Made in the USA” product outsold the others by more than 35%.

“Consumers take pride in buying things made in America,” he said.

Wal-Mart is also positioned to win anytime jobs are created in this country, particularly in rural America, where the majority of its 4,000-plus stores are located, company officials have said.

Simon was quick to point out it’s not just Wal-Mart making a difference, but it is getting the right people together – suppliers, retail buyers and government agencies – who can work together to move investment in the right direction.

“We don’t need anyone’s permission," Simon said, adding that businesses have the capital to invest and the time is right for action.

Mike Harvey, chief operating council for the Northwest Arkansas Council, attended the summit and agreed that Wal-Mart’s push could be a game changer.

“If Wal-Mart says it is going to do something, they can move the needle faster than any government initiative,” Harvey said.
 

Five Star Votes: 
Average: 4(3 votes)

Beebe: Wal-Mart onshoring push ‘has a lot of legs’

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story by Michael Tilley
mtilley@thecitywire.com

On the opening day of a Wal-Mart-sponsored manufacturing summit, Gov. Mike Beebe met with officials from two Asian-based electronics manufacturing companies who are likely to locate a plant in the U.S.

Beebe and other officials attending the summit said the effort by Bentonville-based Wal-Mart Stores to bring manufacturing back – often referred to as “onshoring” – to the U.S. would be assisted if the federal government would either act or get out of the way.

Beebe was one of eight state governors to attend the “U.S. Manufacturing Summit” in Orlando, Fla., that began Thursday (Aug. 22) and will conclude Friday with a trade show connecting economic development officials from 36 states with about 600 Wal-Mart suppliers and retail vendors.

The summit is the first high-profile public event held by Wal-Mart following the Jan. 15, 2013, company pledge to purchase in the next 10 years an additional $50 billion in U.S.-made goods. Company officials have said they hope to boost U.S. manufacturing by purchasing more sporting goods, apparel basics, storage products, paper products, textiles, furniture and higher-end appliances. (Link here for The City Wire report on the summit’s opening events.)

Some cynics have said the Wal-Mart effort is pure publicity, with company officials seeking to ride the coattails of a resurgence in U.S. manufacturing. There is also concern that the global companies who place facilities in the U.S. will – possibly to appease large retailers – only place a small portion of their overall manufacturing volume in the U.S.

WAL-MART COMMITMENT
But Beebe and Mike Harvey, chief operating officer for the Northwest Arkansas Council, are confident Wal-Mart is serious about being a leader in the onshoring effort. Harvey, along with Council President Mike Malone, and Tim Allen, president of the Fort Smith Regional Chamber of Commerce, are attending the summit.

“I think they are going to follow through. First of all, they don’t have any choice. ... Once they announce this bold initiative ... and put someone as high up as Bill Simon (president and CEO of Walmart U.S.) in charge of it, it has a lot of legs,” Beebe said.

What’s more, Beebe said that prior to the summit, his office had already worked to arrange meetings between Wal-Mart and officials with foreign-based manufacturers. One of the meetings was from a lead generated during Beebe’s April 2012 trip to China.

Harvey said he is “100% certain” that Wal-Mart will remain committed to the 10-year effort. He also said the effort could cause the trend of U.S. manufacturing job losses to reverse course.

“I’m not saying all those jobs will return, but this may be a tipping point going to the other direction,” Harvey said.

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

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

Harvey said Arkansas has a competitive advantage with other states because it is the home state of Wal-Mart.

“Certainly with the foreign manufacturers, being in the home state, being in Arkansas is appealing to them,” Harvey said.

Harvey also said interest in Arkansas resulted in the state having two exhibit booths – one from the Arkansas Economic Development Commission and another staffed by the Northwest Arkansas Council – in the Friday (Aug. 23) trade show and 20 appointments set with companies interested in learning more about Arkansas.

“The fact that we’ve had 20 companies express an interest in being in Arkansas, I’m just thrilled with that. ... Arkansas is one of just a handful of states to have two booths because there was so much demand,” he said.

Beebe said geography also is an advantage.

“Our geographic proximity to the center (of the U.S.) is a huge advantage,” Beebe said.

FORT SMITH ADVANTAGE?
Of Arkansas’ three largest metro areas, the Fort Smith region has been the hardest hit in the past decade in terms of losing manufacturing jobs. Between June 2003 and June 2013, jobs in the sector are down 23% in central Arkansas, down 34.16% in the Fort Smith region, and down 20.8% in Northwest Arkansas.

Beebe said his office and the AEDC does not pick and choose where projects go, but instead focus on what is the best fit for the company being recruited. However, Beebe noted that the Fort Smith area does have an advantage with potential manufacturing prospects.

“Mainly because of Fort Smith’s history, I tout Fort Smith’s manufacturing culture,” Beebe said, adding that the region’s “trained and trainable manufacturing workforce” is an attractive asset.

Harvey said the unfortunate fact that Fort Smith has lost so many manufacturing jobs could be an advantage if the onshoring resurgence gains momentum.

“Fort Smith has a lot of available buildings on market for manufacturing ... and this could be very good for them,” he said.

‘STAYING PATRIOTIC’
Beebe is optimistic that manufacturing jobs will return to the U.S. and Arkansas, with part of the optimism driven by what he sees as a change in consumer habits. According to Beebe, U.S. consumers are willing to buy a U.S. made item if the value is good and the price is reasonable.

“I think Americans are staying patriotic about this (willingness to buy American),” he said.

Possibly holding back a resurgence in manufacturing jobs are outdated federal laws, Beebe said. For example, the U.S. has a tariff on certain electronic components that is no longer needed. The tariff was established decades ago when global trade realities were different. But with the components no longer made in the U.S., the tariff does not make sense, and in some cases makes it financially impossible for foreign companies to build electronic component assembly operations in the U.S.

“It’s an impediment to bringing jobs back to America from overseas,” Beebe said of outdated federal laws.

U.S. Commerce Secretary Penny Pritzker also attended the Wal-Mart summit, and Beebe said he “emphasized with her” the need to quickly convince Congress to address the specific rules that no longer make sense and are potential deal-killers with some of the Asian companies that have expressed an interest in locating in Arkansas.

“I will follow up on this (with Pritzker) and our people will follow up on this specific issue,” Beebe said.

Mike Harvey, chief operating council for the Northwest Arkansas Council, attended the summit and agreed that Wal-Mart’s push could be a game changer.

“If Wal-Mart says it is going to do something, they can move the needle faster than any government initiative,” Harvey said.

Five Star Votes: 
Average: 4.7(3 votes)

Fort Smith tax revenue falls for fourth month

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Editor’s note: This story is a component of The Compass Report. The quarterly Compass Report is managed by The City Wire and presented by Fort Smith-based Benefit Bank. Other supporting sponsors of The Compass Report are Cox Communications and the Fort Smith Regional Chamber of Commerce.

Fort Smith sales tax revenue was down almost 3.5% in the July report, marking four consecutive months of year-over-year declines in city collections and the city’s portion of the countywide sales tax.

Each of the city’s 1% sales taxes (1% for streets and 1% for water and sewer projects) collected $1.614 million in the July report, down 3.49% from the same period in 2012, and 6.34% below budget estimates. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in August are from taxes collected in June and transferred by merchants to the state in July.)

For the first seven reporting months of 2013, each of the 1% sales taxes generated $11.494 million, down 1.63% compared to the same period of 2012, and 4.49% below the budget estimate.

Collections in 2012 of the two 1% taxes totaled $39.21 million, slightly ahead of the $38.683 million during 2011. The 2011 collections were 3.9% above 2010 collections.

Fort Smith’s share of the county 1% sales tax in the July report is $1.279 million, down just 0.18% compared to July 2012. The collection was down 2.64% compared to the revenue estimate.

For the first seven reporting months of 2013, the countywide tax has generated $8.958 million for Fort Smith, down 1.75% compared to 2012 and down 4.15% compared to budget forecasts.

The countywide tax collection is critical because the revenue is a little more than 40% of the city’s general budget of roughly $42 million. A majority of the general fund budget general supports fire, police and other critical city functions. The dip in collections has resulted in city officials seeking 4% budget cuts from all departments.

Fort Smith’s July report is counter to the overall Arkansas report for July. July sales and use tax collections totaled $186 million, an increase of $8.1 million or 4.5% from last year. Collections were also above monthly forecast levels by $1 million or 0.5%.

PREVIOUS ANNUAL COLLECTION INFO
2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

Five Star Votes: 
Average: 5(4 votes)

25-30 attend ‘open carry’ handgun walk in Fort Smith

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A widely watched “open carry” walk held Saturday morning (Aug. 24) in Fort Smith was an event the organizers were hoping would not end with a bang. And it didn’t.

Between 25 and 30 people, most with a handgun holstered to their sides, met before 9 a.m. in a cul-de-sac near the intersection of Massard Road and Zero Street (Arkansas 255). From there they walked north up Massard Road in what event organizer Steve Jones said is “only a celebration and nothing more” of Act 746.

Arkansas Carry, a group advocating for fewer restrictions on gun possession laws, believes Act 746 allows for open carry of a handgun in Arkansas. The Act, which made technical revisions to Arkansas’ gun laws, was approved in the recent General Assembly.

However, Arkansas Attorney General Dustin McDaniel issued an opinion on July 8 saying that Act 746 does not make legal the open carry of a handgun. In the opinion, requested by Sen. Eddie Joe Williams, R-Cabot, McDaniel said just because someone may be going on a journey, which is defined as "beyond the county in which the person lives," it does not mean that they are able to openly carry a firearm on his or her waist.

"To the contrary, the journey exception applies only to 'travel beyond the county in which a person lives'– a narrow range of activity inconsistent with the concept of 'open carry,’" McDaniel noted in the opinion.

McDaniel also said the journey rule generally applied to keeping a weapon within a vehicle, not on an individual.

Jones, who is chairman of Arkansas Carry, said the AG’s opinion was “very incoherent” and was “devoid of examples of pertinent state law or previous judicial rulings."

Jones said in the Saturday morning pre-walk address that possession of a gun is a Constitutional right, but there are those who seek to “take all these rights back.”

Jones also issued a few rules before the walk began. He said no one should touch their gun or remove it from its holster. If they wanted to compare weapons, they should do that elsewhere.

“Please don’t pull your handgun out and show it to somebody,” Jones said.

He also said those in the walk should allow the police to deal with a heckler or anyone else who wants to challenge the walk. Members of the Fort Smith Police Department observed the walk.

“But it would take an idiot right now to go for your gun,” Jones said.

Jones ended his pre-walk comments by encouraging everyone to be safe and responsible because the country “is watching us today.” Indeed, several regional and national news outlets have written about the open carry walk. Jones has been upset with some of the news reports – including from The City Wire– that suggested the walk is a protest of McDaniel’s opinion.

“(I)t really isn't even about the AG opinion on the journey. It's about how the new law really did change things and we are celebrating,” Jones told The City Wire.

After the walk ended, Jones was asked if he or others now felt free to walk in Fort Smith with their handguns holstered in the open.

“I would say we pretty much proved today that you can walk freely in Fort Smith,” Jones said, but later qualified the answer by stopping short of saying it’s legal to do so.

Fort Smith Police Chief Kevin Lindsey has said the department “would not enforce the terms of the Act” based on McDaniel’s opinion. Lindsey said he was told by John Settle, Fort Smith prosecuting attorney, that “just carrying it unconcealed is not enough” to cause an arrest. Lindsey told The City Wire that he and Settle’s view is that there has to be proof an “attempt to unlawfully use” a weapon against another person.

Jones said Arkansas Carry is considering other open carry walks around the state, “but nothing officially has been planned.”

Five Star Votes: 
Average: 4.6(10 votes)
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