One of the things learned during the recent Arkansas Aerospace and Defense Summit is that Arkansas could be a big winner in a more than $30 billion deal to build new military vehicles.

There were more than 250 registered attendees this week at the Arkansas Aerospace and Defense Summit, where officials were able to spotlight the state’s rapidly expanding aerospace and defense sector before an audience of local, regional and national leaders, organizers said.

The two-day conference, held Tuesday and Wednesday at the Crowne Plaza Hotel in west Little Rock, included a job fair and tradeshow, panel discussions, networking opportunities, and a keynote luncheon presentation that included several high-ranking military commanders.

Chad Causey, executive director Arkansas Aerospace and Defense Alliance, said there were more than 30 companies represented at the conference where industry representatives came together to discuss important issues and challenges, conduct business, and create awareness on how important the sector is to Arkansas’ growth and future economic development.

“Arkansas is a place where we sometimes like to keep ‘big things’ secret,” Causey said, citing Wal-Mart, Tyson Foods and the state’s vibrant steel producing industry in northeast Arkansas. He said the aerospace industry’s impact on the Arkansas economy is just as important.

“Arkansas’ No. 1 export to the world is aerospace goods,” Causey said. “That is saying something considering the amount of agriculture commodities we have in the state and presence we have there.”

Causey continued: “It is important that we highlight that and give the industry a (chance) to come together to work on common goals and challenges, including the workforce and education aspect and (goal) to attract the next generation of our workforce.”

According to the alliance, Arkansas’s aerospace industry adds for more than $1.8 billion in export trade to the economy through the nearly 180 aviation and aerospace-related companies in the state. Commercial airports generate $2 billion to Arkansas’ economy each year, officials say, while general aviation creates an almost $500 million in annual growth.

Additionally, there are 91 publicly-owned or publicly-used general aviation and community airports within the state, eight of which have airline services. Altogether, the industry employs nearly 10,000 jobs, providing wages that are well above the state average.

$30 BILLION HUMVEE CONTRACT
Going forward, Causey said one of the biggest events on the horizon for the state’s aerospace and defense sector is the highly-awaited decision by the Pentagon’s to replace the military’s aging Humvee vehicles. Lockheed Martin, current Humvee maker AM General LLC and Oshkosh Corp., were selected finalists in 2012 to build the iconic armored vehicle.

According to industry reports, that contract could be worth more than $30 billion by 2040. At an estimated cost of between $250,000 and $400,000 per vehicle, the Army has said that it wants to buy 49,000 of the vehicles, and the Marine Corps need about 5,500.

If Lockheed wins the bidding war, the Bethesda, Md.-based defense contractor has said it would build the next-generation “joint light tactical vehicles,” or JLTV, at its huge manufacturing facility in Camden.

Already, each JLTV finalists has delivered prototypes and six trailers to the military for testing and evaluation. The testing phase is scheduled to be completed in the first quarter of fiscal 2015, which begins in October. The Pentagon plans to make a low-rate initial production decision in late fiscal 2015, according to the JLTV Joint Program Office.

“Lockheed Martin has expanded their facility there (in Camden), and they are working vigorously to secure that contact,” Causey said. “That would be a huge impact for the state of Arkansas and the defense sector here.”

WORKFORCE ISSUES
But Causey also added the burgeoning sector has some challenges, including the industry’s high employment attrition and turnover rates at between 8% and 10%. Although the aerospace industry has good-paying jobs, Causey said, the high so-called “churn” rate makes it difficult to find and keep enough workers to fill those jobs.

“Arkansas is a small state,” Causey said of the growing workforce challenge. “That is why we bring everybody together in this trade association and speak collective so we have a louder voice and take those issues forward.”

To help meet that challenge, the alliance invited more than a dozen students from the engineering program at Sylvan Hills High School in North Little Rock to attend the two-day conference. Those students participated in a Thursday morning panel discussion that allowed the students to speak with employers and get more information on how to enter the industry.

“Arkansas is full of qualified and talented individuals, and we have a number of employers with great paying jobs,” Causey said. “We just need to connect them and make sure they are getting the education and tools they need to enter this workforce, and enter it successfully.”

It was an action-packed Wednesday as lawmakers approved several education bills and a health care bill, while a bill that allows school districts under 350 students to get a waiver to remain open was signed into law.

Gov. Asa Hutchinson signed House Bill 1263, sponsored by Rep. Bruce Cozart, R-Hot Springs, into law during a 1 p.m. ceremony at the Capitol. The bill would allow districts to provide information to state education officials on average daily membership, standards, a yearly budget, a copy of an audit and a statement that the district is not in academic, fiscal or facility distress.

The Senate voted 22-0 and the House voted 95-0 earlier this month to approve the bill. In the past several years, lawmakers said law had hamstrung districts that faced the 350 number. One of the districts, the former Weiner School District, was annexed into the Harrisburg School District.

During a House committee meeting earlier this month, Cozart said the district had strong test scores, good parental involvement and good finances but faced closure due to the number.

SB 681 – EDUCATION COMMISSIONER
It was an argument of professional experience versus work experience as senators approved a bill to modify the qualifications of a person to serve as state education commissioner. The Senate voted 24-6 to approve Senate Bill 681, sponsored by Sen. Alan Clark, R-Lonsdale. The bill would amend state law on the qualifications for the post.

Currently, a commissioner has to be “a person of good moral character, recognized as a leader in the field of education and qualified technically and by experience to direct the work of the department.” Also, the person has to hold a master’s degree, have 10 years’ experience as a teacher, with five years in an administrative or supervisory role.

Gov. Asa Hutchinson recently named former State Sen. Johnny Key, R-Mountain Home to the post, contingent upon the qualifications being altered. Opponents to the bill have said that Key does not have the qualifications to serve in the post.

Sen. Linda Chesterfield, D-Little Rock, said while she likes Key, she had problems with the bill. Chesterfield said the education commissioner needed to be someone with experience in the field, noting, “In order to be a general, you have to be in the military.”

Clark told senators he was “never more proud to present the bill,” noting Key’s work as a lawmaker and chairman of the Senate Education Committee when Key served in the Senate. Clark also answered critics by saying the bill would keep the requirements and that either a director or deputy director must have the qualifications.

Also, Clark said Key has received support from people in the education field and that Key had turned down the job back in December when he was first offered the job. The bill was referred Wednesday afternoon to the House Education Committee.

HEALTHCARE BILL PASSES HOUSE
The House also approved a bill that would prohibit the creation of a state-based health insurance exchange until a United States Supreme Court ruling on insurance subsidies is decided. The House voted 74-11, with two present, to approve Senate Bill 343.

The bill, sponsored by Sen. Jim Hendren, R-Sulphur Springs, would put the decision on the exchange up to legislators.

“If a ruling in King v. Burwell modifies the eligibility requirements for subsidies in a health insurance exchange …., a state-based health insurance exchange should not be implemented in this state without the legal authority to establish and operate an exchange under state law and the approval of the General Assembly,” Hendren’s bill noted.

There is also a provision in the bill if justices ruled the other way. If justices rule that subsidies are allowed for a state exchange and not for a federal one, the legislature will make the decision on starting an exchange. However, if justices rule that subsidies are allowed for “a state-based health insurance exchange and a health insurance exchange operated by the federal government, then the authority of the Arkansas Health Insurance Marketplace to implement a state-based health insurance exchange shall not be affected.”

Senators voted 25-0 March 4 on the bill.

Senators also voted 33-1 Wednesday to approve a bill that would allow grain farmers some recourse in case of problems with grain dealers. The bill, Senate Bill 555, would require grain dealers to be licensed annually by the Arkansas State Plant board, post a surety bond based on the volume and size of their operation, and allow officials to temporarily suspend a license under some circumstances.

Sen. Ronald Caldwell, R-Wynne, who co-sponsored the bill, said lawmakers have worked on the bill since last summer when details about issues related to Turner Grain Merchandizing were disclosed. The Brinkley-based company faced complaints of farmers not getting paid for their crops. Caldwell said while no law can completely stop a crime from happening, farmers would be able to report issues to authorities in a timely manner and protect themselves against further problems.

The bill now heads to the House.

On Feb. 18, Gov. Asa Hutchinson announced his legislative proposals meant to reduce the state’s incarceration rates. He may want to contact Fort Smith businessman Kris Keyton.

Keyton, president of Fort Smith-based E-cell, recently earned a patent on an iTunes app, House Arrest, where probationary offenders can be tracked with an iPhone 5S instead of an ankle bracelet.
www.e-cell.com/index.shtml

Like a bracelet, the app not only can track the offender’s whereabouts but also predict behavior. For example, an offender who is gone from home for increasingly longer periods or late on check-ins multiple times may need an intervention to avoid another offense. An offender traveling to the same house again and again may be buying drugs at that location.

“Tracking all the analytical data gives us a greater chance of true rehabilitation than just the revolving doors of our prisons,” he said.

The big difference with House Arrest is it enables two-way communication. Offenders receive computer-generated check-in alert at random intervals 8-10 times a day. The app recognizes the offender by his fingerprint and through facial recognition technology. Offenders then record a video response. If warranted, the probation officer or the monitoring center then can do a FaceTime video call.

Those video communications help authorities watch behavior for signs of trouble. “With the phone, you know where they are, and you’re able to call them, you’re able to talk to them, you’re able to get feedback from them, and especially it appears the juveniles are benefiting from that the most,” Keyton said.

The app soon will record offenders performing breath-based alcohol testing using a bluetooth-enabled device that syncs with the phone. Drug tests will be available in the future, Keyton said.

Keyton said he has been running a pilot test involving about 30 adults in Sebastian County since the middle of January, and so far adults are responding to check-in requests immediately because they don’t want to go to jail.

“If they don’t get their test, they’re calling us going, ‘Hey, I think I should get more tests,’” he said.

He’s also running a pilot test with juveniles on probation in the Helena-West Helena area. Jarvis Smith, chief probation officer for juveniles in Phillips, Lee and Monroe Counties, said that, “The process is phenomenal, in a word.”

Smith said juvenile justice is aimed at rehabilitation, not punishment, and House Arrest enables probation officers to monitor offenders in a way that doesn’t criminalize them or institutionalize them. Ankle bracelets, he said, are large and protruding and give offenders “street credit.” He said the young people like their phones and actually have fun responding to the prompts.

“What happens is the juvenile takes a different sort of perspective on the house arrest, and it gives you an opportunity to build a relationship with your client … maybe even quicker than you normally would because now you are connecting with this person two or three times a day,” he said.

Authorities now use the ankle bracelet as a disciplinary measure. Youths who fail to comply lose their phones.

Keyton has spent most of his adult career in the adult incarceration business. His family has owned Exit Bail Bond Company since 1980. He entered the ankle bracelet business in 1995 using first radio frequency and then GPS technology. The idea for House Arrest came to him in 2008, and he started working on the app in about 2013.

“When the iPhone first came out, and I saw the GPS tracking, and I saw how the applications worked, I thought, ‘Well, we could track offenders with this,’” he said.

The iPhones are paid for by the offenders. As with ankle bracelets, it’s up to them to make sure the phones are charged. If they don’t, it’s a violation.

Another advantage to the House Arrest app is it removes some of the stigma associated with being on probation. Instead of wearing an ankle bracelet, offenders are merely carrying a phone.

“We’re taking the scarlet letter out of the corrections,” Keyton said.

Keyton said the House Arrest app increases the chances that offenders will comply with the terms of their probation because it’s more obvious to them that they are being watched.

“With the iPhone, they know that we can see them because we’re talking to them, and they’re going to comply,” he said.

The Video Wire this week delivers an unusual way to conduct a beauty pageant, changes in commands at the 188th Wing, a parade with men in kilts and nothing else and the legendary ‘stache.

Dawson Meadows again delivers with certainty the news and info on things to do, but he does not deliver those things while wearing pants. We’ve contacted the appropriate authorities.

The Video Wire is a collaboration between The City Wire and Things to Do in Fort Smith.

The opening of a $16 million Peds Legwear plant in Hildebran, N.C., is the latest activity promoted by Wal-Mart as proof of its ongoing commitment to return manufacturing jobs to the United States. Wednesday’s (March 11) opening even included the attendance of U.S. Under Secretary of Commerce for International Trade Stefan Selig.

“There has never been a better time to expand operations in the United States, given our attractive consumer market, thriving culture of innovation, and talented workforce,” Selig said in a statement.

Peds president Michael Penner said Wal-Mart’s commitment to purchase $250 billion in additional products made in the U.S by 2023, state and local government incentives helped make the new plant a reality.

Peds invested $7 million to rescue International Legwear Group (ILG), a failing sock company based in Burke County, N.C., which is an area hard hit by the recession and offshoring of textile production. Within 10 days of ILG’s announcing its liquidation, Peds re-hired workers who had been laid off and saved the company’s ongoing accounts.

“Today, the business is thriving,” Penner added. “The work force is expected to reach 150 employees by the end of this year, and sales have already quadrupled. We are on track for creating 205 jobs by 2018.”

Penner said the company invested in 90 machines from Italy that allow the company to knit yarn into tubes and then add toe seams.

“In the past these were two separate labor intensive processes, and manufacturers would send socks to Mexico or Central America to sew the toe, apply dye, and press and package the socks,” he said.

Cindi Marsiglio, vice president of U.S. Manufacturing at Walmart, said the collaboration with Peds Legwear is bringing U.S-made quality products to its 140 million weekly customers and is in line with its commitment to U.S. manufacturers, creating American jobs and helping strengthen local economies across the country.

Socks manufactured at the new facility are sold in the U.S., as well as in Canada, Mexico, and South Korea, Wal-Mart said.

Two years into Wal-Mart’s 10-year U.S. manufacturing initiative, Marsiglio recently told The City Wire that that there are more projects in the pipeline today than ever before, from concept to commitment and everything in between. While she would not provide an estimated number of projects, in October 2014 she said there 150 projects in various stages.

In terms of investment, Marsiglio said the spending is on par with the two-year target with the estimated prorated portion of $250 million 10-year commitment. The funds are being allocated based on three areas:
• New items sourced from current U.S. suppliers;
• New suppliers bringing new or improved items; and
• Those suppliers looking to bring some of their manufacturing onshore, which is by far the toughest piece of the puzzle and the most time-consuming.

Marsiglio said Wal-Mart doesn’t have a specific target spending among these three areas. 

“We are seeing a lot more production in the U.S. for items added to our inventory as we are buying more from those we already do business with. Some existing manufacturers are expanding their plants as they take on new customers and more business and others are adding shifts. We are still seeing stable interest among those who want to onshore production and plan to build new facilities which is exciting and most difficult to complete,” Marsiglio said.

Mike Harvey, chief operating office of the Northwest Arkansas Council, applauded Wal-Mart’s efforts to onshore manufacturing, noting that it appears to be more challenging from some than others. He said when an industry’s supply chain and workforce has been missing for 20 years or more, it’s difficult and time consuming to put all the pieces back in place. 

While there was hope Wal-Mart’s efforts would pay dividends in its own backyard, Harvey said there are a couple of hindrances at work. He said there is not enough ready, suitable manufacturing real estate in the region and the more importantly the 4.9% unemployment rate and present openings going unfilled in local manufacturing jobs is a bigger red flag.

Harvey said Wal-Mart’s efforts to collaborate where they can to bring U.S. manufacturing back even in a small scale is positive for the nation’s economy.

Two-thirds of products Wal-Mart already sells are made in the United States, but Marsgilio said many of those are food items given the retailer’s huge grocery presence.

“We want to increase that percentage with this $250 billion commitment and our buyers are very engaged in the process. Again, that’s because our customers want to buy local when they can, and it’s also many times cost effective for us,” she said.

What are the costs of a few sick turkeys in north Arkansas? A little more than $4.19 million if you are Tyson Foods Board Chairman John Tyson, and almost $50 million if you are one of the largest institutional shareholders of Tyson Foods’ stock.

All told, the market value of Tyson shares fell more than $905 million this week.

Investors flew the coup after word broke Wednesday (March 11) that a pathogenic strain of Avian Influenza H5N2 was detected in Tyson Foods’ home state of Arkansas. The bird flu strain was found in a turkey flock in Boone County as part of a Butterball turkey growing operation. More than 16.1 million shares traded hands on March 11, almost four times the three-month rolling average of 4.4 million.

Shares of Tyson Foods (NYSE: TSN) closed Thursday at $37.56, down $2.22 from the March 10 closing price – the day before the avian flu news was made public. For the past 52 weeks Tyson Foods shares have traded from a $44.24 high to a $34.90 low.

Tyson wasn’t the only poultry company hit. Pilgrim’s Pride and Sanderson Farms saw share prices dip 7% and 6%, respectively on fears that export markets will remain closed. More than 40 markets already have bans in place since this strain was first discovered in the Pacific Northwest in January.

But for now, the losses are only on paper for those who held on to their Tyson shares. Spokesman for several poultry companies and some market watchers played down the exposure from the recent H5N2 detection saying there had been no link to their farms or chicken operations. Daniel Jones, analyst with Seeking Alpha and manager of Avaring Capital Advisors, said the market moves weren’t rational, especially given Tyson Foods’ diversified meat business. Jones said the $905.3 million market cap loss of Tyson Foods this week is likely “a drastic overreaction.” He said Tyson Foods is at the epicenter of what's going on, given that its headquarters are located in Arkansas. 

“While the source of the avian flu appears to be a flock of over 40,000 Butterball turkeys (which officials said will be culled and kept out of the food supply), Tyson processes around 40 million heads of chicken a week. Of its 106 food plants in operation in the U.S., 15 of these are located in Arkansas while one other seems to border Arkansas and Texas. Some 57 of its 106 food plants process chicken, 14 of which are based in Arkansas. Assuming that this data is correct and that each chicken processing plant produces the same amount of chicken per week, that's about 9.8 million chickens processed per week or 510.64 million chickens per year,” Jones concluded.

He said in the rare event that Tyson Foods’ chicken supply is negatively impacted by the avian flu, there could be up to $2.73 billion in sales lost if the company shuttered its Arkansas-based chicken plants for a full year.

“The probability of this happening is so slim, however, that it's not even worth considering since management attests that the business performs over 280,000 tests in its labs across the country on a monthly basis, covering microbial, chemical and serological topics. Even if the business is exposed to the avian flu directly, any loss would likely be relatively minor and short-term in nature,” he noted.

The more realistic threat is the loss of exports. Jones said $4.7 billion of Tyson Foods' $37.58 billion, or 12.5%, in sales came from countries outside the U.S. in 2014. This represents a 17.5% rise over the $4 billion reported two years earlier. Jones estimates that about $341.14 million is generated annually from Tyson’s Arkansas-based chicken facilities. He said a ban on Arkansas-based chicken exports would likely be temporary at best.

Another local chicken company, Simmons Foods, is privately owned. Simmons execs said the company maintains a program for the early detection of avian influenza as a part of its rigorous and ongoing commitment to biosecurity.

“Every flock is tested for avian influenza as a part of our standard processes. While no avian influenza has been detected in any of our operations at this time, we are supporting our ongoing biosecurity program with increased security measures during this time of heightened risk. We want the public and our local communities to know that all efforts are being taken by poultry companies to assist government agencies in containing and eliminating the disease,” said Donnie Epp, communications director at Simmons.

Tyson Foods also tests all of its flocks before they leave the farm. While the H5N2 strain poses no threat to humans, according to the USDA, it is deadly to poultry. Avian flu can spread rapidly through a flock, killing birds in as little as 24 hours.

Tyson shares began to tumble prior to the bird flu notice. The shares trended higher in early March and reached a closing price of $42.39 on March 3.

Weak commodity prices are causing oil and gas producers and related oilfield and drilling specialty firms to revisit their earlier announced 2015 capital plans, including a growing number of companies that operated in the shale play.

Southwestern recently announced it was cutting 40% of its investment in the unconventional Arkansas shale play. BHP has also cut its budget in the Arkansas shale play to only $100 million – a fraction of its original spending plans when it bought those assets for $4.75 billion in 2011.

And although crude oil prices have crept up slightly in the past few weeks, the U.S. Energy Information Administration said in its short-term energy forecast Tuesday that the recent uptick is simply a reflection of “falling U.S. crude oil rig counts and announced reductions in capital expenditures by major oil companies, along with lower-than-expected Iraqi crude oil exports.”

That means for many of the companies that are tied to the Arkansas natural gas sector, 2015 may turn out to be a lost year given the fallout from oil and gas prices. Midstream operator, Crestwood Equity Partners, a master limited partnership that operates natural gas liquids and pipeline facilities across the Midwest and East Coast, has announced a workforce reduction for the first half of 2015 “to better withstand any sustained downturn in commodity,” the company said in its recent fourth quarter earnings report.

VOLUMES DECLINE IN ARKANSAS SHALE PLAY
Of note in that quarterly report was the fact that Crestwood’s natural gas “gathering volume” in the Fayetteville Shale was down nearly 30% from a year ago.

“Due to the recent decline in commodity prices and expectation for a prolonged period of price weakness, many of our customers have indicated a lower level of development activity across our asset portfolio in 2015,” said the Houston based pipeline and storage owner. “As a result, we have initiated a program to immediately realign Crestwood’s cost structure while maintaining our strong commitment to safety, compliance and customer service.”

According to Crestwood officials, the Houston midstream operator owns 171 miles of pipeline and storage systems in the heart of the Fayetteville Shale in Van Buren, Faulkner, Conway and White counties. The assets are composed of five separate systems known as Wilson Creek, Prairie Creek, Twin Groves, Woolly Hollow and Rose Bud.

Crestwood has fee-based contracts in the Arkansas shale play with BHP, Exxon Mobil’s XTO, BP and Chesapeake Energy. Company officials did not respond to Talk Business inquiries concerning whether or not any of Crestwood’s employees in Arkansas will be affected by the company’s ongoing downsizing.

THOUSANDS OF OILFIELD JOBS CUT
Meanwhile, oilfield service giant Baker Hughes announced in January it would lay off 7,000 mostly in the first quarter of 2015, saying that it expected the crude oil price slide and drilling slowdown to worsen for much of the year.

The layoffs will trim about 11% of Baker Hughes’ 62,000-plus workforce across the globe. The Houston oilfield giant said it expects to book a one-time charge in the next period in the range of $160 million to $185 million for severance, and said it is reviewing its facilities for possible closures.

And with rig counts in the Arkansas shale play down to single digits and many companies largely giving up drilling projects in 2015, there is no word if Baker Hughes’ downsizings will touch its Arkansas operations.

“When we reflect on the marketplace, the bearish sentiment that has pervaded our industry is understandable, considering the steep drop in commodity prices in recent months,” said Martin Craighead, chairman and CEO for the Houston oilfield giant. “While market demand ended up being more resilient in the fourth quarter than many had predicted, the recent declines seen in rig counts will clearly affect results in 2015. We are taking proactive steps to manage the business through these challenges, and we are well positioned financially for the months ahead.”

Baker Hughes and oilfield rival Schlumberger are largely responsible for bringing many of the next-generation drilling and fracking technologies to the Fayetteville Shale that allowed natural gas companies to get more wellhead production with fewer rigs. Those technologies have generated a nationwide shale-driven oil and gas boon that has made the nation’s past dependence on foreign energy sources a faint memory.

Schlumberger also has announced cost cutting plans – letting go 9,000 workers worldwide and slashing $1 billion in spending on future exploration and production as it seeks to control costs amid collapsing crude prices. The world’s largest oilfield services company, which opened a regional, 20-acre office in 2007 hiring over 100 employees, said the companywide layoffs will impact about 7% of its employees.

The Houston-based oilfield conglomerate said that its capital expenditures are expected to be $3 billion for 2015, compared to $4 billion in 2014. Although neither company has announced any Arkansas layoffs, the loss of high-paying jobs in the oil and gas sector has been noted in both state and national labor figures over the past 12 months.

In Thursday’s session on the New York Mercantile Exchange, oil prices fell to a six week low as Brent crude oil fell 0.8% to $57.08 per barrel. West Texas Intermediate crude declined $1.12 or 2.3% to $47.05 per. NYMEX natural gas futures contract settled at $2.713 per million British Thermal units (MMBtu), down 8.4 cents. The EIA expects the Henry Hub natural gas spot price, which averaged $4.39 per MMBtu in 2014, to average $3.07 per MMBtu in 2015 and $3.48 per MMBtu in 2016.

The Energy Department forecasters expect international Brent crude oil prices to average $59 per barrel in 2015 and $75 per barrel in 2016. Prices for the benchmark light, sweet Texas crude is expected to average $7 per barrel and $5 per barrel below Brent in 2015 and 2015.

A new school safety bill was approved unanimously by a key House committee, while lawmakers debated everything from license plate readers to propane to concealed gun laws Thursday in Little Rock.

The House Education Committee approved House Bill 1653, sponsored by Rep. Scott Baltz, D-Pocahontas. The bill would allow school officials to protect schools in case of an emergency by using a panic button alert system. The system, connected to a cell phone app, would be used by teachers, principals, school and emergency personnel. By pressing a button, a 911 operator would be contacted immediately and people signed up for the system would get an alert within two seconds.

Baltz said officials have been working with a Massachusetts-based company, Rave Panic Button, on the system. The representative said he has worked on the bill for some time, in a way, to help schools statewide possibly avoid an unspeakable tragedy.

“It will give a level of safety and get help there so much quicker,” Baltz said.

According to the company’s website, the cell phone numbers that are signed up for the app are placed into a secure database. The program also allows school administrators to set up a profile everything from floor plans to where students are located to help police and other emergency personnel, the website noted. Baltz called the system a “game changer” in being able to protect students and school officials. The bill has 82 co-sponsors in the House and seven co-sponsors in the Senate.

As for funding, Baltz said it would cost about $950,000 the first year to implement the program statewide and $850,000 each year after that. Baltz said officials are looking for funding sources to help pay for the plan.

“It is less than $2 per child (in the state). It is $950,000 but that is not much in the grand scheme of things (in state government),” Baltz said. “Locked doors do save lives.”

Baltz said he will work hard to secure the funding before a Sept. 1, 2015 deadline to implement the program. The bill is expected to head to the House on Monday.

The committee also approved a bill to change the qualifications for the person serving as the state’s education commissioner. The Senate voted 24-6 Wednesday to approve Senate Bill 681, sponsored by Sen. Alan Clark, R-Lonsdale.

Critics have said the bill would remove a person with experience from serving as commissioner. However, Clark told senators Wednesday that his bill would keep requirements for the job in place and that a director or deputy director must have the qualifications.

The qualifications include being “a person of good moral character, recognized as a leader in the field of education and qualified technically and by experience to direct the work of the department.”

Under current law, the director must hold a master’s degree, have at least 10 years’ experience as a teacher, with five years in an administrative or supervisory positions. Former State Sen. Johnny Key, R-Mountain Home, was recently appointed to the post by Gov. Asa Hutchinson. The appointment is subject to the approval of a state education committee. The bill now goes to the House.

FLOOR ACTION
The House voted Thursday to approve two concealed carry related bills. Lawmakers approved House Bill 1505, sponsored by Rep. Michelle Gray, R-Melbourne, by a 68-9 vote, and House Bill 1626, sponsored by Rep. Tim Lemons, R-Cabot by an 80-4 margin.

Gray told lawmakers that her bill would clean up questions over where a weapon could be carried and whether or not there would be “technical violations” over carrying a weapon while driving near the Capitol, a school or other prohibited areas.

For instance, Gray, who told lawmakers she has a permit, told the House Judiciary Committee earlier this week that she has to leave her weapon at a family member’s home when she goes to pick up her children at school.

Rep. Mary Broadaway, D-Paragould, who spoke against the bill, said the bill would expand the number of places where a weapon could be carried. Broadaway cited Department of Human Services offices, where child custody and divorce cases are often handled as well as the capitol.

Broadaway said she has received threats in the past over votes she has taken and that she was afraid of someone having a weapon in the capitol. However, Rep. Nate Bell, R-Mena, who told lawmakers he has a permit, said a recent incident in downtown Little Rock showed the need for protection.

“I went recently to a drug store with a colleague to buy some candy,” Bell said. “Seven minutes later (after I left), it was robbed.”

The bill now heads to the Senate.

As for Lemons’ bill, he said it would allow countywide office holders including county judge, sheriff, county clerk, circuit clerk, treasurer, assessor and coroner, if the office holder has a concealed carry permit, to carry the weapon in the courthouse. Lemons also cited a Sept. 2011 shooting at the Crawford County Courthouse in Van Buren as a reason for the bill.

One person was shot after James Ray Palmer walked into the building to visit a circuit judge who heard his divorce case, media reports at the time said. Palmer, who was shot and killed by police, fired at least 70 rounds into the building, Lemons said Thursday.

The bill moves to the Senate.

PROPANE, LICENSE READERS
The House voted 36-38, with two voting present, against a bill to create the Arkansas Propane Council. The bill, House Bill 1281, would have created a seven-member board appointed by the governor to “promote the growth and development of the propane industry in Arkansas by research, promotion and market development.”

Rep. Chris Richey, D-West Helena, who sponsored the bill, said the council would help publicize the industry, much like other industries including catfish, cotton and poultry.
However, Rep. Kim Hendren, R-Gravette, questioned the need for the council and its role in the state’s business climate.

A proposal to allow the Arkansas Highway Police to use an automatic license plate reader system was voted down by House members. The 48-29 vote, with three voting present (three votes short of passage), was on a bill, sponsored by Rep. Dan Douglas, R-Bentonville.

Douglas said the system would help truck drivers with electronically verifying their registration and logs with highway police at weigh in stations around the state. Douglas also said the information would only be used for survey and research purposes.

However, Rep. Nate Bell, R-Mena, who opposed the bill, said he had privacy concerns over the bill and the information that could be gleaned from the data.

OTHER LEGISLATION
• The Senate approved a bill that would allow a federal candidate to run for more than one federal office at the same time. The 32-1 vote on Senate Bill 803 came after debate Wednesday in the Senate State Agencies and Governmental Affairs committee. Hester told the committee that he had considered Sen. Tom Cotton, R-Ark., when thinking about the bill. However, Hester told the committee he did not consult with Cotton about the bill. The bill now heads to the House.

• A bill that would help to fund road and bridge repair projects around the state, through funding from the state’s severance tax on natural gas, was approved Thursday. The Senate voted 34-0 to approve House Bill 1436, sponsored by Rep. Grant Hodges, R-Rogers and Sen. Bart Hester, R-Cave Springs. The bill would take the first $675,000 collected from the tax and appropriate it to general revenue, with the rest being set aside in a “Road and Bridge Repair, Maintenance and Grants Fund.” The bill now goes back to the House.

• The Senate also voted 34-0 to approve a bill to study the realignment of higher education in Arkansas. The bill, House Bill 1581, was sponsored by House Speaker Jeremy Gillam, R-Judsonia and Sen. Alan Clark, R-Lonsdale. The bill, which now heads back to the House for engrossing, would create a task force to study the issue. Gillam has said the idea for the task force was due to a changing educational debate in the state in the past several years including lawmakers studying workforce education. The task force has until Nov. 1, 2016 to come up with ideas on the issue.

Fundraising for the U.S. Marshals Museum received a much-needed boost with Friday’s (March 13) news that First Bank Corp. added $500,000 to its donation and is 60% toward a goal to raise another $1 million for the museum to honor the late Sam M. Sicard, who was president and CEO of First Bank Corp.

Sicard was elected president of the large regional bank holding company in 1977 and eventually added the title of bank board chairman. During his tenure, the bank saw remarkable growth. In 1989, the Fort Smith-based bank was formed into a holding company — First Bank Corp. — and acquired National Bank of Sallisaw, Citizens Bank & Trust of Van Buren, Bank of Rogers and Brown-Hiller-Clark & Associates.

He died August 2011 after a sudden heart attack. Prior to his death, he was an advocate for the museum with the bank first donating $500,000 in 2009. At the time it was the largest single cash donation to the museum.

More than 100 gathered Friday at noon at the Blue Lion in downtown Fort Smith to hear the announcement and to learn about new designs for the museum’s gallery space.

Sam T. Sicard, the late Sicard’s son, and who was 35 when his father passed, made the announcement about the bank donating another $500,000, and raising another $1 million to honor his father. Speaking to The City Wire after the event, Sicard said he was approached by a friend of his later father about raising the money in honor of his father as part of a move to name the museum’s planned Hall of Honor the Sam M. Sicard Hall of Honor. The hall is being designed to serve as a memorial space for U.S. Marshals who died in the line of duty.

“We are excited and humbled by the generosity of First Bank Corp,” Jim Dunn, president and CEO of the U.S. Marshals Museum, said in a statement. “They are a major part of this community and for them to capture the vision of the Museum and the effort to bring it to reality speaks to the momentum the project is gathering.”

In less than 30 days, $600,000 of the $1 million goal has been raised, Sicard said.

The elder Sicard was famous for his desire to avoid recognition. So what would he think about this honor?

“In the past, when someone would want to do something for him, he would say, ‘You can recognize me when I’m dead,’ So I’m taking that as permission,” Sam T. Sicard said Friday.

The Marshals Hall of Honor announcement comes just days after U.S. Marshal Josie Wells was gun downed near Baton Rouge, La., while trying to execute an arrest. Wells, 27, was married and his wife is expecting their first child.

The Marshal’s name connected with Sicard. He said one of his father’s favorite movies was “The Outlaw Josey Wales.” He liked the movie because it spoke to him about “courage, fearlessness and taking adversity head on” and service to others.

“And that is a reflection of this young man (Josie Wells) who was killed in the line of duty,” Sicard said, adding that he hopes the child of Josie Wells is one day able to come to the museum and Fort Smith and “see his father’s name here.”

Officials with Boston-based Brent Johnson Design presented their design concepts for the museum’s Hall of Honor and the three permanent exhibit galleries —Marshals Today, Frontier Marshals and A Changing Nation. (See the photo carousel box for images.) Their talk included how the exhibits would connect with the planned educational programming with the museum.

In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the estimated 20,000-square-foot national museum. The museum is to be built on 15.9 acres along the Arkansas River that is being donated by the Robbie Westphal family.

The planned $53 million museum's construction is a three-phase project, starting first with site work before moving to building construction and finally design and installation of exhibits to be housed at the museum celebrating the United States' oldest law enforcement agency. A ceremonial groundbreaking was held in September, and museum officials hope to have the facility open by late 2017.

Arkansas’ publicly traded concerns held their own this week as many U.S. stocks got caught in the broader market’s downdraft with the Dow Jones and S&P 500 falling for the third straight week.

During an up-and-down week that saw oil prices continue to fall, the dollar strengthen, and consumer optimism taking a hit, the Dow Jones Industrial Average gained nearly 300 earlier in the week but lost those gains by Friday’s closing bell. The nation’s top blue chip index fell 145.91 points on Friday, or 0.8%, to 17,749.31.

The biggest news among Arkansas stocks came during the mid-week session when S&P 500 component Tyson hit a snag after the U.S. Department of Agriculture reported a suspected case of avian influenza, or bird flu, in Arkansas. Since Wednesday’s opening bells, Tyson’s stock has been on the downward path and closed Friday at $37.42.

Since touching a high of $40.82 in Monday’s session, Tyson’s shares have declined nearly 8.3%, losing nearly $1 billion in total market value as an average of 5.7 million shares have traded hands over the past 10 days. Tyson’s shares are down nearly 10% over the last 12 months, touching a high of $44.24 on April Fool’s Day in 2014.

BANKING RIVALS ENJOY STRONG STOCK PERFORMANCE
Meanwhile, other advancers in this week’s session were Arkansas’ regional banking rivals, Simmons First, Bank of the Ozark and Home Bancshares. The fast-growing Arkansas banks have continued to benefit from recent out-of-state acquisitions and strong quarterly earnings performances.

Among the group, Conway’s Home Bancshares was the clear winner, climbing to finish the week at $33.95, a gain of $2.01 from Monday’s opening bell price of $31.84.

Other winners in this week’s session included America’s Car-Mart, Murphy USA, Dillard’s and J.B. Hunt. ArcBest Corp. also regained its footing after an unusual blip in last week’s session where the Fort Smith trucking firm lost more than 7% of its market value. It ended this week’s session at $40.85, up 2% for the week.

In the losing column, Windstream continued to trade at or near its 52-week low. The Little Rock telecom closed out the week at $7.54 after Wall Street analyst Michael Rollins of Citigroup said Thursday that the company’s ongoing financial restructuring can support a higher valuation, calling it a “win-win” situation for shareholders. Still, Windstream lost ground over the 5-day session after touching a weekly high of $7.91 on Wednesday. For the week, Windstream shares shed 16 cents, closing Friday just pennies off its 52-week low of $7.42.

Other Arkansas decliners for the week were Acxiom Corp., Deltic Timber, Murphy Oil and market bellwether and Dow Jones component Wal-Mart Stores. After announcing executive changes this week to improve its U.S. grocery division, shares in the world’s largest retailer closed Friday at $81.90, down 1.1% for the week.

Not surprisingly, Murphy Oil fell in tandem with crude oil prices, which fell nearly 10% during the week. Light sweet crude fell $2.21, or 4.7%, to settle at $44.84 a barrel on the New York Mercantile Exchange. Murphy ended the week at $46.83, down 3.4% for the week. The El Dorado-based oil giant is down a whopping 22.7% over the past 12 months, and well off its 52-week high of $68.43 last summer when oil prices were trading over $100 per barrel.

After a high-profile week centered around a controversial letter to Iranian leaders authored by U.S. Sen. Tom Cotton, Arkansas’ junior senator and a Republican, said he’s far from done with his efforts interjecting himself in the U.S.-Iran discussion.

Cotton, who appeared on this week’s TV edition of Talk Business & Politics on KATV Ch. 7 in Little Rock, told host Roby Brock that details of the President’s negotiations with Iran to stop a potential nuclear threat “make this too dangerous for the world to accept.”

Cotton and 46 Republican senators – including U.S. Sen. John Boozman, R-Ark. – sent a letter to Iranian leadership earlier this week outlining the need for Congressional approval of a deal and suggesting their dissatisfaction with the current trajectory of U.S.-Iran negotiations. Cotton has faced broad criticism about the letter, from conservative Fox News anchors Megyn Kelly to former Democratic Vermont Gov. Howard Dean. Kelly suggested Cotton’s letter alienated Democratic Senators, and Dean compared the letter to Jane Fonda’s infamous visit with North Vietnamese forces.

“We wanted to be crystal-clear that Iran’s leaders got the message,” Cotton said of the direct correspondence. “If Congress doesn’t approve a deal, Congress will not accept a deal.”

While 46 GOP colleagues signed the letter, Cotton says his staff sought the signature of several Senate Democrats, but none signed on. When asked if an open public letter was the most constructive way to convey his concerns and work towards changes, Cotton said it was about raising awareness that Congressional input was needed.

“I can tell you that many senators in both parties have grave doubts about the deal that the President is negotiating and they certainly believe that Congress should have a chance to weigh in on any deal,” Cotton said.

Some details of the negotiations that have been released don’t do enough to stop Iran’s uranium enrichment program and suggest that whatever is agreed to could sunset in 10 years. Cotton says that is poor – and dangerous – public policy.

“The administration should go back to their original position, which was consistent with the United Nations Security Council resolutions. Iran does not have a right to enrich uranium. They don’t even have a legitimate need to enrich uranium,” he said. “Iran has a clear model if it wants to disarm. South Africa and Libya both unconditionally disarmed their nuclear programs. As [Israeli] Prime Minister Netanyahu said, ‘if Iran wants to be treated like a normal nation, it needs to act like a normal nation.'”

When asked what his next move may be if a March 24 deadline passes without an agreement between the U.S. and Iran, Cotton said he has been and will continue working on other alternatives.

“Well, I’m going to do everything I can to stop Iran from getting a nuclear weapon. I’m going to do everything I can to ensure that the world, that the United States does not face that kind of existential threat,” he said.

“That includes speaking out – as I and 46 other Senators did this week – against, against the idea that Congress won’t have any say in this deal. Pretty soon, March 24th – the new deadline for this round of negotiations – many Democrats have said, if there is no deal by that point, they would support sanctions legislation, on which I’ve been working, not just this year, but for the last two years. There is also legislation that require time for Congress to review any deal and potentially have an up or down vote. I’m going to be working on that legislation as well in addition to speaking out against the threat to the world and to our children of a nuclear Iran,” said Cotton.

Logistics giant J.B. Hunt Transport Services posted healthy revenue and profits in 2014 which translated to hefty bonuses for the company’s top executives, according to the company’s Proxy filing with the federal Securities and Exchange Commission.

Hunt CEO John Roberts III earned total 2014 income of $4.346 million, roughly 7% more than in 2013. Roberts’ base salary of $695,000 increased 8% year-over-year and the stock awards of $3.465 million were also 7% higher than in 2013.

Roberts received quarterly performance bonuses totaling $157,550, compared to $146,050 in the prior year. Other compensation which includes retirement contributions and personal benefits were valued at $28,044 last year. Benefit costs rose 12% year-over-year.

The second highest paid executive at the company is former CEO and now Board Chairman Kirk Thompson who received a total compensation package of $2.091 million, which included a base salary of $450,000 and stock awards valued at $1.636 million and $5,000 in other benefits.

Other executives who also received annual cost-of-living raises in 2014 were:
• David Mee, chief financial officer, base salary of $437,845, up 9.16%;
• Terrence Matthews, president of intermodal, base salary of $442,589, up 8.36; and
• Shelley Simpson, president of ICS brokerage and truckload, base salary of $371,635, up 8%.

These executives also received stock awards which ranged from two to four times the amounts of their base salaries. 

For 2014, the established matrix consisted of earnings per share ranging from $2.85 to $4.05, translating to annual bonus payout percentages ranging from 5% to 170% of an executive’s base salary. The $3.16 earned per share in 2014 garnered the executives the following bonus pay: Mee $99,935, up 10%; Matthews $101,200, up 10%; and Simpson $80,000, up 10%.

SLATE OF DIRECTORS
Also noted in the Proxy filing were the details of the company’s upcoming shareholder meeting slated for April 23 at its Lowell headquarters. Shareholders are asked to by the board to approve a slate of 11 officers for the coming year including Roberts and Thompson, who are employees. Each of the non-employee directors served on the board last year and was compensated accordingly. The nominated members and board service compensation are:
• $185,939: Douglas Duncan, retired CEO of FedEx Freight;
• $177,008: Francesca Edwardson, CEO of the American Red Cross of Chicago;
• $158,000: Wayne Garrison, retired CEO at J.B.Hunt;
• $182,500: Sharilyn Gassaway, former chief financial officer of Alltel Corp.;
• $177,500: board chair and former CEO of George’s Inc.;
• $158,000: Bryan Hunt, son of founder and managing member of Hunt Auto Group;
• $187,148: Coleman Peterson, CEO of Hollis Enterprises, retired Wal-Mart executive;
• $203,900: James Robo, CEO of NextEra Energy; and
• $190,000: John White, chancellor emeritus / professor of the University of Arkansas.

SHAREHOLDER PROPOSAL
Shareholders are asked to vote against Proposal No. 3 which was introduced by the Calvert Social Index Fund, an institutional investor based in Bethesda, Md. The proposal asked the board to adopt corporate-wide goals for reducing greenhouse gases and to report on the company’s plans to achieve these goals by September 2015.

“In 2012, the U.S. experienced 11 extreme weather events resulting in an estimated $110 billion in total damages and 377 fatalities. Drought in the U.S. Midwest in 2012 affected 80 percent of agricultural land, particularly corn and soybean production, costing approximately $30 billion,” the proposal noted.

Calvert also cites some analysis by McKinsey & Co., Deloitte Consulting, and Point380 found that U.S. companies could reduce emissions 3% annually between now and 2020 and realize savings up to $780 billion.

They also cite some highlights from the Climate Action and Profitability Report 2014 which looked at companies in the S&P 500 that are actively managing and planning for  climate noting that they have a 67% higher return-on-equity than companies that do not disclose on climate change. The climate conscious companies also report a 50% lower earnings volatility over the past decade and a 21% stronger dividend growth than lower-ranking peers.

The J.B. Hunt board responded to the proposal by asking shareholders to vote against it noting that the company is well aware of the need to reduce greenhouse gasses.

“Increasingly, our customers are making environmental responsibility a priority in their business decision-making, and the same is true for the company. We strive to offer transportation solutions that help the company and our customers reduce both costs and carbon emissions while meeting or exceeding our customers’ operational needs. As such, environmental considerations like those identified in the above proposal are built into the company’s core modeling as it relates to our mission to provide customized freight movement, revenue equipment, labor and systems services tailored to meet the customer’s specific requirements,” the board noted in the filing.

J.B. Hunt officials also said 60% of total revenue last year came from 1.7 million intermodal loads which prevented nearly 2.4 million tons of carbon dioxide equivalent from entering the atmosphere.

Central Arkansas will play host next month to a two-day, first-of-its-kind Arkansas Manufacturing Innovation Summit where companies across the state will be able to spotlight cutting edge manufacturing innovations and technologies, organizers say.

The summit, hosted by Arkansas Manufacturing Solutions (AMS), will be held at the fast-growing Arkansas Regional Innovation Hub in North Little Rock on April 29-30. The event will be held just days ahead of the first Maker Faire festival ever to be held in Central Arkansas in conjunction with the Argenta Arkansas Festival on May 2.

AMS Spokesman Andy Capel said it was no accident that the summit was planned just ahead of the eclectic Maker Faire festival, where more than 3,000 tech enthusiasts, crafters, entrepreneurs, engineers, science clubs, students and commercial exhibitors are expected to descend on the North Little Rock community.

Capel said AMS, which is part of the Arkansas Science & Technology Authority, already actively participates in a number of activities at the Innovation Hub, and will have a major presence at the region’s first Maker Faire event.

Manufacturing jobs in Arkansas during December totaled 157,200, unchanged compared to November and above the 151,800 in December 2013. Employment in the manufacturing sector fell in recent years to levels not seen since early 1968, and is down 22.5% compared to December 2004. Peak employment in the sector was 247,300 in February 1995.

NEXT-GEN MANUFACTURING IDEAS
He said the goal of the manufacturing summit is to bring together companies across that state that are involved in next-generation manufacturing processes that generate revenue and jobs, increase productivity, improve quality, and add to those businesses’ bottom line.

“There are a number of Arkansas companies that are looking for new ways to grow through innovation,” Capel said. “This will help some of the (traditional) manufacturers to change their view of (blue collar) jobs. We believe that all of the new technology that is out there is connected to manufacturing, and this will allow them to see those things up close.”

Event organizers for the manufacturing summit are working on the full list of presenters, speakers and panelists that will be on the event’s agenda, Capel said. Some of the topics for those presenters and panel discussions include 3D printing, robotics, automation, supply chain development, technology acceleration and current workforce challenges and solutions.

Capel said summit presenters on tap will include some of the top “forward-thinking voices” in manufacturing innovation from Arkansas and across the nation. He said presenters work for companies using and perfecting advanced manufacturing.

“They’ll share their insights on working smarter, faster, and leaner so that others can take advantage of innovation technology and create their own solutions,” he said. “Our mantra for the event is ‘staying ahead of the curve and not fall behind.’”

In addition, Robert Tucker, president of The Innovation Resource Consulting Group in Santa Barbara, Calif., will be the keynote speaker at the summit. Tucker is an internationally recognized leader in the field of innovation, and his keynote address is appropriate titled, “Staying Ahead of the Innovation Curve.”

Capel said AMS will soon launch a new website with registration and promotional information regarding the Arkansas Manufacturing Summit. You can stay up on the progress through AMS’s web site.

Rules providing a one-year permit and flexibility in the number of moves in that year were some of the preferred ideas supported by members of the Fort Smith Planning Commission toward a new ordinance regulating mobile food trucks in the city.

The Commission met Monday (March 16) in a public hearing with city staff to seek consensus on key elements of a new ordinance. The key areas include length of permits; products/foods permitted; permit fees; types of vehicles permitted/allowed; and relocation requirements/flexibility.

Wally Bailey, director of development services for Fort Smith, has said the city’s rules are “antiquated” and more restrictive than most cities, and certainly more so than rules among a group of eight cities he and other city staffers have reviewed. The cities reviewed are Bentonville, College Station, Texas, Fayetteville, Lee’s Summit, Mo., Little Rock, and Tulsa. College Station and Lee’s Summit were reviewed because of similar population, Bailey said.

Also, the ordinance is likely to end a ban on mobile food trucks in downtown Fort Smith that has been in place since 1993.

The six commissioners attending Monday’s meeting seemed to agree on providing for a one-year permit to mobile food/product vendors. The maximum time allowed now is 120 days and the permit costs $250, with some commissioners saying the permit fee could rise for the one-year permit.

As to the number of moves within the year, commissioners were open to an unlimited number as long as the vendor followed regular criteria for each move. Commissioner Brandon Cox said the city should be “flexible” with respect to vendors moving around the city.

The Commission was not collectively certain on what a vendor must do when the annual permit expires. Rett Howard said they need to move to a new location.

“The whole purpose of a mobile food truck ... is to let them move around town,” he said.

But Commissioners Don Keesee and Michael Redd disagreed.

“Just to make them move to make them move doesn’t make sense to me,” Redd said.

Bailey said much of the public feedback on the issue has been in support of allowing food courts for mobile food vendors. He said the city has received several requests in the last six months. Commissioners appeared favorable to rules allowing areas where several mobile food trucks could gather. Howard wanted to make such areas a conditional use that would require Planning Commission approval. He also suggested special language – to include hours of operations, proximity to homes – for food court requests near residential areas.

City staffers will now combine rules from other cities, Commissioner input and community feedback into a possible ordinance. Bailey said after Monday’s meeting that he hopes to have a “skeleton” ordinance to the Commissioners for a March 30 meeting, with a Planning Commission-approved ordinance to the Fort Smith Board of Directors by May.

The possibility of rising interest rates, easier loan requirements and rising rental costs are helping to nudge more first-time homebuyers into the market, a dynamic that is playing out in the greater Fort Smith area, according to local agents.

MountData.com reports that agents sold 169 homes in the first two months of 2015, 9% more than sold in the year-ago period. The sales through February were valued at $20.847 million, up 5.6% from a year ago.

Average home prices are down slightly from last year as more first-time buyers and investors seeking lower-priced homes are among the two most active groups in the market this year, according to Cliff Warnock of Warnock Real Estate in Fort Smith.

Warnock said the average home price in the Fort Smith market is $123,660, which is close to the $123,356 noted by MountData.com at the end of February. Both are lower than $127,315 average price as of March 1, 2014.  

He said there is pressure on average prices at this time of year because more first-time buyers and others using tax refunds for down payments are active in the market buying up the lower priced homes. Warnock expects to see more traditional buyers come out later this spring as they seek to sell and repurchase.

“I think 2015 is going to be really good year for the Fort Smith real estate market. Many of the right variables are lining up: the threat of higher interest rates, rising rental costs, improving job market, competitive prices and slightly looser qualifying requirements,” he said.

While there will always be ample demand for rental property, Warnock said investors buying up lower-end houses over the past few years have allowed them set the single family rental rates which continue to rise because of limited supply.

“Those who can make a down payment and qualify for financing can own their home cheaper than they rent today. This is helping to influencing the number of first-time buyers for the first time in several years,” he said.

With rents rising faster than incomes, many Millennials – a generational category of those born between the early 1980s and the early 2000s – are expected to start looking to buy homes of their own, according to Mark Zandi, chief economist for Moody's Analytics. A spike in the number of first-time home buyers should spark a chain reaction by enabling existing homeowners to sell their homes and buy more expensive ones, he said. 

CRAWFORD COUNTY
MountData reports Crawford County agents sold 79 homes through February, which was five more than sold last year. Total sales volume rose 4.8% to $8.755 million in the first two-months of this year compared to same period in 2014.

Van Buren lost its Rural Development loan eligibility at the end of 2014, but Warnock said homes are still selling because they are priced at a 15% discount to similar homes in Fort Smith. He said as the Fort Smith job market continues to strengthen that also help sales across the river in Van Buren for first-time buyers and those seeking more “bang for the buck.”

“Agents are still optimistic about Crawford County sales even without Van Buren’s eligibility for RD loans. Buyers who need the 100% financing will just move a little further out to get a home that qualifies. That could benefit Alma,” Warnock said. “The RD program serves a purpose to help families with limited upfront capital buy property in a rural setting. Those who need it will find a way to buy a home outside of Van Buren.”

The median home prices in Crawford County were $105,375 through February, up 4.3% from a year ago. The median price per-square-foot was $65, which rose from $61 a year ago, according to MountData.com.

Fort Smith metro job numbers, however, are struggling. Fort Smith’s metro jobless rate did fall in December to 5.5%, but the number of employed in the Fort Smith region totaled 118,635 in December, down from 119,723 in November, and below the 119,964 employed in December 2013. The number of employed in the metro area is down 10.8% compared to the high of 133,061 in June 2006 – or 14,426 fewer jobs than the peak metro employment.

Home Sales Data (January - February)
Crawford County
Unit Sales
2015: 79
2014: 74
2013: 50

Sales Volume
2015: $8.755 million
2014: $8.348 million
2013: $4.683 million

Median Prices (per square foot)
2015: $65
2014: $61.20
2013: $56.30

Sebastian County
Unit Sales
2015: 169
2014: 155
2013: 143

Sales Volume
2015: $20.846 million
2014: $19.733 million
2013: $19.022  million

Median Prices (per square foot)
2015: $64.80
2014: $63.50
2013: $67.90

A House legislator facing questions in an adoption scandal resigned his committee leadership post Monday afternoon, while several education bills including two on workforce training sailed through the state Senate.

Rep. Justin Harris, R-West Fork, who has admitted “rehoming” two of his adopted daughters, quit his posts as vice chairman of the House Aging, Children and Youth, Legislative and Military Affairs committee as well as a seat on the Joint Performance Committee, content partner KUAR reported.

Cecillea Pond-Mayo, who serves as communications director for the House of Representatives, said the resignations are effective immediately.

“The Speaker (Jeremy Gillam) will be meeting with Chairman (George) McGill (D-Fort Smith of Aging, Children and Youth, Legislative and Military Affairs) to discuss appointing a new vice chairman,” Pond-Mayo said. “He (Harris) will remain on the committee.”

Harris has faced questions on the issue since a report in the Arkansas Times detailed issues with an adoption that Harris and his wife, Marsha, were involved in 2013. The children, according to an Arkansas State Police investigation, were given to another couple – Eric and Stacy Francis. Eric Francis was arrested on suspicion of sexually assaulting one of the girls and is now serving a 40-year prison sentence in connection with the case. The Harris’ have not been arrested or charged with anything in connection with the situation.

Lawmakers have been busy in recent weeks, filing bills in connection with the issue. Two of the bills, House Bills 1648 and 1676, are on the agenda Tuesday before the House Judiciary Committee. House Bill 1648, sponsored by Rep. Greg Leding, D-Fayetteville, would ban “rehoming,” the practice of privately transferring adopted children to new homes, except to relatives. House Bill 1676, sponsored by Rep. David Meeks, R-Conway, would also ban rehoming in Arkansas.

Under both bills, the practice would be a felony in the state and Harris has said he would support the measures.

WORKFORCE BILLS APPROVED
A state senator said Monday she was ecstatic that bills to overhaul the state’s workforce development system are one step closer to becoming law. The Senate voted 34-0 to approve Senate Bill 368 and 33-1 to approve Senate Bill 371, sponsored by Sen. Jane English, R-North Little Rock.

Under Senate Bill 368, a Career Education and Workforce Development Board would be created. The board, made up of industry and education officials, would “develop and monitor” a plan for vocational–technical education in the state.

Also, a skills development fund would be created to help pay for different programs.

Under Senate Bill 371, school districts could be able to work with colleges, universities and technical institutes around the state to offer concurrent classes or different options.
Gov. Asa Hutchinson announced late Monday he will be holding a press conference at 12:30 p.m. Tuesday in the governor’s conference room to discuss the issue.

Also, the bills were referred late Monday to the House Education Committee. The committee could take up the legislation as early as Tuesday.

ADULT EDUCATION CHARTER SCHOOL BILL APPROVED
Senators voted 33-0 Monday to approve a bill to create adult education charter schools.
The bill, Senate Bill 154 which is sponsored by Sen. David Johnson, D-Little Rock, would create the schools around the state.

According to the bill, the enrollment for the school would be capped at 150 students. A student must be at least 19 years old, not have earned a high school diploma or GED, or failed to complete graduation requirements.

The schools would be funded through public or private money, including from a group running the school but not through the state’s Public School fund. The bill now goes to the House.

DRUG TESTING BILL CLEARS SENATE

Senators also approved a bill to create a two-year pilot program of suspicion-based drug screening and testing of applicants for the Temporary Assistance for Needy Families program. The 24-3 vote was on Senate Bill 600, sponsored by Sen. Blake Johnson, R-Corning.

According to Johnson’s bill, the program “shall include a minimum of 10% of the program population statewide to be determined by the department, and all applicants and all recipients in the counties bordering Mississippi, Missouri, Oklahoma, Tennessee and any other state bordering Arkansas with a drug screening or testing program.”

A child under 18 would be exempt from the testing, unless the person is a parent who is also an applicant for the program, as well as a positive test for any prescription or over the counter drug with a current and valid prescription, Johnson’s bill noted.

“An applicant or recipient shall undergo a confirmation test using the same urine sample from the initial positive test prior to receiving Temporary Assistance for Needy Families Program benefits,” the bill noted. “The results of the confirmation test shall be used to determine final eligibility for Temporary Assistance for Needy Families benefits.”

The bill now heads to the House.

HOUSE APPROVES SCHOOL SAFETY BILL
A bill to create a panic button system for schools in case of an emergency received overwhelming support Monday. The House voted 91-0 to approve House Bill 1653, sponsored by Rep. Scott Baltz, D-Pocahontas. Baltz told lawmakers he has received wide support for the proposal.

Under the system, a 911 operator would get a call within two seconds if an emergency were to happen. The system would then send a text message to teachers and principals, as well as police and school resource officers.

Officials are working with Rave Panic Button, which is located in Massachusetts, on the project. Baltz said last week it would cost nearly $950,000 the first year; and $850,000 on a yearly basis after to implement the program. Baltz told House members that officials are still looking for a way to fund the project and that officials would not do the project unless funding is there.

“I don’t believe in unfunded mandates,” Baltz said.

The bill now heads to the Senate.

The House also voted 84-4, with four present, to approve a bill funding school funding and enhanced transportation needs through the 2016-2017 fiscal year. The bill, House Bill 1663, sponsored by Rep. Bruce Cozart, R-Hot Springs, had small increases in foundation funding, alternative learning, school lunches, while keeping professional development level.

The numbers include:
Foundation Funding:
2015-2016 – $6,584
2016-2017 – $6,646

Alternative Learning:
2015-2016 – $4,471
2016-2017 – $4,560

School Lunch (90% or higher of student enrollment):
2015-2016 – $1,562
2016-2017 – $1,576

School Lunch (70 to 90% of student enrollment):
2015-2016 – $1,042
2016-2017 – $1,051

School Lunch (less than 70% of student enrollment):
2015-2016 – $522
2016-2017 – $526

Professional Development:
$32.40 per student in the next two years.

The bill now heads to the Senate.

Labor market numbers moved in the right direction for Arkansas during January, with the number of employed up more than 3%, the workforce size up more than 2% and unemployment down 13.09%.

Arkansas’ January jobless rate fell to 5.6% compared to 6.6% in January 2014, and down from 5.7% in December, according to figures released Tuesda (March 17) by the U.S. Bureau of Labor Statistics. The January numbers are subject to revision.

Arkansas’ average jobless rate for 2014 was 6.1%, down 1.3% percentage points from the 7.4% average in 2013. It is the first time the annual average dropped below 7% since 2008.

The size of the workforce – 1.321 million – was up 2.07% compared to January 2014, and was better than the 1.312 million in December. The peak for Arkansas’ labor force was 1.376 million in August 2008.

The number of employed in Arkansas during January was 1.247 million, above December employment of 1.238 million, and up 3.14%, or an impressive 38,030 jobs compared to January 2014. The number of unemployed was an estimated 74,365 during January, slightly above the 74,294 in December, but well below the 85,567 in January 2014.

The closely watched nonfarm payroll number was 1.206 million in January. The nonfarm number topped the 1.2 million mark in December, the first time since January 2008. The nonfarm category does not include farm workers, private household employees, non-profit employees and “general government” employees. Investopedia estimates that the nonfarm category represents about 80% of the total workforce that contributes to national GDP.

Nonfarm payroll during January was better than the 1.204 million in December and up over the 1.179 million in January 2014. Nonfarm jobs reached a high in Arkansas of 1,209,800 in February 2008.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during January was an estimated 249,200, up from 248,900 in December and ahead of the 242,300 during January 2014. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during January totaled 155,600, down from 157,400 in December but above the 152,900 in January 2014. Employment in the manufacturing sector fell in 2014 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during January was 213,100, down from 213,200 in December and below the 213,200 during January 2014.

The state’s Education and Health Services sector during January had 173,500 jobs, unchanged compared to December and up from 171,700 during January 2014. Employment in the sector is up 19.8% compared to January 2005.

The construction sector employed an estimated 49,700 in January, up from 47,400 in December and above the 46,500 in January 2014. The sector is off the employment high of 57,600 reached in March 2007.

Arkansas’ tourism sector (leisure & hospitality) employed 112,800 during January, down from 113,100 during December, and above the 106,200 during January 2014. The December employment marked a record for the industry.

NATIONAL, REGIONAL DATA
The BLS report also noted that 45 states had unemployment rate decreases from a year earlier, three states had increases and two states had no change. The national jobless rate during January was 5.7%, down from the 6.6% in January 2014.

Mississippi and Nevada had the highest unemployment rate among the states in January at 7.1%. North Dakota again had the lowest jobless rate at 2.8%.

The January jobless rate in Oklahoma was 3.9%, unchanged compared to December and down from 5% in January 2014.

Missouri’s jobless rate during January was 5.5%, up compared to 5.4% in December and down from 6.4% in January 2014.

Grocery is a business of thin margins but it is about 56% of Wal-Mart’s total annual U.S. sales. Getting it right is of the upmost importance to Walmart U.S. CEO Greg Foran who continues to shift his grocery management team.

Jack Sinclair, 54, who has run the grocery division for Walmart U.S. since he joined the retailer in 2007, will exit the company March 20 in what is reported as a retirement.

The retailer also created a new California-based position for 46-year-old Tony Airoso, a senior vice president, who was responsible for managing dairy and fresh-food strategy since 2013. Airoso will now assume the role of senior vice president of global food sourcing. He is fluent in Spanish and formerly lived and worked in South America. 

Airoso joined Walmart U.S. in 2006 from Albertsons. For seven years Airoso was a divisional merchandising manager in the fresh and dairy categories. He takes credit for growing market share and margin between 2009 and 2011. His other accomplishments include reducing milk and eggs costs by more than $560 million by leveraging scale and supply chain efficiencies, according to a personal background on Airoso’s LinkedIn page.

Wal-Mart declined to provide comment regarding Sinclair’s retirement or Airoso’s promotion that was announced privately to employees March 13 in an internal corporate memo recently obtained by The City Wire.

Sinclair marks the fourth senior level departure since CEO Doug McMillon took the helm in February 2014. Roughly a dozen other merchandising management changes have been announced recently via promotions or reassignments under Foran who was handpicked by McMillon to drive more sales in the U.S. division.

Sinclair takes with him 33 years of experience in the grocery business having come up through the ranks at Tesco and Safeway PLC as well as Shoppers Paradise in the United Kingdom. During his tenure at Walmart U.S. his responsibility as executive vice president for grocery was handing all aspects of grocery merchandising for more than 4,000 U.S. stores. Under his watch Walmart’s U.S. grocery sales rose 39% from $112.56 billion in 2008 to $156.46 billion in 2014. 

Chuck Tilmon, now a vice president in global food sourcing, will be vice president of fresh charter initiatives, which focuses on improved performance in fresh merchandise, according to the March 13 memo. This announcement comes on the heels of three new U.S. positions created by Foran in December. The new posts and persons were:
• Meat Czar: Scott Neal 
• Senior vice president of Fresh: Shawn Baldwin 
• Senior vice president of Private Brands: Jack Pestello

Foran told analysts in October that he planned to address meat quality, improve the fresh business, expand private label, clean up cluttered stores, rightsize staffing, improve customer service and ultimately drive more top line sales revenue, an edict he received from McMillon.

ANALYSTS REACTION
Most analysts applaud Foran’s focus on improving the grocery experience given the retailer is investing heavily in Neighborhood Market stores this year and next.

“Food is a big part of what Wal-Mart has become,” said Brian Yarbrough, an analyst at Edward Jones in St. Louis. “It is a big traffic driver and getting it right could help overall sales.”

The retailer’s grocery business has struggled with quality concerns, a reduction in food-stamp benefits and rising supply costs and occasional food safety scandals from Asian-based suppliers, according to Zack’s Equity Research. 

“We are positive on the company’s efforts on improving grocery offerings, the current scenario is alarming for its investors. Wal-Mart expects fiscal 2016 sales growth in the range of 1% to 2% as was announced during fourth quarter fiscal 2015 conference call. This was however lower than 2% to 4% growth expected during the October 2014 investor conference,” noted Zack’s.

Carol Spieckerman, CEO of newmarketbuilders.com, told The City Wire that organizational restructurings will be an ongoing reality in retail for several years as retailers seek to become more agile and address the needs of shoppers in the future. 

“At the same time, grocery is key to driving trip frequency and loyalty right now so it makes sense that Wal-Mart and others are increasing scrutiny there,” she said.

For instance, Spieckerman said Target’s announcement that it also would double down on grocery came in the wake of more than 1,700 corporate layoffs. She says this one-two punch of restructuring and zooming in on grocery is becoming a pattern. 

“Foran made it clear from the beginning that he will focus on mastering black and tackle basics and eliminating unforced errors. Grocery could be considered a ‘core basic’ for Wal-Mart and as such, little room can be left for error there, particularly as competitors both digital and physical relentlessly attack the category,” she said.

SERVICE, WAGES
Another area Foran must tackle is the customer service doled out by those on the frontline in stores around the country. Lisa Pietro, a produce handler with Walmart in Winter Haven, Fla., recently told The City Wire that corporate rhetoric in past two years about improving “fresh” produce, which was to include more training for handlers in conjunction with the money-back guarantee was more talk than action.

Pietro said she was one of just three handlers in her store that was open 24 hours a day. She said the training consisted of computer modules which no one in her department had time to watch. 

Wal-Mart has repeatedly said it is addressing short labor levels and is adding more hours and raising starting pay to $9 per hour this spring. Foran has vowed to look closely at this issue noting that it takes times to fix. 

Spieckerman gives Wal-Mart a favorable nod saying the retailer “must build an effective management and process scaffolding first,” nowing full well that it also “needs to improve training and front-line tactics.”

Keeping with his campaign rhetoric, Gov. Asa Hutchinson met with reporters on Tuesday to tout three measures designed to realign workforce education efforts in Arkansas. He also talked about a review of the state’s child welfare system.

Surrounded by cabinet members and legislators who are promoting a workforce education overhaul, Hutchinson said four principles were guiding his efforts in passing legislation and reorganizing state agencies.

Hutchinson said his principles included:
• Regionally, business and industry should guide job skill training programs;
• Partnerships with two-year colleges, technical schools, and high schools were needed;
• Funding for workforce training “has to follow” business and industry; and
• State government agencies should be organized around these principles.

“What we’re doing is not novel. What we’re doing is critical,” Hutchinson said.

He noted that three bills in the legislature will achieve many of the principles he outlined.
SB 791 would establish regional boards within the Arkansas Department of Workforce Services. Hutchinson had touted 10 regional councils that he plans to fill with appointments of business leaders, if it passes. He advocated for a similar structure on the campaign trail in 2014.

Another bill, yet to be designated, is in draft form currently. It would provide grants to the Department of Higher Education and Department of Career Education for immediate job skills training.

Hutchinson said $15 million is immediately available from the Arkansas Economic Development Commission and other funding sources for this purpose for the two-year and technical schools. The governor said he planned to move another $2 million from discretionary funds within his control for grant programs for these higher ed partnerships.

A third measure, SB 368, would create an Office of Skills Development in the Department of Career Education to better coordinate state efforts.

In shaping a new Governor’s Cabinet on Workforce Education, Hutchinson indicated that he would not designate a subordinate to handle the task. He said he would lead the group and expected to see significant improvement in workforce efforts after the focus on the legislative session ends.

CHILD WELFARE
Hutchinson also fielded a question on the ongoing Rep. Justin Harris saga and the rehoming issue.

There has been plenty of discussion over the issue since news broke involving Rep. Justin Harris, R-West Fork. A story in the Arkansas Times earlier this month detailed allegations about an adoption Harris and his wife, Marsha, completed in 2013 involving two children. According to the story, an Arkansas State Police investigation showed the children were given to another couple, Eric and Stacy Francis. Eric Francis was later arrested on suspicion of sexually assaulting one of the children and was sentenced to 40 years in prison on the charge.

Neither Justin nor Marsha Harris have been arrested or charged with anything in connection with the investigation. Harris, who resigned his committee leadership posts Monday afternoon, said he supports making the practice a felony.

Hutchinson said he has ordered an independent review of the child welfare system within the Department of Human Services and said it will be directed out of the Governor’s office. He added that more than the rehoming and adoption circumstances would be reviewed indicating it would be a “broad array of programs.”

When asked about Harris’ decision to step down from his leadership posts in the General Assembly, Hutchinson said, “That’s a decision that the House leadership and Rep. Harris made, in terms of his role on various committees. Let me address it this way, I’ve been concerned from day one that we’re doing the right thing for the children of Arkansas through our Department of Human Services.”

When pressed if he thought Harris was still fit to serve, Hutchinson said, “”I will leave the legislative questions to leadership of the legislature.”

It’s been a decade in the making but the region’s first interactive children’s museum has announced an opening date and a new name in honor of Lee and Linda Scott and their family who were lead donors and early organizers of the facility.

The Scott Family Amazeum in Bentonville is slated to open July 15, unlocking an imaginary world that bridges science, technology and local history in a hands-on format. Lee Scott is a former CEO of Wal-Mart Stores Inc.

The nearly 50,000 square-foot children’s museum came with a $28.5 million price tag. Most of the cost is covered by donations from the Scott family and a $10 million matching grant from the Walton Family Foundation which was met with contributions from Walmart Stores Foundations, General Mills, The Hershey Company, Nickelodeon, the Willard and Pat Walker Charitable Trust, Johnelle Hunt and Shelley and Doug McMillon. Those donations have the campaign at $26.1 million to date, according to Molly Rawn, communications director.

“We are almost to the goal and we are still taking contributions,” Rawn said at Tuesday’s (March 17) press conference in Bentonville. 

The $28.5 million includes a $4.5 million endowment used to defray operating costs in the early years of the museum so that more of the revenue can be directed toward exhibits, according to Rawn. 

Sam Dean, executive director for the Amazeumm said it was fitting that the facility bear the Scott family name given that the idea for it was hatched around the dining table by Lee and Linda Scott and their daughter-in-law Elda Scott when her daughter Amelia was a baby. Dean joked that Amelia was the yardstick for the project which has take a decade to complete.

“It seems like forever,” Elda Scott echoed from the crowd.

Rawn also thanked the Scott Family for their continued support from day one of a grassroots journey to establish a children’s museum in Northwest Arkansas.

“Eric Scott, son of Lee and Linda, serves on the Amazeum board. His wife, Elda  actively and ardently supports our efforts with volunteer service and connecting us in the community. Our board finds it most fitting to honor their gifts in this way,” Rawn said.

Lee and Linda Scott were not present at Tuesday’s press conference but sent the following statement: "We are honored to have an institution we care so deeply about be named for our family. We are so happy that we have been given the opportunity to give back to the Northwest Arkansas community, and we hope that our support of the Amazeum will inspire others to give,” said Scott. “We believe the exposure the Amazeum provides to science, technology, engineering, art and creativity will give children skills to draw on their entire lives. The Amazeum will add richness to the lives of children and their families in Northwest Arkansas."

WAL-MART EXHIBITS
Dean said Wal-Mart has an early signature sponsor. The global retailer provided a semi truck and trailer and delivered it to the site and disassembling it so the building could be erected around it. The truck was then put back together inside the facility and the standard trailer will be reassembled and attached n the final days before opening. 

He said Wal-Mart is sponsoring a “market” exhibit at the museum that will allow 
guests to not only “shop” for produce and groceries, but also don aprons and work behind the butcher counter or in the bakery. Additionally, they will be able to serve other guests in the café or play the role of cashier.

Dean also said artist Matthew Moore, who was featured in Crystal Bridges’ landmark exhibit “State of the Art,” is contributing to the “market” exhibit. His time-lapse photography of crops growing will be installed among the produce in the market. Guests will be able to use a dial to speed up, slow down or reverse the growth process. Dean said the goals of the exhibit is connect young explorer to the source of food.

MEMBERSHIP DRIVE
Amazeum memberships are now available ranging from $95 for a family of four up to a $1,000 Explore membership that includes household members, guest and babysitter passes with other perks. All the membership levels include:
• Unlimited entry;
• First look;
• Special members-only hours;
• Discount of birthday parties; and
• Free entry at over 350 science museums across the country.

Daily rates have not yet been released.