Once again Dawson Meadows reports on news of the week, and also takes a jab at the creativity of Millennials and offers his take on Pinterest.

“Damn kids. Get off my lawn,” said a frustrated Meadows.

The Video Wire is a collaboration between The City Wire and Things To Do In Fort Smith.

Sam Sicard, president and CEO of Fort Smith-based First Bank Corp., is undeterred by Fort Smith voters’ recent no-go on diverting street tax funds to the city’s trails and greenways system. For him and Hanna Oil and Gas president Bill Hanna, it’s simply about getting new trails built.

The pair recently proposed a funding mechanism to the city of Fort Smith that could see as much as $7 million poured into the city’s parks and trails system in 2016 and 2017. Around $3 million of that would come via First National Bank loan at 0% interest, to be paid back out of future tax revenues. Sicard also plans to raise $3 million from the private sector, while the remaining $1 million would come from “matching grant opportunities for both trails and/or parks projects,” he recently told The City Wire.

This plan would enable the city to lock in cheaper rates on labor and building materials and start building new trails sooner rather than later. The city's portion of immediate and future funding for the trails comes from a sales tax plan that voters approved in 2012, and not from the city's general fund.

Originally, Sicard and Hanna were asking the city to up its capital improvement plan (CIP) commitment to $6 million for 2016-2020. While the Parks Commission voted instead to raise the amount from $3.1 million (2015-2019 CIP) to just $5.2 million, it was close enough for Sicard to say the Parks Commission “pretty much gave us what we wanted.” The vote was unanimous and took place at a special called meeting of the Commission on July 8. They also voted to make Wilson Park a major priority for 2019.

“This [plan] needs to be approved by the City Directors, and we are advocating that they support it,” Sicard said. “In addition, we are pursuing a goal of raising $3 million in private donations to fund trails in our city. We are just beginning this process, but are optimistic we can achieve this over time.”

Aaron Lee, administration secretary for the Fort Smith Parks and Recreation Department, confirmed the Commission had voted to approve the above changes unanimously at the July 8 meeting. She also noted that a joint meeting to discuss this plan would be held between the Parks Commission and the Fort Smith Board of Directors “probably in August” before it comes up for a final vote at the city’s budget meetings at the end of 2015.  

On May 12, Fort Smith voters rejected a plan to divert 5% of the street tax revenue for construction of a 35-mile multi-use trail system. Final results showed that 6,267 votes were cast, with 55.69% voting against the plan in spite of widespread support from the Fort Smith Regional Chamber of Commerce, the Fort Smith Regional Council, and Fort Smith Mayor Sandy Sanders.

Sanders, immediately following the election results, told The City Wire he was “disappointed that we failed to take advantage of the opportunity ... to improve our economic development capabilities and provide a service” for the younger demographic that the city and region needs to retain and recruit.

Opponents like Jerry Fleming, chairman and spokesman of the “Save Our Streets in Fort Smith” committee, emphasized that they were not against a plan to fund trails and greenways further, but found diverting the money from the street tax to be irresponsible. Voters ultimately agreed.

Arkansas’ 2% tourism tax continues to set records for monthly collections, and 16 of the 17 cities reviewed for the Arkansas Tourism Ticker posted hospitality tax revenue gains through the first four months of 2015. The period continues the positive trends that began in 2014.

The Arkansas Tourism Ticker shows that the three key measurements of Arkansas’ leisure and hospitality sector between January and April posted healthy gains over the same period in 2014. The ticker is sponsored by the Arkansas Hospitality Association and managed by The City Wire, and uses the following three measurements to review the health of the state’s tourism industry. The Arkansas Tourism Ticker will be produced every two months, or six times a year.
• Hospitality tax collections – prepared food tax and lodging tax – of 17 Arkansas cities (cities listed below and in included image);
• Tourism sector employment numbers as reported by the U.S. Bureau of Labor Statistics; and
• Collections of Arkansas’ 2% statewide tourism tax.

Results for the January-April ticker report are:
+6.06%
Gain in combined January-April hospitality tax collections in 17 Arkansas cities compared to the same period in 2014

+7.25%
January-April gain in Arkansas’ 2% tourism tax compared to the same period in 2014

+6.51%
Increase in average Arkansas’ tourism industry jobs during January and April compared to January-April 2014

The inaugural Ticker report showed that 2014 hospitality tax revenue in the cities was up 3.7% over 2013; Arkansas’ 2% tourism tax revenue in 2014 was up 7.48% compared to 2013; and jobs in the state’s travel and tourism sector were up 6.5% in 2014 compared to 2013.

HOSPITALITY TAXES
The combined hospitality tax collections in the 17 cities totaled $13.523 million in January-April, up 6.06% compared to January-April 2014.

Restaurant (prepared food tax) tax collections among the 17 cities totaled $10.276 million in January and April, up 5.93% compared to the $9.7 million in January-April 2014.

Hotel tax collections among the 17 cities totaled $3.247 million in the January-April period, up 6.49% compared to the $3.049 million during the same period of 2014.

Gains during the four-month period ranged from 28.3% in Springdale to 1.53% in North Little Rock. During the January-April period, only El Dorado saw a hospitality tax collection decline.

STATEWIDE TOURISM TAX
Collections of Arkansas’ 2% tourism tax in January and April totaled $4.247 million, up 7.25% compared to the $3.96 million in January-April of 2014. Collections for each of the four months of 2015 set a new record for that month.

The 2% tourism tax in 2014 totaled $13.677 million, up 7.48% compared to the $12.716 million collected in 2013. The 2014 tally sets a new record for the tax. Following are the past five years of 2% tax collections.
2014: $13.677 million
2013: $12.716 million
2012: $12.404 million
2011: $12.025 million
2010: $11.492 million

TOURISM JOB NUMBERS
The monthly jobs average in the travel and tourism sector during January and April was 113,600, up 6.51% compared to an average of 106,650 during the first four months of 2014.

Travel and tourism sector employment ranged from a low of 112,100 in January to a high of 114,800 in February. The February level, if it is not revised, set a new record for the sector. Travel and tourism sector employment during the first four months of 2014 ranged from a 106,200 low in January to a high of 107,500 in April.

Job growth in the sector has been significant during the past 10 years. April employment of 113,900 is up 20.5% compared to April 2005 employment of 94,000.

Of the eight metro areas in or connected to Arkansas, the Bureau of Labor Statistics provides tourism employment data on five. The Fort Smith and Memphis-West Memphis areas were the only metro areas to see travel and tourism sector employment declines in the January-April period. Following are comparisons of the monthly employment averages in the January-April period.

Northwest Arkansas
Jan.-April 2015: 21,700
Jan.-April 2014: 21,225
Jan.-April 2010: 17,350

Fort Smith
Jan.-April 2015: 8,775
Jan.-April 2014: 8,925
Jan.-April 2010: 8,300

Central Arkansas (Little Rock-North Little Rock-Conway)
Jan.-April 2015: 32,750
Jan.-April 2014: 31.225
Jan.-April 2010: 28,575

Memphis-West Memphis
Jan.-April 2015: 62,300
Jan.-April 2014: 63,750
Jan.-April 2010: 63,700

Texarkana (Arkansas-Texas)
Jan.-April 2015: 6,250
Jan.-April 2014: 5,950
Jan.-April 2010: 5,525

WHY THE TICKER?
Arkansas’ tourism industry is an important economic engine for the state, and is often cited as Arkansas’ second largest industry – behind agriculture.

There are many reports and economic indices to measure several areas of the the state’s economy. The City Wire issues a monthly housing report (The Arkansas Home Sales Report). The University of Arkansas issues a quarterly report on economic activity, and has published reports on the economic impact of the Fayetteville Shale Play. There are reports to measure public opinion on various social issues.

But there has not been an independent report looking at the health of the state’s tourism sector. Therefore, The City Wire decided to work with officials in the state’s travel and tourism sector to capture some indication of the relative health of the industry.

Tontitown-based P.A.M. Transport is off to the races through the first two quarters of 2015 with net profits of $12.408 million, up nearly 97% from the same period last year, according to their earnings report released Thursday (July 23). Net earnings per share for the two quarters totaled $1.66 per share, compared to 78 cents earned a year ago.

CEO Daniel Cushman attributed the stellar year thus far to improved rates related to tighter capacity across the industry and higher profit margins.

The company’s top line revenue, including fuel surcharges, rose 2.6% to $207.516 million through the first half of 2015, up compared to $202.163 million in the first half of 2014. Fuel surcharges were $12.88 million lower this year over last. Also, operational costs have trended lower in 2015 from lower salaries and benefit costs, reduced insurance claims and decreased rent and purchase transportation costs.

Total expenses in the first half 2015 were $186.487 million, down from $190.728 million a year ago. Operating income rose to $21.028 million, compared to $11.434 million a year ago.

RECORD QUARTER
A record second quarter helped to buoy P.A.M.’s earnings, according to Cushman. P.A.M. Transportation reported net income of $7.039 million, or diluted earnings per share of 94 cents a year for the quarter ending June 30, up compared to 62 cents per share a year ago.

Operating revenues, including revenue from fuel surcharges, were $108.033 million for the second quarter of 2015 compared to $104.343 million for the second quarter of 2014.

“We are extremely pleased to announce another quarter of record-breaking earnings results. The second quarter of 2015 represents the best quarter in the company’s history in terms of operating profit, net income, and earnings per share,” Cushman said.

The earnings per share represents a 113% increase as compared to the same period last year and represents the company’s highest single quarter of earnings per share on the heels of a record first quarter, Cushman added.

He said second quarter revenue grew 13% year-over-year when excluding the impact of lower fuel surcharges.

The stellar quarter did not come as a surprise to Stephens Inc. analysts who have predicted strong numbers from truckload carriers in the recent quarter. Earlier this month the analysts said  “truckload carriers had plenty of demand to fill trucks in the second quarter albeit premium freight opportunities such as paid deadhead miles were not as prevalent as last year.” Stephens said its expects contractual pricing is trending up 4% to 6% and will drive second quarter earnings higher across the sector.

“We continue to place emphasis on top-line revenue growth. … The level of freight demand experienced this year continues to allow us to be more selective in choosing the business that most favorably fits our model and our rate expectations. Our Logistics division goal for 2015 is to double the revenue of 2014 and we are currently on pace to exceed that goal while also staying ahead of our profitability goals for that division,” Cushman said in the report.

He said the company’s efforts to diversify its automotive division, Mexican division and dedicated division is going as planned and each are performing as expected.

“We believe that our continued growth hinges on our ability to provide our drivers with opportunities that maximize their earnings while also allowing for their desired home time. Developing a freight base that meets these requirements continues to be a top priority,” Cushman said.

P.A.M. Transport shares (NASDAQ: PTSI) are thinly traded on the Nasdaq exchange. The share price fell 3.55% in light trading on Thursday afternoon (July 23) following the earnings release. Given the closely held stock there are no analysts that regularly cover the company. The share price has ranged from a low of $31.82 to a $67.61 high during the past 52-weeks.

On July 15, the company announced the results of its latest tender offer. The company accepted for purchase a total of 298,566 shares of its common stock, representing approximately 4% of the issued and outstanding shares, at a purchase price of $59 per share. The purchase cost was approximately $17.615 million excluding fees and expenses related to the offer.

DRIVER TURNOVER
“Despite positive driver turnover trends within certain divisions, like most of the industry, we continue to experience difficulty in attracting and retaining qualified drivers,” Cushman said.

This difficulty has required P.A.M. to make significant investments in driver recruiting and retention efforts, including increasing the number of driver recruiting personnel and expanding the number of driver training school partners.

“We also continue to review and implement changes to driver compensation plans which we have generally been able to limit any increase by using lane-by-lane analytics. However, we cannot dismiss the possibility that a more comprehensive increase in our driver pay packages may be necessary should the industry-wide driver shortage condition persist,” Cushman added.

The ongoing challenge in the driver market continues to hinder P.A.M. plans for obtaining substantial internal growth within what we consider to be a reasonably timely manner, he said.

The American Trucking Association has said there is a shortage of roughly 30,000 drivers this year. The trade association expects that number to hit 100,000 in the next three years.

In his conversation on stage at the Winthrop Rockefeller Institute’s Social Entrepreneur Bootcamp on July 17, successful businessman Steve Clark explained what launched his entrepreneurial career.

As a young 20-something traveling salesman talking to his mentors on a business trip, Clark took a step back. What he saw were guys, although very talented, who were burned out and estranged from their families. Clark decided that would be him in 15 years if he didn’t change something.

The next day Clark decided to quit the job he had with his father-in-law’s business and started his own logistics firm. Through his journey with Fort Smith-based Propak Logistics, Clark learned “how to stay alive.”

“Entrepreneurship,” Clark said, “is like living in the jungle. You learn how to adapt to the resources you have.”

And with that, the founder of Propak, co-founder of Rockfish Digital and Noble Impact caught the entrepreneurial bug and has never looked back.

Propak has grown to be one of the largest logistics companies in the country. Clark credited the success with high quality and consistency. He said the company always strived to “convey a consistent and succinct message and deliver on that message.”

Clark explained that his core message for entrepreneurs came out of his own experience with his children, particularly his middle child. His middle son was struggling with the purpose of school, but he had a passion for skateboarding. Clark and his son identified a need for an indoor skateboard park in their hometown of Fort Smith and the two of them launched the largest indoor skatepark in the state.

While running the skatepark, his son began to see the purpose of the things he was learning in school. The message to his kids, and to entrepreneurs, is “see a problem, fix a problem, and you don’t need permission to affect change.”

Clark said that his definition of success is the “freedom and liberty to do what I want with whom I want.” He asks every entrepreneur who meets with him what is success for them. If they don’t have a definition, he tells them to learn what that is for them and then call him again.

The keynote address was a Q&A format conducted with TB&P’s Roby Brock. The event was a part of the Winthrop Rockefeller Institute’s Social Entrepreneur Bootcamp and was open the public.

Following are other points Clark made during his address.
• “If your company delivers quality, you will attract crazy high quality people.”

• “Entrepreneurship is like living in the jungle. You learn to adapt to the resources you have.”

• “You can’t be jealous of other entrepreneurs or employees who become entrepreneurs.”

• “See a problem, fix a problem. You don’t need permission to affect change.”

• “Your plan needs to be sustainable. Apply principles of entrepreneurship to make it sustainable and then affect social change for the good of society.”

• “Social Entrepreneurship is like modern-day philanthropy.”

Speaking to at least 150 people who braved the Friday night (July 24) heat, Fort Smith attorney Joey McCutchen said he would fight “to the bitter end” an effort to change the Rebel mascot and imagery at Southside High School. He also demanded the Fort Smith Public School Board put the issue up for a vote of the people.

The “Rally for the Rebels” crowd, which included a few young men and women waving the stars and bars of the Rebel flag, gathered near the Southside High School football stadium. The event began at 6:30 p.m., with McCutchen saying he wanted the event to be a “positive experience that brings us all together.” He said the students he graduated with and Southside students today don’t see the mascot “as a racial symbol.”

“I think we’re going to be Southside Rebels forever,” McCutchen said, with the audience erupting in applause.

BOARD ACTIONS
A committee of the School Board voted 6-0 – McCutchen says it was a 5-0 vote – in a June 23 meeting to discontinue use of “Dixie” as the Southside High School fight song in the 2015-2016 school year and to drop the Rebel as the Southside mascot in the 2016-2017 school year.

“The Board understands the challenges of changing what has come to be the tradition of the Southside High School community, and will work with the student body and staff over the next year to name a new mascot and fight song for the school,” noted a statement from the District after the June 23 committee vote.

Southside High School was formed in 1963 and over the years there have been attempts to change the mascot. One of those happened in the late 1980s when a school board committee pushed for a change. The effort failed to gain support from a majority of those then on the Board.

The Board is expected to vote Monday (July 27) on the committee’s recommendation to change the mascot.

‘ALWAYS ACCEPTED’
After reading a long list of Southside academic and athletic accolades and accomplishments, McCutchen continued with his theme that Southside students aren’t racists and have created over the years “a positive Rebel experience.”

He also said Southside has a history of producing “citizens who believe in equality” and “always accepted all races.” However, it took a 1965 Arkansas Supreme Court decision to force immediate integration of Southside High School, and the first black student at Southside entered the school in 1974, a full 20 years after the landmark Brown v. Board of Education case in which the U.S. Supreme Court said school segregation was unconstitutional.

McCutchen blamed the School Board for their June 23 action that brought “undeserved and unnecessary scrutiny” on the city and school. He also said the Board should tell taxpayers how much a mascot change will cost before they take a vote.

McCutchen also is taking his fight to court. On Thursday he filed a complaint in Sebastian County Circuit Court that alleges the Board committee violated Arkansas’ Freedom of Information Act during the process that resulted in the June 23 vote.

“Based on information and belief, on Monday, June 22, 2015, shortly before the regularly scheduled Board meeting, the members of the Fort Smith Public Schools Board of Education met informally and discussed and deliberated on the subject of prohibiting the use of the song Dixie as the Southside High School fight song and changing the Southside High School mascot from the Rebel. A secret informal caucus can result in a consensus being reached on a given issue, thus rendering the formal meeting held before the public a mere charade,” McCutchen noted in his eight-page filing with the Sebastian County Circuit Court.

McCutchen is seeking a hearing within seven days on the matter, and is asking the court to “invalidate” the June 23 vote.

‘TARNISHED’ HISTORY
Several members of the audience spoke in support of keeping the mascot and the “Dixie” fight song. Bobby Ross, a 1967 graduate, said is upset because none of the School Board members are Southside graduates.

“How do they feel qualified to make a decision like this?” Ross said, with the crowd applauding in response.

Zena Featherston, spokeswoman for the Fort Smith Public School District, said it is true that no Board member is a Southside graduate. She said several of them did have children graduate from the school system and Southside.

Viola Shelby, who graduated in 1970 as Viola Rome, became emotional in her address. She said all her memories of Southside are built around the traditions of the Rebel mascot and her history at the school will be “tarnished” if the Board votes to change the mascot.

“They are so wrong on taking it away from us,” Shelby said, fighting back tears.

One parent said she would not allow her children to attend Southside if the mascot is changed.

Greg Matlock, a 1985 Southside graduate, spoke to dispel what he said was a rumor that the effort to change the mascot began during a recent 1985 class reunion. He said a letter was written by one member of the class asking for a mascot change, but said members of the class overwhelmingly oppose the change.

‘TRADITION IS THE SCHOOL’
Not everyone at the rally was opposed to the mascot change. Lucious Arter, an African American who had a son graduate Southside in 1992, said all the great experiences he heard were about the people and not a mascot.

“The tradition is the school ... it’s these great teachers and students,” Arter said. “It doesn’t have anything to do with a mascot. ... I think we go our issues mixed up.”

He also pointed to those with Rebel flags, saying the flag is not about Southside and the only good place for the flag is “in an archive.” That comment drew an angry response from the crowd. At least twice McCutchen had to intervene and ask the audience to be quiet and let Arter continue.

After several more speakers, McCutchen wrapped up the event by reading and singing the “Dixie” fight song.

In an interview after the event, Arter told The City Wire he also is frustrated at those who see no harm in the “Dixie” fight song.

“At lot of that song is good, but it starts with being in the land of cotton. ... Who do they think was out there picking that cotton?” Arter said. “That’s sort of where it lingers with me ... with that history. So why create a problem?”

This week, the nation’s capital was action-packed as lawmakers battled it out on Planned Parenthood and a variety of other issues. Meanwhile, an Arkansas native killed in an attack at a Tennessee military recruiting center was honored for his sacrifice.

The following is a look at the week that was.

BOOZMAN, COTTON REQUEST PLANNED PARENTHOOD INVESTIGATION
The allegations involving Planned Parenthood officials discussing the harvesting of organs from unborn babies need definite scrutiny, Arkansas’ two U.S. Senators said this week.

U.S. Sens. John Boozman, R-Ark. and Tom Cotton, R-Ark, were among the 50 senators asking for an investigation by the Department of Health and Human Services and the Justice Department.

“As a strong believer in the sanctity of life, I am committed to defending those who cannot defend themselves. The amorality of the footage is appalling and raises not only concerns regarding whether Planned Parenthood broke multiple laws, but also the moral, ethical and policy implications its actions may have,” Boozman said Wednesday. “Further, I simply do not believe that the federal government should be using taxpayer dollars to help fund facilities that provide abortions. The cavalier attitude with which these gruesome practices were discussed reaffirms my position and I am committed to getting the answers to these questions that Arkansans deserve.”

“Words are limiting to try to express the moral shock we feel when confronted by behavior so abhorrent as selling dead baby body parts for profit. But where words fall short I’m hopeful that we can be united in action: we must put an end to the federal funding of Planned Parenthood. Arkansans’ tax dollars should not be supporting an organization that condones the activity we’ve seen in the videos released this week. This should be one issue that transcends partisan politics or ideology. To truly honor the God-given rights to life and liberty enshrined in the Declaration of Independence and guaranteed by our Constitution, we should strive to guarantee those rights to the ones least able to defend themselves — the unborn,” Cotton said.

SEN. COTTON: DISCLOSURE NEEDED IN IRAN DEAL
Cotton said Wednesday that the disclosure of two “side deals” on the nuclear weapons deal between the United States and Iran will not be tolerated.

“In failing to secure the disclosure of these secret side deals, the Obama administration is asking Congress and the American people to trust, but not verify. What we cannot do is trust the terror-sponsoring, anti-American, outlaw regime that governs Iran and that has been deceiving the world on its nuclear weapons work for years,” Cotton said. “Congress’s evaluation of this deal must be based on hard facts and full information. That we are only now discovering that parts of this dangerous agreement are being kept secret begs the question of what other elements may also be secret and entirely free from public scrutiny.”

According to Cotton, the deals include an agreement on inspections for the Parchin military base and how the IAEA and Iran deal with questions on the dimensions for Iran’s nuclear program.

U.S. HOUSE PASSES ‘SANCTUARY CITY’ FUNDING BAN
A bill that would take away federal grants for law enforcement in sanctuary cities was approved this week in the House. H.R. 3009 was approved by a 241-179 margin, with all four members of the House from Arkansas – Reps. Rick Crawford, R-Jonesboro, French Hill, R-Little Rock, Steve Womack, R-Rogers and Bruce Westerman, R-Hot Springs, voting in the majority.

On Thursday, Womack and Hill said state and federal officials must work to address the issue.

“As a former mayor, I understand firsthand the danger illegal immigration poses to local communities and firmly believe that cities should put the safety and security of its citizens before the interests of those here illegally,” Womack said. “Our immigration system undoubtedly needs reform, but there is absolutely no excuse for harboring and releasing criminal aliens and blatantly skirting federal law. This deliberate lawlessness must stop.”

“As recent events have once again demonstrated, sanctuary cities are dangerous to the well-being of law-abiding citizens, and I fully endorse any legislation that starts the process towards cracking down on sanctuary cities throughout our country,” Hill said. “Our citizens expect both the President and our local leaders to fully enforce our country’s immigration laws. But, there is also a lot more this Congress must do to better secure our border and fix our broken immigration system in a way that meets the expectations of the American people.”

Westerman said Friday that the issue is a matter of safety and justice.

“It is inconceivable that an American city would provide sanctuary to illegal immigrants rather than safety to lawful, American citizens. The death of Kate Steinle at the hands of an illegal immigrant who had been deported five times highlights why sanctuary cities are a danger to Americans. San Francisco and other municipalities providing sanctuary to illegal immigrants are on the wrong side of the law and my vote today was a vote for justice, a vote for protecting Americans, and a vote that says illegal immigrants will not find protection so long as they remain in this country unlawfully,” Westerman said.

BOOZMAN HONORS RUSSELLVILLE NATIVE KILLED IN CHATTANOOGA SHOOTING
A U.S. Marine who grew up in Arkansas was honored this week as a strong leader who loved his family.

Boozman spoke during a speech on the U.S. Senate floor about Staff Sgt. David Wyatt, one of five people in the military who were shot and killed July 16 in Chattanooga, Tenn.

Boozman said Wyatt, a 1998 graduate of Russellville High School, joined the military following the Sept. 11 terrorist attacks in New York, Washington D.C., and Shanksville, Pa.

“While he no longer called Arkansas home, the state always had a fond place in Staff Sgt. David Wyatt’s heart,” Boozman said in the speech. “He often visited his family who still lives in the Natural State and taught his children how to call the Hogs. As a 1998 graduate of Russellville High School, Staff Sgt. Wyatt was active in athletics and played in the school band. He also earned the Eagle Scout, the highest rank of the Boy Scouts. His scoutmasters, classmates and teachers fondly recalled David as a young man who was a natural leader with a lot of enthusiasm and a unique sense of humor.”

Boozman said the work and sacrifice of Wyatt and the others killed in the attack should not be in vain.

“No one could predict the violence that targeted his life while working to protect and defend our nation with his band of brothers,” Boozman said. “On behalf of a grateful nation, I humbly offer my appreciation and gratitude for his selfless service and sacrifice.”

When Jeston George sold his direct marketing company two years ago, he was looking to start a new business that did more than just make money. After discovering that his nephew’s school didn’t make information about campus-related events easily available to the public, he got the idea of building mobile apps for schools and school districts.

“I would get a notice the morning of an event and I had no way of knowing before,” he said. “So, I checked to see if the school had an app I could put on my phone to keep up.”

The school did not have an app and George felt like he had found an opportunity.

He was looking to do something with technology and realized that building apps for schools could have a huge impact on the way schools engage with their communities. The mission of Apptegy is simple, says the founder and CEO. Apptegy helps schools build better connections with their communities by using the best technology available.

ONE MORE THING TO UPDATE
As he began planning, researching and talking to school districts, George made a unique discovery.

“We would talk to districts, and they would tell us, ‘An app is great, but it’s just one more thing we would have to update.’”

In doing his research, he found that the real need wasn’t an app, but a unified publishing platform that makes it easy for schools to update the various channels they have to use to communicate across the spectrum.

“We are helping the schools build a better relationship with their community,” said David Allan, Chief Marketing Officer for Apptegy.

When George went back to his idea, he pivoted and developed a complete platform for schools to easily update information – in some cases critical information – that can be pushed out to all of the various channels including Facebook, Twitter, websites and other social media.

A PACKAGED SOLUTION
“When a school district signs up, they get the whole package,” George said.

“We do the up-front work, get them set up with the website and their native app for the Apple and Android stores,” explained Josiah Brann, iOS developer/project manager.

Then, the school gets to use the company’s publishing platform, called ThrillShare, to operate its digital channels. The platform comes with an app that school-approved publishers can use to push out information including notifications and an alert system.

The platform is easy to operate and, according to George, it helps to “remove the technological barrier.” George added that while technology is supposed to make things easier, with each new function – such as social media and websites – it has often made it harder for school districts.

“This has been the norm,” he said, “we want to flip the norm.”

Apptegy started with a handful of customers while working out any problems, however, the company has recently doubled in size and now has 14 school districts signed up for their product including Arkadelphia School District.

Superintendent Dr. Donnie Whitten has definitely been pleased.

“This is so easy, why isn’t every school district using this?” Whitten said.

MOVING FORWARD
In the past month, the company has picked up several new employees pushing the team’s size to 11. David Allan was added a few weeks ago as well as Brann. In addition, Apptegy has four team members responsible for sales, two for client experience helping with on-boarding, and two other members of the development team.

One thing George is proud of is the user experience related to design. One of the team members is responsible for design and the result is a modern, clean design experience for the school district.

Venture capital is helping support growth.

“We have raised from Hayseed Ventures [started by John James], Tonic and FAF. John James and Hayseed is our lead investor. John is also on Governor Hutchinson’s Stem Task Force,” George said.

Although Apptegy is an Arkansas company, Allan says the company will be marketing outside of Arkansas within just a couple of weeks. In the meantime, Apptegy will be moving from the Venture Center where it has been working to a new home in downtown Little Rock.

The company is a home-grown Arkansas company, based in Arkansas, led by Arkansans and funded by Arkansans. George and his team are poised to make a big impact in the world of digital content distribution in the education industry.

Revenue from Fort Smith’s street tax fell more than 5% in the June report after posting a double-digit increase in May. The countywide tax revenue that feeds the city’s general fund fell more than 6% in the July report, but remains above the year-to-date budget forecast.

The city has in the first six reporting months of 2015 collected $10.511 million on its 1% street tax program and the same amount on a 1% tax divided between bonds, Fire Department and the city’s Parks Department. The amount is up 4.83% compared to the same reporting period in 2014, and is 5.66% above the budget estimate.

The city’s 1% street tax program collected $1.744 million in the June report, down 5.47% compared to June 2014. The amount was 4.88% below the budget estimate. (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 July are from taxes collected in May and transferred by merchants to the state in June.)

The key collection for the city is its portion of the 1% countywide sales tax. Revenue from that tax funds a majority of the city’s general fund budget, with much of that budget paying for police, fire and other essential city services.

The city’s portion of the countywide 1% sales tax generated $1.338 million in the June 2015 report, down 6.24% compared to June 2014, and was 6.07%  below the budget estimate.

For the first six reporting months of the year, the city’s portion of the countywide tax revenue is $8.069 million, up 3.75% compared to the same period in 2014. The revenue for the first six months is also 4.06% above the budget estimate.

The increase in year-to-date countywide tax revenue provides some relief as the Fort Smith Board of Directors and city staff are working on ideas to address a looming shortfall in the city’s contribution for police and fire employee pensions. The city needs $900,000 in this fiscal year to help cover pension fund obligations, and the annual deficit could grow to $3.1 million by 2026 if no remedy is found.

TAX TRENDS
Countywide sales tax revenue to the city hit a record in 2008 with $16.61 million. It fell to $14.89 million in 2010, but has posted four consecutive years of gains since 2010, with the 2014 total reaching $15.625 million.

Collections during 2014 of the Fort Smith’s 1% sales tax for the street program topped $20 million for the first time since 2008. The 1% tax generated $20.099 million for the January-December reporting period, up 3.24% over 2013, and was above the budget estimate by 0.78%. However, collections for the past five years have been inconsistent. Revenue from the city’s street tax was down 0.87% in 2010, up 3.9% in 2011, up 1.36% in 2012, and down 0.69% in 2013.

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2014: $40.198 million
2013: $38.938 million
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
2014: $15.625 million
2013: $15.353 million
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

With the first two quarters of 2015 already in the history books, local and national economists predict a stronger economy in Northwest Arkansas, Fort Smith and the nation as a whole for the remainder of the year.

John Silvia, chief economist with Wells Fargo, described the national economic scene as mixed with strong consumer spending somewhat damped by slower growth overseas that is constraining exports, as well as continuing cutbacks in energy exploration.

“The drags on growth should lessen somewhat during the second half of the year, allowing overall growth to ramp back up to a 3% or better,” Silvia said. “Real GDP contracted at a 0.2% pace in the first quarter and we expect growth to rebound at a 2.1% pace in Q2 before settling in to a3.4% pace in the second half of the year.”

While business investment has slowed, he’s encouraged by recent improvement in commercial construction. Ongoing improvements in residential home sales and construction, stronger jobs numbers, income growth and rising home values are also boosting household finances.

Silvia expects housing is likely to become a more important driver in coming quarters. He predicts slightly better operating metrics for manufacturers that have taken a one-two punch from slumping oil prices and surging dollars.

ARKANSAS OFF TO A GOOD START
The year got off to a good start for Arkansas’ economy. Gains in employment, sales tax collections and building permits resulted in the best combination of grades for Arkansas’ top three metro economies since the first quarter of 2012 when The Compass Report first analyzed all three areas.

The quarterly Compass Report is managed by The City Wire, and is sponsored in the Fort Smith area by Arvest Bank. The report is the only independent analysis of economic conditions in Arkansas’ three largest metro areas.

Kathy Deck, director for the Center for Business and Economic Research at the University of Arkansas, also sees bluer skies for much of the Natural State. She said Northwest Arkansas and Jonesboro should continue to set the bar high among overall economic growth in the back half of 2015. Central Arkansas will also grow, but less than the afore mentioned regions. Deck said Fort Smith and Hot Springs are likely to see modest improvements growing at a slower pace, but with signs of optimism.
The laggard region, according to Deck will likely be Pine Bluff.

Although low oil prices and the strong dollar have slowed national GDP growth for the remainder of 2015, improvements in the national economy should continue to benefit Arkansas’ economy, said Jeff Collins, the economist for The City Wire who gathers the extensive data used in The Compass Report. He also is a former director of the Center for Business and Economic Research at the University of Arkansas.

“Non-farm employment has grown for the last 18 quarters. The economy created roughly 586,000 non-farm jobs in the fourth quarter after creating 973,000 in the fourth quarter of the previous year,” Collins wrote in the first quarter 2015 report. “Incomes and employment are expected to grow modestly through the remainder of 2015. Housing, however, is expected to continue to accelerate given positive market conditions.”

Arkansas’ closely watched nonfarm payroll number was 1,211,400 in June, better than the 1,209,600 in May and up over the 1,188,100 in June 2014. If the June number stands, it will mark a new high. Prior to June, nonfarm jobs reached a high in Arkansas of 1,209,800 in February 2008.

HOUSING OUTLOOK
Deck said real estate is tied directly to jobs and population growth in a local market. She said in that respect Northwest Arkansas can continue to see improved growth in its housing sector.

Harold Crye, CEO of Crye Leike Real Estate, said Northwest Arkansas is one of the best performing regions in which it operates. Crye-Leike operates 112 offices across the Southern region in major metro areas such as Memphis, Little Rock, Atlanta, Huntsville, Ala., Kansas City, Joplin and Destin, Fla. He told The City Wire that Benton and Washington counties have made a robust comeback since he entered this market in 2009.

“We continue to see solid growth each year in Northwest Arkansas. The only market close to those growth patterns is Nashville (Tenn.),” he said.

Crye expects the residential real estate market to continue its upward trajectory this year. He said sales will likely taper in the fall but the on the whole he predicts record growth in 2015 for his firm.

Other Northwest Arkansas Realtors expect the local market to post double-digit gains in home prices this year. This uptick in pricing is linked to rising new home costs and lower inventory levels that favor sellers. Through June, Benton County’s median sales price rose 11.3% to $167,000 from a year ago, according to MountData.com. In Washington County the median sales price increased 6.6% to $162,000, compared to the same period in 2014.

In Fort Smith, Deck expects to see slower growth patterns in housing which are consistent with that economy given that it has had to retool itself from a manufacturing base to a more diversified economy including professional services and tourism.

“The Fort Smith market is a very different dynamic than Northwest Arkansas starting with population growth and employment expansion. We have not seen that dynamic job growth there, although we are now seeing glimmers of hope in that economy. It would make sense that this real estate market is also improving a bit,” Deck said.

Jan Dyer, president of the Fort Smith Board of Realtors, said everyone is happy with the market improvement to date. She ranks the overall health of the Fort Smith metro real estate market a solid “B” which is better than she’s seen in several years. Dyer credits the rise in sales to a healthier overall economy and said there are buyers at both ends of the price spectrums which is another sign of steady demand.

The biggest relative gains in The Compass Report were in the Fort Smith metro, which posted a “B” grade for the first time since The Compass Report launched in the first quarter of 2009. Improvement in the region’s non-farm employment, gains in sales tax collections and continued strength in building activity played a primary role in the region posting its best grade with The Compass Report.

Looking to the back half of 2015, Dyer expects a steady pace will continue, noting that the first half of the year is typically a little stronger than the second half. That said, Dyer expects the local market will increase 3% overall in 2015, which she said is “excellent” and sustainable growth.

ECONOMIC ENGINES
Deck said the economic engines of Northwest Arkansas for the most part continue to expand. She said Northwest Arkansas has had consistent job growth in its largest employment sectors — trade, transportation, business and professional services
education and health.

“In any thriving economy there is ebb and flow even among the largest of employers. The nonfarm payrolls that don’t pick up contract laborers shows 6,000 new local jobs year-over-year. The labor force data shows 9.000 new jobs in the same period. Those are strong numbers,” Deck said.

In the Fort Smith economy, Deck said recent announcements like the more than $32 million osteopathic college under construction and other developments at Chaffee Crossing are reasons for optimism as the region works to recover job losses during the Great Recession.

“Keep in mind they are starting from a hole left behind from manufacturing withdrawal, namely Whirlpool and related services,” Deck said. “The investments being made now will pay off. The real estate market is already responding to them and the tourism infrastructure will take time.”

The Bureau of Labor Statistics show that Fort Smith’s metro area’s nonfarm payrolls lost 300 jobs in June, compared to a year ago. The labor force data that reflects contract laborers grew by nearly 3,000 in May, compared to a year ago. The June labor force data will be released Wednesday (July 29).

This week 40 Walmart Supercenters will begin testing the closing of their stores at midnight and reopening at 6 a.m., as the retailer looks for ways to optimize store labor in accordance with peak shopping periods.

“This 40 is a working list in addition to about two dozen other supercenters that began testing the overnight closures this spring. More stores are expected to join the pilot in the coming months,” Brian Nick, corporate spokesman for Wal-Mart Stores in Bentonville, told The City Wire on Monday (July 27).

He said none of the supercenters in Northwest Arkansas are part of this pilot. Nick said Wal-Mart studied traffic patterns in its 3,400-supercenter network and that was the basis for which stores join the pilot. Nick said Neighborhood Markets use a similar metric to determine which ones are open 24 hours a day, as some are and others are not.

He said closing in the overnight hours, will allow store managers to reallocate resources that should lead to better in-stock, cleaner and more organized stores to better serve shoppers during open hours.

Nick said the stores in the pilot are located across the country and are a small fraction of the retailer’s 4,500 U.S. store count that includes supercenters and Neighborhood Markets. He said it was inaccurate to assume that the stores in the pilot are located solely in the Northeast or in larger metro areas. 

This move did not surprise Jason Long and retail experts who agreed that all retailers have to constantly re-valuate operations in this evolving sector.

“I don’t think Wal-Mart loses here. Few competitors are open overnight now. Wal-Mart stores shaving hours probably weren’t justifying their overnight sales to begin with. Taking a few extra hours to restock shelves, etc. combined with the labor savings will probably be a net positive,” said Long, CEO of Shift Marketing Group. 

He said it also could signal to those Walmart stores not affected that they need to ramp up sales or potentially see their hours cut as well.

The new management inside Walmart U.S. has made it clear that they intend to clean up stores, improve customer service and in-stocks and reallocate the store labor as its needed. Nick said most of the overnight workers will be retained for stocking and prepping the store for daytime hours. He said overnight cashiers will be offered other positions, those not accepting other positions will be offered severance if they are full-time and have worked there for at least one year.

Retail expert Max Goldberg said that Wal-Mart should do what's best for its bottom line even if that means discontinuing some 24-hour openings.

“Some shoppers will be inconvenienced and there will be complaints, but this should not be a large factor in the company's decision,” Goldberg noted on a RetailWire discussion on this topic.

Retail consultant David Livingston said any supercenter grossing under $60 million per year is likely a prime candidate for closing overnight. He doubts this has little to do with re-stocking shelves and is more likely an effort to rein in costs. He said stores in areas where there is a propensity for violent crime or theft is also a good reason to close in the overnight hours.

Carol Spieckerman, CEO of newmarketbuilders, said closing some stores for a six-hour window and the other “block-and-tackle changes that (Walmart U.S. CEO) Greg Foran has been championing” could make a “real difference” in future financial performance of U.S. store operations.

“It’s incredibly difficult to operate stores on a constant 24-hour cycle and Walmart stores will benefit from a bit of down time. Although the initial reason for testing the new hours in select stores might be financial, Wal-Mart may well find that these locations perform better over time as the benefits of overnight TLC take hold,” Spieckerman said.

At least one Wall Street retail analyst is skeptical that the overnight closures will significantly improve in-stock levels. Brian Yarbrough, an analyst with Edward D. Jones, said this may be a trial run to see if Wal-Mart can reduce overhead by cutting store hours without losing sales. 

Yarbrough said there aren’t that many overnight shoppers and he wonders if this test will result in a broader national rollout.

The Rebel mascot, “Dixie” fight song and other ancillary southern imagery will soon be part of the history of Southside High School. The Fort Smith Public School Board voted 7-0 Monday (July 27) to change the mascot and end use of the “Dixie” fight song that has been associated with the school since it opened in 1963.

Voting to change the mascot followed a lengthy meeting in which more than 220 people packed the school’s service center auditorium and more than 40 people addressed the Board on the issue. The rules limited each person to three minutes, and the public address period lasted about 90 minutes.

Monday’s vote was a culmination of a process that began June 23 when a committee of the School Board voted 6-0 to discontinue use of “Dixie” as the Southside High School fight song in the 2015-2016 school year and to drop the Rebel as the Southside mascot in the 2016-2017 school year.

Southside High School was formed in 1963 and over the years there have been attempts to change the mascot. One of those happened in the late 1980s when a school board committee pushed for a change. The effort failed to gain support from a majority of those then on the Board.

The change was fueled in large part by the national discussion about racial imagery following the tragedy in Charleston, S.C., in which nine members of the Emanuel African Methodist Episcopal church were shot and killed by Dylan Roof.

The Board’s move also is one of many around the country in which racially charged imagery and Confederate symbols are being removed from public spaces or removed from store shelves. Retail giant Wal-Mart Stores Inc. is among a growing number of retailers removing Confederate flag merchandise from stores and its e-commerce sites.

‘KIDS WILL RESPOND THE RIGHT WAY’
After the vote, School Board President Dr. Deanie Mehl said the issue came down to a 4-3 vote in 1990.

“It’s been a long time coming. ... With just one vote different, this could have been changed 25 years ago,” Mehl said. “So, I think this is long overdue.”

Mehl, who thanked the audience for being respectful during the process, said the cordial audience also gives her hope that the community will emerge unified on the issue.

“That really did my heart good that we could disagree ... that we could go through this and still be respectful,” Mehl said.

Southside High School Principal Wayne Haver, principal of the school since 1982 and who was critical of the June 23 vote, said after the meeting that “it was a vote I expected.”

“We can put a positive future at Southside on this,” Haver told The City Wire. “Our kids will respond the right way. We will continue to succeed academically and athletically. It will not change Southside High School.”

District Superintendent Dr. Benny Gooden also noted the audience involvement.

“I think you saw a really good cross section of participation, and frankly, on both side,” he said.

BOARD OPPOSITION
Leading opposition to the mascot change has been Fort Smith attorney Joey McCutchen. He organized a July 24 “Rally for the Rebels” at the Southside football field that attracted at least 150 students, former students and parents. At that event he demanded the Board put the issue up to a district vote.

He also is taking his fight to court. On July 23 he filed a complaint in Sebastian County Circuit Court that alleges the Board committee violated Arkansas’ Freedom of Information Act during the process that resulted in the June 23 vote. McCutchen is seeking a hearing within seven days on the matter, and is asking the court to “invalidate” the June 23 vote.

A hearing is set for Wednesday (July 29) before Circuit Court Judge James Cox. It’s unlikely the outcome of the litigation will reverse the Board’s 7-0 vote on Monday.

THE PUBLIC INPUT
Of the more than 40 who spoke, at least 25 were for changing the mascot and ending use of “Dixie” as the fight song, and around 15 were against the move. While there was a concern that the public input could get boisterous, the 90-minute was calm with only outbursts of applause.

The loudest applause followed a short speech by William Buckley, who immediately acknowledged that his not from Fort Smith and his only connection is that he married a Southside graduate. He implored the Board to stick with the committee vote and change the mascot. He said it is just a matter of time before the change is made

“If you mess up this vote, my generation will eventually fix it,” Buckley said, which drew the applause.

McCutchen was the first speaker. He call for the Board to allow Southside High School Principal Wayne Haver to form a committee for an “informational gathering process” instead of “rushing to judgment tonight without meaningful public input.” He also said the Board should be focused on teacher advancement and student achievement and not mascot issues.

Christian Parker, an incoming junior at Southside, also spoke in opposition to the change. He said the mascot is a culmination of southern culture and “not a racist symbol.” He also noted that the original American rebels were those who fought against the British. Parker also said students of today don’t attribute the mascot and other imagery with racism.

“My generation does not see color in the way your generation does,” Parker said.

A parent with mixed race children also rose to speak against changing the mascot. She said her child was “comfortable with being a rebel.” She also doubted that business owners have avoided locating in the city or doing business in the area because of the mascot.

Chris Cloud and Wade Gilkey chastised the Board for not making the process more transparent. Gilkey, who also took his time to announce he is running for a Board position in the upcoming Sept. 15 Fort Smith School Board election, said the Board showed a “lack of respect” to all involved for not being more open.

Another speaker, who said he works for ABF Freight, spoke to oppose the change and reminded the Board that “James Dean was called a rebel, not a racist.” He also said the effort to change the mascot is nothing more than a “handful of people (who) got on that politically correct train” after the South Carolina tragedy.

Those speaking for the change included two Fort Smith attorneys who have and are serving as president of the Arkansas Bar Association. Alan Harrison, past president of the Arkansas Bar, praised the Board for their leadership on pushing the issue to a vote. He said for too long the Board has not had the courage to tackle the change.

“Next year won’t be any better … this year is a great time to take it up,” Harrison said.

Eddie Walker Jr., this year’s president of the Arkansas Bar, had three children who graduated from Southside, and it has always been clear to them that “Johnny Reb and Dixie” has a negative symbolism and were symbols adopted “in the heat of the civil rights movement.” He also reminded the Board that in 1969 the University of Arkansas ended its use of “Dixie” as the Razorback fight song.

“It didn’t take long for them to find a new fight song and move on,” Walker said.

Luke Pruitt, a Southside High School graduate, said changing the mascot ends the belief that Johnny Reb and the other symbols are “all just innocent fun.” He said the symbolism “makes our city look unwelcoming to outsiders.” He also challenged those who opposed the change.

“Own up to it if you choose to perpetuate it,” Pruitt said, adding that keeping the mascot sends a message to black entrepreneurs that “we don’t want your business in Fort Smith, we want our tradition.”

School Board member Susan McFerran made the motion for the mascot change and to end use of “Dixie” as the fight song, and the motion was seconded by Rick Wade. All seven Board members quickly raised their hands when an affirmative vote was called.

Opponents of changing the Fort Smith Southside High School mascot said the cost of such a change could be $500,000 or more. The cost may be considerably less according to school officials.

The Fort Smith Public School Board voted 7-0 Monday (July 27) to change the mascot and end use of the “Dixie” fight song that has been associated with the school since it opened in 1963. The school will discontinue use of “Dixie” as the Southside High School fight song in the 2015-2016 school year and will drop the Rebel as the Southside mascot in the 2016-2017 school year.

During about 90 minutes of public input, the question was raised several times about the cost to make changes to the gym, football field, uniforms and other signage. Several of those who opposed the mascot change said during Monday’s public segment of the meeting that any conversion costs would be better spent improving facilities, buying new textbooks and preventing drug use among students.

Fort Smith attorney Joey McCutchen has said the costs related to changing the mascot could be as high as $1 million.

School Board President Dr. Deanie Mehl said the district developed an early estimate on the cost and asked District Superintendent Dr. Bennie Gooden to report the information. Gooden told the Board and audience that changing facility signage could cost up to $90,000. He said if all uniforms are replaced at once, the cost would be around $160,000. However, he said 30% to 40% of uniforms are replaced annually, which would reduce the cost attributed to the mascot change.

He said the bottom line on a conversion cost would be around $200,000.

Mehl said any money spent on the conversion would not come from future millage proceeds. Gooden said it is likely the district has “sufficient funds to cover” the changes and will not have to use future state or local funds.

As to the process of changing the mascot, Mehl said Southside High School Principal Wayne Haver will form a committee of students, faculty, alum and others to develop a new name and traditions.

After Monday’s meeting, Gooden told The City Wire he was happy the process was placed in “his (Haver’s) capable hands.”

Nearly one in three children (29%) residing in Arkansas live in poverty, compared to 22% nationwide, according to a new report from the Arkansas Advocates for Children and Families. 

While the state and national economy are improving, child advocates said the rising tide of recovery has not lifted all boats, namely the low-income families still struggling to make ends meet. The 2015 Kids Count data book provided by the Annie E. Casey Foundation found there are 202,000 children living in poverty in the Natural State. The Foundation states that the child poverty rate has gone up 4% since 2008, when the U.S. economy was in the midst of a recession.

Part of the reason so many children are living in poverty is because 34% of them have parents who lack secure employment. There are also 38% or 253,000 children living in single-parent households. This statistic is up from 36% in the prior year.

The report measures child well-being in four domains: economic well-being, education, health, and family and community. In this year’s report Arkansas dropped to No. 44 among the state rankings, falling from No. 41 a year ago.

Another startling statistic is that 55% of the state’s children are not enrolled in any type of pre-Kindergarten program. That is up from 53% last year. Children not enrolled these programs miss out on opportunities for hot meals during school hours.

The state legislature in the last session recognized this gap and appropriated $3 million in additional funding for more pre-Kindergarten programs. It was the first time in eight years that the state legislature more money has appropriated toward the growing needs. The study advocates for early childhood education as a possible solution to some of the problems outlined in the report.

HUNGER INTERVENTION
Children living in poverty are often at risk for hunger which is a major mission for the Samaritan Community Center in Rogers and the Community Clearing House in Fort Smith.

In the Fort Smith area, Community Clearing House had 2,700 school kids taking home backpacks of food each Friday of last year. The food was distributed to children in five counties in the two-state area. According to the Clearinghouse 95 different schools and 36 communities have taken part in the program.

A similar program in Northwest Arkansas is a life-saver for thousands of area children, according to the Community Samaritan Center that has overseen and coordinated SnackPacks for Kids for 11 years. In the school year that ended in May and with summer handouts, the Samaritan Community Center anticipates distributing a total of 286,531 snackpacks. That equate to 343,847 pounds of food.

This past year the nonprofit expanded the backpack program from 6,200 per week to an average of 7,500 weekly. These snackpacks were distributed to 120 area schools in Benton and Washington counties. 

Hunger intervention programs like those mentioned above are stop gaps funded nearly entirely by charitable efforts and have helped to foster better overall health among Arkansas children, according to the report.

IMPROVED HEALTH
While child poverty is high, another bright spot in the report was an improvement in children’s health. One area where the state does well is health coverage for kids. Only 6% of Arkansas children do not have health insurance, mostly because of the state’s Medicaid program known as ARKids First.

“We have, as a state, made a very concerted effort on kids’ health going back to the late 90s,” said Rich Huddleston, executive director at Arkansas Advocates for Children and Families. “In fact, this is an area where ARKids has been so effective in covering kids that we may not see that number move for a while. This just shows you what can happen when we truly invest in the future of our children. Arkansas can be a national leader in this area.”

He said the report concludes that more investment is needed in the pre-Kindergarten area.

“That’s an area where we can really make some improvements,” Huddleston added.

The states ranking highest in overall child health well-being were Minnesota, followed by New Hampshire, Massachusetts, Iowa and Vermont. The states ranking the lowest included Arizona, Nevada, Louisiana, New Mexico and Mississippi. Arkansas ranked No. 34 showing improvements in all four domains in this category: low birth weights; uninsured children, child/teen mortality, and teen drug abuse.

STRATEGY SHARED
“The stark reality is that millions of children, particularly African Americans, Latinos, and American Indians live on the precipice of poverty,” said Laura Speer, associate director for policy reform and advocacy at the Annie E. Casey Foundation. “Today, as the economy recovers, we see a widening gap between the living standards of many children of color and other kids. The good news is when we’ve invested in the right strategies and policies – like ARKids First in Arkansas – we have made a difference for kids.”

Guidelines provided by The Casey Foundation for tackling the child poverty concerns include multi-generational strategies. Those include:

• Provide parents with multiple pathways to get family-supporting jobs and achieve financial stability;

• Ensure access to high-quality early childhood education and enriching elementary school experiences; and

• Equip parents to better support their children socially and emotionally and to advocate for their kids' education.

It’s been a three-year journey but David Bursteen and Ines Brigman, owners of Legends Home Bedding, were recently informed their Elvis Presley bedding collection will be sold in select Wal-Mart Stores this fall.

The Legends duo won the retailer’s Get-On-The-Shelf competition in 2013 after entering just 48 hours before the deadline. Getting the Elvis inspired bedding into Wal-Mart’s physical stores has always been a goal of this team who first pitched their products to Wal-Mart in a letter addressed to Dear Buyer back in 2012.

Bursteen said the in-store launch to 200 Wal-Mart’s will run through November and December and represents the commitment awarded from Wal-Mart for Legends winning the 2013 product search competition run by Walmart.com. He said Walmart Stores will feature prominent displays of the Elvis Presley Home Bedding Collection in several designs including one in Wal-Mart’s signature blue.

“We look forward to creating a successful venture this fall with Wal-Mart and have plans to expand our brand by introducing additional legends to our bedding line in the future,” he said. “Everyone we have worked with in this process has been incredibly helpful.”

He said the next logical legend would likely be Marilyn Monroe and her licensing is handled by New York-based Authentic Brands, which also handles the Elvis licensing, which Legends has renewed for three more years.

He told The City Wire in 2014 that the product involves a new category in bedding, which has somewhat complicated its going direct to brick and mortar stores. He said there is no licensed adult bedding category to speak of as most of this business has gravitated toward children’s bedding.

Bursteen told The City Wire that Wal-Mart seemed to understand there is 
demand for the product and built in fan bases with American legends such as Elvis Presley or Marilyn Monroe. When Legends notified the Elvis Presley Foundation while in the competition, the fan support was instant.

“When our bedding popped up on their Facebook page it got 68,000 likes and 4,500 comments in 24 hours,” Bursteen said. “Fans are already asking us on Facebook in which stores the bedding will be available.”

The company has continued to use social media sites to engage Elvis fans and to test new design ideas.

He and Brigman met with Wal-Mart bedding buyers in Bentonville in April 2014 and have kept working with them over the past 13 months to come up with the products and price terms that work for both parties.

The Legends bedding has been a favored item on Walmart.com and also is sold on Amazon and online at Bed, Bath & Beyond and roughly 70 online retailers. While the partners are grateful for their online sales they believe getting the merchandise into physical Wal-Mart Stores will help to cross merchandise the bedding with his music and hopefully bring Elvis impersonators in stores if the retailer will allow.

To that point, Wal-Mart CEOs Doug McMillon and Greg Foran have each talked about their plans to bring “retailtainment” back into supercenters.

“Sometimes we have to pinch ourselves to make sure this is real. We are about to get our product in Wal-Mart Stores and that’s pretty cool,” Bursteen said.

One of the longest delays in the entire process was to find a Wal-Mart authorized manufacturer. 

“They didn’t give us a list, we had to find them on our own. We attended a trade show in New York, but didn’t find the right fit. We eventually found a certified plant in China. We had to establish a relationship with this new manufacturer which took several months. Then our consumer lab testing took time, which is a different requirement at Wal-Mart Stores than we had followed elsewhere,” Bursteen said.

The new bedding line for Walmart Stores is in production. Bursteen said the partners will travel to China in a few weeks to inspect the final product.

Brigman said in addition to the contest-winning Elvis Bedding Collection, the stores will feature an exclusive “Silver Edition” collection to Walmart and Walmart.com at a promotional price of around $72 for the holidays.

Bursteen has spent his entire career working for, or dabbling with, startups and said this time the magic is working. He’s been a collector of Elvis memorabilia for years and it took him all of five minutes to get the home bedding license from Elvis Presley Enterprises in 2012. He told them then he would do his best to get the home bedding products inside Wal-Mart Stores, because outside of music, the retailer has not carried any licensed Elvis merchandise.

Brigman and Bursteen believe the Elvis inspired bedding is a good fit with Wal-Mart given that there has to be substantial overlap between Wal-Mart shoppers and Elvis’ fan base.

“Nervous? Of course we are. We are standing on Wal-Mart’s front porch about to go inside. What startup supplier wouldn’t be,” Bursteen said.

Lt. Gov. Tim Griffin said Tuesday he will recommend that the Common Core be made more rigorous and be renamed. Griffin is chairing the Governor’s Council on Common Core Review, a study group appointed by Gov. Asa Hutchinson that is recommending changes to the educational standards.

The council held hearings and also public meetings across the state. It will meet at the Capitol starting Thursday at 8 a.m. and will work until it it completes its recommendations.

“There’s not something we’re voting on that’s already done,” he said. “We’ve got to create it. It could be an intense deal.”

The Common Core was adopted by most states and was adopted by the Arkansas State Board of Education in 2010, but it has since generated controversy throughout the country among those who consider the standards to be ineffective or a case of federal overreach. The Council serves as an advisory body to Gov. Hutchinson, and final decisions about state standards are made by the State Board of Education. However, State Board decisions can be overridden by legislation, and many legislators are skeptical of the Common Core.

Earlier this year, the Council recommended that Arkansas become the latest state to exit the end-of-the-year PARCC exam and instead use the ACT Aspire exam. Hutchinson followed that recommendation, but the State Board of Education initially voted to to keep the PARCC exam. Under pressure from legislators, the State Board then reversed its decision and voted to adopt the ACT Aspire exam.

Dr. Jay Barth, a member of the State Board, said Tuesday he is “willing to listen to any recommendations.” He said the Board would have to be careful about making quick changes out of respect to the teachers who have been working with the current standards.

“I don’t want to go into all kinds of conjecture about what may happen down the line. I think it’s most important to play out the process that’s in place and that’s been used for long periods of time,” Barth said.

Griffin said he will recommend requiring students in one particular grade to learn their multiplication tables to a factor higher than the currently required factor of 10. Another will be to change the list of suggested books for reading. Teachers are not required to use that list, but Griffin said many of them, busy with their many duties, will simply select those books.

“I think if you treat (the standards) as a sacred document that should never be touched or changed, that’s like reintroducing the old World Book encyclopedias to a dynamic, interactive world. … Nobody would do that to a business plan. Nobody would do that to a game plan. Why would you do that to the standards of our kids?” he said.

However, he said, “That’s not to say that we have to throw everything away. There’s good stuff that we are going to want to replicate in whatever our final product is.”

Griffin said the he would recommend changing the Common Core’s name, “But not as window dressing, but as a reflection of the substantive changes that were made.”

Asked if Arkansas’ standards still would be part of a set of common standards shared by other states, Griffin said, “My recommendation will be that we will have rigorous – more rigorous than we have now – career- and college-ready standards that the ACT will test for us.”

It didn’t take long for a majority of the Fort Smith Board of Directors to reject a plan that would annex 875 acres centered on the new intersection of Interstate 549 and U.S. 71 South, but the issue did result in an intense debate between two of the directors about the need to plan ahead for a possible annexation.

The proposal is to annex 875 acres in south Fort Smith near the new interchange. City staff says annexation of the property would provide services that would encourage development and create a larger tax base for the city.

However, costs to annex the property could include $3.5 million for a new fire station and a pumper truck, with an annual operating cost of $850,000. Other costs could include water system improvements of $3.3 million and sewer system improvements of $7.56 million
over a 5-7 year period. The annexation would also include $1.8 million in street work over the next 10-15 years.

Wally Bailey, director of development services for the city of Fort Smith, said 8 of the 9 property owners in the area are “generally are agreeable to an annexation.” One owner is ill and the city has not had a chance to visit with her. Bailey said the staff needs direction because they are at the point that legal services will be needed to push a petition process to annex the property. That process would include presenting a valid petition to Sebastian County Judge David Hudson, and with his approval the question would then be presented to the Fort Smith Board of Directors.

City Director Don Hutchings jumped in to reject the idea.

“Why are we talking about this? … Where is the money going to come from,” he said.

The Board and city staff have struggled in recent months to balance a budget that includes pressure to fund a shortfall in the pension fund for police and fire employees. Ongoing discussion includes a possible 3% to 5% cut to the general fund budget.

Director Keith Lau joined in after Hutchings, saying the budget pressures do not make it feasible to pursue a costly annexation proposal.

“For me, we’ve got too much stuff going on. … From my perspective i would be for shelving this until we solve our other problems and then come back to it,” Lau said. “When i seen an $850,000 drag to the general fund, i can’t get to excited about it (annexation).”

City Director and Vice Mayor Kevin Settle disagreed with Lau and Hutchings. He said the area is where future growth is moving and the Board should put the city in a position to benefit from the growth.

“It doesn’t have to be today, it doesn’t have to be tomorrow .. but we have to look at the future of the city,” Settle said.

Mayor Sandy Sanders also chimed and said with the budget problems that talk about annexation “sends the wrong signal” to citizens.

Director Mike Lorenz, agreed, saying that the issue is “something to keep on the radar, but keep on the corner of the desk for right now.”

Directors Tracy Pennartz and Hutchings then engaged in a spirited discussion about if it was even appropriate to discuss the annexation. Pennartz attempted to talk about how the costs were a problem, but the Board should talk about the future annexation idea. Hutchings interrupted several times to say “it’s not reasonable to discuss” annexation when the city is facing budget issues. Pennartz said the Board is able to consider the future even when addressing present problems.

“We’re talking about the vision of Fort Smith. … We can deal with more issues than one issue at a time. Our ability to entertain the idea is not limited because we are surrounded by budget issues,” Pennartz said.

The Board did not end the discussion with a clear consensus on how it would proceed, but did make it clear that an immediate annexation would not happen.

The job market in the Fort Smith metro continues to make modest gains, with the region adding more than 2,600 jobs between June 2014 and June 2015. The size of the available regional labor force also grew by 1.94% in the year-over-year period.

Fort Smith’s metro jobless rate was 5.9% in June, unchanged compared to May, and lower than the 6.3% in June 2014, according to figures posted Wednesday (July 29) by the U.S. Bureau of Labor Statistics. June’s data is subject to revision.

The number of employed in the Fort Smith region totaled 115,443 in June, up from 114,507 in May, and up an estimated 2,629 jobs compared to the 112,816 employed in June 2014. The June number is the first time employed topped the 115,000 mark since July 2012. The number of employed in the metro area is down 7.95% compared to the revised high of 125,426 in June 2006 – or 9,983 fewer jobs than the peak metro employment. Metro area employment averaged 111,588 in 2014, below the average of 122,993 in 2006.

The size of the Fort Smith regional workforce during June was 122,679, up from 121,688 during May, and better than the 120,340 during June 2014. The labor force reached a revised high of 132,004 in June 2007, meaning the June workforce size is down 7.06% from the peak number.

All of the eight metro areas in or connected to Arkansas had jobless rate declines in June compared to June 2014. Only three areas (Northwest Arkansas, Hot Springs and central Arkansas) had jobless rate increases compared to May. During June, the lowest metro jobless rate in the state was 4.2% in Northwest Arkansas and the highest rate was 8% in the Pine Bluff area.

FORT SMITH METRO NUMBERS
Unemployed persons in the region totaled an estimated 7,236 during June, up from 7,181 during May, and below the 7,524 during June 2014.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 23,300 in June, up from 23,700 in May, and below the 23,400 during June 2014. Employment in the sector reached a high of 24,700 in December 2007.

The Fort Smith area manufacturing sector employed an estimated 17,900 in June, down from 18,000 in May, and below the 18,100 in June 2014. Sector employment is down 36% from a decade ago when June 2005 manufacturing employment in the metro area stood at 28,000. Annual average monthly employment in manufacturing has fallen from 27,900 in 2005, 20,700 in 2010, and to 18,100 in 2014.

Employment in the region’s tourism industry was 9,100 during June, up from 8,900 in May and below the 9,300 in June 2014. The sector reached an employment high of 9,300 in May and June of 2014. Annual average employment of 9,100 in 2014 was a new record for the metro sector.

In Education & Health Services, employment was 16,500 during June, unchanged compared to May and June 2014. Employment in the sector reached a record 16,700 in October and December of 2012.

In the Government sector, employment was 17,600 during June, down from 18,400 in May and down from 17,700 during June 2014.

NATIONAL NUMBERS
Unemployment rates were lower in June than a year earlier in 351 of the 387 U.S. metro areas, higher in 28 areas, and unchanged in eight, noted the broad BLS report.

The U.S. unemployment rate in June was 5.3%, unchanged from May and down from 6.1% from a year earlier. Arkansas’ jobless rate was 5.7% in June, down from 5.8% in May and down from 6.1% in June 2014.

Oklahoma’s jobless rate during June was 4.5%, up from 4.3% May, and unchanged from June 2014. The Missouri jobless rate during June was 5.8%, the same as in May and below the 6% in June 2014.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
June 2015: 4.2%
May 2015: 4.3%
June 2014: 4.7%

Fort Smith
June 2015: 5.9%
May 2015: 5.9%
June 2014: 6.3%

Hot Springs
June 2015: 5.7%
May 2015: 5.9%
June 2014: 6.4%

Jonesboro
June 2015: 5.1%
May 2015: 5%
June 2014: 5.6%

Little Rock-North Little Rock-Conway
June 2015: 4.9%
May 2015: 5.1%
June 2014: 5.6%

Memphis-West Memphis
June 2015: 7%
May 2015: 6.6%
June 2014: 8.1%

Pine Bluff
June 2015: 8%
May 2015: 7.8%
June 2014: 8.8%

Texarkana
June 2015: 5.1%
May 2015: 5%
June 2014: 6.4%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2014: 6.2%
2013: 8%
2012: 8.1%
2011: 8.8%
2010: 8.5%
2009: 8.3%
2008: 5.1%
2007: 5.2%
2006: 4.8%
2005: 4.6%
2004: 5.2%
2003: 5.6%
2002: 5%
2001: 4.4%
2000: 3.7%

A Wall Street-based nonprofit initiative funded and chaired by billionaire and former New York City Mayor Michael Bloomberg and former Clinton administration Treasurer Hank Paulson released a report Tuesday that says Arkansas’ soybean production could decline by 25% due to warmer temperatures caused by climate change.

The so-called Risky Business Project, billed as a non-partisan initiative chaired by Bloomberg, Paulson and Tom Steyer, released similar reports today across the country citing research on what a warmer planet would mean for Arkansas, the Southeast and other regions of the U.S.

The report, called “Come Heat and High Water: Climate Risk in the Southeastern U.S. Texas,” finds that, across the Southeast, the average number of days above 95 degrees Fahrenheit is likely to increase from an average 9 days per year to up 62 days per year by mid-century. By the end of this century, this number will likely increase to 124 days per year, the report says.

“The Risky Business Southeast report drives home the reality that we must deal with climate risk before it’s too late,” said Paulson, co-chair of the climate change project.

“From more extreme heat that threatens labor productivity and crop yields in the agriculture sector to storm surges that could imperil infrastructure and manufacturing, which is driving new growth in the region, we face mounting risk to the economy and our way of life. Business and government leaders must face the fact that our current course is unsustainable.”

According to the report, commodity crops are likely to face severe yield declines with adaptation by farmers. Over the next 5 to 25 years, the Southeast will likely see losses in corn yields of up to 21%, and in soybean yields of up to 14%. By the end of the century, these crops will take an even bigger hit: corn yields will likely decrease by up to 86%, and soybean yields will likely decrease by up to 76%.

States that depend heavily on agriculture, like Arkansas, stand to be particularly affected, the report said. Climate change risks that stand to impact Arkansas include the following.
• Absent significant agricultural adaptation, corn yields in Arkansas will likely decrease by up to 33% by 2020-2039 and by up to 59% in the following 20 years–sharper likely declines in corn yields than any other state.

• Arkansas is one of the nation’s largest soybean producers, with a 2012 crop covering nearly a tenth of the state’s land area and worth nearly $1.8 billion. But that output will likely drop by up to 20% in the next 5-25 years.

• By mid-century century, heat-related labor productivity declines across all sectors in Arkansas will likely cost the state economy up to $800 million each year, with a 1-in-20 chance that the cost to the economy could exceed $1.2 billion.

• By mid-century, Arkansas’ additional heat-related deaths due to climate change are likely to kill as many as 550 each year, exceeding the number of auto fatalities that the state suffered in 2013.

The report follows a campaign pledge by Hillary Clinton on Sunday to set two “bold national goals” to combat climate change. The Democratic presidential candidate promised that if she’s elected president, she would set the U.S. on a path toward producing enough clean renewable energy to power every home in America within a decade. She also pledged to bring the total number of solar panels installed nationwide to more than half a billion before the end of her first term, her campaign said.

Also on Monday, the White House hosted host 13 of the largest companies from across the American economy to take a stand with the Obama Administration to launch the American Business Act on Climate Pledge. The companies, which included Apple, Google, Coca-Cola, Apple and Walmart, represented more than $1.3 trillion in revenue in 2014 and a combined market capitalization of at least $2.5 trillion.

Despite the report, the debate on climate change in Arkansas still has some who believe many of the claims are overblown.

In a recent interview with Talk Business & Politics, Arkansas Public Service Chairman Ted Thomas expressed very strong views about the climate change debate and the EPA’s Clean Power Plan mandate to cut carbon emissions. He said while there is some evidence of human contribution to increasing temperatures, “I also believe this is the wrong question to ask.

“The real question is whether humans can lower the temperature and if so, what is the cost?” Thomas said. “The first question that needs to be answered is what must be done to lower the temperature of the earth by one degree, and at what price.

“Until that question can be answered, the science is incomplete,” he said of the ongoing climate change debate.

Business and tourism travel through Arkansas’ three largest commercial airports slowed in June, with only one of the three airports posting a positive enplanement number for the month. However, two of the three airports had enplanement gains for the first half of the year.

Enplanements at the Northwest Arkansas Regional Airport (XNA) totaled 314,684 for the first six months of 2015, up 1.85% compared to the same period in 2014. XNA ended 2014 with 640,537 enplanements, up 10.15% over 2013, and more than the record of 598,886 enplanements in 2007. The 2014 gain also marked the third consecutive year of increased traffic at the airport.

XNA had 63,295 enplanements in June, down 2.66% compared to June 2014. It’s the second consecutive month of declines for the airport.

The airport is served by five airlines that provide connections to 10 U.S. cities. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

Enplanements at the Fort Smith Regional Airport total 44,852 for the first six months of 2015, up just 0.27% compared to the 44,730 enplanement during the same period in 2014. Enplanements at Fort Smith totaled 92,869 in 2014, up 9.87% compared to 2013.

June enplanements at Fort Smith totaled 8,787, up 4.69% from June 2014. The airport offers flights to Atlanta and Dallas-Fort Worth through Delta and American Airlines.

The Bill & Hillary Clinton National Airport in Little Rock posted enplanements of 474,675 for the first six months of 2015, down 7.83% compared to the same period in 2015. The airport was the only one of Arkansas’ largest commercial airports to not post an enplanement increase in 2014. Enplanements in 2014 totaled 1.038 million, down 4.32% compared to 2013.

June enplanements in Little Rock totaled 94,844, down 4.32% compared to June 2014.

NATIONAL TRAFFIC, SUMMER TRAVEL ESTIMATE
Airlines for America, the trade association for most of the major airlines, predicts summer airline travel (June 1 - Aug. 31) will increase 4.6% in the U.S. compared to actual traffic in the 2014 period. According to the trade group, an estimated 2.4 million people a day will fly on U.S. carriers during the summer period. The group predicted Spring travel would rise to its highest mark in seven years, reaching 132.2 million passengers during June and April.

According to the U.S. Bureau of Economic Analysis, passenger air transportation activity in the U.S. during the first quarter was up 3.9% after declining 2.2% in the fourth quarter of 2014. Overall, real spending (economic output) on travel and tourism slowed in the first quarter of 2015 to a 2% pace of growth after posting a revised 4.9% rate in the fourth quarter of 2014

ENPLANEMENT HISTORY (Fort Smith Regional Airport, since 2000)
2014: 92,869
2013: 84,520
2012: 86,653
2011: 86,234
2010: 86,129
2009: 78,432
2008: 87,030
2007: 99,127
2006: 94,717
2005: 102,607
2004: 92,928
2003: 90,493
2002: 87,944
2001: 95,419
2000: 104,182

ENPLANEMENT HISTORY (Northwest Arkansas Regional Airport, since 2000)
2014: 640,537
2013: 581,487
2012: 565,045
2011: 562,747
2010: 570,625
2009: 540,918
2008: 571,845
2007: 598,886
2006: 586,320
2005: 583,940
2004: 511,714
2003: 448,228
2002: 400,063
2001: 374,122
2000: 367,157