Can't Beat It With a Stick

Dinner on the beach: $50
Rental Car: $65
Being in Florida on the beach - priceless

Sent via BlackBerry by AT&T

Local Sales Tax Revenues Continue to Decline

 

From today’s Joplin Globe (emphasis is mine):

Sales tax revenue for the area in March was “pretty bad,” according to one assessment. Joplin, Jasper County and Newton County officials all reported sharp declines.

Some merchants pointed to the unusually cold and snowy weather in January, and said things have since rebounded.

Joplin’s sales tax payment this month from the state was down 21 percent compared with the March payment a year ago. The city received a payment of $930,975 in March, down from $1,184,561 in March 2009.

For the Joplin fiscal year, which began Nov. 1, revenue from the city’s 1-cent sales tax for the general fund has slipped nearly 7 percent, from $4,966,110 this time last year to $4,635,347 this year.

“Obviously I hoped it wouldn’t do that,” said Leslie Jones, Joplin’s finance director. “I’ve done some research, and it seems to be a statewide issue. I’ve talked to people at St. Louis and Springfield, and everyone was down a lot like we were.”

Springfield’s payment in March was about 17 percent lower than the amount it received last March.

The figures are for payments made in March by the Missouri Department of Revenue to taxing entities, and reflect spending that would have taken place at stores two to three months earlier.

Jones said the drop also could be related to rising unemployment rates.

Joplin’s sales tax reports indicate that collections took a 12 percent drop in December, and posted slight gains of about 2 percent or less in November, January and February.

Jones said City Manager Mark Rohr has assigned her to work on ideas for cutting expenses if it becomes necessary.

“We have been saving up money so we can weather this for a while,” she said. “You have to make adjustments before it’s too late. We started that last year by not buying all the capital items that were budgeted unless they would cost us more money if we wait, and cutting travel.

“I think the city manager is waiting on the next report,” before ordering further cuts, Jones said.

“We can weather this right now because we have been wise in the past,” she said. “There are still things we can do. If it gets worse, we’ll have to make adjustments of some kind.”

January weather

Donnie Pearce, store manager at Hobby Lobby in Joplin, predicted a rebound when the April and May checks come in for Joplin.

“February is the best (month) I’ve had since I’ve been down here. March is the same way,” he said. Pearce has been with the store in Joplin for four years.

January sales were pushed down by cold, wet weather more than anything else, Pearce said.

“In January, I was down $80,000 that first week, and it was all because of the weather,” he said. “Mine is completely weather related.”

Jasper County Auditor Richard Webster described the county’s sales tax payment this month as “pretty bad.”

In January, the county’s payment was up by $5,929 from the figure for the same month a year ago, and in February, it was up by $6,171.

“So in the first two months of 2010, we were up $12,100, which overall was a 1.25 percent increase,” he said. “In March, we took a nose dive. We were down $100,000 from a year ago,” making the net change a loss of about $88,000 compared with the total for the first quarter of 2009.

In the first quarter of 2009, the county collected $1,517,422 in revenue from sales tax payments, compared with $1,429,370 for the same quarter this year. That is drop of about 6 percent.

Webster said he also is waiting to see if a trend develops.

“I’m watching the cash flow each month in this office,” he said. “We have a situation where we have a (county) budget in place, and they (the commissioners) have approved that budget. Law does not allow us to lower this budget right now.

“We are operating like we do every year. We’re just hoping we have enough.”

Webster said the downturn could be a post-holiday sales slump or the result of the collection procedure, which takes two to three months to wind from retailer to the state to the local entities.

“The only thing that is troublesome is that I’ve been here (as auditor) seven years, and I’ve never seen a drop that large,” he said.

Newton County officials reported a drop in their sales tax check from the state as well, from $555,000 in March 2009 to $464,000 this month, a decline of $91,000 or more than 16 percent.

Businesses react

Vivian Campbell, owner of Computer and Laptop Express, 2120 S. Main St. in Joplin, wasn’t surprised by the downturn.

“I can agree with that,” she said. “I bet we had a 60 percent drop in sales and service after the holidays.

“I think people are scared, too. They have a little money, but they don’t want to go out and spend it.”

Dewayne Patton, general manager of Northpark Mall, reported that sales in January were “flat,” but February and March numbers were up. The mall does not release specific store numbers.

“It may have to do as much with the weather as anything else,” he said. “For myself, I’ll be perfectly honest, I was getting out less simply because it was so miserable to get out.”

He said he recently surveyed some mall tenants who reported increased sales in recent weeks.

“Everyone was reporting trending up,” Patton said. “This has been a really great month.”

Joplin’s numbers

In addition to the 1-cent sales tax for the general fund, Joplin’s sales tax payments in March were as follows:

n Half-cent public safety tax: $484,500, down from $592,308 a year ago.

n Half-cent transportation tax: $465,487, down from $592,281.

n Quarter-cent parks and stormwater tax: $232,471, down from $296,018.

n Three-eighths-cent capital improvements tax: $348,573, down from $444,099.

Personal Income Drops

From today’s SBJ (emphasis is mine):

Personal income dropped by 1.7 percent nationwide in 2009, according to information released last week by the U.S. Bureau of Economic Analysis.

National personal income totaled $12 trillion in 2009, down from $12.2 trillion in 2008. In Missouri, personal income dropped by 1.4 percent, to $213.6 billion, mirroring both the national trend and the 1.9 percent drop in the Plains region as a whole. The Plains region comprises Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota.

Only seven of the 51 states, including the District of Columbia, posted personal income gains last year. West Virginia led the pack at 2.1 percent, followed by 1.1 percent in Washington, D.C., 1 percent in Maryland, 0.9 percent growth in Maine, 0.7 percent in Virginia, and 0.4 percent growth in both Kentucky and Hawaii.

Gains in Maryland and Virginia were attributed to increased earnings from commuters who work in Washington, D.C.; increases in Maine, Kentucky and Hawaii were related to increases in transfer receipts, which offset declines in property income and net earnings, according to a BEA news release.

The largest losses were in Nevada, Wyoming, South Dakota, New York and Michigan, which all posted declines of at least 3 percent. Those losses are explained, respectively, by drops in accommodations; mining and construction; farming; finance; and durable goods manufacturing.

All regions of the country posted losses in personal income, though the drop in the Southeast was the smallest, at 1.1 percent.

Joplin’s Hotel Traffic Down

Today’s Joplin Globe reports that hotel traffic in Joplin has dropped significantly since last year.  That drop is now resulting in revenue revisions back to 2006 levels.  Industry reports show that Joplin’s visitor count dropped by over 50,000 from 2008 to 2009.  That spells a loss exceeding $100,000 to Joplin’s budget and over $5 million in direct and indirect spending.

That loss of traffic would also impact county budgets as many of Joplin’s hotels sit in Newton country.

The complete article can be found here.

Neosho City Council Candidates Respond to Globe

If you haven’t read it yet, today’s Joplin Globe has comments from each of the four candidates running for Neosho’s two open city council seats.  Incumbents Jeff Werneke and Warren Langland are in a fight against long-time city employee Tom Workman and former Neosho PD officer Chris Wright.  The full article is here.

Crowder Grant Count Keeps Growing

Kudos again for Crowder College for being awarded a grant through Missouri’s “Training for Tomorrow” initiative.  The $758K  award will be used to expand Crowder’s water and wastewater programs along with its health-care related fields.  The grant will be applied over the next two years.

In February, Crowder received over $3.5 million in stimulus funds from the Dept. of Labor.  That money is going toward expanding existing programs for nursing, EMT’s, counselors and pharmacy techs.

The full article is here.

Eminent Domain Changes Not Imminent

From today’s Joplin Globe:

JEFFERSON CITY, Mo. (AP) — Missouri constitutional amendments restricting eminent domain are unlikely to be submitted for this November’s ballot because backers say lawsuits challenging the measures took too long to resolve.

“We have not officially thrown in the towel, but we have effectively thrown it in,” said Ron Calzone, chairman of Missouri Citizens for Property Rights.

Calzone said it is frustrating not to get the measures on the ballot, because he believes most Missourians would support reining in eminent domain. He said he plans to submit initiatives later this year for the 2012 election.

The proposed constitutional amendments were intended to prevent a person’s home, business or other property from being condemned for private development, such as a shopping center. They also would have taken away cities’ and counties’ ability to condemn property for redevelopment because of blight and instead create a court process to declare property a nuisance, clean it up and place a lien on it. Eminent domain still could have been used for roads and other public infrastructure.

Missouri Citizens for Property Rights submitted proposed ballot measures immediately after the November 2008 election. Legal challenges tied it up in the courts until March 19, when the state Supreme Court declined to consider an appeal. Petition signatures must be submitted to the secretary of state by May 2. Supporters would need about 150,000 signatures.

The lead plaintiff in the case was the Municipal League, which argued that ballot summaries for the proposals were unfair. A state trial court rewrote part of the summary for one of the ballot measures, and a state appeals court made additional changes in January.

Until then, it may be possible for municipalities to intervene by leveraging funding or by denying annexations or proper zoning.

Phone Doctors - Great Place

If you are like many people with cell phones, you'll eventually have something break or not work quite right on your phone. I've had my own share of issues and ran across this place today while visiting Tulsa. If repairs are in your future, give these guys a call. 71st - just east of Memorial. They did a great job for me - quick and very reasonable on price.

Them Is Fightin' Words

From today's KC Star;

Accusations of vote-selling last night nearly led to a physical altercation this morning in the Missouri House.

North Kansas City Democrat Trent Skaggs was at the center of the scuffle.

On Wednesday night, lawmakers debated a teacher-pay bill that included a provision giving state money to special-needs students wanting to switch schools. The provision was eventually stripped from the bill, and some Republican leaders declared the bill dead this morning.

Amidst the debate over the bill, Skaggs took the floor and essentially accused some House members of selling their votes on the special-needs funding issue.

"Skaggs made comments about people selling their votes, about being bought off for $30,000," said Rep. Ryan Silvey, a Kansas City Republican. "Selling your vote is an indictable offense."

The accusations – which avoided naming names – did not sit well with Republicans.

In retaliation, Majority Floor Leader Steven Tilley, of Perryville, delivered a pointed – and likewise unspecific – response this morning.

"If you have information about another member who's done something that's unethical, do not make accusations that are baseless in nature," Tilley said when the House reconvened this morning.

From there, things escalated quickly.

Within moments, Tilley and Skaggs were toe-to-toe, jawing at one another like a Lou Piniella and Mark Wegner . After a moment, a Democratic staffer stepped in and separated them just long enough for Rep. Brian Nieves, a Washington Republican and proponent of the special-needs funding, to step in.

Words could not be made out from the press gallery, but the body language was unmistakable – especially when Skaggs reached forward and patted Nieves on the cheek. Nieves visibly lunged, but was pulled back by a staffer and Rep. Michael Parson, a Bolivar Republican (and former sheriff).

Democrats and Republicans then retreated to their respective corners and Skaggs and Nieves briefly exited the chambers.

Afterward, Skaggs reiterated the points he made Wednesday and downplayed the near-altercation that resulted from them.

"There has been a pattern of corruption with this bill," Skaggs said.

Lawmakers have left the legislature to go to work for organizations favoring the bill, he said. Supporters have set up dozens of political committees to circumvent contribution limits and disguise the source of donations. Supporters have even plied lawmakers with checks in exchange for votes.

The outburst was inappropriate for the House Floor, said Silvey, who was among the Republicans who helped cool down Nieves and Tilley.

"If you have evidence, you make a complaint to the ethics committee. You don't stand on the floor and make accusations without proof," he said. "There's no question this was out of line."

Skaggs defended his comments.

"We do this all the time," he said. "We talk about the process and call out contributions. This is not new territory."
Sent via BlackBerry by AT&T

MO House Passes Trimmer Budget – Relies on Stimulus For Help

Late today, members of the State House passed a $23+ million budget for the upcoming fiscal year.  The budget is more than $200 million less than the budget originally proposed by Gov. Nixon.  However, it is $300 million more than Gov. Nixon says will be needed to balance the budget in the face of declining sales tax revenues.

House Republicans plan to make up the $300 million shortfall with federal stimulus funds.  Those one-time funds offer only a short-term solution to the budgetary crisis.

Seneca Fire Protection District Feeling the Heat from Resignations

From KSN:

Newton County, MO - Several volunteer firefighters, including the chief, make the decision to leave their station for good.

According to Lieutenant Kyle Hinz, six volunteers, including their fire chief, Steffen Wiest, gave up their positions with the Seneca Area Fire Protection District earlier this week.

Wiest says he often didn't have the full support of the fire district's board of directors, leading to his decision to quit.

The five other volunteer firefighter's who also quit had a similar complaint.  Seneca District is now left with twelve volunteers.

To help the district out while they're lacking in staff, the Seneca City Fire Department is offering mutual aide if a fire breaks out within the district.

Tonight, the district's board of directors will meet to discuss reorganization.

Lieutenant Hinz says his department will continue taking care of their district and respond to calls as quickly as possible.

Local Unemployment Up in January

From today’s JTB (emphasis is mine):

The January unemployment rate increased in Joplin and the tri-state area and statewide, increasing to approach the national level.

Joplin's unemployment rate increased to 8.3 percent in January, up from 8 percent in December, according to information released Friday by the U.S. Bureau of Labor Statistics, while the state rate rose to 9.9 percent from 9.3 percent.

The Joplin and state rates are near the national seasonally adjusted unemployment rate of 9.7 percent.

In other Missouri metro areas, the Springfield unemployment rate rose to 9 percent in January, up from 8.5 percent in December. Kansas City's rate increased to 9.1 percent from 8.5 percent in December, and the jobless rate in St. Louis hit 10.7 percent, up from 10 percent a month earlier.

Nationally, unemployment rates increased in January for 363 of the 372 metropolitan areas, with 187 areas reporting jobless rates of at least 10 percent, the BLS reported. The three highest rates were in California - El Centro, at 27.3 percent; Merced, at 21.7 percent; and Yuba City, at 20.8 percent. The lowest rates are in Fargo and Bismarck, N.D., which both recorded unemployment rates of 4.8 percent.

Springfield Working to Sell More Properties

Today’s SBJ outlines the city of Springfield’s ongoing bid to sell property to raise additional revenue.  Proceeds from the sale go back to the fund used to purchase the properties.  Any profits go into the city’s Police-Fire Pension Fund.

The full article is here.

CNN’s Starting To Have Some Questions

CNN seems to finally be fed up as well.  Wake Up Washington!

New Home Sales Drop Again in February

The US Dept of Housing and Urban Development released new home sales data this morning.  It is below:

Sales of new single-family houses in February 2010 were at a seasonally adjusted annual rate of 308,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.  This is 2.2 percent (±15.3%)* below the revised January rate of 315,000 and is 13.0 percent (±12.2%) below the February 2009 estimate of 354,000.

The median sales price of new houses sold in February 2010 was $220,500; the average sales price was $282,600. The seasonally adjusted estimate of new houses for sale at the end of February was 236,000. This represents a supply of 9.2 months at the current sales rate.

The complete report is here.

Government Ability to Predict Costs is Unpredictable

I ran across this story last week.  At the time, I didn’t pay much attention…just another blah blah same stuff, different day type of story.  But after the healthcare debacle on Sunday, I’m afraid it’s an example of what’s to come.  You could write the same story about air traffic control, border fences, etc.  If the gov’t does it, you can be assured it will always cost more and take longer.

Have you ever seen a story with this headline “Gov’t Reports Overhaul Ahead of Schedule and Under Budget” – you don’t need to answer that.

WASHINGTON (Reuters) – The estimated total cost of Lockheed Martin Corp's F-35 fighter jets being bought by the Pentagon may be nearly twice as high as originally forecast, the Defense Department said Friday.

The bill for 2,443 F-35s is currently estimated at $278 billion to $329 billion, up from the $197 billion projected when the development program began in October 2001, taking into account inflation, a one-page Pentagon F-35 "unit cost" report said.

The percentage hike per aircraft is even higher than for the fleet overall because the Pentagon now plans to buy 409 fewer F-35s than the 2,852 it originally planned.

The single-seat, single-engine F-35 is built to evade detection by radar. Also known as the Joint Strike Fighter, it is the Pentagon's costliest arms procurement program.

Three highly common models are being built for the U.S. Air Force, Marine Corps and Navy as well as eight international partners and other prospective foreign buyers.

The eight U.S. co-development partners are Britain, Italy, the Netherlands, Turkey, Canada, Australia, Denmark and Norway.

Defense Secretary Robert Gates fired the Pentagon's F-35 program manager in February. He also added 13 months and $2.8 billion to the development phase plus four more test aircraft.

The Government Accountability Office, in a report to Congress Friday, said the latest Pentagon steps should "improve outcomes and provide more realistic cost and schedule estimates."

But further cost growth and schedule extensions are likely, the Congress's non-partisan audit and investigative arm said.

Lockheed Martin, the Pentagon's No. 1 supplier by sales, said it had no insight into how the Pentagon established its estimate averaging up to $112 million per F-35. That figure was up from a baseline projection of $59 million in real, inflation-adjusted terms.

"We expect the average unit cost of the F-35 to be far below that number," Christian Geisel, a company spokesman said, replying in an email.

Carthage chamber names new director

From today’s Joplin Globe:

Sabrina Drackert has been named president and economic development director of the Carthage Chamber of Commerce, it was announced today.

A 1998 graduate of Carthage High School, she previously worked as the marketing manager for the economic development department for the Springfield Area Chamber of Commerce. Before that, Drackert worked as business outreach coordinator for the Platte County Economic Development Council in Kansas City.

Existing Home Sales Down Again in February

From the National Association of Realtors® (emphasis is mine):

Existing-home sales declined slightly in February, with modest gains in the Northeast and Midwest offset by softer sales in the South and West, according to the National Association of Realtors®.

Existing-home sales ¹, which are finalized transactions that include single-family, townhomes, condominiums and co-ops, slipped 0.6 percent nationally to a seasonally adjusted annual rate of 5.02 million units in February from 5.05 million in January, but are 7.0 percent higher than the 4.69 million-unit pace in February 2009.

The full article is here.

Carthage Schools Prepare for Cuts

As is the story with all public schools across the state, Carthage is already working to minimize the impact of budget cuts due to the State’s revenue woes.  According to Supt. Blaine Henningsen, those cuts will equate to just over $1 million in the next two years.

The full article is here.

Springfield Adds Destinations

From today’s SBJ (emphasis is mine):

Friday brought a double dose of good news from Springfield-Branson National Airport.

Delta Air Lines announced that it is restoring service to Detroit and Minneapolis on June 10. The airline had cut those services in 2009 in the wake of its 2008 merger with Northwest Airlines.

According to the airport's e-newsletter sent Friday, the Minneapolis service likely will be seasonal, while the plans are to make the Detroit service year-round. Delta is also on the verge of adding several Western routes out of Detroit, including Honolulu, Sacramento and Phoenix, giving Springfield travelers more connection options to the West.

"Our airport lost service to those cities during the depths of the recession," the e-newsletter said. "The fact that they're returning is a testament to the tremendous growth our airport has seen over the past year."

That growth, at least in passenger numbers, continued in February. The airline accommodated 47,167 passengers in February, up 3 percent compared to February 2009. For the year, the airport has enplaned and deplaned 100,575 passengers, up 5 percent compared to the first two months of last year.

Those numbers continue the trend from 2009, when the airport posted the only growth among regional and national airports in the Midwest. Passenger numbers in 2009 were up 4 percent in Springfield, while numbers dropped in Kansas City, St. Louis, Tulsa, Northwest Arkansas and Chicago.

Health Care Vote – Your Representation

If you care, here’s how the Missouri delegation cast their votes on health care.

MISSOURI

Democrats -- Carnahan, Y; Clay, Y; Cleaver, Y; Skelton, N.

Republicans -- Akin, N; Blunt, N; Emerson, N; Graves, N; Luetkemeyer, N.

Neosho Artists Hope to Create New Work of Art

From today’s Joplin Globe:

NEOSHO, Mo. – Residents could soon have more options to participate in the arts thanks to the recently launched Arts Council.

Members of the council are dedicated to “improving our community through growing appreciation and participation in the arts,” Chair John Mills said. “Of course that’s all arts, whether it’s performing or visual or graphic arts.”

Janet Penn, chair of the council’s resource committee, said she is not an artist, but she supports and appreciates all forms of art.

“I think it’s part of being a well-rounded person,” she said. “There’s a demand for that, and I think to be able to do the wide spectrum of all ages in it is real important.”

As resource committee chair, Penn works to identify venues that could be used for art shows and maintains a yearly calendar of events.

“Our ultimate goal is to have something on a minimum of a quarterly basis and hopefully have something on a monthly basis,” Penn said. “There’s a lot of different arts out there, and we want to make sure we tap into all of them and do it to where it’s on a regular basis.”

Penn pointed to Joplin’s Third Thursday art walk as an example of the kind of regularity she hopes the council can establish in Neosho.

Penn said the council also aims to use historic downtown Neosho as much as possible, taking advantage of empty storefronts and buildings such as the Civic Center as places that could host art shows.

“We’ve got a lot of resources in the downtown area so I think it’ll be a good fit,” she said. “Our downtown area is just very picturesque anyway.”

Next up for the council is an art festival called Art Squared. Local artists will be invited to display and sell their artwork around the Neosho Square and in available storefronts.

High school and college students will compete for a $200 scholarship to design a logo to put on a poster for the festival, Mills said.

No date has been set for Art Squared yet, but Mills said he anticipates it to be held in April or May.

The council also has ideas in motion – coming up with about 50 ideas at a recent brainstorming session – that will carry them into the fall.

Council members have talked about inviting the Silver Follies to the municipal auditorium, which “hopefully will spur interest in developing a community theater of some sort,” Mills said.

They’ve also discussed hosting “a big-band gala event” with a dinner and dance in the fall, putting together a community-wide choral performance involving local churches and participating in Neosho’s Fall Festival, which is held the first weekend in October.

“There are an awful lot of things we’d like to see happen,” Mills said.

The council is currently accepting donations to fund some of the activities members want to see come to fruition, Mills said. He said the council has also been promised grant money from the Missouri Association of Community Arts Agencies, which would have to be matched with contributions, he said.

Council members also are developing other fundraising ideas. The fall dinner-and-dance gala would be a fundraising event, Mills said. He also would like the council to host a gallery that could feature permanent or rotating art displays and a gift shop.

Mills said the council, which launched in November, boasts about 40 interested individuals and 10 to 20 people who typically attend each meeting.

The group just received a letter from the state, designating it as a not-for-profit corporation, Mills said. Last week, members worked to finalize their bylaws and establish their board of directors.

If you go

The arts council meets at 3:30 p.m. on the second Thursday of each month at the Hale McGinty Business Development Center, 216 W. Spring St., in Neosho.

Spelling Bee 3-10

After dinner last night, I explored the dessert list on the board.  Anyone catch the error(s)?  It’s ‘berry’ obvious.

Can You Eat A “Potatoe” In “Sycasuse”?

After showing his spelling abilities today, I wonder if President Obama will get as much publicity spelling Syracuse incorrectly as former VP Quayle got for Potato.

The difference?  Quayle had the wrong spelling given to him on a card – President Obama had it correct in front of him and wrote it wrong anyway. 

Neither in my mind indicates anything about either person, but since Quayle got soooooo much grief on it, turn about should be fair play.

We will see.

Globe Takes Aim At Neosho’s Council Vote

Below is an article from today’s Joplin Globe.  It is a very interesting read.

My views of the issue were posted on my blog yesterday.

— By Derek Spellman
dspellman@joplinglobe.com

NEOSHO, Mo. — With the town potentially facing insolvency, the Neosho City Council narrowly voted to borrow an additional $1.3 million to replenish the city’s general fund.

By a 3-2 vote Tuesday night, the council tentatively approved a measure enabling the city to issue $1.3 million in certificates of participation to reimburse the general fund for previous cost overruns and other costs surrounding the expansion and renovation of The Civic, the city auditorium. The general fund finances all city operations, except for the golf course, and water and sewer service.

The vote

Mayor Jeff Werneke, Mayor Pro Tem Richard Davidson and Councilman Warren Langland voted in favor of the proposal. Matt Persinger and Heather Bowers opposed it.

“I have my own personal reasons,” Persinger said of his vote after the meeting. He declined to share those reasons or comment further to the Globe.

The city had issued $2.8 million in bonds for the actual work at the auditorium. Total costs exceeded $4 million. That sum included costs beyond the actual work on the building, including engineering designs drawn up years earlier as well as the city’s acquisition of the former First Baptist Church building next to the auditorium. The city purchased that property for about $290,000.

The work on The Civic was one of a number of projects in recent years that former City Manager Jan Blase said had either incurred overruns, exceeded their original cost estimates or posed unforeseen costs, putting a strain on the city’s coffers. Critics have contended that the projects showed a pattern of overspending and lax oversight.

Bowers said she voted against Tuesday’s measure as a criticism of those spending practices.  “I’m not going to condone what they did on their spending,” she said.  “I don’t think they have explored all options,” she said when asked what else the cash-strapped city should do. When pressed, she conceded that she could not suggest any other specific options for the city to consider.

Werneke said that barring the infusion of additional money, the city would be unable to meet two upcoming debt service payments totaling almost $850,000. The first of those payments is due next month. The next payment is due in May, leaving the city little time and no other options.

Even with swift and drastic cuts, those reductions would not generate enough cash in time to make the debt payments, the mayor said Wednesday in a phone interview.

“In the short term, it’s something that’s got to happen,” Werneke said of the borrowing.

A special committee is forming that is to make recommendations about the city’s long-term financial outlook, including whether the city should resurrect a property tax.

‘Gravity’

As for the narrowness of Tuesday’s council vote, the mayor said: “It concerns me that maybe the rest of the council doesn’t understand the gravity of the situation.”

The council is to take up the measure for second and third reading next week in a special meeting. The council actually passed the measure on first reading March 2, but City Attorney Steve Hays said incorrect language in the legal description meant the council had to take it up again for a first reading Tuesday.

Certificates of participation are one of several forms of debt that cities can take on with only a vote of the council. The certificates would be repaid over the next 10 years by revenue from a quarter-cent sales tax previously approved by voters to finance capital and operational costs at The Civic and the senior center.

The discussion of certificates Tuesday night was not without controversy. During the debate about whether the city should issue certificates to cover The Civic’s additional costs, Bowers accused Werneke of buying certificates issued years earlier in connection with a spec building constructed by the city.

“That is absolutely not true,” Werneke told her Tuesday night.

In a phone interview Wednesday, Bowers acknowledged that she had no direct evidence that Werneke purchased any certificates. She said she based her comment on what she had heard from others and from online postings. She said she should have framed the issue as a question, not a statement.

“I see that now,” she said Wednesday.

Werneke said even a baseless accusation causes harm.  “How many people remember the retraction?” he said Wednesday.

MoDOT (Bid) Traffic Starts Flowing Again

From today’s SBJ:

The Missouri Department of Transportation sent a special notice March 17 to contractors saying that Congress passed an extension of the Surface Transportation Act, or SAFETEA-LU, that will bring federal transportation funding levels back to $42 billion through Dec. 31, 2010.

The move corrects the national shortfall of $12 billion — or $243 million to Missouri — in federal funding for the reminder of the year, allowing MoDOT to proceed with bid openings for projects that had been postponed due to funding uncertainties.

The new schedule for these projects is as follows:
March 19: Bids go out (three weeks) for April 9 bid opening;
March 25: Bids go out (five weeks) for April 30 bid opening;
April 8: Bids go out (five weeks) for May 14 bid opening;
April 22: Bids go out (five weeks) for May 28 bid opening.

Plans for projects originally scheduled for the Feb. 26 letting were posted and will not be changed unless an addendum is issued.

Supt. Hosts “Coffee with the Sup”

Today, I attended a small gathering hosted by Neosho R-5 Supt. Dr. Richard Page.  This was the second of what should be many meetings to better enlighten the community about what’s going on in our school system.

I encourage everyone to attend.  The meetings are held on the third Thursday of each month.  Seating is limited.  (The coffee and muffins along are worth the trip.)  The link to get more information is here.

Thanks Dr. Page for all you do for our kids.

CPI Remains Flat in February

From today’s Economic new release (US DOL) – emphasis is mine:

Consumer Price Index - February 2010

On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in February, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the index increased 2.1 percent before seasonal adjustment.

The unchanged all items index was the result of a decline in the energy index being offset by slight increases in the indexes for food and for all items less food and energy. Within the latter group, declines in the indexes for apparel and household furnishings and operations were more than offset by continuing increases in the indexes for medical care and used cars and trucks. The 12-month increase in the index for all items less food and energy now stands at 1.3 percent, the lowest since February 2004.

The food index also edged up in February. The food at home index rose slightly, the net result of the major grocery store food group indexes posting a mix of modest increases and decreases. In contrast, the energy index declined in February. Decreases in the indexes for gasoline, electricity, and fuel oil more than offset an increase in the index for natural gas.

Jobless Claims Virtually Unchanged

Numbers from today’s press release from the Dept. of Labor:

In the week ending March 13, the advance figure for seasonally adjusted initial claims was 457,000, a decrease of 5,000 from the previous week's unrevised figure of 462,000. The 4-week moving average was 471,250, a decrease of 4,250 from the previous week's unrevised average of 475,500.

The largest increases in initial claims for the week ending March 6 were:

• North Carolina (+5,100)
• Illinois (+2,461)
• Oregon (+1,542)
• Ohio (+1,301)
• Alabama (+1,274)

The largest decreases were:

• New York (-10,929)
• California (-7,235)
• Connecticut (-2,082)
• Kentucky (-1,950)
• West Virginia (-827)

The entire report is here.

Missouri Lawmakers Looking Into Budget Decisions

From today’s Joplin Globe (emphasis is mine):

JEFFERSON CITY, Mo. (AP) — Missouri lawmakers who are considering whether to lay off state workers, eliminate state programs and combine state agencies to close huge budget deficits have proposed some pain for themselves by giving up their coffee and cell phones while traveling less.

Missouri Gov. Jay Nixon last week cut an additional $126 million from the state’s budget and proposed to dig even deeper by eliminating 1,000 state jobs, half the state’s primary vehicle fleet and all state scholarships for students at private colleges. The Democratic governor this year has cut more than $850 million from a $23.7 billion budget. Nixon said he expects a $500 million gap in the budget proposed for next year.

The budget troubles have lawmakers scrambling for loose change and searching for cheaper ways to operate state government.

Budget writers have proposed cutting $25,000 used by the House for brewing coffee and providing bottled water from the budget taking effect July 1. House members also are planning to forego state-funded travel outside Missouri and will no longer get reimbursed for using their personal cell phones to conduct state business.

House Administration and Accounts Committee Chairman Kenny Jones said Tuesday that cell phone plans are relatively cheap and that most lawmakers are likely to buy their own cell phone no matter what, so it did not seem fair for the state to continue picking up part of the cost.

“I think it lets people know that we are cognizant of the downturn in the economy,” said Jones, R-California.

He added: “We know the situation is really grim at this point.”

The House also is cutting back on lawmakers’ official out-of-state travel. Jones said the GOP is not allowing its members to bill the state for their out-of-state travel. House Democrats are urging their members to be judicious and particularly mindful of Missouri’s budget troubles before taking trips.

Rep. J.C. Kuessner, D-Eminence, said he is not aware of any Democrats who have filed travel bills. He said that with state budget cuts causing real effects for Missourians, it is particularly important for lawmakers to run their offices frugally.

“A common cry out there is, ‘If you’re asking us to live on less, what are you all doing? What pain are you feeling?”’ said Kuessner, a House Democratic leader.

The House estimates it will save $55,000 by not reimbursing cell phones, an unknown amount by restricting travel and $242,000 by scrapping its Legislative Budget Office.

Crowder Receives Grant Funding

Great news for Crowder College. 

From today’s JTBJ:

Crowder College, Neosho, recently received a $3.58 million Community Based Jobs Training grant from the Missouri Department of Labor. According to Pam Hudson, Crowder's director of development and grants, this is the single-largest grant Crowder has ever received. Only 55 CBJT grants were awarded nationwide, and only three of them were in Missouri.

The grant money will be used to support the health care sector and other high growth industries, as well as to support the college's nursing program. Specifically, the grant will support the development of an Occupational Therapy Assistant program and a Physical Therapy Assistant program, as well as help expand Pharmacy Technician, Certified Nurse Assistant and Substance Addiction/Abuse Counselor programs to the other Crowder campuses throughout the region.

The proposal was submitted in October 2009. The three-year grant began March 1, 2010, and will end in 2013.

Cindy Branscum, project director for the CBJT grant, said administrators and faculty have already started meeting to begin the initial implementation plan, and that an organizational chart is being designed.

Roundabout Gets Lighting

Empire crews are finishing up lighting work on the roundabout.
Sent via BlackBerry by AT&T

3-2 Vote on Borrowing Is Concerning

Last night, the city council narrowly approved on 1st reading what ultimately is an authorization to borrow $1.3 million.  That $1.3 million is the only thing available that will allow the city to meet its short-term debt obligations coming due in April and May.  No amount of cuts can generate that amount of cash in such a short amount of time.

While I’m not proud of the situation we’re in, I’m also not onboard with any option other than honoring our debt and starting to work through the debt load we have. 

To clarify, this money is not being used to ‘pay’ for the cost overruns on the Civic.  Those payments were made from the general fund over a year ago.  This money is to pay our current bills and allow the city to continue to function.

If you’ve got questions, please ask.  But know that without this cash infusion, the city will default on debt obligations starting as early as next month.

Kansas KO’s K-2

From KMIZ:

TOPEKA, Kan. (AP) - It will soon be illegal in Kansas to possess or sell two chemicals used to turn herbs into synthetic marijuana.

Gov. Mark Parkinson signed a bill Wednesday outlawing the chemicals that are key ingredients in altered herbs that are sometimes known as "K2" or "Spice." The new law takes effect March 18.

The measure also outlaws two other chemicals used for a new form of the illegal, euphoria-inducing drug Ecstasy.

The chemicals used in "K2" or "Spice" are sprayed or sprinkled as a powder on herbs, so they can be smoked and produce a pot-like high.

Law enforcement officials in northeast Kansas have said they began seeing people using the synthetic marijuana last summer.

Missouri legislators also are considering a ban.

State House Says No To Gov’t House Calls

From KMIZ (emphasis is mine):

JEFFERSON CITY, Mo. (AP) - Missouri House members have approved a state constitutional amendment that seeks to block a government mandate to buy health insurance.

The measure was approved 109-46 on Tuesday and now goes to the Senate. Republican supporters say they are trying to "draw a line in the sand" to oppose a federal health  are overhaul that would require most to get health insurance.

The proposed state constitutional amendment would ban penalties for fines from being levied against individuals and employers who opt out of insurance and pay directly for their own health care.

Medical providers could not be penalized for accepting direct payments for health care.

Some Democrats say the state is trying to block health care changes that could help many Missourians.

Producer Prices Fall in February

The Producer Price Index for Finished Goods declined 0.6 percent in February, seasonally adjusted. This decrease followed a 1.4-percent advance in January and a 0.4-percent increase in December. The index for finished goods less foods and energy inched up 0.1 percent in February.

State House Votes to Ban K-2

From KMIZ:

JEFFERSON CITY, Mo. (AP) - The Missouri House has given initial approval to a ban on a widely available chemical that mimics the effects of marijuana.

Monday's voice vote advances the bill to final House action. It would go next to the state Senate.

The measure would ban synthetic compounds that are sprayed on dried herbs and flowers to give users a marijuana-like high.

House members rejected an amendment legalizing medical marijuana in the state.

An amendment to require prescriptions for a decongestant used to make methamphetamine also was rejected.

Some Joplin Residents ‘Trash’ New Collection Approach – Council Slows to Listen

The Joplin city council has delayed plans to move to a new trash collection system following a public hearing that raised some questions.

The concerns revolve around a proposed move to trash ‘carts’ to allow the hauling service, Allied Waste, to automate the pickups and reduce overall labor costs.  Some residents were concerned about the ability of senior citizens and others to get the carts to the curb.  Others expressed concern about the volume of trash the ‘carts’ could handle.

The full article can be found here.

Mixed Numbers on Housing Starts

Building permits in February 2010 were 612,000, a decrease of 1.6% from January, but 11.3% above the February 2009 estimate. Housing starts fell 5.9% from the prior month to 575,000. This was 0.2% above the February 2009 figure.

Newsweek Article on Obesity

I ran across this today on the web.  The quote that is concerning from the article:

Significant medical conditions once thought off-limits for children:  high cholesterol, high blood pressure, type 2 diabetes

“Kans” to Tax “Cans” of Soda – Maybe

From today’s Joplin Globe (emphasis is mine):

TOPEKA, Kan. (AP) — A Kansas Senate committee is reviewing a proposal to impose a new tax on soda and other sugary drinks.

The bill before the Assessment and Taxation Committee sets the tax at a penny for every teaspoon of sugar.

The new tax would increase the cost of a 12-ounce can of soda by a dime and generate $90 million for the state during the fiscal year beginning July 1.

The committee plans to have a hearing on the measure Wednesday and is considering it as a way to help erase a budget shortfall.

The tax would apply not only to soda and to ginger ales, root beers and lemon-limes but to other “flavored” beverages with less than 10 percent real fruit or vegetable juice.

Personally, I like the tax, not as a way to boost revenue, but as a way to help cut down on the consumption of sugary drinks, especially in our younger population.  Childhoold obesity is becoming a burden on our already-stretched healthcare system.  Easy access to high-calorie food and drink is a major contributor.  Less activity is another.

Mark Your Calendars for the Neosho R-5 Teacher’s Candidate Forum

Make sure to mark your calendars for the annual school board election forum sponsored by the Neosho Community Teacher Association.  The event is scheduled for Thursday, March 25, at the Neosho High School atrium.

Candidates are:  Bruce Mahr, Chris Parks, Kevin Butler, and Mike Stauffer.

Government endorses “Great Recession” Title?

I was going through my emails on Friday to see the latest numbers on employment and productivity.  With the ease of email, I often get many more emails than I want to read, but I filter through them and pick out the important stuff.  I was surprised to find the words “Great Recession” in a Dept. of Labor email summarizing the latest unemployment numbers.  It was used in a context of “…since the Great Recession started last year, the US economy has…”. 

I’ve done some searching online and can find no official declaration of our current economic woes as the “Great Recession”.  I suppose some employee of the department took some liberties with the capitalization.  I’ll be curious to see if any of the news networks pick up on the subtleness.

18th Annual B&I Was A Busy Place

I spent a couple of hours at the 18th annual Business and Industry Review on Saturday.  It’s a perfect chance to see a number of the local industries that make up the Neosho/Newton County economy. 

If the foot traffic was any indication of how business is doing, I think the outlook is positive. 

For all of those that make it out, thank you for supporting this event.  For those that didn’t have a chance to browse the booths this year, you missed a good time.

(And Linda, thanks for the convo.)

Branson Sees Drop in Visitor Traffic

From SBJ:

The recession hit tourism in Branson in 2009, the city's Board of Aldermen learned Tuesday.

Overall visits in 2009 totaled 7.2 million, down 3.8 percent from the 7.5 million reported in 2008, according to the Branson Lakes Area Chamber of Commerce's annual visitation report, presented to the board Tuesday night. 

Spending increased among those visitors, however, the report said. Average spending per party increased by more than $80, to $961 per visit. The number of families increased by 2 percent, and the number of first-time visitors increased 7 percent. The average age of a Branson visitor dropped to 49 from 51, with visitors staying an average of 4.5 nights. 

The chamber has several ideas to increase traveler numbers in 2010, including more marketing in cities closer to Branson, to take advantage of travelers staying closer to home, and stressing new attractions in advertising.

The Branson Convention Center also presented its annual report. Total event days held roughly even, with 251 in 2009 compared to 252 in 2008, and the center accounted for 21,000 room nights last year.

Center revenues were below budget by $667,000, or 14.5 percent, with concessions exceeding the budget by $81,000. Roughly three-fifths of convention business originated in Missouri, including 27 percent from Jefferson City and 26 percent from Springfield.

The link to the article is here.

More on Missouri Budget Woes

From today’s SBJ (emphasis is mine):

The state budget is in trouble, and changes are being recommended for next fiscal year as well as the current budget.

That was the message from two separate announcements on Thursday by the state of Missouri.

Gov. Jay Nixon was in Springfield Thursday speaking during a meeting of the Springfield Business Development Corp., the economic development arm of the Springfield Area Chamber of Commerce.

Nixon said that lagging state revenues are forcing the state to cut $500 million from the budget for fiscal 2011, which begins July 1.

"Three months after we prepared next year’s budget, our economic models are becoming clearer," Nixon said in his presentation. "While our state economy is starting to tick upward, state revenue is not. And it probably won’t for some time."

To cut $500 million in spending, Nixon proposed eliminating 1,000 state jobs, selling 2,000 cars from the state fleet, and cutting three state holidays from the government calendar.

He also proposed streamlining several government departments – including combining the Department of Elementary and Secondary Education with the Department of Higher Education and consolidating the Highway Patrol and the Water Patrol – as well as re-examining some state tax credits.

"We have a real opportunity to transform our government, and to streamline its operations," Nixon said in his presentation. "Yes, that means we are going to do fewer things. But we are going to do them more efficiently and more effectively, and with greater accountability to the taxpayers."

The budget issues also affect the current fiscal year, according to a news release from State Budget Director Linda Luebbering.

Year-to-date state revenues are down 12.7 percent from last fiscal year, according to the release, and Nixon has asked the legislature to develop a new revenue estimate, with preliminary figures indicating a $126 million expenditure restriction is necessary this year. 

According to the release, the state plans to take money from the budget stabilization fund to pay state income tax refunds, because taxpayers who expect to receive money usually file their tax returns before those who expect to owe. The fund will be repaid later in the year with money from taxpayers who owe money.

State Revenue Estimates Fall Again

From KMIZ (emphasis is mine):

Thursday, March 11, 2010

Revenue estimates for the State of Missouri have once again fallen flat, and officials are worried the projected drop for the current fiscal year could be the largest in history.

According to figures released Thursday, actual revenue collections continue to fall below projections. Year-to-date revenues are down 12.7 percent, compared to last year.

State Budget Director Linda Luebbering said next year's revenue collections also are anticipated to fall, based on the "current economic situation."

Preliminary estimates show revenue could fall short by as much as $200 million.

With the latest revenue shortfall the state has had to make more mid-year cuts, something they have already done four other times.

This time they are cutting $126 million dollars to balance the budget that puts the total amount of budget reductions to more than $850 million.

Luebbering says the decline in revenue is due to both unemployment and declining sales taxes.Income taxes and sales taxes make up 90 percent of the state’s revenue, so with less people working and fewer people spending it’s having a major impact.

In these rounds of cuts the state decided to eliminate Truman day as a state holiday for workers, saving them around $1 million, Education will lose $4 million in transportation funding and the Department of Health and Senior Services will lose more than $4 million causing them to cut some programs out completely.

Luebbering says they know they cannot keep cutting so that’s why they are looking to restructure the budget for the 2011 fiscal year.

Trade Deficit Narrows Slightly In January

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total January exports of $142.7 billion and imports of $180.0 billion resulted in a goods and services deficit of $37.3 billion, down from $39.9 billion in December, revised. January exports were $0.5 billion less than December exports of $143.2 billion. January imports were $3.1 billion less than December imports of $183.1 billion.

Unemployment Numbers Higher Than Expected

Data from the US Dept. of Labor:

In the week ending March 6, the advance figure for seasonally adjusted initial claims was 462,000, a decrease of 6,000 from the previous week's revised figure of 468,000. The 4-week moving average was 475,500, an increase of 5,000 from the previous week's revised average of 470,500.

Missouri showed a reduction of 1661 layoffs from last week.  California (surprise, surprise) had the most added claims at 16,112.

Approximately 14.9 million US workers remain unemployed.

Audit Questions Missouri’s Use of Federal Monies

Apparently Neosho is not the only one being reviewed by the State Auditor.  It now appears that the state of Missouri may have used taxpayer funds (via the stimulus) in a questionable manner – at least State Auditor Susan Montee thinks so.

Here’s the article from yesterday’s Jefferson City News Tribune:

JEFFERSON CITY (AP) -- A new audit raises questions on how some Missouri agencies have used federal funds.

Missouri receives money from 22 federal agencies, with most of the funds going to six departments of state government.

The state auditor released a review Tuesday on the state's use of more than $11 billion in federal funds, including stimulus money.

One of the biggest items questioned by the audit was $1.6 million in employee salaries and benefits charged by the Department of Social Services to the vocational rehabilitation program. Auditors said there was not enough documentation.

The Social Services Department says the salaries were allowed expenses and that the agency is improving its record-keeping.

MoDOT Stops Bid Traffic…Again!

From today’s SBJ:

The Missouri Department of Transportation is canceling its bid opening, originally planned for March 26, due to concerns about federal funding levels.

This is MoDOT’s second bid cancellation in as many months, according to a news release from the agency, representing approximately $130 million in highway and bridge projects.

When MoDOT canceled its Feb. 26 bid opening, officials said future bid openings were contingent on congressional action to fix highway and bridge funding. Since then, Congress has not addressed a $12 billion shortfall in federal highway funding, making it impossible for MoDOT to deliver improvements scheduled for the 2010 construction season, officials said.

The complete article is here.

MoDOT To Eliminate 400 Salaried Positions

On Wednesday, Pete Rahn, director of the Missouri Department of Transportation said MoDOT will allow 400 salaried positions to go unfilled in an attempt to save $203 million over the next 5 years.

In addition, MoDOT will look to sell surplus property and reduce the number of buildings and offices it currently owns.

MoDOT is reported to have about 6,300 salaries and hourly employees.

MoDOT’s cuts are a result of declining state revenues, uncertain federal funding, rising employee benefit costs and no more money coming from Amendment 3 bonds.

NY Times Editorial on the Post Office

Below is today’s editorial on the state of the US Postal system.  I agree with a number of the points.  For your perusal.

Editorial

Saving the Post Office

Many Americans rely on six-days-a-week mail delivery and expect to have a post office just around the corner. But if the United States Postal Service is going to survive the transition to the Internet age — without requiring billions of dollars of federal subsidies — Congress must allow it to cut some services, close some offices and make other sensible changes.

Since 1970,

the Postal Service has been required to pay its own costs. Still, Congress has insisted on the right to make many policy decisions. The Postal Service made a profit until 2006. Since then, declining mail volumes — as more Americans use e-mail and pay their bills online — and the demands of its retiree health benefit system have dragged it deeper and deeper into the red. Last year, it delivered 17 percent fewer pieces of mail than in 2006 and reported losses of $1.4 billion, this year it expects to lose $7 billion. Postmaster General John Potter warns that unless the service takes major steps to bring its costs into line, it will lose $238 billion over the next 10 years. To avoid insolvency — or falling back into the taxpayers’ lap — he is asking Congress for the flexibility to implement an ambitious plan to reconfigure services and cut costs.

Not every idea is sound, and Congress should retain oversight to ensure that all Americans still have reliable mail delivery. But Congress should grant the service most of the authority it requests.

Mr. Potter estimates that ending mail delivery on Saturday — when the volume is 17 percent lower than on weekdays — would save $40 billion over the next decade. He wants to close some yet-to-be-announced number of post offices and replace them with cheaper alternatives, such as automated kiosks and postal windows at supermarkets and other retailers. He is also asking for more flexibility to raise the rates of some services to meet changes in demand and costs.

These seem reasonable compromises considering the magnitude of the challenge. They have to be done the right way. Post offices should not be closed in rural areas and other hard-to-reach places that do not have alternatives. The Postal Service also must work with other government agencies to ensure that people who receive crucial mail — such as Social Security checks — on Saturday, receive it on Friday rather than on Monday.

The service says these proposed changes, dramatic as they are, would still fill only part of the gap. Mr. Potter believes it can find other savings and new profits by expanding product offerings — like new direct-mail products for small businesses — and cutting labor costs, including by hiring more part-time workers and reducing full-time employees through attrition. Some 300,000 postal workers are expected to retire over the next decade — about half the Postal Service’s entire staff.

Some of the proposed changes are flawed. Mr. Potter is hoping to save another $50 billion over the next decade by stopping contributions to a fund to pay for future retiree health benefits, covering them instead on a pay-as-you-go basis. As many workers have discovered, unfinanced promises of future benefits have a troubling tendency to become worthless in times of economic stress.

Still, the service might be allowed to reduce its annual contribution. Right now, by law, it has to make contributions consistent with a 7 percent annual rate of inflation for health care costs, while Medicare uses a rate of 5 percent to 6 percent to project future benefits.

Even with the Internet, Americans will need mail services for packages, legal documents and, yes, letters for years to come. In some areas of the country, the Postal Service is the only service available. And all Americans should not have to rely solely on private businesses for anything as fundamental as mail delivery.

That means that Congress has a straightforward choice: It can give the Postal Service some more flexibility to run like a business. Or it can start subsidizing it to the tune of $10 billion-plus a year. We vote for flexibility.

Researchers Say “Tax Soda and Pizza” To Cut Obesity

From Reuters Health:

By Julie Steenhuysen

CHICAGO (Reuters) - U.S. researchers estimate that an 18 percent tax on pizza and soda can push down U.S. adults' calorie intake enough to lower their average weight by 5 pounds (2 kg) per year.

The researchers, writing in the journal Archives of Internal Medicine on Monday, suggested taxing could be used as a weapon in the fight against obesity, which costs the United States an estimated $147 billion a year in health costs.

"While such policies will not solve the obesity epidemic in its entirety and may face considerable opposition from food manufacturers and sellers, they could prove an important strategy to address overconsumption, help reduce energy intake and potentially aid in weight loss and reduced rates of diabetes among U.S. adults," wrote the team led by Kiyah Duffey of the University of North Carolina at Chapel Hill.

With two-thirds of Americans either overweight or obese, policymakers are increasingly looking at taxing as a way to address obesity on a population level.

California and Philadelphia have introduced legislation to tax soft drinks to try to limit consumption.

CDC director Dr. Thomas Frieden supports taxes on soft drinks, as does the American Heart Association.

There are early signs that such a policy works.

Duffey's team analyzed the diets and health of 5,115 young adults aged age 18 to 30 from 1985 to 2006.

They compared data on food prices during the same time. Over a 20-year period, a 10 percent increase in cost was linked with a 7 percent decrease in the amount of calories consumed from soda and a 12 percent decrease in calories consumed from pizza.

The team estimates that an 18 percent tax on these foods could cut daily intake by 56 calories per person, resulting in a weight loss of 5 pounds (2 kg) per person per year.

"Our findings suggest that national, state or local policies to alter the price of less healthful foods and beverages may be one possible mechanism for steering U.S. adults toward a more healthful diet," Duffey and colleagues wrote.

In a commentary, Drs. Mitchell Katz and Rajiv Bhatia of the San Francisco Department of Public Health said taxes are an appropriate way to correct a market that favors unhealthy food choices over healthier options.

They argued that the U.S. government should carefully consider food subsidies that contribute to the problem.

"Sadly, we are currently subsidizing the wrong things including the product of corn, which makes the corn syrup in sweetened beverages so inexpensive," they wrote.

Instead, they argued that agricultural subsidies should be used to make healthful foods such as locally grown vegetables, fruits and whole grains less expensive.

Springfield Sales Tax Revenue Down Again

From today’s SBJ (emphasis is mine):

The city of Springfield's 1 percent general revenue sales tax continued its downward spiral in March, prompting the city manager to talk about more cuts to this year's budget.

The sales tax brought in $3.2 million in March, a drop of 17.9 percent when compared to March 2009. Thus far in fiscal 2010, which began July 1, the city is at $26.5 million from the 1 percent tax, down 9.2 percent from the first nine months of fiscal 2009.

March marked the fifth of nine months this fiscal year where the city experienced double-digit percentage decline compared to the previous fiscal year, though February was up slightly from 2009.

City Manager Greg Burris told Springfield City Council during its Monday night meeting that the continued decline means another $780,000 will likely need to be trimmed from the current budget. About $660,000 of that shortfall would be covered by the continued city hiring freeze, but $120,000 in additional cuts will be necessary.

Those proposed cuts would follow $1.27 million cut in January and nearly $1 million cut in September, also due to lackluster sales tax performance. Those cuts included furloughs for management and reduced spending on travel, equipment and training for the police and fire departments.

Burris told council he would make a recommendation about additional cuts in the next few weeks.

Area School Districts Honored for Status

Twenty-three school districts from SW Missouri were honored last night during a banquet at Missouri Southern State University.

The banquet recognized the individual school districts who achieved “Distinction in Performance” under DESE guidelines.  The schools were:

Carl Junction, Carthage, Cassville, Dadeville, Diamond, East Newton, Everton, Golden City, Greenfield, Joplin, Lockwood, McDonald County, Monett, Mount Vernon, Neosho, Nevada, Pierce City, Seneca, Shell Knob, Stockton, Webb City, Westview and Wheaton

Webb City Raises Water Meter Fees

The city council of Webb City has approved an increase in meter fees for residents and commercial developers.  The changes include:

• Increase from $200 to $300 for residential meters
• Increase from $1500 to $4000 for commercial meters on 2” lines

The fees basically raise the fee to match the actual cost of the meter.  Makes sense to me.

The Joplin Globe article can be found here.

Mayor’s Team to Compete in Adventure Race

It’s official.  The team of Werneke/Davidson will be competing in the St. Patty’s Urban Adventure Race on March 20th in Neosho.  While it may not be quite as exciting as the Olympics, rest assured the team is committed to finish at all costs. 

Rumor has it that Fire Chief Hickman has promised to keep a portable defibrillator available at Station 1 just in case one or more of the Mayor’s team members requires a jolt of energy.  O2 tanks may also be positioned along the course. 

It is also rumored that the Mayor’s team has been training for quite sometime for this event.  When ask, Mayor Pro Tem Davidson said “I can promise all concerned that no training has yet occurred and any allegations of such training are simply ‘untrue.’”

When ask about the prospect of winning the race, Mayor Werneke was reported to have said “I am confident that Richard and I will take top honors in the team category of 37-39 year olds who also currently serve on the Neosho council.”  When queried about the fact that no other contestants fit those qualifications, Mayor Pro Tem Davidson was reported to have responded “Well, that’s just how it works sometimes.”

On a serious note, it should be a great time.  We look forward to any competition…no wagering will be allowed.

Shirley Cummins Takes Leave from Neosho R-5 Board

From today’s NDN:

A Neosho R-5 School Board member has requested a leave of absence from the board.

Shirley Cummins made the request during a school board retreat and study session last Thursday.

“There is a relative that is applying for a position in the central office, that it would probably be best if I just took a leave of absence until that position was filled,” Cummins said.

This is Cummins’ second term on the school board.

“It is not a legal requirement that anyone would do that, it is just a personal request,” she added.

Prior to Cummins coming onboard with the school board, she was a high school English teacher for 16 years and then served another 10 years as a high school administrator, including a stint as principal.

Is the Hip Bump Coming Back?

A couple of weeks ago, my daughter’s school held a parent/child dance event as a fundraiser.  While I haven’t had a call yet from ‘Dancing with the Stars’, I’m almost certain the phone is about to ring.

I also reminded her that I’m the only one allowed to buy her flowers and dance with her…at least until she turns 25.

Sober Leprechaun’s Needed Next Week

 MoDOT has announced that traffic enforcement for suspected drivers under the influence will be a priority over the St. Patty’s day weekend.  So if you do drink, enjoy it, but make sure you have a designated leprechaun lined up to drive you home.

The full Joplin Globe article is here.

Reading Restaurant Served Up A Tasty Meal

This past Thursday, I had the opportunity to attend the “Reading Restaurant” at Carver elementary.  For about an hour, all of the second grade students dressed up as waiters/waitresses and served a main entree of reading with a desert of poetry.  I had the privilege of having my daughter and two other students read to me during the event.  It was a great time and a wonderful opportunity to see first hand how our children are learning.

As a reward for their hard work, I gave each student in Mrs. Lineberry’s class a trip to the book fair (being held in the Carver library) so they could each pick out a book to own and take home.

Thanks to Mrs. Lineberry, all of her students, and all of the 2nd grade readers who made the day so memorable.

Great Job Readers!

I’m Not the Only One Concerned About TDD’s

Over the past few months, I’ve been voicing concern about the new TDD being considered on the west side of Neosho.  The proposed TDD would include Wal-Mart and other retails stores in that area.

Today’s Joplin Globe published an AP report finding many issues with TDD’s around the state.  These issues need to be addressed and fixed if TDD’s are to remain in Missouri.  When done correctly, a TDD can be a beneficial component of a community.  But currently, the structure needs more work.

Here’s the article (emphasis in mine):

(AP) — Every day consumers who shop at hundreds of stores across Missouri pay more on each purchase because some stores impose an extra sales tax on which voters don’t get a say.

The number of these special taxing districts in Missouri leapt from zero to over 160 in a little over a decade, which has led state auditors to question how much oversight they receive. A review by The Associated Press found that loose oversight means both consumers and the state don’t know much about the transportation development districts. These districts allow up to 1 percent in special sales taxes at retail businesses to help pay for infrastructure such as roads, bus stops, interchanges and access roads that move traffic to and from the shopping areas.

A district can be created when more than half the property owners in an area sign a petition in favor of it. Often, the districts are drawn so narrowly that one developer owns all the property. So one petition signature is all it takes. The rest of the local voters — or shoppers — don’t get a say.

The special transportation taxing districts are managed at the city or county level with little state oversight.

Stores in the special taxing districts are required to alert customers with a notice near cash registers.

Nonetheless, hardly any of the dozens of consumers contacted by The Associated Press at several Columbia transportation districts were aware of the special tax. Several stores within taxing districts showed damaged and unreadable signs, usually placed near the cash register, alerting consumers to the tax as required by law.

State audits of the taxing districts have revealed problems, including instances of construction contracts not being competitively bid. A 2007 audit questioned a taxing district in Harrisonville that had no way to ensure tax proceeds went to the transportation districts and not to other development projects.

State law was toughened in 2009 to create fines for districts that don’t submit annual fiscal reports to the state auditor’s office and to require for the first time that the tax be collected by the Missouri Department of Revenue. The money is now collected by stores, sent to the Department of Revenue and then returned to the district’s managing board.

Yet problems persist in how the state tracks transportation taxing districts. Data is kept by three agencies, all of which told the Associated Press they may not have a complete list of districts.

“Definitely there are some problems out there with oversight,” State Auditor Susan Montee said.

The auditor’s office collects annual fiscal reports and performs an audit once every three years, but is not informed when a new district is created and only recently got a way to punish districts that don’t submit a report.

February Economy Lost 36,000 Jobs – Rate Stays at 9.7%

This from the Department of Labor:

WASHINGTON — U.S. Secretary of Labor Hilda L. Solis issued the following statement on the February 2010 Employment Situation report released today:

"This past February, the economy lost 36,000 jobs, and the unemployment rate held at 9.7 percent.

"Today's numbers underscore that we still have work to do before we can be sure that all Americans have access to good jobs. Today's report also shows positive signs that the economy is moving in the right direction. For example, we see continued growth in employment in the health care and manufacturing sectors.

"As noted by the Bureau of Labor Statistics, the estimate of jobs lost may have been affected by snowstorms in the mid-Atlantic and Northeast that occurred during the time period that payroll data were collected. Any one month's estimates are subject to problems and unforeseen circumstances like this, which is why it is important that we look at the trend. And clearly, the trend shows that we are losing fewer jobs per month, bringing us closer to consistent job growth.

"Nevertheless, too many families in this country continue to struggle. That's why the administration is working with Congress to provide much needed assistance to our hardest hit communities. Yesterday's passage of an initial jobs bill in the House is another step in the right direction. But we can and should do more. For that reason the administration is urging the Congress to act on the priorities the president already has outlined on small businesses, infrastructure and clean energy, and to move quickly to renew key Recovery Act programs that will contribute to job growth this year.

"Through the Department of Labor, for example, we could put hundreds of thousands of young people to work this summer building skills that they can take with them into the workplace. And by further supporting oversubscribed and successful job training programs like Pathways Out of Poverty and Energy Training Partnerships we can make sure that our workers have the skills they need to compete as job growth returns, particularly in growing sectors like clean energy. In addition, the administration supports investing in on-the-job training programs, which help jumpstart hiring by lowering training costs for businesses.

"These are some of the many efforts we need in order to tackle our economic challenges, and this administration is committed to working with Congress on these additional job creation measures because getting Americans back to work remains our top priority."

Pressure Grows – Save the SEALs

Once again, some are coming to their senses as pressure mounts to drop charges against three Navy' SEALs.  The three are facing court martial for allegedly abusing a terror suspect.  That abuse consisted of a punch to the gut and a bloody lip.  The suspect was being sought for the killing of US contractors in Iraq.

The SEALs were offered what's call administrative punishment if they admitted wrongdoing but that would have hurt their future as special operators.

Reps. Dan Burton, R-Ind. and Dana Rohrabacher, R-Calif. are holding a press conference today on this issue.

I’ve still got hope that common sense prevails and the charges will be dropped.

Springfield Seeing Red on Red-Light Cameras

 

From today’s Joplin Globe:

SPRINGFIELD, Mo. (AP) — Less than a day after the state Supreme Court ruled Springfield had not properly handled red light camera cases, a class-action lawsuit has been filed to have fees returned.

Attorney Jason Umbarger filed the lawsuit Wednesday, seeking to force the city to return $803,000 it’s collected in red light camera fees since 2007.

The Supreme Court ruled Tuesday that the city must handle red light camera tickets through the court system, rather than through administrative hearings.

The Springfield News-Leader says the city has turned off its 13 red light cameras and dismissed all outstanding tickets. The city council is considering whether to request a court rehearing in the case.

Icet Not Tacet on School Funding Cut – And That’s Right!

State House Budget Chairman Allen Icet, Wildwood, is proposing giving Missouri’s public schools the full funding called for in the foundation formula.  To that I say - “Go Allen!”

Icet’s budget plan released today does not cut funding for schools as is currently being proposed by Gov. Nixon.  Icet proposed cuts elsewhere in the State’s proposed $23+ billion budget.

Currently, around $5.4 billion of the state’s budget goes to Elementary and Secondary education.  That’s second only to social services.  Transportation comes in 3rd at $2+ billion.

Comp Sales See Increases

From today’s HFN (emphasis is  mine):

NEW YORK–In another sign of an emerging recovery at retail, the major chains tracked by HFN all reported same-store sales growth in February.

Leading the pack, as it has throughout the economy’s struggles, was TJX with a 10 percent gain in same-store sales. Costco said its comparable-club sales rose 4 percent (factoring out gasoline sales, which pushed the comp number up 9 percent), and BJ’s Wholesale Club said its same-club sales increased 3.9 percent—7.5 percent when factoring in gas. Target’s same-store number was up 2.4 percent last month.

Among the department stores, Kohl’s and Macy’s each reported 3.7 percent pickups in same-store sales, while J.C. Penney said its comp-store sales edged up 1.2 percent. Even Dillard’s—whose same-store numbers had been languishing for a long stretch—had an up month in February with a 2 percent gain.

Gregg Steinhafel, chairman, president and chief executive officer of Target, said the mass merchant’s rise in year-over-year store traffic led to a same-store sales increase “modestly above our expectations.” At Kohl’s, Kevin Mansell, chairman, president and CEO, said transactions per store had a strong February.

Terry Lundgren, chairman, president and CEO of Macy’s, said both Macy’s and Bloomingdale’s did well despite the winter storms that affected traffic in their stores in certain markets at key selling times. “If not for the storms, we estimate that our February same-store sales would have been up by approximately 5 percent,” Lundgren said.

MO Payroll Jobs Fall as does State Unemployment Rate

From today’s SBJ:

Missouri's unemployment rate fell slightly in January and remains below the national average, according to numbers released Wednesday by the Missouri Department of Economic Development.
The state seasonally adjusted unemployment rate dropped to 9.5 percent, down from 9.6 percent in December 2009. The national unemployment rate in January, seasonally adjusted, was 9.7 percent.
The state's overall nonfarm payroll fell by 12,800 jobs. The decrease in employment was blamed mostly on the unusually harsh winter weather, which contributed to drops in employment in construction and related industries.

Construction employment was down 7,700 jobs, while administrative and support services lost 3,400 jobs, 3,100 jobs were lost in leisure and hospitality, and 2,400 jobs were lost in other services. The decreases were offset by an 1,100 job gain in manufacturing, 1,600 jobs gained in retail trades, management gains of 1,000 jobs, and 1,900 jobs added in government.

The Kansas City metropolitan area lost 4,600 jobs in January, but the state's other metropolitan areas, including Springfield, were relatively unchanged from the month before.

Sully to Retire

My hero Capt. Chesley “Sully” Sullenberger will make his final flight today as a pilot for US Airways.  His 30-year career will end today at Charlotte’s Douglas International Airport.

Sullenberger was the captain of US Airways flight 1549 that landed in the Hudson in January 2009.

So long Sully!