Economic Upticks Apparent (Jeff Hankins Publisher’s Note)

Can we finally accept some optimism about the Arkansas economy?

Here’s the story:

• For a second straight month, state revenues met projected expectations. That breeze you felt was from the collective sighs of relief from Gov. Mike Huckabee and Richard Weiss, director of the state Department of Finance and Administration.

• Moody’s Investor Services Inc. has given Arkansas’ bonds outlook a “stable” rating, while 15 states received a “negative” rating in the face of severe revenue shortfalls.

• The Index of State Economic Momentum, produced by the respected State Policy Reports, ranked Arkansas eighth based on its population growth, personal income growth and employment growth.

• The unemployment rate in Arkansas fell from 5.2 percent in July to 5 percent in August. A continuing decline in manufacturing jobs is being offset by growth in the services sector.

• Arkansas is in the hunt to land a major manufacturing plant that would surpass even the enormous Nestlé plant announcement in Jonesboro.

Overall, expectations for an uptick in the Arkansas economy during the second half of 2002 are coming through. The worst of the recession is clearly behind us.

My key questions as we begin to forecast and budget for 2003 include:

• Will double-digit increases in health insurance premiums negate personal income gains?

• Will the red-hot housing market finally slow down, or will the incredibly low mortgage interest rates keep people stepping up to larger homes?

• At what level will capital investment finally return?

• Will the agriculture economy stabilize or continue to deteriorate and take rural banks down with it?

• Can we have a giant orange barrel burning party and enjoy the advantages of an interstate highway system again?

Feel free to clue me in if you have the answers.

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The first debate between U.S. Sen. Tim Hutchinson, R-Ark., and his Democratic challenger, Attorney General Mark Pryor, touched on several business issues worth mentioning.

I found myself generally frustrated.

Hutchinson branded the minimum wage and potential increases to it a moot point because no one pays such low amounts in Arkansas. He showed himself to be incredibly out of touch with Arkansas reality on that point.

He redeemed himself by noting Pryor’s financial support from trial lawyers who are desperate to protect themselves from tort reform that would jeopardize outrageous jury awards.

Pryor, throughout the debate and continuing with recent television advertisements, is painting corporate America with a broad negative brush. It’s unfair and a slap in the face to business in Arkansas.

Hutchinson doesn’t endorse or support corporate crime, nor does Pryor support terrorism or oppose production of Patriot missile systems. They and their parties are insulting the voters’ intelligence to suggest otherwise.

This is one political race that can’t end soon enough.

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Our first Best of Arkansas Web Awards, which will be announced in December, is a recognition program we have wanted to launch for a couple of years.

Hundreds of businesses and organizations in Arkansas invested millions of dollars to develop Internet sites. This awards competition gives everyone the chance for recognition of that investment, creativity, usefulness and ingenuity.

Virtually everyone has completed a first-generation Internet effort. With the growth of faster Internet connections, it’s time to consider Web site enhancements that move companies beyond a brochure or billboard presence.