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Posts published in “Day: September 24, 2013”

Taking a while on the comeback

mendiola MARK
MENDIOLA

 
Reports

Pocatello companies were hard hit by the nationwide recession, and the Gate City is taking longer than Idaho in reaching pre-recession employment levels, an Idaho State University economics professor told a large crowd attending Bannock Development Corporation’s 22nd annual economic symposium.

Dr. C. Scott Benson and Idaho Lt. Gov. Brad Little gave the economic and state keynote addresses, respectively, on Monday, Sept. 9, at the impressive ISU Stephens Performing Arts Center.

An ISU professor for more than 20 years, Benson has been preparing legislative economic forecasts about the state’s general fund revenue for nearly 30 years. He also has been preparing Idaho personal income forecasts for the Idaho Tax Commission for more than 10 years.

“I would like to come here and tell you that happy days are here again, but you know better than that,” Benson said, calling the economic recovery anemic. He concluded, however, that Idaho, Bannock County and Pocatello should continue to add jobs and see accelerating growth after several harsh years.

In July, Idaho’s seasonally adjusted unemployment rate rose two-tenths to 6.6 percent for the third consecutive monthly increase in the rate, which has risen half a percentage point since April. Total employment dropped for the second month in a row, falling 800 to just above 723,000 – the lowest total employment since October 2012.

The Pocatello Metropolitan Statistical Area’s unemployment rate stood at 6.8 percent in July, down from 7.0 in June and 7.3 percent in July 2012. The city’s personal income grew 2-3 percent in 2012 and is projected to grow 4.5-5.5 percent this year and in 2015, slightly faster than the state’s personal income growth rate.

Benson said Gov. C.L. “Butch” Otter’s goal of generating $60 billion in state personal income could be achieved “hopefully sooner rather than later” in Fiscal 2015.

“Idaho and the Pocatello MSA were harder hit than most states,” Benson said, noting Idaho’s unemployment rate tripled while rates in other states doubled. While the recession was severe, the recovery has been slow. “Manufacturing employment is not a pretty picture.”

Benson estimated 9,000 to 10,000 people are employed in Pocatello’s government sector or up to 25 percent of people working in the city, including those employed at ISU and the state women’s prison.

Education and health services picked up jobs during the recession, he said. Construction, natural resources and mining once represented up to 7 percent of total jobs, but that has declined to 4 percent, Benson said. Leisure and hospitality provide jobs, “but they don’t pay all that well.”

The area retail industry has encountered tough times, he said, estimating Bannock County generates up to $28 million a year in annual sales tax revenue for the state. (more…)

Spy vs. Spy

trahant MARK
TRAHANT

 
Austerity

Watch out for fights coming from the Capitol. The Senate versus the House. Republicans opposed to Democrats. And, of course, the most intense battle, Republicans against Republicans.

I grew up with the Spy versus Spy comics from Mad Magazine. Week after week a white clad spy would deliver some sort of lethal device (think exploding toilets) to a black suited spy. The scenarios were always outlandish and neither character ever really won. It’s that way in DC right now, except most of spies in combat are wearing Republican Red.

The Spy versus SpySpy versus Spy battle is alive and well on Twitter where there’s a #dontblink campaign to try and convince those squishes to support the filibuster. It’s not going to happen, but it does increase the possibility of a government shutdown simply because Congress is running out of time to meet the October 1st deadline. (The Senate has rules about how much time is allowed for a debate after cloture.) That means any vote for a temporary budget to fund the government cannot occur until the end of the week, Friday or Saturday. Then it will go back to the House. Perhaps with changes. Senate Majority Leader Harry Reid will send a “clean” resolution to the House, hoping that body will pass it without changes just to keep the doors open. But probably not. Then the process will start again -- with the government officially closed. (On Tuesday, Senator Reid announced the measure will only fund the government until Nov. 15, leaving open the possibility of a regular order budget.)

This is as goofy as Spy versus Spy. And just like the comic strip, there’s no real winner in sight. The games just go on and on.

There is a bigger problem for Indian Country, however. Actually two issues. First, any “resolution” of this crisis is completely temporary. The same debate will surface again over the debt limit in a couple of weeks and then again when this Continuing Resolution expires. The House bill only pays for government operations until December 15. So, even if the Senate’s shorter version passes, the whole mess will repeat. (more…)