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State budget cuts estimated at $107 million Sunday, Apr 13, 2008 By Roby Brock Arkansas finance officials disclosed plans to cut $107 million from the state's projected budget over the next fiscal year, a sign that the national economic slowdown is hitting home. State agency and department directors were notified of the projected cuts last week. The revised forecast will wipe out nearly half of the state's "Category B" spending - second-tier spending that is made only after Arkansas' highest-priority budget items in "Category A" are funded. Colleges and universities will be hardest hit, but there will also be cuts to the state's prison system and human services agency. The state's budget for the coming fiscal year is $4.3 billion. Homes sales fall by smaller margin Statewide home sales fell again in February, but the decline was less dramatic than in recent months. After a 26.6 percent drop-off in January, February home sales fell by 12.8 percent, according to the latest statistics from the Arkansas Realtors Association. Some 1,922 units were sold during the month compared to 2,205 units a year ago. Average home prices declined slightly for the first time in many months. Statewide, the average price of a home in February was $148,459, a 0.6 percent decrease from one year ago. Dillard's sales fall Dillard's Department Stores' March sales fell 9 percent compared to a year ago. Dillard's reported sales for the five weeks ended April 5, 2008 of $621.7 million compared to last year's comparable sales of $679.6 million. Store officials noted that there was one less shopping day this year due to the shift of the Easter holiday from April to March. Same-store sales fell by slightly more than overall numbers, down 10 percent for the five-week reporting period. Wal-Mart sales rise Wal-Mart released its March sales showing a 7.9 percent increase in overall revenues, while same-store sales rose a much weaker 1.1 percent. Total sales for the retail giant topped $36.97 billion for the month. Wal-Mart stores accounted for $23.2 billion in sales, up 5 percent, Sam's Clubs warehouses racked up sales of $4.3 billion, a 3.2 percent increase, and international sales topped $9.47 billion, up 18.7 percent. Wal-Mart also raised its guidance for the April reporting period. "We expect comparable store sales without fuel for the April four-week period in the United States to be between one and three percent," said Tom Schoewe, Wal-Mart executive vice president and chief financial officer. "This guidance is slightly higher than our comparable sales guidance of the previous two months, which has been flat to 2 percent." Tyson foods settlement approved A Delaware judge approved a $4.5 million settlement reached in January between Tyson Foods' shareholders and 17 of the company's current and former directors. The settlement requires Don Tyson and Tyson Limited Partnership, the company's largest shareholder, to pay Tyson Foods $4.5 million. The company agreed to implement a variety of corporate governance measures in response to the lawsuit, which alleged that Tyson Foods' executives were granted stock options timed in advance of favorable news likely to boost the stock price. Bank of the Ozarks net rises Bank of the Ozarks reported net income for the quarter ended March 31, 2008 of $7.7 million, an increase of 3.2 percent compared to net income of $7.5 million in the first quarter of 2007. Diluted earnings per share for the Little Rock-based bank holding company were 46 cents per share for the first quarter of 2008 compared to 45 cents per share for the first quarter of 2007, an increase of 2.2 percent. AG updates on payday lenders Attorney General Dustin McDaniel says he has received direct word from 52 payday lending companies advising that they will comply with his March 18 order to alter their business practices in Arkansas. McDaniel had warned the firms to cease operations and curtail interest being charged in the wake of two recent Arkansas Supreme Court decisions. The attorney general said that, based on media reports, consumer calls, and other contacts, he believes another seven firms have also ceased issuing payday loans. The 59 companies believed to be altering their practices or closing their doors account for "almost all" of the 156 payday locations in the state, according to the AG. However, some companies say they have not received any correspondence from McDaniel's office. Pocahontas lands new manufacturer Atlantic Thermal Plastics (ATP), maker of insoles and other footwear components for boots, announced plans for a $3 million operation in Pocahontas. The company will employ 100 initially, but Pocahontas Mayor Gary Crocker says that 200 workers are expected to be hired ultimately. ATP, which is privately owned by Rhode Island-based Newgrange Group, will occupy a 113,000 sq. ft. facility that was formerly home to Northern Technologies. Newgrange also owns America's Choice Products, another footwear company, in Newport, Arkansas. State offering incentives to Booneville plant Governor Mike Beebe confirmed Monday that the state has offered incentives to Cargill to rebuild a beef processing plant in Booneville that was devastated by fire on March 23rd. Over 800 employees were dislocated by the fire and Cargill officials are mulling their options on whether or not to rebuild during a 30-day evaluation period. The beef industry has been challenged over the past year in large part due to overcapacity, leading some analysts to suggest that the Booneville plant may not be rebuilt. El Dorado plant could be shuttered Pilgrim's Pride is considering closing a chicken processing complex in El Dorado that employs 1,620 people because the facility has consistently lost money, according to company officials. No timeline for a decision was revealed. Less than a month ago, the largest U.S. poultry processor announced it would close one processing complex and 6 distribution centers in a major cost-saving move. Pilgrim's Pride took over the El Dorado facility in 2003 when the company acquired ConAgra Foods' chicken division. ------- Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net. |
