Business Weekly E-Newsletter
October 20- 24, 2008
State Chamber/AIA Annual Meeting, Governor’s Summit Draw Big Crowds
The 80th Annual Meeting of the State Chamber/AIA held Wednesday, October 15, at the Statehouse Convention Center in Little Rock, drew approximately 450 attendees.
Highlights of the Annual Meeting included welcoming remarks from Arkansas Governor Mike Beebe, a keynote speech by James Bullard, president and CEO of the Federal Reserve Bank of St. Louis; the election of officers and directors for both the State Chamber and AIA; the presentation of the State Chamber/AIA legislative agenda, and a panel discussion featuring leaders from the Arkansas Senate and House of Representatives.
Arkansas Works 2008: The Governor's Summit on Education and Economic Development held Thursday, October 16, also at the Statehouse Convention Center in Little Rock, drew approximately 1,400 representatives from all 75 counties in the state.
The Summit included speeches by Arkansas Governor Mike Beebe, Thomas F. "Mack" McLarty III, chairman of the McLarty Companies, and Roy Romer, former governor of Colorado and former superintendent for the Los Angeles Unified School District.
Other highlights of the Summit included "A State of the State Report" video presentation featuring various Arkansas Cabinet level directors including Dr. Ken James, Arkansas Department of Education commissioner; Dr. Jim Purcell, director of the state Department of Higher Education; Maria Haley, director of the Arkansas Economic Development Commission; Richard Bell, secretary of the Arkansas Department of Agriculture; Richard Davies, director of the Arkansas Department of Parks & Tourism; William L. “Bill” Walker, Jr., director of the Arkansas Department of Workforce Education; Artee Williams, director of the Arkansas Department of Workforce Services, and Dr. John Ahlen, president of the Arkansas Science & Technology Authority.
Co-chairs for the Summit were Claiborne Deming, president and CEO of Murphy Oil Corporation; Senator-elect Joyce Elliott, state & legislative outreach director for College Board, and Dr. Les Wyatt, president of the Arkansas State University System.
The State Chamber/AIA partnered with the Governor's Office in putting together Arkansas Works 2008.
The goal of the Summit was to assemble business, education and policy leaders from all 75 counties to develop a vision for every community and to subsequently implement that vision.
We would like to thank all of the sponsors who so graciously helped in putting together this event. For the sponsor list, click here .
Federal Reserve Bank of St. Louis CEO Addresses U.S. Economy, Financial Turmoil
James B. Bullard, president and chief executive officer of the Federal Reserve Bank of St. Louis, was the featured speaker at the opening luncheon of the 80th Annual Meeting of the Arkansas State Chamber of Commerce/Associated Industries of Arkansas.
Bullard spoke about the U.S. economy and on-going financial market turmoil, saying that the U.S. financial markets were facing severe challenges including "unusual stress" to credit and money markets, uncertainty regarding the true value of complex assets associated with mortgages, and difficulties with collateralized lending.
"The main challenge in the current environment is clearly to find ways to navigate through very substantial financial market turmoil and the associated uncertainties concerning real economic performance," Bullard said. "Many of the initiatives undertaken to mitigate the effect of financial market unrest on the nonfinancial sectors of the economy are targeted efforts aimed at specific problems in financial markets."
The U.S. economy slowed significantly in the third quarter including reduced consumer spending, a "sharp increase" in oil and commodity prices that began in 2007, a significant decline in employment and a reduction in business capital spending on equipment and software.
Despite those negatives, there were some positives to report, Bullard said, including the robust export sector. However, other negatives included the continuing decline of the housing sector and the subsequent shakeout in financial markets.
Because of failures and difficulties in the banking sector including the bankruptcy of Bear Stearns, putting Fannie Mae and Freddie Mac into federal conservatorship, the bankruptcy of Lehman Brothers and infusion of capital into the American International Group (AIG) via a bridge loan, the Fed and the Treasury Department are facing a vastly different landscape than before.
"It is important to stress that the Federal Reserve's interest in each of these cases has not been to save these firms but to orchestrate an orderly transition for financial markets as these firms exit the scene in their current form," Bullard said. "These improvised actions have had mixed success. It is far from clear how financial market turmoil of this magnitude will ultimately affect the real economy."
Bullard said that "analogies to the Great Depression are badly strained as the U.S. economy was very different at that time," with the order of events (real output falling 30 percent followed by numerous bank failures in the early 1930s) dramatically reversed this time around.
"Instead, the leading modern example for large economies is Japan. The Japanese stock and real estate markets peaked around 1990, and the subsequent decline caused severe problems for Japanese banks," Bullard said. "The policy response to the banking crisis has generally been judged ineffective, and the real economy in Japan was plagued by a decade or more of sub par performance. This seems to be the primary risk for the U.S. going forward."
"All of these events offer clues but also differ in important ways. We do not know what will happen this time around, and we should be humble in our predictions. Part of the answer depends on how successful the current policy initiatives will be."
Board, Officer Elections, Legislative Agenda and Panel Highlight Business Session
Separate slates of new officers and board members for both the State Chamber and the AIA were elected during the Business Session of the 80th Annual Meeting on October 15. State Chamber Chairman Hugh McDonald presided over the election of State Chamber officers and board members and AIA Chairman Benny Baker presided over the election of AIA officers and board members. For a full listing of 2009 officers and directors, click here .
Additionally, State Chamber/AIA Executive Vice President Kenny Hall presented the State Chamber/AIA 2009 Arkansas Legislative Agenda. Priority issues for the 87th General Assembly will include: leading the effort to increase the sales tax exemption for energy used in industry and manufacturing, protecting the education reforms passed in 2003-04, protecting the legal reforms enacted by Act 649 of 2003 and protecting the workers’ compensation reforms enacted by Act 796 of 1993. For the full 2009 Arkansas Legislative Agenda, click here .
The Business Session concluded with an Arkansas Legislative Panel discussion featuring Senate President Pro Tem Elect Bob Johnson and Senators Terry Smith and Gilbert Baker, and House Speaker Designate Robbie Wills and Representatives Steve Harrrelson and Rick Saunders.
Arkansans FOR the Secret Ballot Holds Meetings in State
“Arkansans FOR the Secret Ballot—Protect your Privacy at Work,” the coalition formed by the State Chamber/AIA to oppose the proposed federal Employee Free Choice Act (EFCA), aka Card Check, held outreach meetings recently to educate businesses throughout the state.
Michael Eastman, executive director, Labor Law Policy, and Glenn Spencer, executive director of the Workforce Freedom Initiative, both part of the U.S. Chamber of Commerce, provided presentations on EFCA in the following locations: Monticello, Magnolia, Little Rock, Maumelle, Hot Springs, Jonesboro, West Memphis, Conway and Fort Smith.
EFCA is a drastic and dangerous piece of legislation that if passed will be the most radical change to labor law in more than 60 years. It will be brought before Congress in early 2009. The proposal takes away the long-held tradition of using secret ballots for union elections. Instead, the union leaders propose using a card check system – a process where votes are cast in public and can be collected by union leaders at a worker’s job, home or on-line.
What you can do:
· Join the coalition by calling the State Chamber/AIA office and ask to be added to the Arkansans FOR the Secret Ballot coalition.
· Send a letter (by fax or to district offices) to Senators Lincoln and Pryor and your Congressman.
· Make an appointment to see Senators Lincoln and Pryor and your Congressman and tell them how this will affect your business and the community.
· Write a letter to the editor of your local newspaper.
· Spread the word about EFCA and ask other members of your community to join the Arkansans FOR the Secret Ballot.
All State Chamber/AIA members are strongly encouraged to spread the word about this issue to fellow members of the business community as well as to employees. It is vitally important that our members of Congress hear the business perspective on this issue.
If EFCA passes, it will strip workers and businesses of critical rights and protections. Please join the Arkansans FOR the Secret Ballot and help us protect privacy and promote democracy in the workplace.
Governor’s Quality Award Program Recognizes 11 Organizations
Eleven organizations were recognized by the Governor’s Quality Award Program for Performance Excellence during the 14th Annual Awards Celebration on Wednesday evening, October 15th in Wally Allen Ballroom of the Statehouse Convention Center in Little Rock.
More than 250 business and civic leaders from throughout Arkansas attended the celebration.
The awards ceremony includes four award levels of Performance Excellence (in descending order of qualifications): the “Governor’s Quality Award,” the “Achievement Award,” the “Commitment Award,” and the “Challenge Award.”
As well as the recognition, recipients receive an in-depth evaluation of their management systems and a written feedback report citing strengths and areas for improvement.
The Challenge award recipients attended a seminar in the spring educating top leaders about the criteria and improvement process.
This year, the “Governor’s Quality Award” was presented by Gov. Mike Beebe to: Baxter Healthcare Corporation – Mountain Home Plant and Potlatch Forest Products Corporation – Cypress Bend Mill.
The “Achievement Award” was presented to: Tyson Food Safety and Research Laboratory – Springdale, Arkansas Department of Information Systems – Little Rock and
White River Medical Center – Batesville.
The “Commitment Award” was presented to: Pocahontas Healthcare & Rehabilitation Center, Saline Memorial Hospital and Ash Flat Healthcare and Rehabilitation Center.
The “Challenge Award” was presented to: Garland Nursing & Rehabilitation Center – Hot Springs, White River Rural Health Center, Inc. – Augusta and Delta Dental of Arkansas – Little Rock.
The goal of the Governor’s Quality Award Program is to encourage Arkansas organizations to engage in continuous quality improvement, which leads to performance excellence, and to provide significant recognition to those organizations.
The Governor’s Quality Award Program was created as a not-for-profit organization dedicated to creating learning opportunities that foster the application of continuous quality improvement principles.
Organizations and companies interested in participating in the program should contact the Governor’s Quality Award office by calling Sue Weatter at 501-372-2222.
Please Respond to 2008 Energy Survey
By now, you should have received a copy of the 2008 Energy Survey, which went out by e-mail to the State Chamber/AIA database on October 22. Please take the time to fill out the survey.
The State Chamber/AIA is partnering with the Arkansas Energy Office of the Arkansas Development Commission, which is also working in partnership with the Arkansas Environmental Federation, Arkansas Farm Bureau and other prominent business organizations in the state for this important effort. If you have questions or need further information in regard to the survey, contact Tim Wilkins of Paliria Energy at (757) 683-5770 or twilkins@paliria.com
Coalition Formed: Arkansans Against Amendment 2
A broad coalition representing business, community and employee groups have formed Arkansans Against Amendment 2: Vote NO on Annual Sessions to formally oppose Amendment 2 on the November ballot.
The Arkansas State Chamber of Commerce, the Associated Industries of Arkansas, the Arkansas State Employees Association, Inc., the Arkansas Municipal League and the Arkansas Farm Bureau have come together in opposition to Amendment 2. If passed, proposed Constitutional Amendment 2 would create annual legislative sessions.
Currently the Legislature meets for a minimum of 60 days every other year, with special sessions as needed. Proposed Constitutional Amendment 2 would limit state appropriations to one year and establish a “fiscal session” every year. It would also allow the consideration of any issue by a two-thirds vote. The amendment would permit the General Assembly to change the meeting date and the year of the fiscal session and allow the Legislature to extend both sessions.
Next Small Business Council Meeting Scheduled for November 11
The State Chamber/AIA Small Business Council will hold its next meeting from 11:30 a.m. to 1 p.m. on Tuesday, November 11 in the Conference Room. (This date has been rescheduled from the previous date of November 20 due to a conflict).
Tamika Edwards, Community Affairs Specialist for U.S. Sen. Blanche Lincoln, will provide a presentation on legislative topics of interest to small businesses. We are still seeking a sponsor for the lunch portion of the meeting. If your company would like to sponsor the lunch, please contact Jeff Thatcher at 501-210-4205 or jthatcher@arkansasstatechamber.com .
Below is the schedule for future Small Business Council Meetings through May 2009. The meetings will be held from 11:30 a.m. to 1 p.m. in the Conference Room at our Little Rock office unless otherwise indicated.
Thursday, January 22, 2009 - Government Regulation
Thursday, March 19, 2009 - Employee Benefits
Wednesday, May 6, 2009 - Information Technology
Leadership Arkansas Class III Upcoming Sessions Slated
Leadership Arkansas Class III will hold additional sessions during the coming months throughout the state.
Upcoming sessions include:
- Session II – Tourism, December 4-5, Eureka Springs;
- Session III – South Arkansas Economy, January 29-30, 2009, Magnolia;
- Session IV – Legislative, February 23, 2009, Little Rock;
- Session V – Economic Development, March 26-27, 2009, Fort Smith;
- Session VI – Northeast Arkansas Economy, May 21-22, 2009, Jonesboro, and
- Session VII – Northwest Arkansas Economy, June 25-26, 2009, Fayetteville.
- Leadership Class III Graduation will be held June 26, 2009 in Fayetteville.
All sessions will be in conjunction with State Chamber/AIA regional board and membership meetings.
Leadership Arkansas is a program designed to take a statewide view of the economic and political challenges that face Arkansas. The program offers leadership opportunities that expand the impact of community leaders across the state. Created by the State Chamber/AIA, Leadership Arkansas builds a sense of statewide community by identifying and training individuals with the passion and commitment to become personally engaged in issues, programs and activities aimed at building a better Arkansas.
The Chairman for this year’s Leadership Arkansas class is program founder Paul H. Harvel. Curriculum Chairman is Michele Bond of Tyson Foods. Leadership Arkansas Class III is sponsored by Southern Bancorp of Arkadelphia.
If you would like to be a session sponsor or need further information about Leadership Arkansas, please call Susie Marks at 501-210-4206.
State Chamber/AIA Pushes Changes in Sales and Use Tax Rules
The State Chamber/AIA Tax Committee recently took action to help Arkansas businesses in regard to proposed changes to the state’s gross receipts compensating use and excise tax rules that became effective October 15, 2008.
Our committee reviewed the proposed changes and submitted comments to the state Department of Finance and Administration on issues related to computer hardware, computer software, chemicals used in manufacturing, sourcing, credits and offsets for taxes paid to other states, and other streamlined sales tax issues.
The State Chamber/AIA Tax Committee, chaired by Tom Kennedy, Jim Davis and legal counsel Mike Parker, continues to work with DFA to clarify the scope of the dies and molds exemption and the tax treatment of services performed outside Arkansas.
Welcome to Our New Members
Thanks to the following companies and organizations that have recently joined the State Chamber/AIA:
Addmore Equipment Co.
Farm Credit Services of Western Arkansas
Protech Systems Group
Verizon Wireless
Woodland International Research Group
Young and Associates
Thanks to Our Pinnacle Members
We would like to take this opportunity to welcome Verizon Wireless, which recently joined the ranks of our Pinnacle members as a Peak member.
We wish to express special thanks to all of our Pinnacle investors, the respected companies that support the State Chamber/AIA at the highest annual investment levels. We appreciate all that they do for us.
APEX
Alltel Corporation
Entergy Arkansas, Inc.
Wal-Mart Stores, Inc.
SUMMIT
Chesapeake Energy, Inc.
Cox Communications
Cranford Johnson Robinson Woods
Tyson Foods, Inc.
XTO Energy, Inc.
PEAK
Arkansas Blue Cross and Blue Shield
Arvest Bank
AT&T Arkansas
CenterPoint Energy Southern Gas
Electric Cooperatives of Arkansas
FedEx Freight - East
Georgia-Pacific Corporation
Harps Food Stores, Inc.
Kraft Foods
Oaklawn Jockey Club
Pathfinder Exploration LLC
SemGroup LP
Southern Bancorp, Inc.
Southland Park Gaming & Racing
Southwestern Energy Company
State Farm Insurance
Verizon Wireless
Weyerhaeuser Company
Windstream Corporation
CROWN
Acxiom Corporation
AEP Southwestern Electric Power
Albemarle Corporation
Alcoa Inc.
American Greetings Corporation
America's Car-Mart, Inc.
Arkansas Employees Federal Credit Union
Arkansas Farm Bureau Federation
Arkansas Oklahoma Gas Corporation
Arkansas Western Gas Company
Bank of the Ozarks
CardinalHealth
CenterPoint Energy Gas Transmission Company
Crossland Construction
Deltic Timber Corporation
Dynegy
Entegra Power Group LLC
Evergreen Packaging Company
Farm Bureau Mutual Insurance Company of Arkansas, Inc.
Forest Oil Corporation
Glad Manufacturing/A Clorox Company
Golden Living
International Paper Company
Kimberly-Clark Corporation
Lion Oil Company
McKee Foods Corporation
Metropolitan National Bank
Murphy Oil Corporation
Nabholz Construction Corporation
National Center for Toxicological Research (NCTR)
Nucor-Yamato Steel
OG+E
Pfizer Pharmaceuticals
Philander Smith College
Potlatch Forest Products Corporation
Pulaski Technical College
Rheem Air Conditioning Division
Riceland Foods, Inc.
Signature Bank of Arkansas
Simmons First National Corporation
Stephens, Inc.
Storm Cat Energy
Suez Energy North America
The Clorox Company
The Trane Company
US Bank
Waste Management
Wright Lindsey & Jennings
Calendar of Events
November 11 Small Business Council Meeting
11:30 a.m. to 1 p.m.
Conference Room
State Chamber Building, Little Rock
November 19 New Member Lunch
11:30 a.m. to 1 p.m.
Conference Room
State Chamber Building, Little Rock
December 4-5 Leadership Arkansas Class III
Tourism Session
Eureka Springs
January 12, 2009 87th General Assembly Convenes
January 22, 2009 Small Business Council Meeting
11:30 a.m. to 1 p.m.
Conference Room
State Chamber Building, Little Rock
January 29-30, 2009 Leadership Arkansas Class III
South Arkansas Economy Session
Magnolia
February 23, 2009 Leadership Arkansas Class III
Legislative Session
Little Rock
March 19, 2009 Small Business Council Meeting
11:30 a.m. to 1 p.m.
Conference Room
State Chamber Building, Little Rock
March 26-27, 2009 Leadership Arkansas Class III
Economic Development Session
Fort Smith
May 6, 2009 Small Business Council Meeting
11:30 a.m. to 1 p.m.
Conference Room
State Chamber Building, Little Rock
May 21-22, 2009 Leadership Arkansas Class III
Northeast Arkansas Economy
Jonesboro
June 25-26, 2009 Leadership Arkansas Class III
Northwest Arkansas Economy
Fayetteville
June 26, 2009 Leadership Arkansas Class III
Graduation
Fayetteville
