Save More, Win More, and Nothing to Lose?

April 16, 2013 By

Six Washington credit unions are launching a prize-linked savings program this month. Essentially, credit union members, at the participating credit unions, can open a twelve-month share certificate with a minimum $25 deposit. For that deposit and each subsequent deposit of at least $25, the member is entered into both a monthly drawing and an annual drawing. An individual can have up to 10 entries per month. There are monthly drawings with multiple winners and prizes totaling up to $5,000. The annual prize is $5,000 and will be drawn in April 2014. Even if a participant does not win, that person still has the money that was saved plus any interest earned. A chance to win comes without the risk of losing.

The program is called Save to Win and Washington is one of four states offering the program. The program primarily targets the “un-banked and under-banked” and helps them become prepared to reach their goals and survive every day emergencies. It has been successful in Michigan as well as other countries. However, the program is almost two years in coming. The Washington Legislature and Governor signed the law that permits the credit union to implement the prize linked savings in May 2011. It took a new law because as with most states, only states are allowed to run a lottery and other gambling is prohibited or restricted; the prize-linked savings product is essentially a lottery or gambling program because ultimately it is a game of chance.

So if you are a Washington resident, why not take a chance and save?

Filed Under: Washington Tagged With: ,

What’s different about Jackson Hole Airport?

April 16, 2013 By

Recently, in my post “Hailey Airport at Risk of Closure”, I covered that the Friedman Airport Authority, who operates the airport under a Joint Powers Agreement with Hailey and Blaine County, is bringing suit against the Federal Aviation Administration seeking an injunction to keep the airport’s control tower open in opposition to the slated sequester action to close it.  The Authority is committed to stop the sequester from robbing the valley of its opportunity to succeed. Nobody knows how an airport restriction could affect the Wood River Valley’s economy. In fact, the valley has been fighting tooth and nail for its airport by offering airlines minimum revenue guarantees and fighting for the FAA greenlight on Skywest’s larger and more capable CRJ 700 jets to access the airport. That makes the funding slash so harsh on the community. In direct contrast, however, is the Jackson Hole airport.

 

Every year one of the big events for the Jackson Hole Airport board is the Legislative Issues Conference hosted by the American Association of Aviation Executives. Recently, the Jackson Hole News & Guide covered the Jackson Hole Airport board’s  controversial trip to the conference, this year in Hawaii, and the stunning results of past trips in “Airport leaders fly high in Maui: Airport spends big on annual trip for six to fancy Hawaii resort.” The article juxtaposes the airport boards $35k trip to Hawaii (along with its $800 dinners and $2K rental car fees) against the apparent former results of this high-stakes hobnobbing. As it appears, former trips have led to over $17 million in FAA grants for capital improvement. The airport is in a unique position as the only commercial airport in a national park (Grand Teton NP), a factor that may be relevant in its federal fundraising success. Could the decision to spend big and be well represented, however, have even more to do with getting the grants than any of the airport’s characteristics?

 

In contrast to the entire 6 member Jackson Hole Airport board’s attendance was the single representative who attended on behalf of the combined Aspen, Vail, Steamboat Springs, and Sun Valley.

 

It is overly simplistic to say, “you have to spend money to make money” and there is no documented direct connection between conference attendance and federal dollars. Jackson Hole’s extravagant expenditures, however, seem to have garnered results that justify them.

Filed Under: Uncategorized Tagged With: ,

Idaho Trout Sales are Going Swimmingly

April 16, 2013 By

Trout is big business for Idaho. For at least the past 10 years Idaho has consistently accounted for more than half of the 12-inch or longer trout sales in the nation. And the good news for Idaho is that the trout market is steadily recovering after several years of decline.

In 2007, national trout sales peaked at $79.5 million, with $46.4 million of those sales coming from Idaho alone. However, after the 2007 peak, the trout market gradually declined (like many other economic sectors) until it bottomed out in 2010 at $63.2 million nationally and $33.8 million for Idaho. Since 2010 the market has been in recovery and is now nearing the 2007 peak again. The 2012 trout sales ended at $72.7 nationally and $42.8 million in Idaho.

Randy Macmillan of Clear Springs Foods (a major trout producer/distributor) in Buhl, Idaho was asked what is accounting for the growth, and he believes the growth is likely attributable to a change in consumers attitudes/knowledge regarding the health benefits of seafood. However, other market factors–such as an increase in beef prices and the relatively high price of other seafood–likely also played a part in pushing consumers to a relatively cheaper protein option. Even more, at least one Idaho trout producer found a new way to sell its product in the face of challenges.

The small operation of Wright’s Rainbows in Thatcher, Idaho sought out new ways to sell its product as the children of the founder, Sherman Wright, grew up and moved away. Wright’s has traditionally sold its trout as a food product, but in an effort to find less labor intensive options for selling its product, Wright’s recently began selling live trout to stock ponds.  Mr. Wright now describes his business as selling an experience to consumers instead of merely food. While Mr. Wright may not have changed due to economic pressure, his change was timely and allowed him to maintain his sales. In the end, whatever is accounting for the Idaho’s–and the nations–increased trout sales, this market sector is showing that there is more to Idaho than potatoes.

Filed Under: Economic Development Tagged With: ,

Nike Expansion Pits County v. County

April 16, 2013 By

First, the state made its pitch to Nike when it called a special session in December for the sole purpose of passing a bill to allow the Governor to sign an agreement with Nike to freeze its current corporate tax structure. There were rumors that Nike was shopping other states to expand its headquarters; hence the immediate need for a special session to lock-in the favorable tax structure in Oregon for Nike.

The state has employed an “economic progress” tool called a Single Sales Factor Method tax. This taxing structure only takes into account Nike’s sales in Oregon, rather than its nationwide sales, when determining Nike’s state tax base. Although December’s bill did not have an immediate fiscal impact, the impact will be seen over the next thirty years which is the duration of the agreement; the agreement was signed five days after the bill was passed. So, it seems settled that Nike will expand in Oregon. The next question is where in Oregon?

Now it is up to at least two counties in Oregon to compete for the expansion. Currently the Nike world headquarters is in Beaverton located in Washington County. Nike already owns 28 undeveloped acres there. However, Portland in Multnomah County is wooing Nike with $80 million in incentives including public infrastructure investments such as parking garages, parks, and new streets. The specific piece of property in Portland is part of an urban renewal district allowing city officials to tap into preapproved spending authority. Both Washington and Multnomah counties could try a Strategic Investment Program offering further tax abatements; however the state agreement caps any benefit to Nike from an SIP at $5 million. Ultimately, details regarding any incentive packages are sparse because apparently public officials in Portland have signed nondisclosure agreements. Although Oregon has apparently won, the competition is now county against county to win Nike’s expansion to benefit their group of Oregonians.

Filed Under: Economic Development, Oregon, Portland, Public finance Tagged With:

Idaho Targeting Drones

April 16, 2013 By

The Federal Aviation Administration (FAA) is planning to open six new U.S. test sites for drones in the near future, and the Idaho Department of Commerce is currently trying to position Idaho to be awarded one of these sites. According to Jeffrey Sayer (Idaho Commerce Director), getting one of these test sites in Idaho would give Idaho the chance to be “on the forefront of a really fun industry.” Additionally, the economic impact a drone site could have on the State is also an enticing reason to pursue a bid. Teal Group, an aerospace research firm, predicts a $4.8 billion worldwide increase–from $6.6 billion to $11.4 billion–in revenue in the drone industry over the next 8-9 years.

However, considering current concerns revolving around the use of drones–both in the United States and abroad–the Idaho Department of Commerce may be in for negative backlash as this project goes forward. Briefly, some of the major concerns revolving around the use of drones is that they have typically been deployed in military settings, and there is a very real possibility that they could be used to routinely violate U.S. citizens’ Fourth Amendment privacy rights. Thus, what Mr. Sayer is characterizing as a ”fun industry” is inconsistent with many Americans’ perceptions.

To quell concerns the Idaho Department of Commerce has identified that drones can also be used for scientific research, and that research is a major reason to bring them to the state. Essentially, Idaho has a lot of very rough terrain, and these drones could carry sophisticated sensors that could quickly–and relatively cheaply–provide valuable geological analysis. additionally, lawmakers that support bringing a drone site to Idaho appear to be anticipating the concerns that may arise, and have already begun running several bills through the senate aimed at regulating drone use. In sum, while there may be some serious scientific and economic benefits to having a drone site in Idaho, there are also serious concerns about having drones over-head, and the Idaho Department of Commerce should be prepared for political issues to heat up in the future as drone site plans go forward.

Filed Under: Economic Development Tagged With: ,

Boise Considers Further Foothills Investment

April 8, 2013 By

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Boise recently received good news care of College of William and Mary student Niall Garrahan. The good news? Boise’s 10 million dollar decision to purchase foothills land in 2001 is currently generating $11,809,287 of benefit to the city each and every year. According to the Boise Weekly, Garrahan’s report is one of only a few comprehensive reports of the impact of the major decision. Garrahan’s report was funded by the James Monroe Scholar Program research award and his analysis to determine yearly benefit included  factors such as value of time given by program volunteers, savings from reduced health care spending brought by increased exercise, public utilities costs savings from undeveloped acreage, and increased property values on neighboring properties.

Total market value of Boise’s 10,500 acres of protected foothills space is about 35 million dollars today. In light of this success, Boise Council is considering a proposal to purchase 260 more acres of undeveloped foothills through an allocation of 1.9 million dollars from the Foothills serial levy fund. The  ”Hillside to the Hollow” property runs north of Hill Road between Bogus Basin Road and 33rd. It is currently owned by Boise Foothills LLC (formerly known as DBSI Boise Foothills), a consortium of 51 individuals.

The land purchase would protect seven parcels of land highly regarded by hikers and bikers.

Filed Under: Uncategorized Tagged With: , ,

Hailey Airport At Risk of Closure

April 2, 2013 By

Friedman Tower in Hailey, ID is one of 149 air traffic control towers slated to be closed across the country as a result of federal sequester. The closure could jeopardize Horizon Air and SkyWest’s commercial service to Friedman Memorial Airport. No one is clear about exactly what would happen if the airport tower were to close. That is the scary part.

At the very least it could mean more cancellations and delays. Cancellation and delays, however, could lead to more permanent terminations of service to the airport and the citizens of the Wood River Valley, who have been fighting tooth and nail to get service to support their tourism and business industries. For more information on that fight see other entries under the tag “airports”. 

The Friedman Airport Authority is one group committed to stop the sequester from robbing the valley of its opportunity to succeed. The Authority, who operates the airport under a Joint Powers Agreement with Hailey and Blaine County, is bringing suit against the Federal Aviation Administration seeking an injunction to keep the tower open.

Nicholas Morgan

Filed Under: Uncategorized
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