Regional Business News Briefs

Jul 31, 2008

 
Arkansas
Governor Wants More Business Aid

More money would be put into a fund to attract new businesses to Arkansas and help existing ones under Gov. Mike Beebe's (D) budget proposal for next year. Virtually all of the $50 million originally set aside has been spent or allocated.
Source: Associated Press

Connecticut
Businesses Failing at Alarming Rate

A new report released by the Connecticut Secretary of State confirms that the state's slow economy caused almost 3,000 businesses to close in the second quarter of the year. As further evidence, the study finds the number of business starts in the first half of this year is 1,400 less than the 2007 number, and the number of total businesses operating in the state has steadily declined over the last eight years. Don Klepper-Smith, chairman of the Council of Economic Advisors, says that the study verifies his belief that the state's economy has been in a recession since the fourth quarter of 2007.
Source: The Day

Florida
State Leads the Nation in Job Losses

Florida's jobless rate hit its highest point in 13 years last month, according to government figures released Friday. Florida's unemployment was 6.1% in July, up from 5.5% in June. It was also up 2 percentage points from July 2007. The state led the nation in job losses, with 96,800 jobs gone over the past 12 months, according to figures from Florida's Agency for Workforce Innovation. The state's collapsed housing market was a major reason.
Source: The Miami Herald

Hawaii
Rising Fuel Costs Cause Tourists to Stay on the Mainland

The state's tourism industry is struggling to find ways to attract visitors to the island as a recent report found tourists' arrivals in Hawaii dropped by 14.2% in June and spending by 13.5%. Almost 100 Hawaii tourism leaders met to brainstorm on ways to attract visitors to the island, and called for the lowering of airfare costs. State officials from the Hawaii Tourism Agency have agreed to work with business leaders to give tax incentives and breaks to airlines and airline passengers as a way to encourage people to fly. Officials hope that these measures will increase last minute bookings and ease the 10 to 30% drop in bookings for the fall.
Source: The Honolulu Advertiser

Illinois
Minimum Wage Rises Again
Business owners are beginning to feel the pinch as the state raised its minimum wage for the fourth time in as many years to $7.75 an hour. Businesses say that they will be forced to pass the increased costs onto consumers.
Source: Belleville News-Democrat

Iowa
Smoking Ban Kills Business, Owners Say

Iowa business owners have filed a lawsuit over a state no smoking ban that went into effect a month ago, asking that the ban be lifted until the suit is settled. The group of business owners say the ban unconstitutionally burdens bars and restaurants and argue that their profits have declined by as much as 50% since the ban went into effect. In particular, they point to burdensome requirements to buy "no smoking signs," educate employees and customers about the ban, and unclear inspection procedures. 
Source: Sioux City Journal

Indiana
Oil Refinery Expansion Approved, Under Construction

An oil company has finally won approval for a $3.8 billion expansion project that will employ 2,000 people by 2010. The expansion at the BP Refinery in Whiting, which will increase production by 1.7 billion barrels a day, has been in the works for a couple of years, but lawsuits by environmental protection agencies have held up construction. The final approval came on July 29, and now construction will move speedily, according to company sources.
Source: The Northwest Indiana Times

Louisiana
State Benefits From Offshore Drilling

Louisiana and three other Gulf States entered into an agreement with oil companies, environmental groups, and academic experts last week to promote environmentally friendly ways of drilling for oil and gas offshore. Louisiana's $70 billion oil and gas industry has promised to help restore and preserve the coastal wetlands. Lawmakers hope the agreement will show other states that offshore drilling can produce domestic energy supplies while not damaging the environment.
Source: Stateline.org

Maine
Businesses Face Larger-Than-Expected Utilities Increases

A decision by the state's utilities commission will increase rates for medium and large companies but will also hit small companies when they are already suffering from a soft economy and rising fuel prices. The Maine Public Utilities Commission approved a 20 and 32% increase in the "standard offer" electric rates for medium and large business customers two of the state's power companies. The conglomerate of medium and large businesses account for 25% of the electricity market and negotiate their rates together. However, businesses that are not in the 25% negotiating group will probably face even higher rate increases, according to state chamber of commerce officials.   
Source: The Bangor Daily News

Massachusetts
State Takes Integration Approach to Immigrants

When it comes to immigrants, Massachusetts is the most recent state to adopt an integration strategy—focusing on language, job and citizenship training, as well as access to services such as health care and public safety—rather than cracking down on immigrants. Gov. Deval Patrick (D) recently signed an executive order calling for a coordinated approach to integrating immigrants, who represent 14% of the state's population. An advisory council composed of business leaders, immigrant advocates, academics, and policy makers are holding public meetings across the state and will submit policy recommendations to the governor by July 2009.
Source: The Wall Street Journal

New York
Businesses Encouraged to Go Green
The state is providing property owners with an income tax credit of up to $5,000 for installing a solar thermal energy system. Residential property owners in New York City get a property tax break for installing photovoltaic solar electric systems. 
Source: Times Union

North Carolina
Energy Company Sued
An environmental group is suing Duke Energy Corp. to stop constructing a coal-fired electric plant with state-of-the-art emissions controls that Duke says will exceed federal requirements. Environmen-talists contend that Duke doesn't have a valid air-quality permit.
Source: The Business Journal

Ohio
Sick-Day Proposal May Be Headed for Ballot

A controversial proposal to mandate employee time off for illness will likely be on the November ballot after business and labor union groups could not reach a compromise by Gov. Ted Strickland's (D) deadline. The governor, who fears the measure would hurt Ohio businesses and discourage development, has called for a plan that would provide some level of sick days without unduly harming businesses and the state's economy.
Source: The Plain Dealer

Ohio
Paid Sick Days Causes Controversy

Ohio's November ballot may include a controversial mandate that would force employers to provide all employees with at least  seven paid sick days. Labor unions and other groups support the proposal while the Ohio Chamber of Commerce, the National Federation of Independent Businesses, and other trade groups oppose it. The rival factions have until September 5 to remove the proposal from the ballot. If it does go to election, a recent poll suggests it could pass. According to the poll 71% of Ohio voters support the proposal, while 25% believe it would encourage employers to leave the state.
Source: The Dayton Daily News

Oregon
Seattle Venture Capital Firm Eyes Oregon

A Seattle-based venture capital firm believes Oregon is an untapped, but potentially lucrative market for start-up companies, and it's willing to put money on it. Voyager Capital will open a new Portland office that plans to fund at least two new Oregon companies a year. Voyager's Managing Director Erik Benson believes Oregon offers the perfect environment for new high-tech companies because the state is already home to many research universities, but is still relatively low cost in terms of doing business.
Source: The Oregonian

South Carolina
Public, Private Sectors Work to Turn R&D Into Jobs

South Carolina hopes that by investing in research and development, it will attract technology savvy businesses to the area and boost their glum job market. The newly created Knowledge Sector Council will join businesses and public agencies with universities to channel innovations into job creating companies. South Carolina legislators hope new technology based companies will replace the jobs lost as the state's manufacturing sector collapsed, leaving it with an unemployment rate of 6.2%, 0.7% above the national average.
Source: Associated Press

Vermont
Disabled Group Protests Businesses

A group of disabled Vermonters plastered historic district storefronts last week with paper signs protesting a lack of wheelchair accessibility. Members of Green Mountain Adapt affixed the posters to 29 businesses whose stairway entrances prevent wheelchair users from gaining access. A number of store owners said that the age and design of their buildings pose financial barriers to wheelchair accessibility.
Source: The Rutland Herald

Virginia
Governor Signs Tough IP Law
A new state law clamping down on counterfeiting and piracy went into effect July 1. The law, which is part of a collaborative effort between state lawmakers, law enforcement, and the U.S. Chamber, increases penalties and seizure authority and provides greater protection of all federally registered trademarks.
Source: Office of the Attorney General

West Virginia
'Worst in Show' for Business Environment

For a second year in a row, Forbes magazine ranked West Virginia, whose state slogan is "Open For Business," as having the worst business environment in the U.S. Out of the 32 categories Forbes uses to calculate the rankings, West Virginia ranked 50th in its regulatory environment, 38th in overall economic climate, 45th in quality of life, and dead last in growth prospects. Business leaders and various business associations say that judicial reform is the most pressing issue affecting businesses in the state.
Source: The Register-Herald Reporter

Wyoming
Businesses Compete for Workers

New energy fields have helped job growth in Wyoming become the strongest in the nation over the past few months. However, businesses say the energy boom is pulling jobs away from the service sector and has increased wages, which, in turn, has pushed inflation up. Nationwide, inflation is about 5%; in Wyoming, it's 8%.
Source: Wyoming Public Radio

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