No WhiteWash!

Seasonally Adjusted Rate Down 0.2 Percentage Point from October

NASHVILLE – Tennessee Commissioner of Labor & Workforce Development James Neeley announced today Tennessee’s unemployment rate for November was 10.3 percent, down 0.2 percentage point from the October rate of 10.5 percent.

“As the year ends, we’re seeing evidence the economy is bottoming out and beginning to show some modest employment growth, which is encouraging news,” reported Labor Commissioner James Neeley.

The November rate a year ago was 7.2 percent. The national unemployment rate for November 2009 was 10.0 percent, down from the October rate of 10.2 percent.

Major Changes in Estimated Nonagricultural Employment
October 2009 to November 2009

According to the Business Survey, 7,300 job gains occurred in retail trade; 1,800 in professional and business services; and 1,300 in health care and social assistance. Major employment decreases occurred in durable goods manufacturing, down by 1,800; arts, entertainment and recreation declined by 1,300; and mining and construction declined by 1,000 jobs.

Major Changes in Estimated Nonagricultural Employment
November 2008 to November 2009

Year-over-year increases occurred in health care and social assistance, up by 7,500; federal government increased 1,500; and local government educational services gained 1,100. Manufacturing decreased by 29,800 jobs; mining and construction lost 28,200; and trade, transportation and utilities declined by 23,300.

Middle Tennessee State University has done a great job analyzing the housing market in Tennessee for the 3th quarter, 2009.  In the link below they give data on employment, permits, repeat sales, mortgage tax collections, transfer tax collections, foreclosures, and inventory.

Economic activity contracted again for Tennessee’s economy in the third quarter as aggregate measures of employment continued
to decline and the unemployment rate rose (Table 1).  Nonfarm employment declined more than in previous quarters, with much of the decline centered in manufacturing and construction.

The unemployment rate rose slightly to 10.7 percent from 10.5 percent in the second quarter, but the small increase should not be considered a sign of improvement because total employment continued to drop. The unemployment rate did not rise much because thousands of persons without work stopped searching for employment, shrinking the labor force at least temporarily. 

New claims for unemployment insurance continued to decline in the third quarter but at a slower pace compared with earlier this year (Figure 1). The four-week moving average dropped to 10,031 during the final week of October, the lowest rate since November 2008. Falling initial claims signal that fewer layoffs are occurring, helping to reduce the upward pressure on the unemployment rate. Sustained improvements in the unemployment rate will require more than just fewer layoffs, however; net job creation is needed.

Housing construction and sales provided one of the few positive contributions for the Tennessee economy, but these gains may be tenuous. Sustainable growth in the housing market will require growth of employment and payrolls, both of which appear distant at present.

Read more via  Tennessee Housing Market

Seasonally Adjusted Rate Unchanged from September

NASHVILLE – Tennessee Commissioner of Labor & Workforce Development James Neeley announced today Tennessee’s unemployment rate for October was 10.5 percent, unchanged from the September rate of 10.5 percent.

“While the national unemployment rate increased to 10.2 percent, Tennessee’s unemployment rate held steady at 10.5 percent for the second consecutive month,” reported Labor Commissioner James Neeley. “This continues a pattern of stabilization in most sectors of Tennessee’s economy.”

The October rate a year ago was 6.9 percent. The national unemployment rate for October 2009 was 10.2 percent, up from the September rate of 9.8 percent.

Major Changes in Estimated Nonagricultural Employment
September 2009 to October 2009

According to the Business Survey, 5,300 job gains occurred primarily in state and local government educational services; 5,000 in administrative, support and waste services; and 1,800 in private educational services. Major employment decreases occurred in leisure and hospitality, down by 6,900, mining and construction declined by 2,600, and manufacturing decreased by 1,400 jobs

Major Changes in Estimated Nonagricultural Employment
October 2008 to October 2009

Year-over-year increases occurred in health care and social assistance, up by 6,400; local government increased 3,300; and federal government gained 2,000; manufacturing was down 37,100; mining and construction lost 29,500; and trade, transportation and utilities declined by 28,700.

NASHVILLE – For the third consecutive month in the fiscal year that began July 1, state tax collections fell below budgeted estimates.  Finance & Administration Commissioner Dave Goetz today announced that state revenue collections for October were $698.2 million, which is 1.53% below October 2008 collections.  October collections reflect consumer spending in September.

“October is the 17th consecutive month in which sales tax collections have experienced negative growth,” Goetz said. “We are extremely concerned with the year-to-date negative growth in our tax collections, but we are committed to keeping the state’s budget in balance in a responsible manner during this extraordinary national economic downturn.”

“When the nation’s economy shows a strong improvement, Tennessee will likely follow, but there’s usually a good distance of time between national and state economic trends.”

On an accrual basis, October is the third month in the 2009-2010 fiscal year.

October collections were $31.7 million less than the budgeted estimate.  The general fund was under collected by $24.2 million and the four other funds were under collected by $7.5 million.

Sales tax collections were $38.6 million less than the estimate for October.  The October growth rate was negative 7.80 %. Year-to-date the growth rate is negative 8.47%.

Franchise and excise combined collections for October were $11.9 million, and they were $9.6 million above the budgeted estimate of $2.3 million.

Gasoline and motor fuel collections were $2.1 million more than the budgeted estimate of $71.8 million.  However, the sales tax allocation to the Transportation Equity Fund was a negative $7.8 million.  The net result was a shortfall in the highway fund estimate.

Tobacco tax collections for the month were over collected by $600,000, and October collections were $25.1 million.

Inheritance and Estate taxes were under collected by $4.6 million for the month.

All other taxes were under collected by a net of $800,000.

Year-to date collections for three months were $101.3 million less than the budgeted estimate. The general fund was under collected by $88.2 million and the four other funds were under collected by $13.1 million.

The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the first session of the 106th General Assembly in May of 2009, and are available on the state’s Web site at http//www.tn.gov/finance/bud/budget.html.

View Revenue Collections

Permanent closures to reduce IP’s North American capacity by 2.1 million tons

MEMPHIS, Tenn. – Oct. 22, 2009 – International Paper (NYSE: IP) today announced plans to close its paper mill and associated operations in Franklin, Va., and its containerboard mills in Pineville, La., and Albany, Ore. The company also announced it would permanently shut down the previously idled No. 3 machine at its Valliant, Okla., containerboard mill. The Valliant Mill’s other two machines will continue to operate. These permanent shutdowns will reduce the company’s North American paper and board capacity by 2.1 million tons.

“We recognize these are very difficult decisions affecting our employees, their families and the communities surrounding these mills,” said Chairman and CEO John Faraci. “We have concluded that we have excess capacity in our North American paper and packaging businesses, and these decisions will better match our supply with our expected customer demand.”

Since the onset of the global recession, the decline in demand for International Paper’s uncoated freesheet in North America has accelerated, and consequently the company has decided to further reduce its uncoated freesheet capacity.

In its containerboard and coated paperboard businesses, International Paper expects demand to resume growth as the economy rebounds. However, the company’s demand is not expected to return to 2008 levels in the near future. Therefore, permanent IP capacity closures are necessary.

The closures, which will impact about 1,600 employees, will result in permanent North American capacity reductions as follows:

via International Paper to Shut Down Three Mills

Since the City of Kingsport, Tennessee is buying up real estate, I have included a sample classified ad that could be used by the city.  You can see a list of properties that the city owns by clicking here.  Copy the following in bold, kingsport city of and paste into the Owner Name on the Real Estate Assessment Data form.

Hint:  If you are serious about selling property to the city, then it would be a good idea to become a political ally first with the City of Kingsport elected leaders.

Merriam-Webster – ally

Meaning: someone associated with another to give assistance or moral support <in trying to convince his parents to send him to soccer camp, Toby had a real ally in his coach>

Synonyms abettor (also abetter), backer, confederate, supporter, sympathizer

Related Words well-wisher; accessory, accomplice, collaborationist, collaborator; adjunct, assistant, coadjutor, helper; associate, cohort, colleague, fellow, partner; buddy, chum, companion, comrade, confidant, crony, familiar, friend, intimate, mate, pal

Famous Quotes from the Kingsport Board of Mayor and Aldermen

Mayor Dennis Phillips – ‘We need MeadowView to keep from reducing fire, police protection, and reducing trash pick-up to every two weeks.” October 21, 2008

Mayor Dennis Phillips –“We need to annex so we don’t have to raise taxes”  February 5, 2008

Alderman Munsey – “We need to do the MeadowView expansion to keep from raising taxes” September 15, 2008

Alderman Munsey – Debt is neither good or bad,”   June 3, 2008

Vice Mayor Mallicote – “I do not believe all of the doom and gloom about the economy”.  June 3, 2008

Mayor Dennis Phillips – “If the taxpayers wanted the city to cut the spending, then we could collect garbage every other week”  June 3, 2008

Mayor Dennis Phillips – “If there were no money to spend, then you would not need politicians”  October, 2007

A developer comes from another state and buys the old State Theater on Broad Street in Kingsport, Tennessee.  This developer (Douglas Beatty) starts work to renovate the State Theater building and finds that with the economy and his other investments that it might be better to sell his unfinished State Theater building to the City of Kingsport.

Doug Beatty, the developer has stated that he wants to get out what he has so far paid for the building and renovations which is about $450,000.  He further states that the entire cost to renovate the building would be about $900,000.

It appears that Doug Beatty is well connected with Mayor Phillips, Vice Mayor Mallicote, BMA members and the Kingsport Economic Development Board recently voted to spend nearly $10,000 to fund a study to determine the economic impact of a restored theater in downtown Kingsport.

The Kingsport Times-News reports that Bob Feathers with the Kingsport Economic Development Board believes some type of investment can occur to complete the theater project — regardless of what the economic development study shows.  I guess the question is, why is the city of Kingsport spending $10,000 for a study when they are going to do what they want to do to make this developer happy.

Let the private sector take care of this. The city of Kingsport has no business bailing out someone who got in over his head.  I am sure that there are many folks in Kingsport would like for the city to bail them out of their current financial situation.

During the renovation process, Doug Beatty became aware of apparently paranormal occurrences inside.  According to L.E.M.U.R Paranormal Investigation website, Doug Beatty met with L.E.M.U.R and permitted an investigation.

Kingsport Times-News

“I need to,” he said. “I want to at least get what I’ve got in it so I can satisfy the bank note.”

The theater is now appraised at $1.6 million by private professional appraisers, and at $1 million for county tax purposes.

Beatty said work is still progressing on the theater. But he doesn’t want to invest in any more big-ticket items such as $30,000 in sheet rock or new theater seats, until he’s in a better position or the city moves forward with an acquisition.

“I’ve got two restaurants that I really have to tend to and make sure that they’re able to pay their bills and stay open. That’s really distracting me financially and time-wise from the theater,” Beatty said.

“I really want to get it done, but I’m at a point right now, because the economy has taken so long to come back, that I’m not sure how much more I can plow ahead without putting myself at risk. I want to make sure that I’m acting responsibly and cautiously as it relates to all the development we’re doing downtown,” he said.

Feathers said he believes some type of investment can occur to complete the theater project — regardless of what the economic development study shows.

“I sincerely doubt it will be dropped altogether. But you never know,” Feathers said. “Economies could drive something different from our perspective and what we’re trying to do from an economic development perspective.

“But from a priority standpoint, this is a very important component to what we see as a good fit for the community.”

The owner of the State Theater is DB3 Development Company, LLC and is North Carolina company.  DB3 Development Company, LLC is listed as a FOREIGN company according to the Tennessee Secretary of State.  Below is from the State of Tennessee website

According to Sullivan County, DB3 Development Co LLC also owns property at 227-229-23 Sullivan St.  It appears that there is construction work occurring at this location and the 2008 Sullivan County property taxes are not paid.

Let your Kingsport Board of Mayor and Alderman know your concerns about bailing out one of their pals.  Keep in mind the money spent to buy the State Theater will be your tax dollars.

email Kingsport BMA

• Mayor Dennis Phillips
• Vice Mayor Ben Mallicote
• Alderman Larry Munsey
• Alderman Jantry Shupe
• Alderwoman Valerie Joh
• Alderman Ken Marsh, Jr.
• Alderman Tom Parham

Feel free to leave a comment.

Elected officials have made it difficult for those resorts that receive federal bailout money.  I wonder if there are any plans to rename the Kingsport, Tennessee MeadowView Resort and Convention Center?

A perfect storm of a terrible economy, tight credit and oversupply of hotel rooms has slammed the lodging industry into an epic slump, industry operators meeting in Memphis were told Wednesday.

The thunder that only made conditions worse was when elected officials demonized business travel after some companies that received federal bailout money took lavish trips, hotel and travel business leaders said.

Since then, some hospitality companies have “literally changed the name of their property to take ‘resort’ out of the property name,

Read more via Do not disturb, lodging industry asks during Memphis meeting : Business News : Memphis Commercial Appeal.

And The Winner Is….
Virginia reclaims the title of America’s Top State for Business this year, squeezing past last year’s Top State, Texas, by a nose—just four points. Texas  is still a business powerhouse—the Lone Star State still has the top Economy in the nation despite the falling price of oil, and its Transportation and Infrastructure remain second to none.  But Virginia, always a solid performer across the board, managed just enough improvement in the right areas—like Economy (7 vs. 17 last year)–to regain the title it won in 2007.

• Complete 2009 Rankings
• What’s New This Year
• Full 2008 Results
• Full 2007 Results

Team Madison County, a regional economic development initiative led by the Jackson Area Chamber of Commerce, the Jackson Energy Authority, the city of Jackson, Madison County and the Tennessee Department of Economic and Community Development lands over 400 new jobs in West Tennessee.

If report cards were assigned to industry recruitment efforts, Jackson’s Team Madison County would receive an A+, along with the notation “works well with others.” Working together is what Team Madison County is all about. Team Approach Draws Businesses to Madison County

NASHVILLE, Tenn. — Tennessee Economic and Community Development Commissioner Matt Kisber today congratulated the board of directors and senior leadership of Carlisle Companies of Charlotte, North Carolina on the company’s decision to locate a new manufacturing facility in Jackson, Tenn. The facility will be operated by Carlisle Tire and Wheel, a subsidiary of Carlisle Companies and will manufacture tires, inner tubes and wheels for a variety of vehicles used in the agricultural, all-terrain vehicle, golf, industrial, lawn/garden and trailer markets. The project represents a multi-million dollar investment by Carlisle Tire and Wheel and is expected to create approximately 440 new jobs. The acquisition of the new facility is subject to confirmatory due diligence and is expected to close in late September.

“The people of Tennessee are very grateful to Carlisle Tire and Wheel for the company’s investment in the Jackson community and their confidence in the workers of West Tennessee,” said Commissioner Kisber. “The close collaboration between the state of Tennessee and Team Madison County is yielding results and I’m convinced we’ll continue to see additional investment in the region.”
Read more…