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Jobs up in Durham but unemployment, too

Durham was one of the few metropolitan areas in the country to gain jobs in 2008, according to N.C. State University economist Michael Walden.

But this is a new year.

Speaking to the city budget retreat this morning on the state of the national and North Carolina economies, Walden said Durham's job base grew by .6 percent last year, thanks largely to the education and health-care base of its economy.

But unemployment went up from 3.7 percent in December 2007 to 6.1 percent in December 2008, and Walden predicted the Triangle's rate will peak at 8 to 9 percent before the recession is over.

That's still the best prospect in North Carolina. Even Charlotte, Walden said, will see unemployment between 12 and 13 percent.

Very stimulating pictures

The economic situation was the top draw for editorial cartoonists over the past week. Also, find one on Guantanamo and another priceless Pett offering.

Keeping an eye on the money

Despite the downturn in the economy, the town of Wendell seems to be faring well from a financial standpoint.

Town Finance Director Butch Kay told commissioners last night that the town is slightly ahead of revenue projections through the first six months of the year and well below projections on spending.

According to Kay's report, the town has collected about 54 percent of expected revenues through the first six months of the year.

Through that same time period, the town has spent only about 39 percent of the money it expected to spend.

Kay is watching the numbers closely, though. October sales taxes, which account for about 20 percent of the town's revenues, were below projects. That's first month the numbers didn't reach projections.

According to Kay, the town needs about $81,700 per month in sales tax revenues to make its budget. Kay is hoping the November and December sales tax revenues will slip back over the $81,000 mark. If they are significantly higher he says, then the pressure to make budget will lessen significantly.

A lag in how sales tax revenues are dispersed means Kay won't see the November revenues for another month. December's figures will come in a month after that.

Wendell Commissioner Carol Hinnant asked Kay to provide commissioners with more frequent updates on the town's finances. Currently, Kay reports to the board once a quarter. He will start providing commissioners with a monthly update starting next month.

Back to the future

Day 2 of Cary's annual council-staff retreat began with a slightly different agenda than Day 1. Much of the first day was spent discussing largely philosophical ideals on how the council could work together as a team -- along with town employees, of course -- and identifying strengths and weaknesses within the town's overall governmental operations.

The second full day was spent in part on more meat-and-bones issues. Interim Town Manager Ben Shivar helped walk the Town Council and Cary's staff through a series of agenda items discussed at last year's retreat in Southern Pines. Shivar and other staff members provided updates on various projects and asked the Town Council to identify those the board would like to focus on in the coming year.

A few highlights:

*Find a downtown development manager. Council member Erv Portman likened the position to the kind of work a mall manager might perform, but added that anyone selected to fill such a post would need to strike a balance between the public and private sectors.

Council member Jennifer Robinson said she envisioned the manager perhaps working alongside officials at the Cary Chamber of Commerce to draw new business downtown. Interim Town Manager Ben Shivar, who will temporarily fill the role, said it was an important role.

"We need someone who can bring focus to that area and direct competing interests," he said.

*Begin planning for a new business park. Interim Town Manager Ben Shivar said that he, along with Cary's economic development manager, would likely meet with staff in Chatham County in coming weeks to discuss an idea to build a new business park that would provide economic benefits to both parties.

Some on the council liked the idea in theory. "I don't think there's anything better we can do from an economic development standpoint than to make sure this is built," Council member Erv Portman said of the concept. "It's a relatively cheap economic stimulus initiative."

But Julie Robison and Jennifer Robinson were among those on the board who urged caution in moving forward with the idea of building in a neighboring county. Both Robison and Robinson suggested as an alternative that the Town Council might want to also explore development near the NW Cary rail station or in downtown.

*Continue promoting 'green' practices. Mayor Harold Weinbrecht expressed a dissatisfaction with the amount of litter he sees along Interstate 40 and suggested an anti-litter campaign as a means of raising awareness of environmental issues.

Ideas proposed for such an initiative included Julie Robison's idea of sponsoring a cleanup day through the Haw River Assembly, a non-profit group helping to protect the Haw River and Jordan Lake. Also, Erv Portman proposed conducting an anti-litter campaign to coincide with Earth Day in April.

The buck stops here

In his 13 years working for the Town of Cary, Interim Town Manager Ben Shivar says he can't recall a year in which the Town Council has held its annual retreat at home. But in a slow economy, money talks.

"The main thing for this year is that, given the current economic situation, the council felt it was important to hold the cost as low as possible," Shivar said.

In keeping with that idea, Cary's council and staff have indeed traded what might be viewed by some as the luxuries of the past -- in recent years, the council has stayed at swanky hotels in Southern Pines and Wilmington -- for the comforts of home. This year's retreat is being held at the Embassy Suites Raleigh-Durham on Harrison Oaks Boulevard.

A cost analysis provided by the town shows that Cary has trimmed its costs for the retreat by about $5,000 when compared to 2008. The total estimated costs this year are $12,900.61. Last year, the town spent $17,954.24.

The biggest savings this year came in the area of hotel costs, which have been estimated at $3,921.65. That's less than half of the $8,622.08 Cary spent on its 2008 retreat at the Mid-Pines Hotel in Southern Pines.

Valiria Willis, Cary's human resources manager, said the difference could be attributed to the fact that no council members or town employees are staying at the hotel. The bill this year primarily includes the costs of food and reservations, she said.

Another break from tradition: Council and staff held only one dinner social this year. On Friday, the Town Council and town employees dined at Maximilian's on Chapel Hill Road at an approximate cost of $978.96.

Also factored into this year's retreat costs are $7,000 to pay for a facilitator and $1,000 in miscellaneous expenses, including travel costs for two guest speakers.

A new logo? In this economy?

The Neuse River Foundation annouced last week that it has, after nearly 30 years in existence, decided to change its name to the Neuse RIVERKEEPER® Foundation. The foundation has changed its logo and tag line too. (As for those nifty brown riverkeeper uniforms, no word yet on whether they're being replaced.)

The foundation's press release announcing the change also included something that we are seeing more and more these days. It seems like whenever a person, group, company or elected body makes an announcement they preface it with some statement about the economy. It's almost like it has become politically incorrect to do or say things without saying the economy is terrible first. Sure enough, the Neuse River Foundation is no exception.

“In these tough economic times", explains Neuse RIVERKEEPER® Foundation Treasurer, Dick Goodwin, in the release, “the Foundation’s name change and logo project were undertaken with a minimal expenditure of funds thanks to the support of the firm of Misner & Associates Public Relations."

We're looking for other examples of people or groups name-dropping the bad economy before making an announcement that may or may not be affected by the recession. Read or heard any?

 

Tuition on tap next week for UNC

Happy New Year!

For the next couple of months, officials with the UNC system and at public university campuses across the state will deal with two intertwined economics issues: budget cuts and tuition increases.

One thing is certain: Budgets are being cut. Less certain is whether tuition will increase at public universities next year, and if so, how much.

Tuition at UNC system campuses has risen steadily over the last two decades or so. In fact, there has been a tuition hike each year since 1989 except in 2005-06, when the UNC system's Board of Governors held tuition steady for in-state undergraduates. It did so then as a step-back-and-take-a-breath measure after seeing tuition rose 80 percent over the preceding four years. 

The UNC system's board subsequently put a series of consistency measures in place, limits that would give campuses guidance when making tuition hike requests.

University officials generally dislike the idea of raising the cost of college, but usually do so with targeted purposes - financial aid, faculty salary increases, graduate or professional student stipends and other support, etc. But this year, with the lagging economy hurting so many North Carolinians, there will surely be a lot of discussion and an extra dose of reluctance to raise tuition and fees.

"We'll be looking at the availability of financial aid and all the things that affect North Carolina families," said Hannah Gage, who chairs the UNC system's governing board. "It is a tough spot. Tuition is never an easy decision. It's made more difficult this year.'

The board will have its first tuition discussion next Thursday morning and will likely make tuition decisions in February.

 

Shop early this spring

If you fall in love with something you see on store racks early in the spring season (like January or February), you might want to grab it before waiting to buy it on sale.


WWD
is reporting today that retailers nationwide are cutting spring orders by at least 10 percent to 15 percent based on continued sinking consumer confidence. Read more here.

 

Pens, Palin and plumbers

Sarah Palin's wardrobe and Joe Biden's gaffes make it into the McClatchy cartoonist roundup this week. As does a tweak against Barack Obama and Colin Powell ...

Give everybody $50,000!

Readers offer more suggestions on rescuing the economy: How about giving $50,000 to each taxpaying American citizen instead? That way, the money will trickle up. What if we made the president and Congress work without pay for a while? These letters appear online only.

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