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Northwest Arkansas sales tax revenue up 16.75% in August report  – Talk Business & Politics

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Northwest Arkansas sales tax revenue up 16.75% in August report  – Talk Business & Politics


Inflation continues to spice up gross sales tax income in Northwest Arkansas’ 4 largest cities, which cumulatively reported a 16.75% acquire from a yr in the past of their August information. The mixed income reported in August totaled $9.216 million, a month-to-month report for the area in August.

12 months-to-date by way of the August report, the 4 cities reported income totaling $77.664 million, up 30.6% from the identical interval a yr in the past.

Bentonville, Fayetteville, Springdale and Rogers every reported double-digit progress from the identical month final yr. The August income is generated from 1% of the native gross sales tax every metropolis collected on items and companies in June. The U.S. Division of Commerce reported shopper costs rose 9.1% in June, the most important enhance in 40 years. The next month the CPI moderated to eight.5% beneficial properties from the prior yr.

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Mervin Jebaraj, director of the Heart for Enterprise & Financial Analysis on the College of Arkansas, mentioned inflation is a part of the income enhance, however so is sustained inhabitants progress and the pent-up demand from customers who’re spending down financial savings collected in the course of the pandemic.

Fayetteville reported income of $2.529 million for the month, up 18.15%. Town has added greater than $19.473 million to its coffers to date in 2022, up 10.7% year-over-year. Devin Howland, director of financial growth in Fayetteville, not too long ago mentioned town’s progress at six new individuals a day has the inhabitants projection reaching 151,000 by 2045. Fayetteville’s inhabitants can be bolstered by a College of Arkansas scholar inhabitants that noticed a 5.4% enhance in scholar enrollment final yr.

Bentonville reported an August income of $2.184 million, up 17.6% from the identical month final yr. For the primary eight months of studies, Bentonville has collected gross sales tax income of $15.87 million, up 13.68% yr over yr. Bentonville Mayor Stephanie Orman instructed Speak Enterprise & Politics town is on monitor to fulfill its budgeted income for the yr.

“Our gross sales tax quantity, which solely makes up roughly 50% of our income, is at present exceeding the budgeted income by way of this level of the yr,” Orman mentioned. “Now we have been lucky with long-term regular progress in Bentonville in key areas of inhabitants, jobs, and growth. The query we’re grappling with now could be how lengthy does this tempo of progress final in these three key financial areas. Each metropolis has its personal distinct alternatives and challenges, and what works for one could not work for one more.”

Orman additionally mentioned financial progress presents challenges in metropolis administration.

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“Our primary concern proper now could be the tempo of inflation and the influence that it has on the capital infrastructure initiatives and companies that we offer. The mixture of workforce shortages, provide chain challenges and unprecedented inflation is driving up the fee to offer metropolis companies to a rising inhabitants,” Orman mentioned.

Springdale noticed a whopping 17.15% in its income reported in August at roughly $2.042 million. Mayor Doug Sprouse mentioned town is in good fiscal form thanks partially to stronger-than-expected income and decrease bills as a result of extra open positions. He mentioned a wrestle for town is to maintain wages excessive sufficient to offset report inflation.

“We’re placing collectively subsequent yr’s funds now, and now we have a conservative outlook given the projected slowdown in 2023 from most economists. We are going to in all probability funds gross sales tax income beneficial properties between 6% and eight%, which we must always be capable of meet even with a slowdown,” Partner mentioned.

By the August report, Springdale’s gross sales tax income totaled virtually $14.849 million, up 19.34% from a yr in the past. Town budgeted for lower than half that acquire.

Rogers is also on monitor for one more report yr of gross sales tax income, posting a acquire of 14.29% within the August report with income of almost $2.461 million. By the primary eight months of this yr, Rogers’ gross sales tax income totals $15.870 million, up 13.68% from a yr in the past.

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Mayor Greg Hines mentioned town has sturdy reserves remaining from the pandemic years when town buckled down on expenditures. Hines mentioned with respect to the funds for subsequent yr, metropolis officers will try to guarantee employee wages are according to offsetting a few of the price of residing will increase. Town gave price of residing raises to all metropolis staff earlier this yr. He mentioned funds expenditures will possible be fairly naked apart from the wage will increase.

“We hear a correction is coming, and it’s wanted, however we don’t know when or how lengthy it’d final. We’re able to climate a downturn right now. We by no means spend all of the income we funds for however we’ll spend the suitable quantity on our workforce and different wanted enhancements to maintain up the inhabitants progress,” Hines mentioned.

He mentioned town just isn’t but seeing any slowdown in large-scale growth plans regardless of the upper rate of interest setting. He mentioned leisure venues within the metropolis are busy with customers attending reveals on the Walmart AMP and the brand new Railyard venue in downtown.

“I’m not gonna say we’re recession proof, however there may be nonetheless super pent-up demand from customers coming off of the two-year pandemic to be out and about even when it’s dearer to take action,” Hines mentioned.

Jebaraj mentioned he believes there’ll possible be an financial dip subsequent yr however mentioned the area seems to be fairly resilient to the inflationary pressures seen this summer season.

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“If there’s a downturn, it’s anticipated to be transient and considerably shallow, however a few of that may rely on how a lot gas costs average within the coming months,” he mentioned.



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Arkansas

Knowing the Florida Gators Opponent: Arkansas Razorbacks

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Knowing the Florida Gators Opponent: Arkansas Razorbacks


Gainesville, Fla. – The Florida Gators men’s basketball team’s next destination is Fayetteville, Ark., as they’ll take on the Arkansas Razorbacks (11-4, 0-2) on Saturday for their third SEC matchup of the season. 

Florida is currently sitting at 14-1 on the season and 1-1 in conference play. They opened their SEC slate with a nail-biting loss to the Kentucky Wildcats, losing 106-100 in Lexington. 

However, the Gators were able to avenge this loss with one of the most dominant wins in men’s basketball history on Tuesday over No. 1 Tennessee. They trounced the Volunteers 73-43 in the O’Dome, marking the Gators’ first regular-season win over an AP No. 1-ranked team in program history and the biggest win over a No. 1-ranked team in the NCAA since 1968. 

But enough about what Florida has done this season, let’s shift the focus to their opponents, the Razorbacks, and see who they are. 

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Arkansas’ season started out nice with a win over Lipscomb. However, it wouldn’t be the same for them in their second game of the season against then-ranked No. 8 Baylor, as they found themselves on the losing end of a tightly contested battle. 

Then, following a good stretch for the team in red, they were tasked with the current No. 13 in the AP Poll, Illinois, and things wouldn’t go so well for new Razorbacks head coach John Calipari. His team was outclassed in this game 90-77, which ended their winning streak at four. 

Arkansas did make amends with their fans a few games later, though. While participating in the Jimmy V Classic, they matched up with then-ranked No. 14 Michigan, who they narrowed past 89-87. 

This win over the Wolverines helped maintain a three-game win streak that would eventually turn into a six-game streak. However, since SEC play started for the Razorbacks, they are 0-2 with losses to Tennessee and Ole Miss, who are currently ranked in the Top 25 AP Poll. 

These pair of losses put Arkansas at just a 1-4 record against teams on their schedule to have been ranked or that are currently ranked.

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While it was a complete roster overhaul for Calipari and the Razorbacks this offseason that was fueled by the transfer portal, their biggest grab has been from the high school ranks. 

They added highly ranked players like Johnell Davis, Adou Thiero and Jonas Aidoo all from the portal, but it’s former five-star guard Boogie Fland who’s been arguably the best player for the Razorbacks this season. 

Fland is averaging 15.5 points, 5.9 assists and 3.6 rebounds per game through 15 games this season. He is also connecting on 35.7 percent of his threes, which shows he’s more than just an inside scorer. Additionally, his 5.9 assists rank 24th among his competitors. 

But in these first two SEC games, Fland is just 10-for-35 from the field and 3-for-17 from deep. 

If the Gators can’t keep him in check like he’s been over these last two, then it might be a long afternoon for the visitors on Saturday. 

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Despite bringing in tons of talent that should’ve resulted in a great offense, Arkansas has been anything but that. 

They currently rank inside the bottom five teams in the SEC in scoring offense, averaging 79.4 points per game. They do have two players scoring at least 15.0 points per game, but that’s pretty much it. Outside of Thiero (16.9) and Fland, they only have one other player in double figures (DJ Wagner, 10.5). 

Moreover, if this becomes a free-throw-dominated affair, the Gators shouldn’t be too worried about the Razorbacks’ performance at the line. They are shooting 71.1 percent from the charity stripe, which is good for 12th in the league. 

And, lastly, they have little to no presence on the glass. They are the worst team in the SEC in offensive rebounding, and they are 13th out of 16 teams in overall rebounding. These are two areas where the Gators dominate, and if things play out like they have been this season, then the visitors should outmuscle their counterparts. 

This game will be televised on Saturday at 4 pm on ESPN. 

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Viewer pictures: The Natural State transforms into a winter wonderland

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Viewer pictures: The Natural State transforms into a winter wonderland


LITTLE ROCK, Ark. – A winter storm rolled into Arkansas Thursday and brought with it snow to the majority of western and central Arkansas.

Many from around the Natural State sent in pictures of their area covered in snow.

Though Arkansas is already full of natural beauty, there’s something about the state covered in snow that makes it even more of a winter wonderland.

Several kids from around the state got out and took advantage of the day off of school by throwing snowballs, digging up the snow, sledding and of course making snow angels.

Many who got out in the snow had enough accumulated to make snow men.

Share your snow day pictures at KARK.com/winter-pics.

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Arkansas Blue Cross & Blue Shield Lays Off About 75 Workers, Reports $100M Loss

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Arkansas Blue Cross & Blue Shield Lays Off About 75 Workers, Reports 0M Loss


Arkansas Blue Cross & Blue Shield sent layoff notices to 2% of its workforce — about 75 employees — on Thursday after reporting a loss of more than $100 million in the first three quarters of 2024, the state’s dominant health insurance carrier confirmed.

The Little Rock nonprofit had 3,375 employees as of April 2024, and its $3.14 billion in 2023 revenue put it at the top of Arkansas Business‘ most recent list of the state’s largest private companies. 

But revenue in the first three quarters of 2024 was down by almost 7%, and the company (officially USAble Mutual) reported to the Arkansas Insurance Department a net loss of $100.5 million for those nine months. That compares with net income of $94.7 million for the same period in 2023, although the year finished with net income of just $13.2 million.

“The reduction in workforce was due to changing conditions in the market and increasing financial pressures primarily due to health care costs jumping to the highest levels in more than a decade,” Max Greenwood, an ABCBS spokeswoman, said in response to email questions Thursday afternoon. 

ABCBS also has seen “large increases” in the use of all medical services, especially prescription drugs.

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“These situations have caused necessary shifts in business strategy across the health care and health care insurance industries,” she said.

In addition, the insurance company lost tens of thousands of members as result of the state’s disenrollment of tens people on Medicaid in 2023. 

As part of the Obama-era Medicaid expansion, the state pays private insurers to provide health insurance policies to qualifying Arkansans under the Arkansas Health & Opportunity for Me program, or ARHOME. This program had been known as the “private option” and Arkansas Works.

In January 2023, ABCBS had about 207,000 ARHome members. By December 2024, it was  down to 108,729, Greenwood said. 

“We’ve also seen a drastic increase in the claims amounts among our ARHome population,” she said. “Remember, since we were the first company who offered ARHome policies statewide when the program began, our block of members in that program is older and most likely unhealthier than what other carriers may be experiencing.”

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ABCBS’ premium revenue fell during the first three quarters of 2024. It reported $2.2 billion premiums collected net of reinsurance through Sept. 30, a 4.8% drop from the same period in 2023.

The insurance company’s total members also fell from 630,444 on Dec. 31, 2023, to 598,492 on Sept. 30. The biggest drop came from its comprehensive individual plan. In that group, the total members fell nearly 17% to 132,596 members. 

ABCBS also laid off 85 employees in January 2024. Those positions have not been refilled, Greenwood said.

She said it was too early to tell what the financial numbers will look like for the fourth quarter, which ended Dec. 31. No additional layoffs are planned at this time.

“Every executive vice president was asked to make reductions in their areas,” she said. 

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Greenwood said the insurance company has made several other budget-tightening moves for 2025. “We’ve reduced our budget by more than 7% including cuts to consulting and outside vendor costs, contract labor, software and equipment and facility costs,” she said. “We’ve also had to implement substantial premium increases on our small and large groups.”

Greenwood said the company has a strong balance sheet and has no concerns about its liquidity.   

Founded in 1948, Arkansas Blue Cross & Blue Shield offers health and dental insurance policies for individuals and families. 

 

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