[Vision2020] Petition

[Jeff Harkins]

It is important to remember that our region has been hit with several 
severe economic blasts - and they are still bouncing around:
    * UI was required to reduce their budgets by $30 million (10 
million a year for 3 years - we are just finishing the second 
year).  This particular impact has about a $90 million impact if the 
velocity of the money is only 3.
    * Fuel/Energy prices took a real surge this fall and the prospect 
for future prices is expected to remain high - at least through next summer
    * Local property taxes took a big hike for many - as 
re-evaluation issues were implemented.
    * Enrollments at UI have been down the past three years (not as 
many fannies in the seats!)
    * Salaries and wages have remained flat (some relief in sight 
with recent salary adjustments, but the overall trend appears to be low)
    * Many positions at UI (previously filled with terminally 
qualified faculty) remain unfilled, with classes taught by lower paid 
instructors and grad students - this will likely continue for awhile.
All of the above impact, negatively, the disposable income available 
to residents.

Smaller businesses usually operate on a rather thin capital base and 
when consumer demand is affected by reduced income/economic pressures 
(as noted above) specialty shops often can't make it.  One real 
advantage for mall type operations, however, is that smaller 
businesses can get in (and out) rather quickly (subject to the terms 
of the lease agreement)

On the positive side, residential construction (spurred by low 
interest rates) helped to ease the full effects of the economic 
pressures noted above on the local economy. But as the proposed 
restrictions for additional development emerge, this aspect of the 
local economy is likewise expected to feel some pressure.

In 2004-05, the Latah - Nez Perce region was one of the only regions 
that did not report economic growth (according to state stats).

When a local economy is dependent mostly on entitlements and other 
transfers from the public sector, the economy is going to be driven 
or challenged by the relative stability of those transfers.  Our best 
prospects for economic stability and growth are going to be found in 
encouraging value-added export businesses to locate here.  Otherwise, 
we will likely muddle around as we have.  I think Pullman and Whitman 
County have figured that out.

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