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It is important to remember that our region has been hit with several
severe economic blasts - and they are still bouncing around:
<ul>
<li>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.
<li>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
<li>Local property taxes took a big hike for many - as re-evaluation
issues were implemented.
<li>Enrollments at UI have been down the past three years (not as many
fannies in the seats!)
<li>Salaries and wages have remained flat (some relief in sight with
recent salary adjustments, but the overall trend appears to be low)
<li>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.
</ul>All of the above impact, negatively, the disposable income available
to residents.<br><br>
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)<br><br>
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.<br><br>
In 2004-05, the Latah - Nez Perce region was one of the only regions that
did not report economic growth (according to state stats).<br><br>
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.<br><br>
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