Category Archives: Idaho

Business/Economics, Idaho, U.S.

Government Incompetence: Construction companies say Idaho city driving down the economy with their outrageous construction fees. Is Pocatello violating state law?

“It’s gone up in a period of ten years from about $300 connection fees to about $5,000!”-Al Tetz, BCASE

The Building Contractors Association of Southeast Idaho (BCASE) says the city of Pocatello is charging outrageous, and illegal hook up fees.  And they believe it’s one of the main reasons for the drop in local construction jobs and home sales.

BCASE members also say the huge jump from $300 to $5,000 could be an attempt by city officials to try and make up for lost tax revenues, and millions of dollars generated from those fees have been placed in Pocatello’s general fund, which violates Idaho state law.

The construction organization is suing the city.

Officials with the city of Pocatello have no comment, because they haven’t been served with any notification of a lawsuit (as of December 13).

 

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho Governor finally admits economy sucks, tax revenues continue to crash, not enough jobs

“This recent string of sub-par showings has raised concerns whether the sales tax will be able to recover enough to meet its targets during the important holiday shopping season.”-Derek Santos, Chief Economist for Idaho

After years of being ‘optimistic’ in his rhetoric regarding the local economy, Idaho’s Butch Otter is finally sounding more realistic: “…for both fiscal 2012 and fiscal 2013 to be years of limited growth that will require us to be very selective in the authorization of new general fund spending.”-Clement Leroy ‘Butch’ Otter, Governor of Idaho

If times were bad when he was being optimistic, what’s really gonna happen now?

The reason why Governor Otter is turning down his optimism is that month after month State tax revenues have been much lower than hoped for.  November was no different.  Derek Santos, Idaho’s Chief Economist, says November 2011’s tax returns were 4.1% lower than November 2010.  And last year’s tax returns were down as well.

In fact, sales tax revenues for the first half of fiscal 2012 are already $19 million below what was hoped for!  Income taxes are $6.7 million below expectations!

Idaho’s fiscal 2012 year runs from July 2011 to June 2012.

Economic analysts hope that Idaho will end fiscal 2012 with a surplus of $130 million.  But realize that the State has run through $395 million in reserves since 2009!  Now add to that the fact that analysts also expect tax revenues to continue to drop.  One report said that State leaders did not have a “plan B” for when they run out of surplus money.

The only way that tax revenues will go back up is if a lot of good paying jobs are created. I guess that would be part of any “plan B” that our exalted leaders have failed to come up with.

 

Business/Economics, Idaho, U.S.

Government Incompetence: Mafia Medicare deadline nears, but applications aren’t getting through, if you don’t sign up when you turn 65 you’ll pay for it!

“Some people had difficulty accessing the [Medicare] online enrollment center. Others have not had calls returned due to high call volume.”-Bill Deal, Idaho Department of Insurance

Midnight (00:00 hours) December 8 is the deadline for the elderly getting Medicare applications in, yet many are not going through.  Idaho officials are reporting that phone in enrollments are overwhelming their system.  For those people they will now have until December 10 to enroll.

“We’re seeing various people who delayed enrollment into Medicare for various reasons.”-Frederic Riccardi, Medicare Rights Center

And if you don’t think you need to sign up for Medicare, even though you’ve just turned 65, you’re going to pay for it later on.  Medicare actually penalizes you for not signing up when you become 65 years old.

For those people who enroll in Medicare after their 65th birthday, the government will increase your Medicare premiums by 10% for each year you delay enrollment!

If you’re still a “current” employee, then you don’t need to, but the instant you lose your job you better do it. And you can’t trust Social Security officials to tell you, or even the Medicare handbook, as one man learned the hard way: “On my last day of work, I went to the Social Security office, asking for some guidance.”  “I’ve never had a problem, until I tried to sign up for Medicare.” -Robert Joseph

Joseph lost his job after he turned 65.  Because of bad advise from a local Texas Social Security official, and because he misinterpreted instructions in a Medicare handbook, he waited 18 months after losing his job to enroll.  Now he’s paying a higher monthly premium because of those 18 months he waited!

Medicare is not ‘free’.  You pay for it with the FICA (Federal Insurance Contributions Act) taxes that are taken out of your paycheck.  Then you pay again when you enroll at the age of 65, in the form of Medicare insurance premiums.  And guess what?  You still have to pay out of your pocket for some of your medical care!  Sounds like the Mob is runin’ da joint!

Business/Economics, Idaho, U.S.

What Economic Recovery? SeaPort shuts down route due to bad economy, yet to issue official press release, proof that east Idaho community leaders have head in a hole

On December 4, an east Idaho TV station reported that an airline route from Idaho Falls to Boise will stop service on December 31.

On December 5, the same east Idaho TV station did an update, after they talked to the President of Oregon based SeaPort Airlines.  Rob McKinney said that ticket sales in east Idaho not only weren’t enough, but had steadily declined from their  “…re-launch of flights between Idaho Falls and Boise.” (from July 23, 2011 SeaPort press release) back in July.

I got a response to my December 4 story about SeaPort closing down the IF/Boise/Pendleton route, from someone in the marketing office of SeaPort.  After correcting a few things they also confirmed that sales in east Idaho is just too bad to continue business: “There is an official explanation for the discontinuation of this service; there was not enough passenger traffic to continue flying the Idaho Falls-Boise route.”

By the way, for some reason, as of December 7 SeaPort still has not issued an official press release on their website.  The last press release is dated September 2, 2011.

This comes after months of eastern, and southeastern, Idaho business/community leaders telling us (through east Idaho media) that things were getting better!

Business/Economics, Idaho, International, Technology, U.S.

Global Economic War: U.S. continues investigation into Chinese PV companies. Idaho’s Hoku silicon factory may be ended before it starts. City of Pocatello guilty of the same claims being made against Chinese government. U.S. is new battle ground between Chinese and European companies

The trade war between Chinese photovoltaic companies, and their supposed ‘U.S.’ rivals heats up as the U.S. International Trade Commission votes to continue the Department of Commerce investigation.

I say “supposed ‘U.S.’ rivals” because it turns out the gang leader is owned by a European corporation. Likewise, at least one supposed ‘U.S.’ polysilicon producer is owned by a Chinese corporation.

The U.S. Department of Commerce is set to render a judgment on January 19, 2012.  It could mean that actions will be taken to reduce photovoltaic (PV) products (solar power) coming into the U.S. from China.  China has responded by investigating polysilicon producers in the United States.  Polysilicon is used to make the solar power products.

Hawaii based Hoku International (owned by China’s Tianwei New Energy) announced they will be selling Chinese made photovoltaic modules through a subsidiary called Tianwei Solar USA.  Hoku is about to start up a polysilicon plant in Pocatello, Idaho.  Their silicon buyers are Chinese companies.

So Hoku is set up in a bad position; action by the U.S. government could hurt their new plans to sell Chinese PV products, and retaliation by the Chinese government could hurt their pending polysilicon orders.

But while looking into this mess, I discovered that what’s really going on is an economic war between China and the European Union, with the United States the battlefield.

The U.S. investigation was started by complaints from CASM (Coalition for American Solar Manufacturing).  The lead company in the complaint is SolarWorld Industries Americas.  Their U.S. base of operations is Oregon, but they’re actually a German corporation (SolarWorld) headquartered in Bonn.

CASM’s web site says six other companies operating in the U.S. have joined their organization, but they refuse to name the other members. They also have a interesting slogan (being that SolarWorld is a German company): “Solar technology was invented here [meaning the U.S.], and we intend to keep it here!”

CASM, through the U.S. Congress, recently sent a letter to President Barack Obama (sign by dozens of members of Congress), outlining what they call illegal trade practices by the Chinese government. Some of those practices were employed by the city of Pocatello, in trying to get Hoku to build its long delayed polysilicon factory in Idaho.

One of the claims is that “…cheap or free land from local or provincial governments; extensive tax breaks…”  This is exactly what the city of Pocatello did to win over Hoku.  The land was, in a round about way through huge property tax breaks (equaling the value of the land), given to Hoku.  Union Pacific Railway even got involved.

Union Pacific is going to be the main transporter of the finished polysilicon products.  Recently it was discovered, by Idaho officials, that in the rush (ironic ’cause it’s years behind schedule) to build the factory, that Hoku forgot to build the required double access roads!  Currently the only access to the factory is at the end of a dead end residential street (it was the residents, tired of the traffic jambs, that brought the issue up with officials)!!!  Hoku worked some magic with Union Pacific, who’s agreed to build the access roads.

By the way, one of the individuals credited with bringing Hoku to Pocatello, Gynii Gilliam, is now working at the state level as Idaho’s chief economic development officer.

So, the Europeans (specifically Germans, through CASM) are using the U.S. to launch an economic war with Chinese PV makers, but the charges they’re making against local governments in China are also applicable to local governments in the U.S.!  The pot calling the kettle black.  Unfortunately many ‘mericans (‘specially those working for Hoku, and other polysilicon producers) could actually end up losing their jobs if CASM is successful.

GLOBAL ECONOMIC WAR: CHINESE OWNED HOKU ABOUT TO START OPERATIONS IN IDAHO. WILL U.S. INVESTIGATION INTO CHINESE SOLAR PRODUCTS PUT THE BRAKES ON HOKU’S OPERATIONS?

Business/Economics, Idaho, Technology, U.S.

What Econmic Recovery? Fox cuts ties with Idaho TV station, ends local newscasts, Merry Xmas!

Southwestern Idaho’s KRTV, channel 12, is no longer a Fox affiliate, and it has ended its Boise area news coverage.

“In the spring of 2011, the Fox Television Network and Block Communications parted company. Although we did offer to sign a new affiliation agreement with Fox for KTRV, they chose to move the affiliation to another station.  A network affiliate requires a different business model than does an independent station.  As a result a reduction in staff is taking place this week.”-Bill Lamb, Block Communications

General manager of KRTV, Rick Joseph, said “We have some exceptional people here who put forth a terrific and honorable effort every day.  But the new business model we find ourselves having to adopt does not include news.”

Employee layoffs began December 5.

Merry Xmas!

Business/Economics, Idaho, U.S.

What Economic Recovery? East Idaho airline service shuts down, just in time for Xmas! No more taxpayer subsidy?

Beginning December 31, no more SeaPort Airline flights from Idaho Falls to Boise.

SeaPort Airlines only started the route back in July, and of course local east Idaho officials touted it as a sign of local economic recovery.  Airline officials say they will try to issue refunds for people with tickets for after the December 31 shut down.

SeaPort Airlines is based in Portland, Oregon.  The ending of their Idaho Falls route is a surprise, especially since on November 14 it was reported that they were in the running for a Federally funded route from Jackson, Tennessee, to Nashville, Tennessee.

So far there is no official explanation for the cancellation of the Idaho Falls to Boise route.  Could it have something to do with Federal lawmakers voting to eliminate airline subsidies for regional airport routes that are within a 90 miles (144 kilometers) radius of a major metropolitan airport?

 

 

 

Business/Economics, Idaho, U.S.

Occupy Corporate Prisons, United Police States of Corporate America! Protestors shut down Wells Fargo, because of direct links to corporate prisons, Idaho politicians in the pockets of corporate prisons

On December 2, protestors in Washington DC temporarily shut down the Wells Fargo office.  The reason is that Wells Fargo is a major player in financing corporate prisons.

The OWS protesters say banks like Wells Fargo are profiting from the contracted management of state ‘correctional’ institutes, such as GEO Group managing the Rivers Correctional Institution in North Carolina.

Wells Fargo also supports Corrections Corporation of America, which runs a prison in Idaho known as Gladiator School.

Wells Fargo is also the biggest bank in Idaho.  Reports say Wells Fargo owns 4 million shares in Geo Group, the second largest U.S. private prison corporation, and 50,000 shares in the number one private prison operator, Corrections Corporation of America (CCA).

Also of interest, Idaho politicians, most of them republicans, receive donations from CCA (supported by Wells Fargo).

Here’s a long list:

Eric Anderson (R): $250.00 in 2008

Steven R. Bair (R): $750.00 combined 2006 & 2008

Clifford R. “Cliff” Bayer (R):  $1,550 combined 2006 & 2008

Scott Bedke (R):  $500.00 combined 2006 & 2008

Maxine T. Bell (R):  $1,050 combined 2006 & 2008

Carlos Bilbao (R): $250.00 in 2008

Dianne Bilyeu (D): $250.00 in 2008

Max C. Black (R): $250.00 in 2008

Darrel Bolz (R):  $1,300 combined 2006 & 2008

Bert Brackett (R): $250.00 in 2008

Joyce M. Broadsword (R): $1,050 in 2008

Mike Burkett (D):  $500.00 in 2006

Dean L. Cameron (R): $750.00 in 2008

Marge Chadderdon (R): $250.00 in 2008

James W. Clark (R): $500.00 in 2008

Denton Darrington (R):  $800.00 combined 2006 & 2008

Bart M. Davis (R): $550.00 in 2006

W.W. “Bill” Deal (R):  $750.00 in 2006

Lawerence E. Denney (R): $750.00 combined 2006 & 2008

Julie Ellsworth (R): $250.00 in 2008

George E. Eskridge (R): $500.00 in 2008

Debbie Field (R): $250.00 in 2006

Russell M. Fulcher (R): $1,300 combined 2006 & 2008

Robert L. Geddes (R): $250.00 in 2006

John W. Goedde (R): $500.00 in 2008

Jim Guthrie (R): $500.00 in 2006

Jim Hammond (R): $500.00 in 2008

Phil Hart (R): $250.00 in 2008

R.J. “Dick” Harwood (R): $1,300 combined 2006 & 2008

Margaret Henbest (D): $300.00 in 2006

Frank N. Henderson (R): $750.00 combined 2006 & 2008

Brent Hill (R):  $300.00 in 2006

Mike Jorenson (R): $750.00 combined 2006 & 2008

Kate Kelly (D): $250.00 in 2008

Dirk Kempthorne (R):   $2,500 in 2006

Shawn A. Keough (R):  $1,500 combined 2006 & 2008

Richard D. Kirkham (R): $500.00 in 2006

Steven A. Kren (R): $500.00 in 2008

Raul R. Labrador (R): $250.00 in 2006

Dennis M. Lake (R): $250.00 in 2008

Brad Little (R): $750.00 combined 2006 & 2008

Patti Anne Lodge (R): $1,500 combined 2006 & 2008

Janice McGeachin (R): $500.00 in 2008

John McGee (R): $1,300 combined 2006 & 2008

Shirley McKague (R): $250.00 in 2008

Mike Moyle (R): $1,000 combined 2006 & 2008

Pete Nielsen (R): $300.00 in 2006

C.L. “Butch” Otter (R): $10,000 in 2006

Monty J. Pearce (R): $550.00 in 2006

Ken A. Roberts (R): $250.00 in 2008

John Rusche (R): $250.00 in 2008

Mack G. Shirley (R): $250.00 in 2008

Kathy Skippen (R): $800.00 in 2006

Elaine Smith (D): $250.00 in 2008

Dean E. Sorensen (R): $250.00 in 2008

Joe Stegner (R): $500.00 combined 2006 & 2008

Gerry Sweet (R):  $1,000 in 2006

Richard Wills (R): $250.00 in 2008

Chuck Winder (R): $250.00 in 2008

Fred Wood (R): $500.00 in 2008

Joan E. Wood (R): $250.00 in 2008

Becky Young (R): $250.00 in 2008

Not one Idaho third party candidate took money from CCA!

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho’s unemployed, and underemployed at record levels. More proof that college is a waste of money! And stop moving here, there are not enough jobs for you!

“It would scare the citizens to death and it would make the government look bad. The government wants to look as good as it can.”-Monte Munn, economics professor at Idaho’s Treasure Valley Community College

Munn is talking about the underemployment numbers, revealed in quarterly U-6 reports: “U-6 is a lot more accurate. U-3 greatly underestimates, or understates the real unemployment.”

Monthly unemployment numbers are called U-3, but underemployment is reported every quarter (along with the unemployment numbers) and is called U-6.

As far as the U-6 numbers go, the U.S. Bureau of Labor Statistics reports a seasonally adjusted October 2011 result of 16.2% for the whole country.  Idaho ranks in at 15.9% (according to overall 3rd quarter results)!

(The U.S. Bureau of Labor Statistics calls the ‘U’ measurments “Alternative Measures of Labor Underutilization”. Get it? ‘U’ for underutilization.)

Local Idaho media has been reporting fractional drops in a few monthly unemployment reports for 2011, but, when you look at the IDL’s U-6 yearly percentages, from 2008 to 2010, it’s clear both unemployment and underemployment have gone way up, and the few fractional monthly drops this year don’t mean a thing.

Underemployment numbers not only reveal how many people are working in jobs that don’t have benefits, or jobs that don’t match their level of education or training, but it also reveals the overall quality of jobs available.

The Idaho Department of Labor (IDL) admitted in a 2007 report, they can not count all college educated workers who’re underemployed, which means the actual numbers could be bigger: “…the number of employed job seekers with education who are looking for work is underestimated. Only those who have come through a Labor Department local office are counted, and clearly other employed workers with degrees are looking for better jobs but not through the Labor Department system.”-IDL, Measuring Underemployment in Idaho

 

Pocatello, Southeastern region of Idaho

The IDL just released U-6 data from 2008 to 2010.  By region South Central Idaho has a U-6 ranking of 20.8% making it the number one place for sucky jobs! Eastern Idaho comes in second at 18.3%!  Southeastern Idaho (where I live) joins North Idaho and North Central Idaho in the 14 percentile range.  Southwestern Idaho has the lowest U-6 at 11.7% (still bad).

The IDL even breaks it down by county, so if you want to see how bad your county is (and some counties have U-6 in the 20 percentile range!), then check it out for yourself.

An eastern Idaho TV station interviewed an IDL official, to get his take on why such high U-6 numbers. He blamed the high number of college edjumacated Idahoans, that right, too many highly qualified people living in Idaho: “…I think you would see more of our workers are underemployed, especially if they are zip code attached, where they want to stay here than to get paid more for their education elsewhere.”-Will Jenson, IDL economist

By “zip code attached” Jenson means Idahoans who go to college, find out they prefer the quality of life in Idaho and do not want to leave (I’m in that boat). However, there are very few jobs in Idaho that can pay enough to help you pay back the cost of your college degree.  The fact that there are so many highly educated people in Idaho should attract companies that need higher skilled workers, but, obviously from the U-6 numbers, it isn’t.

There’s another problem, that will eventually bring down the quality of life here in Idaho, people are flooding into the state.  According to the U.S. Census Bureau, the 2010 census count revealed that Idaho is the 4th fastest growing state in the country, at 21.1%.  Come on people, move somewhere else, there aren’t enough jobs here, let alone good paying jobs, for all you all.

As far as unemployed people getting unemployment help (insultingly called “benefits”!), according to the IDL, 11,800 Idahoans stopped receiving unemployment help this year.  Merry Xmas!

 

Business/Economics, Idaho, International, Technology, U.S.

Corporate Incompetence: Could demise of Hewlett Packard’s WebOS end hundreds of jobs in Idaho? HP in bed with Microsoft? We’ll find out in two weeks

“We should announce our decision in the next two weeks. This is not an easy decision, because we have a team of 600 people which is in limbo.”-Meg Whitman, CEO Hewlett Packard

French media interviewed Hewlett Packard’s latest CEO, Meg Whitman.  She says what they decide to do with their WebOS system will affect at least 600 HP employees.

Other media reports confirmed that 525 layoffs, made back in September, were the result of ending WebOS hardware production.  Since August the system has been up for sale, no takers so far.

It’s strange because as recently as July, Stephen DeWitt, head of the WebOS business unit, claimed that WebOS was so versatile that it could be used in a “universe of devices”.

What happened? Executives at HP have decided to use Microsoft’s Windows 8 operating system. In explaining the embracing of Windows 8 Whitman also explained why they canceled their number two selling tablet, the TouchPad: “Internet tablets are mainly used to consume media and e-mails. If you want to use productivity software such as Microsoft, you can not…This is an important area in which we want to go.”  “We stopped using the products that use the operating system WebOS. We will return in 2012. We will have an internet tablet that will use Microsoft Windows 8.”

The new HP tablet that runs on Window 8 is called Slate 2.

Whitman also talked about the high turnover of HP CEOs, and her plans with the company: “HP has had three CEOs in less than two years.  I’m here to stay. Even if my friend Mitt Romney becomes the next president of the United States, I will not join him in Washington.”  “We must invest more in storage, networks and servers to align ourselves with our competitors like EMC and Cisco. Our last server, which uses an ARM processor is more efficient in terms of energy consumption. We need these major innovations to differentiate ourselves.”

In November unnamed sources at HP’s, Boise, Idaho operations leaked word of more layoffs.  Between 3,000 and 4,000 people work at HP’s Boise facilities.  Could the demise of WebOS have anything to do with it?  According to the French newspaper, Le Figaro, Whitman said the world will find out in two weeks.