Recession – Event Planer Fri, 11 Jun 2021 22:15:00 +0000 en-US hourly 1 Recession – Event Planer 32 32 Local networking group helps Saint-Louis job seekers find support and new careers after pandemic recession | Subway Fri, 11 Jun 2021 22:15:00 +0000

Sending dozens of applications online can be daunting and lonely, he said. Often there is no turning back. This is why he enjoyed the in-person networking events organized by the Job Seekers Garden Club. He even started volunteering with the group, hosting a coffee shop and networking event on Tuesday., June 15 at Kaldi’s cafe in Chesterfield which he hopes to have a monthly rally. Job seekers are welcome for morning coffee, which starts at 8:30 a.m.

Brian Young, co-owner of Chesterfield-based recruiter RockIt Career Consultation Services, said he suspected openings for senior positions would increase as the economic recovery continues.

“Your front-line workers, your hourly workers, are the ones they’re really trying to hire right now,” Young said. “As these are filled and the teams grow, they will need more leadership positions. We are only going through the first stages of a cycle.

The Job Seekers Garden Club started out as a small group on the social networking site LinkedIn run by Kolf, a retired civil engineer who did consulting work for RockIt. But when the pandemic hit and some 180,000 jobs in the metro area disappeared, “I started connecting like crazy,” Kolf said.

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Tiffany Hill-King of Belleville found the group when it was still a small LinkedIn group. She started attending events as she sought a higher level job than her old job at a bank. Kolf helped coach her on salary negotiations and interviews, and she was able to land a new job amid the pandemic. During one of their monthly lunches, she said her group was a lot like watering seeds – and the Garden Club name stuck.

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Great Value Rotation May Be Over As Investors Reclaim Technology Fri, 11 Jun 2021 10:49:42 +0000

Traders at the New York Stock Exchange (NYSE), May 19, 2021.


Is the large value rotation complete?

The S&P 500 is at an all-time high, but investors who earlier this year overweighted their portfolios in reopening stocks like Caterpillar and banks, and away from tech stocks and other growth stocks, appear to be rethinking that strategy.

Many companies associated with the “reopening” of the trade peaked in April or early May:

Cyclical actions

Cyclical actions % discount on 52 week tops
Whirlpool 14%
United Rentals 14%
Deere 15%
caterpillar 8%


Material stocks 52 week highs
Vulcan materials 11%
CF Industries 6%
Martin Marietta 8%

Home construction and improvement

Home construction / improvement 52 week highs
Mohawk 18%
Lennar 18%
DR Horton 18%
Pult 16%

Now, a final stage of so-called “value” trading is also cracking this week: banking.

Banks down this week

Banks this week
Regional finance down 6%
Huntington Bancshares down 7%
Zions Bancorporation down 5%
KeyCorp down 5%
Bank of America down 4%
JP Morgan down 3%

Instead, investors have started to look to old-fashioned growth stocks.

Thursday saw new heights at Cisco, Alphabet and IBM. But perhaps more importantly, once heavily disgraced speculative growth stocks, many of which are associated with Cathie Wood’s ARK funds, have started to rebound.

Speculative technology

Speculative technology Since May 12
Zoom video up to 15%
Roku up 11%
Shopify up 11%
Spotify up 8%
Teladoc up 6%

The evolution of market discourse

What is happening?

The market narrative is changing. The first quarter scenario was that the reopening would be very strong, bond yields would rise and inflation could be an issue later in the year.

It was only partially correct. The reopening has been strong, but bond yields have fallen rather than risen as investors have come to believe 1) that inflation and supply chain problems may indeed be ‘transient’ or temporary, as ‘insisted the Federal Reserve, and 2) the second and third quarters are the best in terms of earnings and economic growth.

“Value trading is happening and growth bulls are winning,” Alec Young, chief investment officer at Tactical Alpha, told me. “Bond yields are a proxy for growth prospects,” he added, noting that bond investors expect moderate inflation and a slower rate of growth (although still positive) in the second half of the year.

The result: Investors stay in the market, but they turn to the defensive (health) and growth (technology). Once crowded trades like cyclicals and banking that are associated with “value trading” are now retreating.

Why would investors turn to growth stocks if growth is slowing?

“Value is a more economically sensitive sector as value is weighted towards industrials, energy, materials and small caps,” Young said.

“At the start of the business cycle, coming out of a recession, there is more leverage on the earnings of value stocks, so they are a better investment,” he added.

“The problem is, everything has been compressed,” Young said. “We entered a recession very quickly and came out of it quickly, in part because of all the stimulus. Growth stocks now offer more reliable growth and are less subject to the vagaries of the business cycle.”

In a recent note to clients, Ben Snider and David Kostin of Goldman Sachs agreed. “History, valuations, positioning and economic deceleration indicate that most of the turnover [from growth to value] is behind us, ”they said.

Because it was a “crowded” (overweight) business, Goldman suggested that many players are likely caught offside. “Mutual funds overweighted value to a greater degree than at any time in our eight-year data history,” they said. “Hedge funds remain growth oriented, but this tilt has recently fallen sharply and is now at its lowest for more than five years.”

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Consumer prices have risen the most since the Great Recession Thu, 10 Jun 2021 17:40:57 +0000

DENVER (KDVR) – Prices continue to climb across the country, continuing a trend that has been occurring since the start of the year.

The U.S. Bureau of Labor Statistics released its monthly Consumer Price Index report on June 10. All items are 5% more expensive than a year ago.

This is the second consecutive month of unprecedented price increases since the Great Recession. April’s price increases have been invisible since September 2008, and May has seen year-over-year price spikes unprecedented since August 2008.

“The consumer price index for all urban consumers (CPI-U) rose 0.6% in May on a seasonally adjusted basis after increasing 0.8% in April, the bureau reported today. of Labor Statistics in the United States, “the statement read. “Over the past 12 months, the All-items index has increased 5.0% before seasonal adjustment; this is the largest 12-month increase since an increase of 5.4% for the period ending August 2008. ”

Nationally, year-over-year prices have increased every month since last fall.

No price category went down, but some categories caused the overall price increase.

These regions were understandably depressed during the throes of last year’s pandemic. Now, as Americans with good savings reappear from their homes, pent-up demand drives prices up.

Gasoline, energy, and used cars and trucks experienced some of the strongest year-over-year growth.

Gasoline prices rose 56.2% in May from a year ago, the largest 12-month increase since 1980.

Energy commodities are up 54.5% and used cars and trucks are up 29.7% over the same period.

Prices have continued to climb month over month and have accelerated since last fall.

For all items, the monthly price index rose 0.6% in May from the previous month. Only certain sections of the energy sector did not see a month-over-month price increase in May.

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Oakland County’s economy is key to the state’s future: here’s the forecast Wed, 09 Jun 2021 22:57:42 +0000

to play

Oakland County’s labor market is recovering slightly faster than Michigan’s as a whole and soon – through 2022 and 2023 – the county is set to “make a strong economic comeback,” economists say from the University of Michigan.

As of April 1, the county had recovered about 60% of its initial pandemic-related job losses, placing it roughly in line with Michigan’s overall recovery, UM experts said. And the county is expected to gain 4.1% of jobs this year, 4.6% in 2022 and 2.5% in 2023.

This should be good news outside the county as well as inside, as Oakland County has been the main driver of Metro Detroit for years when it comes to advanced jobs and export growth. of State. UM experts presented their 36th annual forecast to senior Oakland County officials on Wednesday, as well as gatherings of small business owners in Birmingham and manufacturing executives in Troy.

Oakland County’s generally high education level and abundance of quality jobs mean that workers in well-paid production and professional jobs will pull Oakland County out of its pandemic-induced recession, said Gabriel Erhlich, director of the UM research seminar in quantitative economics.

“The main cloud on the horizon is that we expect the recovery in low-wage jobs to be slow,” with entry-level service jobs “not fully recovering in our forecast” until 2023, said Erhlich. This prompted Oakland County Director David Coulter to say that it was not enough to help young people enter and pay for college or specialized training after high school, but that “we have to get them. get them to graduate ”.

Coulter said he wanted to provide what he called “education hubs” who could guide, counsel and encourage students with the goal of reducing dropout rates. Coulter’s administration already has an ambitious program in place to get at least 80% of county residents to complete college or other “certified training” after high school by 2030, well above the target. 60% approved by Governor Gretchen Whitmer for all of Michigan. .

After: Economic rebound fueled by vaccines expected in 2021

After: Report: Oakland County Loses 25% of Small Businesses, 156,000 Jobs Due to Pandemic

In 2019, only about 45% of adults in Michigan had post-secondary credentials, according to a study by the Lumina Foundation, which ranked Michigan 32nd nationally in adult education. Economists and employers have said such qualifications are essential if Michigan and the country are to remain competitive amid strong global competition for advanced jobs.

During the 2020 recession, Oakland County and Michigan overall saw their average real wages rise by just over 6% in the county and just under 6% statewide, according to the report. But what looks like a welcome pay rise is actually a “disproportionate loss of lower-paying jobs compared to higher-paying jobs caused by the COVID-19 pandemic,” and “few individual workers have experienced wage increases. of this magnitude, ”the economists mentioned.

Plus, thousands of low-wage workers aren’t just working, they’ve stopped looking for work, said Donald Grimes, regional economics specialist for the UM team.

“If people don’t re-enter the workforce as we expect, it will become even more difficult to find new workers to hire than we currently think,” said Grimes. News reports in recent weeks have cited low-wage employers in service sectors such as restaurants complaining that generous unemployment benefits during the pandemic have discouraged many low-wage workers from returning to work.

Relaunching small businesses will be particularly difficult, UM experts said. Other forecasts have already predicted that across the country, countless dry cleaners, independent restaurants and small retailers are likely to be shut down forever after losing a vital face-to-face business during the pandemic, with consumers passing in droves. to online shopping.

To save the small businesses that remain, Oakland County will offer a two-for-one match of county funds with local community funds “to keep these businesses open for the next six months or so,” Coulter said. Local community leaders will take the nominations and decide who is eligible “because they know where the needs are,” he said. The aid will be in addition to “the $ 90 million already provided to restaurants and other small businesses,” said Oakland County Commissioner Dave Woodward, D-Royal Oak, who chairs the county board of directors.

“No other county in the state has provided so much help to small businesses” during the pandemic, Woodward said.

Wednesday’s economic presentation focused on three sites linked by the Internet. UM economists spoke alongside senior Oakland County officials in the county executive building. A group of manufacturing executives met in Troy at the offices of Automation Alley, the nonprofit business advocacy organization founded by former county executive L. Brooks Patterson. And small business owners have gathered to look in Birmingham at Hazel, Ravines & Downtown, a restaurant so named because its location is one block from Maple Road and Woodward Avenue – where three neighborhoods with those names meet. .


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2 ASX growth stocks that are almost recession-proof Wed, 09 Jun 2021 07:08:34 +0000

The share price of Pro Medicus Limited (ASX: PME) and Xero Limited (ASX: XRO) survived the pandemic and then thrived. How did these two ASX stocks prosper in these difficult times?

Customer loyalty and a stronghold track record played key roles for both of these companies.

Pro Medicus share price

Source: Rask Media PME share price chart over 2 years

Pro Medicus develops and delivers medical imaging software and services to hospitals, diagnostic imaging groups and other health related entities.

Customer contracts are usually multi-year contracts and once the software is installed it becomes an extremely sticky product.

Before the pandemic, Pro Medicus had already secured many of the largest hospitals in the United States. While it’s important to have a financially strong customer base, I think it’s even more important to have a critical product.

Pro Medicus proceeds are important regardless of the state of the economy as hospitals continue need use the software to perform its functions.

Its strong, debt-free balance sheet, backed by $ 38 million in cash in December 2019, has helped the company weather the headwinds in the economy.

Xero share price

Source: Rask Media XRO share price chart over 2 years

Xero is the leading provider of business and accounting software in Australia and New Zealand and is growing rapidly in the UK and US.

This company is another that offers a mission essential product. Will businesses still need to use accounting software during a recession?

It’s a resounding yes from me!

I think changing management / accounting software would fall to the bottom of the business priority list in times of economic crisis.

Churn rates increased slightly in the first few months of this year, before dropping below pre-COVID 19 levels, illustrating the rigidity and value of Xero’s products.

Although Xero’s balance sheet is made up of debt, it is strongly supported by large free movement of capital as shown below.

Source: Investor presentation XRO FY21

In addition, Xero’s current assets far exceed its current liabilities.

As you can see, the combination of a loyal clientele and a great balance sheet is essential to withstand adverse economic events.

This is what I am looking for as part of the Rask investment philosophy.

If you’re looking for ASX small cap stocks that could become the next Pro Medicus or Xero, check out the Rask Rockets Beyond program. Hurry, the mission opens to new members this Thursday evening!

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UK housing market ‘on fire’; register job vacancies in the United States; Production in German factories plummets – as it happened | Business Tue, 08 Jun 2021 17:58:23 +0000

Time for a recap

The chief economist of the Bank of England has warned that the UK property market is “on fire”.

Andy Haldane said government tax breaks for home buyers and increased demand from wealthier households with more savings following coronavirus lockdowns were pushing up prices and predicting they would worsen inequality.

Haldane said at a virtual conference on inequalities hosted by the University of Glasgow.

“As it stands, the UK housing market is on fire”,

“There is a significant imbalance between the nascent demand and the available supply of housing, and because the laws of economic gravity have not been suspended, the result is a fairly sharp increase in house prices.”

The number of job vacancies in U.S. companies hit an all-time high, with around 9.3 million job vacancies in April. The proportion of people leaving their jobs, perhaps for a better-paying opportunity elsewhere, has also reached record levels.

The World Bank has raised its forecast for global growth this year to 5.6% this year, but has warned that vaccine inequality means poorer countries are lagging behind.

Massive internet blackout affected websites including the Guardian, the UK government’s website, Amazon and Reddit, leaving some sites inaccessible for more than an hour Tuesday morning.

Shares of Fastly, the source of the problem, have jumped 7% since the issue was resolved, highlighting the crucial role of its content delivery network service (when it works, anyway)

German factories suffered a surprise drop in production, due to the shortage of key components such as computer chips and the impact of the closure of the Suez Canal.

Cryptocurrencies fell sharply, with bitcoin dropping to around $ 32,000.

the London Metal Exchange, the last remaining in-person trading floor in Europe, will reopen on September 6 after its management decided not to permanently close the trading ring, which has been operating since 1877.

Experts have warned that U.S. tech companies, including Google, Amazon and Facebook, could pay lower taxes in the UK and several other major economies as part of global reforms agreed to by the G7 over the weekend.

In a key stumbling block emerging days after the landmark deal, research by campaign group TaxWatch indicates the UK Treasury stands to lose around £ 230million in taxes paid annually by four of America’s big tech companies.

Here are some more stories from today:

Good evening. GW

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Why Marketing Is Now Essential In Business Mon, 07 Jun 2021 22:55:41 +0000

If you own a business during a recession, are you going to cut marketing expenses or keep them going? Just like in budgeting, to make money, you either earn more or you reduce your expenses. Either way, the cash outflows should be smaller.

In this recession, the money that is circulating is definitely less. The first reaction is to cut the budget by marketing. However, some companies have not cut their ad spending. Much like a paradox, what they have done is actually the opposite.

They have maintained and even increased their marketing budget. Some of these companies saw opportunities in a recession. Those companies that continued to spend on advertising increased their sales, dominated the market or innovated in the sector.

Here are a few companies that have beaten all the odds during a recession.

1. Papa John’s

Have you ever heard the adage that you don’t take your foot off the gas pedal? If you do, it will only slow down your opportunities (to win).

Papa John’s is an example of a company that has increased its marketing budget by investing in new kitchen equipment such as dough dryers. They also increased productivity by reviewing and making adjustments to how employees can prepare pizza faster.

Besides increasing productivity, their marketing department has taken its time to shine with the rollout of Papadia Flatbread Quesadillas, Stuffed Crust Pizza and Shaq-a-Roni Pizza. The Papadia was presented last January and delivered strong sales growth of 21%.

Without any sign of stopping the commercials, Papa John also continued to practice ‘fortress‘or create more locations close to each other, shorten delivery times and fulfill more orders.

2. Kellog’s

Out of sight out of mind. During the Great Depression, Post was the number one choice for ready-to-eat cereal. However, they have reduced their ad spending. As a result, Kellogg’s doubled its advertising budget and people started seeing more of Kellogg’s.

As a result, profits increased by 30% and the company has now become the High choice for cereals ready to eat for so many years.

“Never miss an opportunity like a good recession.” – Jack Welch.

3. Airbnb

Sometimes an existential crisis can bring out what is really important. You might have that mother-in-law who turned sweet after surviving cancer or a parent who kicked her lazy 50-year-old daughter out of her house after having a heart attack.

For Airbnb, the existential crisis that brought clarity was COVID-19. After a historic plunge of 72% in April 2020 Compared to the previous year, Airbnb finally recorded a gross bookings increase of 1% in June 2020.

During this pandemic, the marketing team was on fire, focusing on how to improve cash flow. After hundreds of brainstorming and analysis, Airbnb is now seeing revenue.

How did they do it?

Airbnb has returned to its core business host and deliver experiences. Investments that had nothing to do directly with this core business were reduced. Due to travel restrictions, rental of local stays has surged. In addition, marketing introduces Online experiences, which turned out to be a success.

4. Burger King

Pre-pandemic, Burger King still struggled with erthis problem accuracy of food ordering, speed of payment and delivery, and in-store layout issues.

However, with a high probability of being infected with COVID-19 through contact, Burger King has introduced two restaurant designs with a 100% contactless experience. Using the Burger King app, customers can park at the restaurant and have food delivered to the curbside pickup areas.

Because experts see the COVID-19 virus coming back steadily despite the vaccine and declining cases, many have said these types of innovative restaurants would be the most appropriate. And addressing the three issues mentioned, this contactless setup is effective. More importantly, he is facing the post-pandemic world head-on.

5. Amazon

Who doesn’t know KIndle? How can you forget how Amazon sales grew during the 2009 recession? Profits rose to $ 199 million, 68% more than the same period a year earlier.

New Kindle products were introduced in 2009, helping to generate more interest in eBooks than printed books. Kindle products have become Amazon’s top-selling item across all of the website’s product categories. As a result, sales increased more as Amazon has become known as a company offering lower cost alternatives.

6. Asos

This forties, Asos has adapted quite effectively. The world’s largest online-only fashion retailer has put the spotlight on exercise and loungewear, including some gadgets for remote work. New clothes focused on these two niches are introduced almost every week, offering diversity to shoppers twenty years and older. As a result, sales increased, with a quadrupled upward peak in profits.

In October of last year, its customer base soared to 23.4 million, adding another 3 million buyers to its already delusional customer base.

Additionally, Asos is known for their agility in delivery and returns, and they still practiced this strategy. In addition, the company purchased the Topshop, Topman, HIIT, and Miss Selfridge brands earlier this year.

7. Uniqlo

Many establishments have closed due to the pandemic, but not Uniqlo. On the contrary, the Japanese casual clothing giant has even increased their numbers, including a larger interactive space and a combined store and museum in Tokyo.

Their marketing and design team must be in the new cloud as sales have recovered during the pandemic. The Uniqlo mask with its breathable AIRsm fabric took off, the item being the hook or the inspiration for visiting stores.

Fearing a drop in revenues, businesses in times of recession typically cut back on marketing spending. As in 2008, advertising spending in the United States decreased by 13%. However, there is some evidence that even in times of recession, some brands are doing well after all.

“A man who stops advertising to save money is like a man who stops a clock to save time.”

– Henry Ford

Times are different. Current technology ensures that we can still see and hear advertisements digitally. Unless your sales drop or your business is bleeding profusely, it doesn’t make sense to stop marketing. Remember that while people can see or hear your product, more often than not they will buy it.

Posted on June 7, 2021

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Faced with $ 7.9 billion affordability gap, Sound Transit examines options Sun, 06 Jun 2021 23:12:05 +0000

SEATTLE, Washington, June 6, 2021 – Following an unprecedented event affordability gap of $ 7.9 billion, up from $ 11.5 billion, Sound Transit is considering realignment strategies to ensure that projects approved by voters – ST-2 and ST-3 – stay on schedule due to the combined effects of the pandemic and increased cost estimates.

Despite these major setbacks, Sound Transit assures the Lynnwood Times that the extension to Northgate and Lynnwood will not be affected.

“Construction of our tram extension to Lynnwood is on track and is scheduled to open in 2024. This project and all other projects already under construction are moving forward without going through the realignment process. By 2024, we are on track to nearly triple the length of the region’s light rail system from 22 to 62 miles, ”said Geoff Patrick, deputy executive director of communications for Sound Transit.

However, in a Special board meeting Held on June 3, all proposed realignment strategies have the Lynnwood-Mariner extension to complete 2038 delayed by 2 years from its original 2036 date, and the Mariner-Everett link delayed by five years to 2041. Still, this parking lot for the Everett link is delayed by 10 years and should be completed in 2046.

In addition, $ 40 million to improve access to Edmonds and Mukilteo stations for runners are also proposed to be delayed by 10 years and are expected to be completed in 2034.

To view the realignment strategies proposed at the June 2 meeting, click on here.

Two major simultaneous factors – the recession triggered by the pandemic and increased pressure on the real estate and construction sectors of the economy – have pushed Sound Transit projects back by $ 1.5 billion in expected tax revenue. while battling a 40% increase in labor and materials, according to Sound Transit’s Financial Plan Update.

The pandemic drastically reduced the revenues that Sound Transit relied on to expand the regional transit system when businesses were closed and potential riders stayed at home, dropping revenues essential to fund transportation construction. common. At a meeting of the Sound Transit Board held in April, the readjusted forecasts indicated that the programs remained unaffordable without realignment.

Along with the declines in income from the pandemic, the recession has not slowed the growth of building materials and labor. In a letter sent Jan. 5 to Sound Transit CEO Peter Rogoff, Deputy CEO Kimberly Farley, cost estimates for projects that weren’t planned would drop from $ 4.84 billion to $ 6.17 billion. dollars from 2019 to 2020.

Sound transit realignment process

According to Patrick, the first priorities of the realignment process are to work in the months and years to come to control costs and obtain increased funding. So far a total of $ 342,943,098 (which includes approved CARES funding and CRRSAA funding) of relief funds have been received and significant efforts are underway to secure the additional funding needed, including $ 527,890,035. in financing of the American rescue plan.

The realignment process began in January and continues according to the following schedule:

  • January: Review Project evaluation
  • February: Discuss the approximate realignment
  • March: Define realignment approaches for public comment
  • April: Collaborate with the public and key stakeholders
  • May: Discuss realignment options
  • June: Develop a draft realignment plan
  • July: Take realignment measures

Sound transit realignment survey

The Sound Transit Board is reviewing 9,730 survey responses audience as various realignment strategies are discussed. From April 12 to 30, 2021, South Transit staff provided an online survey that allowed Puget Sound residents to rank their priorities among voter-approved projects that were not yet under construction and that could make it happen. subject to realignment decisions.

More than 30,000 residents participated in an online open house that shared Sound Transit’s revenue and cost estimation issues related to the goal of the realignment strategy.

According to survey respondents:

  • 86% of them currently use or plan to use public transport in the future.
  • 49% live in the Seattle area, while; only 10% lived in Snohomish County.
  • 63% reported household income of $ 100,000 or more.

The broad regional themes – the districts included in Sound Transit’s tax base – expressed by survey respondents were as follows:

  • Extension of the Link light rail as it is a catalyst for multi-family dwellings
  • Parking – Residents of Snohomish, South King and Pierce would like more parking
  • Perception that cost increases should have been planned more effectively.
  • The fear that costs, especially real estate costs, will increase the longer we wait.

Snohomish County Inquiry Results

Respondents from Snohomish County – 907 in total – were asked to rank their top five projects in the North Corridor. Orange reflects first priority rankings, followed by green for second priority, blue for third, pink for fourth, and aqua for fifth. According to the survey, the completion of the Everett Link Extension was their highest priority.

According to the study, “Many residents of Snohomish County think they pay a lot in taxes to help fund Sound Transit, but they haven’t seen much in terms of the service they promised and feel left behind. in the expansion of public transit. “

Key dates of the original sound transit

Source: 2021 financial plan and adopted budget, December 2020

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State governments move from coronavirus recession to passing record budgets Sun, 06 Jun 2021 13:21:16 +0000

Just a year ago, the financial future looked grim for state governments as governors and lawmakers scrambled to cut spending amid the coronavirus recession that was set to bring down revenues.

They State employees made redundant, threatened major cuts to schools and warned against canceling or reducing construction projects, among other measures.

Today, many of those same states are overflowing with cash, and lawmakers are passing budgets with record spending. Money flows into schools, social programs and infrastructure. At the same time, many states are saving billions of dollars.

“It is certainly safe to say that states are in a much better fiscal position than they expected,” said Erica MacKellar, budget analyst at the National Conference of State Legislatures.

Spending plans for the fiscal year that begins July 1 are up 10% or more in states ranging from Florida and Maryland to Colorado, Utah and Washington.

In Oklahoma, pandemic uncertainties last year urged lawmakers to cut $ 1.3 billion from their planned general revenues. This has resulted in general cuts in public education and most public services.

This year, the new budget is up almost 18%. This includes money to reduce class sizes in kindergarten and first grade, funding for a new children’s behavioral health center, and new incentives for companies to make films in Oklahoma. The Republican-led legislature even set aside money to cut personal and corporate tax rates and expand tax credits for a school choice program.

“Last year: fragile foundation. This year: a solid foundation, ”said Republican State Senator Roger Thompson, chairman of the chamber’s budget drafting committee.

Many states have experienced a similar turnaround. Tax analysts cite various reasons.

The federal government has poured billions of dollars into state coffers through a series of pandemic relief programs. Federal aid has also sent billions more to American households and businesses which, in turn, have pumped money into the economy.

State finances have also held up better than feared. Consumer spending rebounded to shore up sales tax revenue, and state income taxes were supported by a strong stock market and well-paid employees who continued to work remotely while on duty. others were made redundant.

The result is that states now face “very promising fiscal and economic prospects over the next two years,” said Justin Theal, head of tax research at The Pew Charitable Trusts.

A recent Pew report found that after a first sudden drop in tax revenue, 29 states recovered to absorb as much or more during the peak period of the pandemic from March 2020 to February 2021 than they did during the same 12 months before the start of the pandemic.

Idaho, Utah, Colorado and South Carolina saw some of the biggest income gains with South Dakota being one of the few states that never closed. The Pew Report also noted modest income gains for some states that have imposed more aggressive coronavirus precautions on their economies, including California, Massachusetts and New York.

The $ 212 billion budget adopted earlier this year in New York is up nearly 10% from the previous one. Federal COVID-19 relief provided most of this growth. But state spending alone is still up 3.8% in the new budget, according to the administration of Democratic Governor Andrew Cuomo.

Biggest budget in New York includes a mix of ongoing and one-time spending, including a $ 1.4 billion increase in core support to schools and a $ 1.3 billion plan for the Penn Station overhaul.

The Florida Record Budget of $ 101.5 billion is up about 11%, with bonuses for teachers, police and firefighters, and new construction projects at schools and colleges. Lawmakers have decided they have money to spare, expanding sales tax relief for school supplies and hurricane events and creating a new tax-free week to purchase museum and concert tickets and recreational equipment for camping, fishing and surfing.

Florida is among several states that have boosted their 2021-2022 budgets with at least part of their share of $ 195 billion state aid package of the recent American Rescue Plan Act signed by President Joe Biden.

Shortly after the plan was adopted, Moody’s Investors Service raised the outlook for states from negative to stable, citing stronger public finances and continued federal aid. He said the new federal aid was equivalent to nearly 16% of states’ own revenue for fiscal 2019.

Some states, like Colorado, are waiting until later to decide how to use the remaining COVID-19 relief funds, as they have until the end of 2024 to spend them.

Even without the latest federal aid, Colorado’s budget for the fiscal year beginning July 1 is up more than 12% from the previous one, which was slashed due to pandemic concerns.

Senator Bob Rankin, a Republican member of the Legislative Assembly’s Joint Budget Committee, has expressed concern about how this additional $ 3.8 billion in federal aid will be spent.

“I’m concerned that we are spending money and making commitments that we cannot keep once this one-time federal money is gone,” Rankin said.

In many states, lawmakers are spending federal COVID-19 relief money for one-time purposes, such as additional worker assistance, expanded high-speed internet access, or a depleted replenishment. unemployment trust fund.

Missouri is among the states that have yet to decide what to do with the latest federal aid. The general revenue portion of its budget rebounded after a reduction in fiscal year 2021 to exceed pre-pandemic levels. And Missouri is on track to breaking a 1998 record for its biggest year-end cash balance.

“Income has been much better than I ever imagined during a pandemic,” said state budget manager Dan Haug.

He said he believed Missouri could have weathered the pandemic without this year’s Biden relief program.

Maryland lawmakers used words like “Impressive” and “unique” to describe how federal aid has helped reshape their budgets. The state’s record $ 52.4 billion new fiscal year budget provides bonuses to state employees, increases payments to the poor, builds parks and playgrounds in every county, and still reserves about 2 billions of dollars in savings.

“After spending most of the last year spending sleepless nights trying to figure out what the world was going to do, being in this position was pretty amazing,” Democratic State Senator Guy Guzzone said, President of the Senate. Budget and Taxation Committee.

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No emigration safety valve for the generation of a pandemic, because the recovery plan changes social benefits Sat, 05 Jun 2021 16:00:00 +0000

Recession, housing crisis, disproportionately affected youth and vulnerable groups, people considering emigrating – haven’t we been here before?

Well, yes and no. The launch of the government’s economic stimulus plan is another document filled with aspirations, some of which were already released during the employment boost last July, and the economic impact of the pandemic could prove to be a type of trip different from usual years. -long slog of a “normal” recession. So maybe we’ll be back to normal soon, and if so, the real question should be, is “normal” good enough?

The plan is built around a successful vaccination program and more than € 3.5 billion in expenditure support and just under € 1 billion under the Recovery and Resilience Fund of the ‘EU, Taoiseach Micheal Martin stating that this will boost a jobs-driven economy. The plan is to have 2.5 million people at work by 2024, surpassing pre-pandemic levels.

This is a laudable goal, but the kind of jobs to be provided will also be closely scrutinized, especially since again this week a joint report by the Irish Human Rights and Equality Commission (IHREC ) and the Institute for Economic and Social Research (ESRI) described how things were far from perfect before the pandemic arrived. Using benchmark data up to 2019, he found that young Irish workers were six times more likely to have temporary contracts than those over 25. He also pointed out that the employment rate for people with disabilities, at 41%, was 32 percentage points lower on average, with high unemployment rates also observed among black and Muslim respondents and, more specifically, among the people of the Irish travel.

Given the current housing and rental crisis, the struggles of young citizens are perhaps best summed up by a meme doing the rounds recently, comparing “my parents in their thirties”: “We should probably consider an extension if we do. are having a fourth child, “complete with photo of a house – and” me in my thirties “:” I will never recover financially from this purchase “, complete with photo of a JustEat sticker.

Yet despite all the talk about emigration – described by ESRI co-author Professor Frances McGinnity as a “safety valve” in previous recessions – where are you heading in a global pandemic?

And if the new economic stimulus package is to be credible, it must avoid the kind of brain drain that has plagued the country in previous difficult times.

There is a lot to the plan that is both dignified and a little nebulous. For example: research underway on the best approach to pilot a universal basic income, via the low wages commission, with recommendations in early 2022; more research involving the Low Pat Commission, this time examining the best way to introduce a living wage in Ireland, to be completed before the end of the year; and the adoption by the end of this year of the General Regime of a bill on the introduction of statutory sickness benefit, following a public consultation. The economic stimulus package reaffirms the commitment to implement the roadmap for social inclusion and its stated goal of reducing persistent poverty to 2% or less by 2025.

Payments in the event of a pandemic

In the short term, however, the focus will be on those who receive payments in the event of a pandemic. Unemployment benefit in the event of a pandemic will remain at its current level until September, before being phased out until next February, with an earlier timetable for students, while the wage subsidy scheme will be extended until ‘at the end of the year and businesses can apply for enhanced reopening payments.

Bríd O’Brien, head of policy and media at INOU, sums it up by saying that if – if – we finally emerge from a health crisis, with the heightened dangers of the virus behind us, then the delay for payments may be sufficient if the economy rebounds quickly from the bumps of the past 16 months. Researching before plans before implementation can seem like a kick in the long grass, she says.

A new aspect of the payment support structure was brought up by Employment and Welfare Minister Heather Humphreys, who said she wanted to explore the possibility of introducing a salary-linked benefit to replace Jobseeker’s Allowance for people facing sudden job loss. This would mean a payment capped at a certain rate for a limited period of time to guard against a steep reduction in income for anyone who has lost their job.

It has raised a few eyebrows, but Bríd O’Brien believes that this is in fact a reestablishment of the politics that existed until the early 90s, and on that basis is to be welcomed.

However, not all businesses will reopen.

Some areas, especially rural areas, will be more dependent on domestic tourism, which may not return until next year. And the pandemic has also highlighted the digital divide, between those who can work from home or online, and those who cannot. The full impact of the pandemic has yet to be seen and

Bríd O’Brien is concerned that our social protection system hasn’t always been focused on what’s best for the person he’s trying to help, but rather on ‘getting a job – no matter what. what job ”.

Sean Lemass loved the quote “A rising tide lifts all boats”. The current Taoiseach will have to hope that if we are all in the same boat, we will stay that way even though we are sailing in calmer waters.

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