Cape Girardeau sales tax revenue slightly up, Jackson down

Cape Girardeau is reporting a slight increase in general sales tax revenue while other local governments are seeing declines from 2 to 11 percent.

Earlier in the week local governments received their most recent sales tax payments, though figures from any single month can be skewed up or down. Cape Girardeau saw a 0.32 percent increase for the first seven months of 2009 over the same period in 2008. Jackson reported a 3.66 percent drop.

Cape Girardeau Mayor Jay Knudtson said that while one month doesn't truly reflect how the area has performed the entire year, July's 23.87 percent increase over July 2008 is a step forward.

"This is a heck of a lot better than explaining a 5 or 6 percent decrease," Knudtson said. "I don't think we're ready to throw a party and say that we've turned the corner.

"But let's face it right now. We're blocking a tackle and trying to fight a good fight. These numbers are critical to solidifying ourselves as a regional hub."

Dave Hutson of Hutson's Fine Furniture at 43 S. Main St. in Cape Girardeau said increasing revenue requires a successful marketing campaign.

"That keeps people interested and coming back," Hutson said. "We've been lucky in that we've had a good amount of traffic. And we're holding our own in sales."

Jason Longwith of Brown's Shoe Fit Co. at 115 N. Main St. reported an increase in business of 5.5 percent.

"The key to success is that people are after better-quality products that last longer these days," Longwith said.

Jackson city administrator Jim Roach believes his community's decline may be because of a drop in new home construction. Twenty-four permits have been issued for the city so far this year as of Wednesday, compared to 28 during the same time period in 2008. Roach said that when fewer homes are constructed, supply purchases in the city go down.

"This is a continuation of the overall downturn," Roach said. "I'm hopeful that it may turnaround yet for us before the year is up. If not, then certainly next year might be a turnaround point."

Roach said that like other local governments Jackson has set a conservative budget and delayed some projects. The city has not laid off any employees.

"The main thing we're doing is holding off on some projects like the volume of street repair projects," Roach said. "We'll continue to direct our departments to really conserve fuel and not make extra trips to training or job sites. Those are relatively minor, but they all add up to savings."

Bollinger County saw the largest decline in revenue with 11.48 percent. The general revenue sales tax receipts are about $60,000 short of the $523,759.75 collected through Aug. 1, 2008.

County Commissioner Steve Jordan believes it will take about two years for the county's economy to fully recover.

"We're optimistic we can recover the final months of the year and be only 5 to 7 percent off," Jordan said. "People haven't been able to purchase because they're leery of spending money."

Revenue in Scott County dropped by 2.3 percent, a $25,085 decline, despite July's check being about $5,500 more than in 2008.

In Perry County, the latest check was 12.19 percent smaller than the $87,249.14 payment received in August 2008. Perry County Treasurer Veronica Hershey said the county commission asked all county officials to eliminate unnecessary spending.

"All of our officeholders realized the importance of that," Hershey said. "That was a major request to them, and I think everyone's done a good job of watching what they spend."

She said consumers are watching their spending, resulting in a 3.41 percent overall decrease in sales tax revenue.

"Like everyone else we've been hit by the recession," Hershey said. "A lot of people that have extra money are hanging onto it. Evidently the stimulus is not stimulating the economy a great deal yet."

The news comes at a time when the state is seeing rising unemployment. County unemployment rates for June, the most recent month available, include 9.8 percent in Bollinger, 7 percent in Cape Girardeau, 8 percent in Perry and 9.2 percent in Scott. Statewide unemployment is at 9.3 percent.

Dr. Bruce Domazlicky, an economics professor at Southeast Missouri State University, said high unemployment numbers signal a slow recovery from the recession.

"The stimulus spending has provided some boost to the economy, but projects have been slow to get off the ground and the program is likely being swamped by the magnitude of the recession," Domazlicky said. "The 'cash for clunkers' program has indeed provided a boost to auto sales and has helped to reduce dealers' auto inventories, which is a good thing. By itself, the program is really not large enough to turn the economy around, but it is one piece in helping the economy to move to positive territory in the last half of the year."

bblackwell@semissourian.com

388-3628

Sales tax figures through July

Cape Girardeau

2009: 5.75 million

2008: 5.73 million

Up: .32 percent

Jackson

2009: 1.31 million

2008: 1.36 million

Down: 3.66 percent

Cape Girardeau County

2009: 4.04 million

2008: 4.12 million

Down: 2.06 percent

Perry County

2009: $733,423

2008: $759,256

Down: 3.41 percent

Scott County

2009: 1.03 million

2008: 1.06 million

Down: 2.35 percent

Bollinger County

2009: $463,618

2008: $523,769

Down: 11.48 percent