Tag Archives: Economy

Poll shows Floridians worried about the future

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FLORIDA – The biggest issues in this year’s elections had to do with unemployment and the economy. Tuesday, more than 3,100 Floridians were interviewed in an exit poll about those issues.

The result showed Floridians are frightened about the economy and not too hopeful for the future. We took to the streets and actually found some optimism in Southwest Florida.

“I think the frustration is pretty much worldwide,” Kira Dworkin said.

Millions of Floridians cast their? votes, hoping theirs would fuel a much-needed change. “I think Congress doesn’t look to the problems of the people, it’s too partisan,” Kim Hurwitz said.

An exit poll found:??????
62% believe the country is “seriously off on the wrong track.”
44% said their family’s financial situation is worse than 2 years ago.
35% said someone in their household had lost a job or been laid off in the past 2 years.
As for President Obama’s performance thus far, 54% disapprove while 44% approve.
???
“I think he did focus too much on getting his healthcare stuff through which seems to be not the favorite plan of most people,” a Cape Coral man said.

“They want an instant cure,” Pat Zelkowitz said. “We had unemployment, we elect a new president, we won’t have unemployment. That’s not realistic. We need people to realize that it took many many years to get out of the great depression of 1929.”

While cutting government spending was a common theme for most candidates, 42% of Floridians said Congress’ top priority should be “spending to create jobs.”

“Reduce the debt, and raise the minimum wage,” Timothy said.

70% were angry or dissatisfied with the way the Federal Government is working, while 28% were satisfied or enthusiastic.

“I think it’s really up to the individual to bring the positivity back into their life,” Dworkin said.

October’s government employment report shows things are slowly turning around. Not only are more jobs being created, but people are making more money!

According to the Labor Department, average weekly wages rose 3.5% in October compared to the same time last year. Also, people are working more hours, meaning they are bringing home more. Average hours worked are up almost 2%.

Poll shows Floridians worried about the future

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Bonita Springs movie theater in trouble?

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BONITA SPRINGS, Fla.- Walk up to the Cinema Cafe in Bonita Springs and you’ll see signs telling customers it’s closed for equipment maintenance. It says it will open back up Wednesday. But manager Joe Lopez isn’t so sure.

“We’ve heard the place is going out of business and plans to file bankruptcy,”said Lopez.

Lopez says the trouble started nearly a month ago when employees told him their checks bounced. He says every pay period since then has been late, and now he wonders if he’ll ever see another.

He asked his bosses what gives, but says he keeps getting the runaround. He can’t pay his bills.

“It’s frustrating in this economy knowing there aren’t a lot of jobs in the area. Not only are we not getting paid, we have to search for new jobs,” said Lopez.

WINK got in contact with the district manager of the movie theatre company and he would not answer our questions.

Bonita Springs movie theater in trouble?

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Scientists examine Gulf’s uncertain post-spill future

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SARASOTA, Fla. – Scientists at Mote Marine Laboratory in Sarasota have been studying the aftermath of the oil spill ever since the Deepwater Horizon rig blast.

Wednesday night, several of those scientists talked about what they’ve learned so far, and how it could help answer the many questions that lie ahead.

Its been a massive undertaking for Mote Marine, monitoring the flow of oil in the water and on the shore.

“Its very weather-driven, very tide-driven,” said Dr. Barbara Kirkpatrick, who studies beach conditions.? She notes Southwest Florida beaches are clean, but areas of the panhandle have been different.? “They get more impacts at high tide than low tide.”

Research originally designed to study things like red tide now look for the impact of oil.? An underwater robot has regularly scanned the Gulf waters off Southwest Florida.

“The major thing we found is we don’t have any oil,” said Dr. Gary Kirkpatrick.

Its been good news so far for Southwest Florida, but its also relatively early in the gulf’s recovery…

“The surface is being cleaned up and looking a lot better, but we know there is a lot more oil below the surface out in the Gulf,” said Dr. Gary Kirkpatrick.

While scientists can look at past spills for guidance– like the Exxon Valdez in Alaska– the Gulf of Mexico is a very different ecosystem, where only time will tell.

“Although the lessons from the Exxon Valdez help in how we address some of these things, the knowledge of the Gulf of Mexico scientists have from what the Gulf was before is going to be important,” said Mote Marine president Dr. Kumar Mahadevan.

Scientists at a panel discussion Wednesday say that long-term impact may be subtle, but could be significant, not only for wildlife, but for the economy, environmental and health of the Gulf Coast.

“What impact does it have on our natural resources, our fisheries, all the things we depend on,” Dr. Mahadevan said.

Mote marine has been doing all of this research largely off donations. They hope to get additional funding from BP and the government as their research goes forward.

Mote Marine has also been monitoring beach conditions along the Gulf Coast, including Southwest Florida.

For updates and photos of the latest beach conditions, visit their website at www.mote.org/beaches.

Scientists examine Gulf’s uncertain post-spill future

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New money deficit

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WASHINGTON, D.C. – New estimates from the White House on Friday predict the budget deficit will reach a record $1.47 trillion this year. The government is borrowing 41 cents of every dollar it spends.

That’s actually a little better than the administration predicted in February.

The new estimates paint a grim unemployment picture as the economy experiences a relatively jobless recovery. The unemployment rate, presently averaging 9.5 percent, would average 9 percent next year under the new estimates.

The Office of Management and Budget report has ominous news for President Barack Obama should he seek re-election in 2012, a still-high unemployment rate of 8.1 percent. That would be well above normal, which is closer to a rate of 5.5 percent to 6 percent. Private economists don’t think the unemployment rate will drop to those levels until well into this decade.

“The U.S. economy still faces strong headwinds,” the OMB report said. They include tight credit markets, a high inventory of
unsold housing and retrenchment by state governments bound by balanced budget mandates. The European debt crisis has also had an impact.

“Despite these headwinds, the administration expects economic growth and job creation to continue for the rest of 2010 and to rise in 2011 and beyond,” the report said.

The gaping deficits are of increasing concern to voters. But Obama and Democrats controlling Congress are mostly taking a pass on deficit reduction this year as they await possible recommendations from Obama’s deficit commission.

While there’s a slight improvement in the deficit for the current year compared to the administration’s February forecast,
next year’s predicted $1.42 trillion worth , next year’s predicted $1.42 trillion worth of red ink – that’s 37 cents of borrowing for
every dollar spent – is looking worse. It’s about $150 billion more than previously predicted, because of still-slumping tax revenues.

The current record holder is the $1.41 trillion deficit for 2009.

Economists agree that the most important measure of the deficit is against the size of the economy. Opinions vary, but many
economists say a deficit of 3 percent of gross domestic product is sustainable since it would stabilize the overall debt when measured relative to the economy.

The report put the deficit at 10 percent of GDP this year and 9.2 percent of GDP next year. It would never reach the 3 percent
figure under Obama’s predictions – which underestimate war costs and depend on assumptions of tax hikes that may not materialize.

OMB Director Peter Orszag said the numbers represent a “fiscal situation that requires attention.”

Obama “has done little to confront this domestic enemy,” said Rep. Mike Pence, R-Ind. “Washington desperately needs real
leadership. We cannot continue to postpone the hard choices and sacrifices that are necessary to stop this fiscal train wreck.”

Deficits have skyrocketed since the recession took hold in 2008 and Congress responded with a massive bailout of the financial system and last year’s $862 billion stimulus measure.

“What we should be doing now is putting in place deficit reduction policies that will kick in after the economy has more
fully recovered,” said Senate Budget Committee Chairman Kent Conrad of North Dakota. “It is an unsustainable long-term
course.”

New money deficit

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Bonita Springs council votes to cap taxes despite $1 million shortfall

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Bonita Springs’ property tax rate can not go any higher than last year’s rate.

City Council agreed Thursday 7-0 to set the maximum possible millage at 82.73 cents for every $1,000 of value, the same rate it has been for the past two years. They made decision despite a more than $1 million shortfall in revenues.

The tax rate will be set in September, however, one member was concerned that agreeing not to increase the tax rate could hamstring the city before the final budget numbers are in place.

“I would like to see us start at a higher number … the rollback rate,” Councilwoman Martha Simons said. “We can start screwing that down in the budget process.”

A rollback rate is a tax rate at which the city would bring in the same revenue as the year before.

Keeping the tax rate the same or lowering it will mean at least a $920,000 revenue decrease from last year.

Homeowners who are not homesteaded with a taxable value of $250,000 will see their taxes drop by about 13.3 percent, or $28.

But homesteaded homeowners with a $250,000 home whose market value has not fallen below the taxable value will see a 2.7 percent increase, or $5.58.

The increase is called recapture and it is meant to make up for when property values were skyrocketing in double digits, but homesteaded properties were capped at 3 percent.

Property taxes make up about a third of the city’s revenue and 42 percent of the city’s operating budget. Home values continue to fall from 2007 highs of $11.2 billion.

Properties shed 13 percent of their value this year to $7.3 billion from $8.4 billion.

The city’s revenues are expected to slip 9.2 percent, or $1.7 million, to $17.2 million next year.

Expenses are expected to grow by 3.9 percent, or about $851,000, to $22.8 million.

Some of those increases include two new positions, a community relations coordinator and a maintenance position, and $125,000 for five new vehicles for the city’s Lee County Sheriff’s Office deputies.

“We’ve had a reduction in revenue but an increase in expenses, which is not a good policy to have that kind of discrepancy,” said Councilman Bill Lonkart. “It should be the other way around.”

For the first time in the city’s history, the city will not have enough money in its operating budget because property taxes have taken such a hit, said Finance Director Lisa Griggs Roberson.

The city’s $14.8 million general fund will be about $1 million short, requiring the city to transfer money from elsewhere.

The city will be able to balance its budget because it will be starting next year with a $13 million surplus, about $5 million of which cannot be touched as the city has a policy to set aside several months of operating expenses in a sort of savings account.

The surplus came from a state refund in overcharged communication services taxes as well as savings from the Old 41 Road project.

“We don’t expect to be able to generate this kind of excess again,” Griggs Roberson said. “We will be utilizing part of that money to operate over the next few years.”

She has projected the city will be likely to remain in a deficit for the next five years.

Councilman Steve McIntosh proposed looking at raising the city’s communication tax rate, which the lowest of all municipalities in Lee and Collier counties at 1.8 percent.

Other cities range from 3.3 percent in Naples to 5.22 percent for Marco Island, Fort Myers and Fort Myers Beach.

The city considered, and then rejected the notion, last year.

Councilman John Spear proposed analyzing that tax six months before the budget cycle so that it could tie in to a plan to lower ad valorem taxes.

The discussion could come back when the city approves its budget in September.

Spear said he was concerned that while the city sets a millage rate cap, current projects whose price tags are not yet determined could take a hit.

The city is currently forging a new brand for itself and projects to spur its economy.

Griggs Roberson said each year the budget allocates money for such programs. This year that contingency fund holds $420,000.

The final budget and millage rate will be approved at a meeting set for 10 a.m. Sept. 11.

Connect with Tara E. McLaughlin at www.naplesnews.com/staff/tara-mclaughlin/

? 2010 Naples Daily News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Bonita Springs council votes to cap taxes despite $1 million shortfall

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Bank regulators: Real estate loans biggest concern

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Bank regulators: Real estate loans biggest concern

By Daniel Saltman (AP) – 19 hours ago

WASHINGTON — With regulators warning that rising losses on commercial real estate loans pose risks for U.S. banks, senators asked Wednesday for greater attention to be focused on vulnerable smaller banks.

The smaller, community banks are especially exposed to commercial real estate loans, which now pose the biggest challenge for many financial institutions and their overseers, Federal Deposit Insurance Corp. Chairman Sheila Bair told lawmakers at a Senate hearing.

A year after the financial crisis struck with force, the stability of the banking system has improved but remains fragile, and commercial real estate lending is a key trouble spot, said Federal Reserve Gov. Daniel Tarullo.

With more than 7 million U.S. jobs lost in the recession, office space has sat empty and developers have defaulted on their loans. Nearly $500 billion in commercial real estate loans are expected to come due annually over the next few years.

The Fed and the other federal bank regulators are developing guidelines for banks’ modifications of troubled commercial real-estate loans that will call for banks to accurately account for their losses on the loans, Tarullo said. The principle that modifying loans is “often in the best interest of both the financial institution and the borrower” will be part of the guidelines, he said.

Bair said she has been discussing with Treasury Department officials the possibility of giving community banks greater access to federal funds under the $700 billion financial bailout program — which benefited mostly big Wall Street institutions. Officials have been weighing a fresh round of bailouts for banks that were deemed to risky to qualify for earlier aid.

Sen. Tim Johnson, D-S.D., chairman of the Senate Banking subcommittee on financial institutions, said he was “concerned about the lending environment, particularly for small businesses” and about smaller banks that remain vulnerable to borrowers’ risky levels of debt.

But Sen. Bob Corker, R-Tenn., chided Bair and U.S. Comptroller of the Currency John Dugan for supporting bailout funds for banks under their authority. Reflecting a common opposition among Republican lawmakers to the Troubled Asset Relief Program, Corker told the regulators, “I just hate to hear us moving to that mode. I think we should end TARP at the end of the year.”

New York Democrat Sen. Charles Schumer said recent increases in overdraft and ATM fees by many banks demonstrates the need for “a strong independent agency to protect the interests of consumers,” as the Obama administration has proposed.

Legislation establishing a Consumer Financial Protection Agency, which would police mortgages, credit cards and other financial products, is fiercely opposed by banks and business groups. Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, has said he intends to have the panel adopt a measure by week’s end.

“There are undoubted merits to having a single consumer protection agency,” Tarullo said at the hearing, but also a potential risk that it could dampen the availability of credit. “I think there would be costs,” he said.

Ninety-eight U.S. banks have failed so far this year, many succumbing under the weight of failed real estate loans. The number of banks on the FDIC’s confidential “problem list” jumped to 416 at the end of June from 305 in the first quarter. That’s the highest number since June 1994 in the wake of the savings and loan crisis. Experts say as many as 400 more banks could fail in the next couple of years.

“There will be more failures,” Bair testified. “It will continue at a pretty good pace this year and next. We are ready for this.”

The number of failures next year will be closer to the 2009 level than last year’s 25, she said.

The spate of bank failures has cost the federal deposit insurance fund an estimated $25 billion so far this year and is expected to cost about $100 billion through 2013. The insurance fund has fallen into the red, and the FDIC board recently proposed to have U.S. banks prepay about $45 billion of their insurance premiums — three years’ worth.

The FDIC is backed by the government, and deposits are guaranteed up to $250,000 per account. Also the FDIC still has tens of billions in loss reserves apart from the insurance fund.

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