Fall 2008 Vol. 4 No. 3

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1 SOUTHEASTERN LOUISIANA UNIVERSITY Promoting Economic Development in Southeast Louisiana Fall 2008 Vol. 4 No. 3 NATIONAL U.S. Economy RFID Tagging of Cigarettes STATE Louisiana Economy REGIONAL Employment Sales Tax Collection Building Permits Health Insurance Coverage by Parish LOCAL Livingston St. Helena NATIONAL U.S. Economy Dr. A. M. M. Jamal Professor of Management The U. S. real gross domestic product grew at an annual rate of 2.8 percent during the second quarter of 2008 and rose 2.2 percent over the same period in Total civilian employment for the second quarter grew 0.1 percent compared to the corresponding period of the previous year. Forecasters EMPLOYMENT surveyed by the Economist magazine predicted that the U.S. economy would grow 1.6 percent and 1.3 percent in 2008 and 2009, respectively. More recent forecasts published by the Wachovia Bank indicate an expected growth rate of 1.3 percent for 2008 and a drop of 0.5 percent for St. Tammany Tangipahoa Washington SOUTHEASTERN Staff Highlight Bonnie Lewis Southeastern surveys assist Olde Towne Slidell revitalization Supply Chain Management Program CONTACT US Southeastern Louisiana University Business Research Ctr Martens Drive Hammond, LA Phone: (985) Fax: (985) brc@selu.edu UNITED STATES (Numbers in Thousands) Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 De c 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Labor Force 153, , , , , , , , , , , ,390 % Change vs Prior Year 1.1% 0.8% 1.1% 0.8% 0.9% 0.7% 0.6% 0.4% 0.6% 0.9% 1.2% 0.9% Total Employment 146, , , , , , , , , , , ,891 % Change vs Prior Year 1.2% 0.8% 0.9% 0.5% 0.7% 0.2% 0.2% 0.1% -0.1% 0.4% 0.1% -0.1% Total Nonfarm Emp. 137, , , , , , , , , , , ,617 % Change vs Prior Year 1.1% 1.0% 1.0% 1.0% 0.9% 0.8% 0.7% 0.6% 0.4% 0.3% 0.1% 0.0% Number Unemployed 7,137 7,133 7,246 7,291 7,181 7,655 7,576 7,381 7,815 7,626 8,487 8,499 % Change vs Prior Year -1.3% 0.2% 4.8% 8.6% 5.2% 11.8% 7.6% 8.0% 16.0% 11.7% 23.7% 21.5% Unemployment Rate 4.7% 4.7% 4.7% 4.8% 4.7% 5.0% 4.9% 4.8% 5.1% 5.0% 5.5% 5.5% Change vs Prior Year -0.1% 0.0% 0.1% 0.4% 0.2% 0.5% 0.3% 0.3% 0.7% 0.5% 1.0% 0.9% 3QT-07 4QT-07 1QT-08 2QT-08 Labor Force 153, , , ,294 % Change vs Prior Year 1.0% 0.8% 0.5% 1.0% Total Employment 146, , , ,089 % Change vs Prior Year 1.0% 0.5% 0.1% 0.1% Total Nonfarm Emp. 137, , , ,699 % Change vs Prior Year 1.0% 0.9% 0.5% 0.1% Number Unemployed 7,172 7,376 7,591 8,204 % Change vs Prior Year 1.2% 8.5% 10.4% 19.0% Unemployment Rate 4.7% 4.8% 4.9% 5.3% Change vs Prior Year 0.0% 0.3% 0.4% 0.8% Source: U.S. Bureau of Labor Statistics 150, , , , ,000 Total Employment (000s) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2 RFID Tagging of Cigarettes: A Way to Safeguard the Young and State Tax Revenues by David C. Wyld, Robert Maurin Professor of Management, College of Business, Southeastern Louisiana University Introduction: Cigarette Taxes and the Law of Unintended Consequences Arbitrage is a simple concept. It can be defined as the practice of taking advantage of a price differential between two or more markets. The same principle of buying an item in a lower priced market and reselling it in a higher priced one applies just as equally in the worlds of high finance with stocks, bonds, options, and currencies as it does in placing sports bets or selling collectibles on ebay. Arbitrage applies to cigarettes as well. For decades, U.S. cigarette taxes were far lower than those in Canada, leading to a high volume of cigarettes heading northbound with Canadian travelers. On an individual level, smokers have an incentive to take advantage of the tax disparity by purchasing lower taxed and lowerpriced cigarettes in neighboring states. Literally, by driving a few miles or, in many cases, by simply crossing the street, smokers could save themselves $10 or $20 per carton. However, academic studies have shown that for most smokers, convenience outweighs economics. The fact is that approximately two-thirds of all cigarettes sold in the United States are sold by the single pack. For instance, a recent study by researchers from the University of California found that after California s 50 cent per pack tax increase, fewer than five percent of the state s smokers attempted to evade the heightened tax by purchasing their cigarettes online, from nearby states, or on an Indian reservation (where cigarettes can legally be sold tax-free). In the U.S., while there is a federal excise tax of 39 cents levied on each pack of cigarettes, the majority of cigarette taxes are imposed at the state level. And in this decade, states have significantly increased their cigarette taxes. In fact, in the past five years alone, the average state cigarette tax has risen from 43.4 cents per pack to $1.02 a pack. In addition, major cities such as Chicago, New York City, and Anchorage are increasingly adding their own taxes on cigarettes. In fact, the total cigarette taxes in each of these locales exceed $3 per pack! The disparity in state cigarette taxes is large, ranging from a high of $2.57 per pack in New Jersey to just 7 cents per pack in South Carolina (for reference, Louisiana's cigarette tax stands at 36 cents per pack, making it the seventh lowest of all fifty states). The disparities are especially stark when you consider that in several instances, the cigarette taxes of one state can often be double, triple or even more that of its neighboring states. Consider that North Carolina s tax of 35 cents per pack is five times that of neighboring South Carolina, or that New York State s tax rate of $1.50 per pack is more than four times that of North Carolina s (and more than twenty times that of South Carolina). The city cigarette taxes exacerbate these cigarette price disparities even more. In New York City, the municipal tax of $1.50 per pack doubles the effective tax rate on cigarettes bought there versus in other parts of the state. These tax increases have been generally popular with the public at least with the non-smoking majority, who see cigarette taxes as a means to provide a stable source of tax revenue while working to help curb youth smoking by making smoking less affordable. Academic studies have shown that while cigarette tax increases do decrease overall smoking rates slightly, state tax revenues still increase with each tax increase, as the core group of smokers has an almost inelastic demand for the product. Perhaps most importantly, by reducing the smoking rate in society, the tax increases should in the long-term decrease the health care costs Southeastern Louisiana University 2

3 RFID Tagging of Cigarettes (continued) attributable to the treatment of smoking-related illnesses and concerns (causing less government spending on health services down the road). Yet, even with today s average price for a pack of cigarettes running at $4.28, health experts have calculated the total health care and productivity costs attributable to smoking to be even higher over ten dollars per pack! The Booming Business of Cigarette Smuggling The price disparities between markets has not been lost on entrepreneurial types in both the legitimate and illegitimate business worlds. Online cigarette sales have been a flourishing business, with estimates of internet sales of cigarettes reaching into the billions. Also, many Indian tribes in the United States have aggressively promoted tobacco sales on their tribal lands as a major attraction, both in their own right and to promote sales of other items and visits to tribal casinos. While cigarette taxes are set by the individual states, the interstate transport and sale of cigarettes is governed by a 1949 federal law known as the Jenkins Act. This statute prohibits the sale or transfer of cigarettes across state lines unless the proper taxes are paid in the receiving state. Thus, trafficking of cigarettes across state lines makes the products contraband, and in most instances, internet retail outlets and Indian tribal sellers are not paying the proper taxes. This means that what are initially legal sales can become illegal when state lines are crossed. It also means that states lose tremendous amounts of tax revenue, estimated to be upwards of one and a half billion dollars annually in a recent report from the federal Government Accountability Office (GAO). The arbitrage window is also open for smugglers, with both small-time and large-scale operators trying to take advantage of the price disparities between state jurisdictions. From the perspective of John D'Angelo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), There is no doubt that there's a direct relationship between the increase in a state's tax to an increase in illegal trafficking. Indeed, there have been an increasing number of cases of cigarette smuggling (officially called cigarette diversion ) in the United States since the rapid rise of tobacco taxes beginning in There is also an increasing sophistication in these trafficking operations, with increasing involvement of both organized crime elements and terrorist organizations. Just as the Irish Republican Army has been involved with cigarette smuggling in Europe for decades, in the past few years cases have been uncovered in the U.S. mainland involving known international terrorist groups, including Hamas, Hezbollah, Islamic Jihad, PKK (the Kurdish Workers Party), and Al Qaeda. Now, the U.S. faces the very real prospect that not only are we facing a tax problem, but an increasing threat from terrorism funded significantly by a growing black market trade in cigarettes coming to our shores. Indeed, what is occurring in the U.S. is the long reach of a global epidemic of cigarette smuggling. To a lesser extent, the U.S. is also seeing the tax burden on cigarettes sparking growth in the illegal importation of counterfeit cigarette products from China and a variety of other countries around the world. In fact, according to the most recent data available, U.S. Customs and Border Protection seized approximately $25 million worth of counterfeit imported cigarettes in 2003, which represents almost one-fifth of all imported commodities seized for violations of intellectual property rights. According to the World Health Organization (WHO), more than a quarter of all cigarettes are smuggled, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives has found that Russian, Armenian, Ukrainian, Chinese, Taiwanese, and Middle Eastern (mainly Pakistani, Lebanese, and Syrian) organized crime groups are highly involved in the trafficking of contraband and counterfeit Southeastern Louisiana University 3

4 RFID Tagging of Cigarettes (continued) cigarettes. Finally, sales of cigarettes through the black market work around prohibitions against the sale of tobacco products to minors (under 18 or even up to 21 in some states). Thus, the World Health Organization has taken the position that the burgeoning sale of contraband cigarettes serves to significantly counteract efforts to curb youth smoking. Using RFID Technology to Combat Organized Cigarette Smuggling (and You, Yes You, Buying Your Smokes at the Indian Casino!) Radio-frequency identification (RFID) is a new, old technology using radio wave technology to identify objects as opposed to manual or bar-code based optical scanning. It is being utilized in a wide variety of industries today, everywhere from retail to pharmaceuticals to animal science to aerospace, as the declining cost of the technology is making it practical for routine use. In contrast, today s cigarette tax technology dates back to the early 1950s, with tax stamps on packs of cigarettes being mandated by the Jenkins Act. These have proven easily counterfeited and subject to fraud on a massive scale. Indeed, there is a rampant black market just in the sale of counterfeit and stolen tax stamps themselves. California is the only state thus far to use a new generation of machine-readable tax stamps, incorporating encryption technology that gives law enforcement the ability to scan stocks of cigarettes to verify that the proper taxes have been paid. With these new, high tech tax stamps, California has seen a significant rise in cigarette tax revenue well in excess of $100 million in the two years since the new requirements went into effect. In mid-february 2007, Sen. Ted Kennedy (D-Massachusetts) and Rep. Henry Waxman (D-California) introduced The Family Smoking Prevention and Tobacco Control Act (S.625 in the Senate and H.R in the House). Their bills would for the first time grant the U.S. Food and Drug Administration (FDA) the power to regulate the manufacture, sale and advertisement of most tobacco products, including cigarettes and smokeless tobacco. The bill specifically authorizes the use of special codes or devices on tobacco product labels for the purpose of tracking or tracing the tobacco product through the distribution system. While the proposed legislation does not now specifically call for an RFID mandate, industry and political analysts believe that this could be the case when the bills reach their final form, or, once passed in the implementing regulations. According to a recent RFID Journal analysis, Congress, while not naming RFID specifically, could become the legislative catalysts for the technology's use in government regulation. A Wall Street Journal editorial recently dubbed the proposed legislation The Marlboro Preservation Act, as the bill through advertising restrictions and other barriers to entry would help to protect the market dominance of the major tobacco companies, making it harder and more costly for smaller manufacturers to compete. In fact, tobacco industry analysts from Morgan Stanley and Citigroup believe that the legislation would work in favor of the incumbent, large tobacco companies. This is because the increased regulatory burden and advertising limitations would limit the ability of smaller competitors to make inroads into the cigarette market, while also serving to narrow the price gap between premium and low-cost brands. The U.S. would not be alone in looking to RFID in regulating the cigarette supply chain to specifically combat the trafficking of contraband products. The United Kingdom also has a sizeable problem with contraband cigarettes entering the British market. In fact, according to the Tobacco Manufacturers' Association (TMA), an estimated two billon counterfeit cigarettes well over a quarter of all cigarettes sold annually - are smuggled into the UK. Southeastern Louisiana University 4

5 RFID Tagging of Cigarettes (continued) This translates into a loss of approximately 3.5 billion in tax revenue for the British government from contraband cigarettes. To counteract this problem, Her Majesty s Revenue & Customs (HMRC) announced in March that within six months the British government would begin requiring the use of a covert security mark on all cigarette packets. Again, while not specifically naming RFID as the technology that would be utilized for the covert marking, analysts anticipate this to be the case, as the ministry desires to enable customs officials to use small hand-held readers to verify the authenticity of cigarettes and the proper payment of crown taxes. Indeed, the WHO has recommended that countries take a range of steps to curb cigarette smuggling, from raising criminal penalties to licensing all parties involved in the cigarette trade who handle the product as it moves from the manufacturer, through the distribution channels, to the ultimate consumer. The WHO has also posited the value of having each pack of cigarettes given a serialized identification code, enabling track and trace capabilities to not only assure product authentication and provide a pedigree trail, but to ensure tax compliance as well. Again, while not suggesting an RFID-based solution specifically, it would appear that RFID would be the only technology capable of providing this level of security to the tobacco supply chain. Analysis Will we see wide-scale tagging of cigarettes using RFID in the near future? Noted RFID analyst Dr. Peter Harrop, Chairman of IDTechEx Ltd., cautions that with the cost of RFID tags (presently at least $0.25 per unit): No one in their right mind would put a conventional RFID chip in a cigarette packet. Yet, as tag prices fall and new chipless forms of RFID emerge, the prospect of tagging individual packs of cigarettes will become more practicable. Still, the major tobacco companies may come to see RFID tagging at the pack level as enhancing their competitiveness, both in fighting the damage to their brand from counterfeit cigarettes and in putting more costs on their smaller rivals. Thus, there is likely to be an unusual degree of industrygovernment cooperation to foster RFID tagging of cigarettes, due to the alignment of their mutual interests to protect the legal cigarette trade. We may also see more government action in this area, along the lines of the recent HMRC announcement and the bill before the U.S. Congress, which stands a good chance of passage this year. Yet, the question remains as to whether labeling can be made practical from a cost perspective. The answer lies in the level of tagging. Certainly, cigarettes qualify as one of the best candidate products for tagging, due to the ratio of the cost of the tag to the value of the item in question which is right up there with high cost items such as pharmaceuticals, electronics, and liquor. The unusual situation with cigarettes is that the key level of tagging might not be at either the individual item level (the pack) or the case level. Rather, cartons of cigarettes a packaging level unique to the tobacco trade presents a compelling business case, as can be seen in Figure 1 (next page). A carton of cigarettes is an industry standard, containing 200 cigarettes (20 cigarettes in a pack, 10 packs to a carton). By tagging cartons of cigarettes, in addition to tagging the cases and pallets that contain them, the cigarette industry and regulatory agencies could significantly cut the ability of individuals and outlets to trade in contraband cigarettes. In the process, they would effectively create the largest RFID mandate ever, and with it, new demand for RFID tags and labels (into the billions of tags) that would perhaps go a long way toward promoting the market growth that would drive unit tag prices significantly downward. Southeastern Louisiana University 5

6 RFID Tagging of Cigarettes (continued) Finally, as we have seen in the U.S., there is a perfect storm developing where the interests of all parties are converging to work towards both national, and perhaps even multinational, solutions. While smoking rates are declining in the U.S., both legal and illicit cigarette sales are a burgeoning market globally. According to the most recent analysis from the World Health Organization, there are well over a billion smokers worldwide more than one-sixth of the global population consuming approximately 5.5 trillion cigarettes produced annually by the tobacco industry. Thus, when talking about RFID and cigarettes, no one is blowing smoke there s surely a growth opportunity here for innovative companies ready to supply an innovative, effective RFID-based solution for the tobacco industry. For More Information: Contact David Wyld at or by at dwyld@selu.edu. To Read More on the subject, see: Death Sticks and Taxes: RFID Tagging of Cigarettes, by David C. Wyld, in the International Journal of Retail & Distribution Management, Volume 36, Issue 7, July 2008, pp Southeastern Louisiana University 6

7 STATE Louisiana Economy Dr. A. M. M. Jamal Professor of Management Personal income in Louisiana rose 3.8 percent over the past twelve months (48th among the states and Washington, D.C.) and advanced at an annual rate of 9.6 percent during the second quarter of 2008 (9th among the states and Washington, D.C.). Most of the second quarter increase was due to the one-time federal tax rebate checks received during the quarter. Total state employment for the second quarter of 2008 rose 0.2 percent compared to the previous quarter and grew 1.0 percent over the previous twelve months. The unemployment rate for the most recent quarter was 3.9 percent, unchanged from the unemployment rate for the same quarter in The unemployment rate has held at this low level for much of the past twelve months, which indicates the health of the state economy. State general sales tax collections for the second quarter of 2008 totaled $681.4 million dollars, up 1.5 percent over the second quarter of This level of sales tax collections equates to an estimated $17.0 billion in taxable retail sales. EMPLOYMENT LOUISIANA (Numbers in Thousands) Labor Force 1,993 1,999 2,002 2,003 2,010 2,017 2,012 2,008 2,017 2,019 2,008 2,012 % Change vs Prior Year 1.8% 1.6% 1.3% 1.0% 1.2% 1.5% 1.4% 1.0% 1.1% 1.2% 0.6% 1.2% Total Employment 1,920 1,925 1,924 1,932 1,935 1,937 1,933 1,933 1,926 1,937 1,929 1,935 % Change vs Prior Year 1.3% 1.5% 1.3% 1.6% 1.7% 1.6% 1.3% 1.1% 0.5% 1.2% 0.7% 1.0% Total Nonfarm Emp. 1,918 1,933 1,933 1,936 1,939 1,941 1,940 1,940 1,940 1,942 1,947 1,951 % Change vs Prior Year 3.8% 3.9% 3.1% 3.0% 2.9% 2.5% 2.3% 1.8% 1.6% 1.8% 1.9% 1.8% Number Unemployed % Change vs Prior Year 17.9% 2.8% -0.3% -14.2% -9.2% -1.4% 4.5% -1.0% 15.9% 1.8% -3.0% 5.1% Unemployment Rate 3.7% 3.7% 3.9% 3.6% 3.7% 4.0% 4.0% 3.7% 4.5% 4.1% 4.0% 3.8% Change vs Prior Year 0.5% 0.0% -0.1% -0.6% -0.5% -0.1% 0.2% -0.1% 0.6% 0.1% -0.1% 0.1% 3QT-07 4QT-07 1QT-08 2QT-08 Labor Force 1,998 2,010 2,012 2,013 % Change vs Prior Year 1.5% 1.2% 1.2% 1.0% Total Employment 1,923 1,935 1,930 1,934 % Change vs Prior Year 1.4% 1.6% 0.9% 1.0% Total Nonfarm Emp. 1,928 1,939 1,940 1,947 % Change vs Prior Year 3.6% 2.8% 1.9% 1.8% Number Unemployed % Change vs Prior Year 6.1% -8.3% 6.6% 1.2% Unemployment Rate 3.8% 3.8% 4.1% 3.9% Change vs Prior Year 0.2% -0.4% 0.2% 0.0% Source: Louisiana Department of Labor, Labor M arket Statistics 1, , , ,800 Total Employment (000s) Total Employment Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2005 May Jun 2006 Jul Aug 2007 Sep Oct Nov Dec Southeastern Louisiana University 7

8 REGIONAL Northshore Employment Dr. A. M. M. Jamal Professor of Management Total employment in the Northshore Region (the five parishes of Livingston, St. Helena, St. Tammany, Tangipahoa, and Washington) rose 2.2 percent during the second quarter of 2008 and was 1.6 percent higher than the same period in the previous year. All the parishes experienced gains in employment when compared with the prior quarter. The total civilian work force rose 2.1 percent compared to the previous quarter and 1.8 percent compared to the second quarter of The regional unemployment rate for the second quarter of 2008 was 3.7 percent. In comparison, unemployment rates for the previous quarter and the same quarter of last year were 3.8 percent and 3.6 percent, respectively. (Note: All regional and parish employment analysis is based on unadjusted employment data. Seasonally-adjusted data are not available at the parish level.) EMPLOYMENT NORTHSHORE REGION Labor Force 246, , , , , , , , , , , ,136 % Change vs Prior Year 3.3% 2.4% 2.5% 1.8% 2.0% 1.8% 1.7% 1.3% 0.9% 2.0% 1.3% 2.0% Total Employment 236, , , , , , , , , , , ,639 % Change vs Prior Year 3.3% 2.8% 2.9% 2.4% 2.5% 1.8% 1.4% 1.2% 0.1% 1.8% 1.2% 1.6% Number Unemployed 9,650 8,952 8,666 7,518 7,940 8,713 10,406 7,785 9,674 7,840 8,394 11,397 % Change vs Prior Year 6.7% -4.3% -2.9% -9.8% -7.5% 7.9% 10.1% 3.5% 25.2% 7.7% -0.7% 6.5% Unemployment Rate 3.9% 3.7% 3.6% 3.1% 3.2% 3.6% 4.3% 3.2% 4.0% 3.2% 3.4% 4.5% Change vs Prior Year 0.1% -0.3% -0.2% -0.4% -0.3% 0.2% 0.3% 0.1% 0.8% 0.2% -0.1% 0.2% Total Employment 3QT-07 4QT-07 1QT-08 2QT-08 Labor Force 244, , , ,546 % Change vs Prior Year 2.7% 1.9% 1.3% 1.8% Total Employment 235, , , ,388 % Change vs Prior Year 3.0% 2.2% 0.9% 1.6% Number Unemployed 9,089 8,057 9,288 9,210 % Change vs Prior Year -0.2% -3.3% 12.8% 4.5% Unemployment Rate 3.7% 3.3% 3.8% 3.7% Change vs Prior Year -0.1% -0.2% 0.4% 0.1% Source: Labor Market Statistics, Local Area Unemployment Statistics Program 250, , , , ,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Southeastern Louisiana University 8

9 Sales Tax Collections in the Northshore Region Total value of taxable sales in the Northshore region fell 4.4 percent in the second quarter of 2008 compared to the same period in 2007, but rose 3.8 percent compared to the previous quarter. Sales tax collections have been falling over the past few quarters, reflecting a decline in reconstruction and recovery activities following Hurricane Katrina. The decline has been most pronounced in St. Tammany Parish, where second quarter sales dropped 6.5 percent over the past year. On the other hand, the value of sales grew 9.2 percent in St. Helena Parish. However, since sales in this parish accounted for less than 1 percent of those in the total region, this increase was not enough to offset declines in the other parishes. SALES AND USE TAXES NORTHSHORE REGION Jul 07 Aug 07* Sep 07 Oct 07 Nov 07 De c 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Total Sales (Mil.) $ $ $ $ $ $ $ $ $ $ $ $ % Change vs Prior Year -3.9% 5.4% -4.4% -0.9% -3.4% 3.9% 4.8% 2.1% -4.1% 0.4% -4.1% -8.9% Sales Tax Collected (Mil.) $26.85 $29.22 $27.81 $26.03 $26.27 $32.69 $27.19 $24.21 $27.67 $27.52 $26.21 $28.49 % Change vs Prior Year -3.3% 6.5% -4.1% 0.0% -3.5% 4.5% 6.7% 3.0% -4.6% 1.6% -4.0% -8.4% * Washington Parish received a one-time payment of approximately $2 million of use taxes in August 2007, the result of an audit finding covering the previous 3 years. Sources: Livingston Parish School Board - Sales and Use Tax Division, St. Helena Parish Sheriff's Office, St. Tammany Parish Sheriff's Office - Sales and Use Tax Department, Tangipahoa Parish Council - School Board, Washington Parish Sheriff's Office - Sales and Use Tax Department Building Permits in the Northshore Region The value of residential building permits in the Northshore region for the second quarter of 2008 fell 43.0 percent compared to the second quarter of 2007, projecting a major decline in construction activities for the coming months. This reflects both a slow down in post-katrina reconstruction and the general decline in construction activities nationwide due to the slowing economy and limited availability of credit. RESIDENTIAL BUILDING PERMITS NORTHSHORE REGION Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 De c 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Total Units % Change Last Year -16.9% -54.3% -54.5% -38.8% -58.8% -72.5% -60.3% -48.3% -37.0% -33.6% -58.3% -2.5% Value ($000s) 75,405 50,955 34,725 50,362 45,402 39,841 37,361 25,440 43,622 43,956 33,249 47,425 % Change Last Year 11.5% -53.2% -50.7% -36.4% -31.5% -70.1% -64.0% -51.5% -38.6% -52.8% -54.8% -9.2% Unincorp. Units % Change Last Year -22.2% -55.4% -52.8% -35.8% -60.1% -73.7% -48.4% -44.0% -33.1% -29.2% -63.5% -36.6% Value ($000s) 65,296 36,873 28,363 45,395 39,305 34,421 28,264 24,271 39,075 36,948 25,938 30,459 % Change Last Year 10.1% -61.0% -50.4% -33.6% -33.4% -71.3% -63.9% -46.1% -31.0% -48.5% -60.3% -30.3% Corp. Units % Change Last Year 28.6% -50.6% -60.2% -54.1% -48.0% -62.0% 20.0% -77.8% -57.1% -51.4% 0.0% 367.7% Value ($000s) 10,109 14,082 6,362 4,967 6,097 5,419 9,097 1,169 4,547 7,008 7,311 16,965 % Change Last Year 21.8% -1.1% -52.4% -53.8% -16.1% -60.2% -75.4% -84.3% -68.6% -67.2% -11.4% 99.4% Sources: Livingston Parish -- Livingston Parish Permit Office, Town of Albany, City of Denham Springs, Town of Livingston, Town of Walker St. Helena Parish -- Louisiana Department of Economic Development (estimates with imputation) St. Tammany Parish -- Town of Abita Springs, City of Covington, Village of Folsom, Town of Madisonville, City of Mandeville, Town of Pearl River, City of Slidell Tangipahoa Parish -- Tangipahoa Parish Permit Office, City of Hammond, Town of Independence, City of Ponchatoula Washington Parish -- Washington Parish Permit Office, City of Bogalusa, Town of Franklinton Southeastern Louisiana University 9

10 Health Insurance Coverage by Parish (2005) Herb Holloway Research Economist The U.S. Census Bureau s Small Area Health Insurance Estimates (SAHIE) Program released its first nationwide set of county-level estimates of the number of people with and without health insurance coverage in July Recently, SAHIE released 2005 estimates of health insurance coverage by age, sex, race, Hispanic origin, and income categories at the state level and by age, sex, and income categories at the county level. Statewide, 79.4% of Louisiana residents under age 65 had health insurance coverage in 2005, and 20.6% did not. Proportions of insured and uninsured residents of Northshore parishes is compared to the Louisiana average in the chart below Proportions of Insured and Uninsured Residents: Louisiana and Northshore Parishes 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 20.6% 79.4% 25.7% 74.3% 26.6% 73.4% 23.2% 76.8% Louisiana Livingston St. Helena St. Tammany 18.9% 17.7% 81.1% 82.3% Tangipahoa Washington Insured Uninsured When the percentage insured was analyzed by gender for the Northshore parishes, the differences were less than 1% except for Livingston Parish, where the proportion of males having health insurance was 2.7% higher than for females (75.7% vs. 73.0%), and Tangipahoa Parish, where the proportion of insured males was 1.7% lower than for females (80.3% vs. 82.0%). Statewide, 78.6% of males were insured, compared to 80.1% of females. Age had much more of an impact on the likelihood of having health insurance coverage. Statewide, 70.0% of residents aged had health insurance, compared to 80.7% of individuals aged 40-64, a difference of 10.7%. Each Northshore parish also had lower proportions of insured year olds than year olds, with the differences ranging from 6.1% in St. Helena Parish (65.6% of year olds vs. 71.7% of year olds) to 12.6% in Tangipahoa Parish (71.5% of year olds vs. 84.1% of year olds). Southeastern Louisiana University 10

11 LOCAL Livingston Parish Livingston Parish experienced a 0.3 percent gain in employment in the second quarter of 2008 compared to the second quarter of 2007, a smaller increase than the state and Northshore averages. Sales tax collections fell 3.6 percent compared to the same quarter in 2007, a lesser decline than for the region as a whole. The number of residential units granted building permits fell 45 percent over the past year, reflecting the nationwide slowdown in construction activities. EMPLOYMENT LIVINGSTON PARISH Labor Force 55,088 54,323 54,281 54,799 54,940 54,452 53,422 53,283 53,784 54,259 54,216 55,282 % Change vs Prior Year 3.4% 1.6% 1.5% 1.3% 1.7% 1.2% 1.1% 0.4% 0.0% 0.7% 0.1% 0.7% Total Employment 52,884 52,255 52,301 53,035 53,122 52,466 51,061 51,488 51,592 52,457 52,333 52,754 % Change vs Prior Year 3.1% 1.8% 1.6% 1.5% 1.9% 0.9% 0.6% 0.1% -1.0% 0.4% 0.1% 0.5% Number Unemployed 2,204 2,068 1,980 1,764 1,818 1,986 2,361 1,795 2,192 1,802 1,883 2,528 % Change vs Prior Year 9.8% -1.5% -1.6% -4.5% -6.0% 8.9% 12.4% 8.7% 30.9% 11.0% -0.3% 6.4% Unemployment Rate 4.0% 3.8% 3.6% 3.2% 3.3% 3.6% 4.4% 3.4% 4.1% 3.3% 3.5% 4.6% Change vs Prior Year 0.2% -0.1% -0.2% -0.2% -0.3% 0.2% 0.4% 0.3% 1.0% 0.3% 0.0% 0.3% 3QT-07 4QT-07 1QT-08 2QT-08 Total Employment Labor Force 54,564 54,730 53,496 54,586 55,000 % Change vs Prior Year 2.2% 1.4% 0.5% 0.5% Total Employment 52,480 52,874 51,380 52,515 52,500 % Change vs Prior Year 2.2% 1.5% -0.1% 0.3% Number Unemployed 2,084 1,856 2,116 2,071 50,000 % Change vs Prior Year 2.2% -0.7% 17.0% 5.5% 47,500 Unemployment Rate 3.8% 3.4% 4.0% 3.8% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Change vs Prior Year 0.0% -0.1% 0.6% 0.2% Source: Labor M arket Statistics, Local Area Unemployment Statistics Program SALES AND USE TAXES LIVINGSTON PARISH Total Sales (Mil.) $ $ $ $ $ $ $ $ $ $ $ $ % Change vs Prior Year 10.4% 7.0% 0.9% 6.2% 19.3% 8.1% 41.8% 0.9% -17.4% 7.3% -11.9% -5.0% Sales Tax Collected (Mil.) $ 5.44 $ 5.46 $ 5.40 $ 5.24 $ 5.78 $ 6.50 $ 6.52 $ 4.85 $ 5.27 $ 5.95 $ 5.45 $ 5.83 % Change vs Prior Year 12.1% 8.6% 2.7% 8.0% 19.0% 11.1% 44.4% 3.1% -9.8% 13.9% -6.9% -1.0% Source: Livingston Parish School Board - Sales and Use Tax Division RESIDENTIAL BUILDING PERMITS LIVINGSTON PARISH Total Units % Change Last Year -44.0% -72.1% -49.1% -19.6% -57.4% -53.5% -62.8% -62.4% -60.4% -39.4% -59.2% -24.8% Value ($000s) 7,606 5,608 6,079 6,178 4,228 5,828 4,547 4,322 5,533 9,299 7,881 6,509 % Change Last Year -46.8% -84.2% -35.6% -25.8% -53.7% -56.7% -80.0% -65.7% -61.0% -35.0% -42.0% -31.1% Unincorp. Units % Change Last Year -41.8% -72.1% -53.1% -16.3% -59.6% -50.4% -64.6% -62.3% -59.9% -42.9% -63.0% -31.3% Value ($000s) 7,181 5,213 4,672 6,072 3,369 5,828 3,822 4,136 5,533 8,041 6,220 5,423 % Change Last Year -44.3% -84.8% -48.3% -21.9% -61.4% -53.6% -82.9% -65.9% -59.8% -39.6% -53.0% -35.0% Incorp. Units % Change Last Year -77.8% -71.4% 100.0% -80.0% 50.0% % 50.0% -66.7% % 42.9% 350.0% 83.3% Value ($000s) , ,258 1,661 1,086 % Change Last Year -70.1% -64.7% 242.2% -80.9% 118.1% % 96.1% -57.6% % 25.6% 368.0% -0.9% Sources: Livingston Parish Permit Office, Town of Albany, City of Denham Springs, Town of Livingston, Town of Walker Southeastern Louisiana University 11

12 St. Helena Parish Employment in St. Helena Parish rose 0.3 percent in the second quarter of 2008 compared to the same months of the previous year. St. Helena Parish was the only parish in the Northshore region experiencing an increase in retail sales, with sales tax collections rising 9.2 percent compared to the second quarter of EMPLOYMENT ST. HELENA PARISH Labor Force 4,323 4,190 4,160 4,201 4,196 4,241 4,166 4,084 4,150 4,174 4,155 4,323 % Change vs Prior Year -4.2% -6.0% -4.7% -3.9% -4.1% -6.0% 1.3% -0.5% -6.9% -5.5% -5.8% -7.6% Total Employment 3,949 3,902 3,906 3,960 3,967 3,918 3,813 3,845 3,853 3,917 3,908 3,939 % Change vs Prior Year 3.1% 1.7% 1.6% 1.5% 2.0% 0.9% 0.6% 0.1% -1.0% 0.4% 0.1% 0.5% Number Unemployed % Change vs Prior Year 27.2% -8.9% -0.4% 8.6% -6.5% 12.5% 9.3% -9.8% 20.7% 6.6% 2.1% 12.3% Unemployment Rate 8.7% 6.9% 6.1% 5.7% 5.5% 7.6% 8.5% 5.9% 7.2% 6.2% 5.9% 8.9% Change vs Prior Year 1.6% -0.7% -0.1% 0.3% -0.4% 0.7% 0.6% -0.6% 1.3% 0.4% 0.1% 0.9% Building permit data is not available from St. Helena Parish. Estimates from the Louisiana Department of Economic Development are shown in the table below. 3QT-07 4QT-07 1QT-08 2QT-08 Labor Force 4,224 4,213 4,133 4,217 % Change vs Prior Year 2.4% 1.7% 0.4% 0.8% Total Employment 3,919 3,948 3,837 3,921 % Change vs Prior Year 2.2% 1.5% -0.1% 0.3% Number Unemployed % Change vs Prior Year 5.9% 5.2% 6.6% 7.6% Unemployment Rate 7.2% 6.3% 7.2% 7.0% Change vs Prior Year 0.2% 0.2% 0.4% 0.4% Source: Labor M arket Statistics, Local Area Unemployment Statistics Program 4,000 3,950 3,900 3,850 3,800 3,750 Total Employment Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SALES AND USE TAXES ST. HELENA PARISH Total Sales (Mil.) $ 4.81 $ 5.69 $ 5.31 $ 5.80 $ 4.31 $ 5.08 $ 6.04 $ 4.98 $ 4.75 $ 6.47 $ 5.03 $ 5.50 % Change vs Prior Year -17.0% 18.1% 11.0% 7.1% -4.1% 15.6% -4.6% 98.2% -8.4% 11.9% 3.2% 12.0% Sales Tax Collected (Mil.) $ 0.24 $ 0.28 $ 0.27 $ 0.29 $ 0.22 $ 0.25 $ 0.30 $ 0.25 $ 0.24 $ 0.32 $ 0.25 $ 0.28 % Change vs Prior Year -17.0% 18.1% 11.0% 7.1% -4.1% 15.6% -4.6% 98.2% -8.4% 11.9% 3.2% 12.0% Source: St. Helena Parish Sheriff's Office RESIDENTIAL BUILDING PERMITS ST. HELENA PARISH Total Units % Change Last Year -42.9% -70.0% -50.0% -60.0% -66.7% -71.4% 100.0% 100.0% 0.0% -50.0% -50.0% -50.0% Value ($000s) % Change Last Year -21.0% -77.0% -43.1% -55.4% -69.1% -77.2% 53.8% 53.8% 0.0% -49.1% -49.2% -49.1% Source: Louisiana Department of Economic Development (estimates with imputation) Southeastern Louisiana University 12

13 St. Tammany Parish Total employment in St. Tammany Parish in the second quarter of 2008 rose 1.4 percent compared to a year ago. This reflects continuing recovery and growth in the Parish, although the gains were less than in most of the recent quarters. Sales tax collected fell 6.5 percent in comparison to the previous year, marking a slowdown in business activities expected after the completion of post-katrina rebuilding. The value of building permits dropped 47.4 percent compared to second quarter of 2007, reflecting the completion of reconstruction and the influence of national economic trends. EMPLOYMENT ST. TAMMANY PARISH Labor Force 119, , , , , , , , , , , ,809 % Change vs Prior Year 4.7% 3.6% 3.5% 2.5% 2.3% 1.9% 1.7% 1.2% 0.7% 1.9% 0.9% 1.9% Total Employment 115, , , , , , , , , , , ,220 % Change vs Prior Year 4.8% 4.1% 3.8% 3.0% 2.6% 1.8% 1.5% 1.2% 0.0% 1.7% 0.9% 1.7% Number Unemployed 3,693 3,498 3,479 2,948 3,203 3,337 4,102 3,087 3,904 3,120 3,426 4,589 % Change vs Prior Year 0.2% -8.6% -3.7% -13.5% -8.4% 5.6% 7.7% 2.9% 23.5% 8.0% -1.0% 6.4% Unemployment Rate 3.1% 3.0% 3.0% 2.5% 2.7% 2.8% 3.5% 2.6% 3.3% 2.6% 2.9% 3.8% Change vs Prior Year -0.1% -0.4% -0.2% -0.4% -0.3% 0.1% 0.2% 0.0% 0.6% 0.1% 0.0% 0.2% 3QT-07 4QT-07 1QT-08 2QT-08 Labor Force 118, , , ,985 % Change vs Prior Year 4.0% 2.2% 1.2% 1.5% Total Employment 114, , , ,273 % Change vs Prior Year 4.2% 2.4% 0.9% 1.4% Number Unemployed 3,557 3,163 3,698 3,712 % Change vs Prior Year -4.1% -5.7% 11.3% 4.5% Unemployment Rate 3.0% 2.7% 3.2% 3.1% Change vs Prior Year -0.3% -0.2% 0.3% 0.1% Source: Labor M arket Statistics, Local Area Unemployment Statistics Program 120, , , , ,000 Total Employment Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SALES AND USE TAXES ST. TAMMANY PARISH Total Sales (Mil.) $ $ $ $ $ $ $ $ $ $ $ $ % Change vs Prior Year -8.1% -6.9% -6.1% -0.5% -9.8% 2.3% -5.2% 3.8% -7.1% -1.7% -5.8% -11.0% Sales Tax Collected (Mil.) $ $ $ $ $ $ $ $ $ $ $ $ % Change vs Prior Year -8.1% -6.9% -6.1% -0.5% -9.8% 2.3% -5.2% 3.8% -7.1% -1.7% -5.8% -11.0% Source: St. Tammany Parish Sales and Use Tax Department RESIDENTIAL BUILDING PERMITS ST. TAMMANY PARISH Total Units % Change Last Year -2.2% -64.8% -67.7% -48.5% -58.1% -52.9% -71.3% -50.0% -24.0% -41.5% -55.3% 32.9% Value ($000s) 48,435 24,631 15,897 26,787 33,675 21,364 22,560 12,659 25,523 18,358 16,103 29,292 % Change Last Year 43.5% -41.9% -58.0% -46.9% -13.4% -46.1% -67.6% -55.4% -37.5% -67.0% -57.6% 7.0% Unincorp. Units % Change Last Year -11.7% -57.8% -68.5% -50.8% -61.0% -55.8% -45.8% -40.0% -11.6% -30.5% -59.5% -36.8% Value ($000s) 41,680 17,827 12,685 23,991 29,425 17,906 17,703 11,886 22,729 13,753 12,483 15,125 % Change Last Year 40.8% -49.3% -59.0% -44.8% -17.6% -49.2% -61.9% -50.0% -28.5% -67.7% -62.1% -31.1% Incorp. Units % Change Last Year 62.5% -75.8% -65.4% -38.6% -34.8% -30.8% -21.7% -80.6% -61.2% -58.7% -36.7% 613.3% Value ($000s) 6,754 6,803 3,212 2,795 4,250 3,458 4, ,794 4,605 3,620 14,167 % Change Last Year 62.3% -6.6% -53.7% -60.0% 35.1% -21.1% -86.1% -83.4% -69.1% -64.6% -28.5% 161.3% Sources: Town of Abita Springs, City of Covington, Village of Folsom, Town of Madisonville, City of Mandeville, Tow n of Pearl River, City of Slidell Southeastern Louisiana University 13

14 Tangipahoa Parish Tangipahoa Parish had the strongest employment growth in the Northshore region in the second quarter, up 3.3 percent over the same period of This was almost double the growth rate of the next highest parish (Washington, 1.8%). Sales tax collections fell 0.9 percent compared to the previous year, which was still a much better result than the 4.4% decline for the whole region. The number of residential housing building permit units fell 23.1 percent compared to the second quarter of 2007, the smallest decline in the region. EMPLOYMENT TANGIPAHOA PARISH Labor Force 52,078 52,011 51,979 52,064 52,507 52,405 52,006 51,875 52,660 52,675 52,669 53,851 % Change vs Prior Year 1.7% 1.7% 2.2% 1.7% 2.6% 3.0% 2.9% 2.8% 3.2% 3.8% 3.0% 3.5% Total Employment 49,644 49,749 49,838 50,229 50,572 50,151 49,365 49,938 50,249 50,725 50,600 50,946 % Change vs Prior Year 1.4% 1.8% 2.5% 2.3% 3.1% 2.8% 2.4% 2.7% 2.3% 3.7% 3.1% 3.2% Number Unemployed 2,434 2,262 2,141 1,835 1,935 2,254 2,641 1,937 2,411 1,950 2,069 2,905 % Change vs Prior Year 7.5% -1.0% -3.7% -11.9% -8.6% 8.2% 12.6% 5.1% 27.2% 8.0% 0.8% 10.1% Unemployment Rate 4.7% 4.3% 4.1% 3.5% 3.7% 4.3% 5.1% 3.7% 4.6% 3.7% 3.9% 5.4% Change vs Prior Year 0.3% -0.2% -0.3% -0.6% -0.4% 0.2% 0.5% 0.0% 0.9% 0.1% -0.1% 0.3% 3QT-07 4QT-07 1QT-08 2QT-08 Labor Force 52,023 52,325 52,180 53,065 % Change vs Prior Year 1.9% 2.4% 3.0% 3.5% Total Employment 49,744 50,317 49,851 50,757 % Change vs Prior Year 1.9% 2.7% 2.5% 3.3% Number Unemployed 2,279 2,008 2,330 2,308 % Change vs Prior Year 1.0% -4.1% 14.9% 6.6% Unemployment Rate 4.4% 3.8% 4.5% 4.3% Change vs Prior Year 0.0% -0.3% 0.5% 0.1% Source: Labor M arket Statistics, Local Area Unemployment Statistics Program 52,500 50,000 47,500 45,000 Total Employment Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SALES AND USE TAXES TANGIPAHOA PARISH Total Sales (Mil.) $ $ $ $ $ $ $ $ $ $ $ $ % Change vs Prior Year -5.4% -3.0% -3.8% -4.0% -2.0% 4.1% -2.2% -0.3% 12.1% 1.9% 2.7% -6.9% Sales Tax Collected* (Mil.) $ 2.91 $ 2.62 $ 2.74 $ 2.72 $ 2.69 $ 2.58 $ 3.03 $ 2.46 $ 2.69 $ 3.01 $ 2.74 $ 2.74 % Change vs Prior Year -5.4% -3.0% -3.8% -4.0% -2.0% 4.1% -2.2% -0.3% 12.1% 1.9% 2.7% -6.9% * Sales tax receipts reflect only the 2% allocation to the Tangipahoa Parish School Board. Source: Tangipahoa Parish Council - School Board RESIDENTIAL BUILDING PERMITS TANGIPAHOA PARISH Total Units % Change Last Year -24.5% -23.4% -53.6% -28.9% -51.6% -83.1% 20.0% -26.4% -30.5% -2.3% -58.8% 1.3% Value ($000s) 12,289 16,871 9,632 16,082 6,296 9,987 8,890 6,640 10,588 14,722 7,108 10,088 % Change Last Year -27.3% -34.4% -50.2% -3.1% -50.6% -83.2% -12.8% -31.0% -13.5% -22.4% -58.3% -10.7% Unincorp. Units % Change Last Year -33.3% -41.4% -46.3% -18.8% -48.6% -85.1% -29.1% -21.9% -25.9% 12.1% -68.8% -22.5% Value ($000s) 9,796 9,987 8,036 14,016 5,368 8,281 5,554 6,430 9,371 13,832 5,248 8,465 % Change Last Year -32.1% -50.5% -43.1% 1.8% -44.7% -84.2% -35.7% -21.5% -9.8% 18.5% -65.2% -10.3% Incorp. Units % Change Last Year 35.7% 33.3% -65.5% -65.6% -63.2% -70.2% 290.0% -62.5% -50.0% -66.7% 150.0% 188.9% Value ($000s) 2,494 6,884 1,596 2, ,706 3, , ,860 1,623 % Change Last Year 0.3% 24.1% -69.6% -26.7% -69.4% -76.4% 113.3% -85.3% -33.9% -87.8% -7.0% -12.7% Sources: Tangipahoa Parish Permit Office, City of Hammond, Tow n of Independence, and City of Ponchatoula Southeastern Louisiana University 14

15 Washington Parish Employment in Washington Parish in the second quarter of 2008 rose 1.8 percent compared to the second quarter of 2007, a growth rate very similar to the regional average of 1.6 percent. Sales tax collections were 0.7 percent lower compared to the second quarter of the previous year, the second best performance among Northshore parishes. The number and value of building permits fell 69.7 and 61.3 percent, respectively, compared to the same period in EMPLOYMENT WASHINGTON PARISH Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 De c 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Labor Force 15,479 15,435 15,747 15,607 15,754 15,752 15,645 15,455 15,465 15,727 15,739 16,070 % Change vs Prior Year -0.6% 0.2% 1.8% 0.7% 1.2% 2.3% 0.8% 0.1% -1.3% 1.8% 1.5% 1.7% Total Employment 14,534 14,599 14,935 14,877 14,999 14,939 14,696 14,728 14,595 15,016 14,970 14,991 % Change vs Prior Year -1.6% 0.1% 2.0% 1.0% 1.5% 1.8% 0.4% 0.3% -2.1% 1.9% 1.9% 1.6% Number Unemployed ,079 % Change vs Prior Year 19.6% 0.7% -1.7% -5.4% -4.3% 12.3% 8.3% -4.2% 15.5% -1.4% -5.3% 4.3% Unemployment Rate 6.1% 5.4% 5.2% 4.7% 4.8% 5.2% 6.1% 4.7% 5.6% 4.5% 4.9% 6.7% Change vs Prior Year 1.0% 0.0% -0.1% -0.3% -0.3% 0.5% 0.5% -0.2% 0.8% -0.2% -0.3% 0.1% % Change vs Prior Year 3QT % 4QT % 1QT % 2QT % Labor Force Total Employment 15,554 14,689 15,704 14,938 15,522 14,673 15,845 14,992 15,500 15,000 % Change vs Prior Year 0.2% 1.4% -0.5% 1.8% 14,500 Number Unemployed % Change vs Prior Year 6.0% 0.6% 6.6% -0.4% 14,000 Unemployment Rate 5.6% 4.9% 5.5% 5.4% Change vs Prior Year 0.3% 0.0% 0.3% -0.1% Source: Labor Market Statistics, Local Area Unemployment Statistics Program Total Employment Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SALES AND USE TAXES WASHINGTON PARISH Jul 07 Aug 07* Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Total Sales (Mil.) $ $ $ $ $ $ $ $ $ $ $ $ % Change vs Prior Year 12.4% 170.2% -5.0% -11.1% -3.2% 8.9% 32.1% -10.3% 21.7% -5.3% 14.9% -8.2% Sales Tax Collected (Mil.) $ 1.58 $ 4.12 $ 1.54 $ 1.66 $ 1.38 $ 1.59 $ 2.45 $ 1.19 $ 1.77 $ 1.82 $ 1.61 $ 1.62 % Change vs Prior Year 12.9% 171.3% -4.6% -10.7% -2.8% 9.4% 32.1% -10.3% 21.7% -5.3% 14.9% -8.2% * Washington Parish received a one-time payment of approximately $2 million of use taxes in August 2007, the result of an audit finding covering the previous 3 years. Source: Washington Parish Sheriff's Office - Sales and Use Tax Department RESIDENTIAL BUILDING PERMITS WASHINGTON PARISH Total Units % Change Last Year 105.3% 19.4% 33.3% -76.0% -80.5% -86.2% -18.2% -8.3% -14.3% -71.8% -64.4% -73.7% Value ($000s) 6,575 3,470 2,867 1, ,412 1,115 1,569 1,603 1,322 1,902 1,281 % Change Last Year 228.3% -1.5% -14.7% -67.0% -79.8% -87.7% 26.9% -7.6% -58.4% -63.7% -56.8% -64.4% Unincorp. Units % Change Last Year 111.8% 32.1% 52.6% -71.4% -80.0% -87.2% 0.0% 22.2% 0.0% -78.9% -63.2% -75.7% Value ($000s) 6,140 3,470 2,720 1, , ,569 1,067 1,067 1,732 1,192 % Change Last Year 245.3% 7.5% 4.7% -62.7% -77.8% -88.4% 37.8% 105.6% 57.3% -70.1% -51.4% -65.7% Incorp. Units % Change Last Year 50.0% % -40.0% % -83.3% -62.5% -66.7% % -33.3% 200.0% -71.4% 0.0% Value ($000s) % Change Last Year 93.7% % -80.8% % -91.4% -76.7% -10.3% % -83.1% 218.8% -79.7% -31.0% Sources: Washington Parish Permit Office, City of Bogalusa, Town of Franklinton Southeastern Louisiana University 15

16 SOUTHEASTERN Staff Highlight Bonnie Lewis Director Southeastern Social Science Research Center Civic engagement and service learning are two hot buzzwords in modern academia, but they're nothing new to Bonnie Lewis. She has put those models into practice since she first stepped into a Southeastern classroom as a visiting assistant professor in "I can honestly say I've been doing that all along," she said with humility. "Ninety-nine percent of student learning is process, not product." This ideal has been put to the test on countless occasions for Lewis during her tenure at Southeastern. A member of the sociology faculty and director of the Southeastern Social Science Research Center, she has worked on projects ranging from urban forestry and neighborhood revitalization to assessing the rate of homelessness and DWI arrests. The center provides communities with research analysis and reporting services including surveys, evaluations, needs assessments, social-demographic analyses and mapping. Hammond Mayor Mayson Foster commends Lewis for her work with the District 1 Pine Ridge Weed & Seed Steering Committee, calling her involvement a win-win situation for all. While Hammond's natural spaces were the focus of "Comprehensive Mapping for Smart Growth Planning," "Photography and Hammond Natural Space Preservation," "Wildfire Awareness Project" and "Keeping Up Urban Forest" reports, she also lent her talents and expertise to the city's new Splash Park project. Students assisted in the surveys by tracking responses, entering data, writing proposals and preparing the final report. "The students learn about operations of nonprofits and receive real world experience; the nonprofits gain extra hands, fresh perspective and help to improve their operational capacity," he said. Her composite approach to teaching is working. Kenneth Bolton, head of the Department of Sociology and Criminal Justice, said her selection as the faculty recipient of the 2008 President's Award for Excellence in Service is long overdue. "Her commitment to community service is so strong that it is difficult to separate her teaching and research from her service activities," said Bolton. "She continually pushes her students and faculty members, from our department and others, to be involved in service/research/teaching activities that benefit all involved." While teaching, coordinating, directing and volunteering, Lewis has also found time to apply for and receive $981,000 for research and development projects. Since assuming the SSSRC directorship in 1996, the center's reputation has grown to become a respected branch of Southeastern's community outreach. "The center has gone through a wide variety of studies and projects," Lewis said. "Throughout, however, there has been one constant: that is a mission to assist faculty, students and the community in their social science research needs." (Text and photograph courtesy of Southeastern s Public Information Office. Photo editing courtesy of Coldfire Graphics.) Southeastern Louisiana University 16

17 Southeastern surveys assist revitalization of Olde Towne Slidell Following the devastating impact of Hurricane Katrina on the City of Slidell, community leaders there contacted the new planning program at Southeastern s Southeast Louisiana Business Center to request assistance for Slidell s Olde Towne revitalization. That request led to the university s commitment to assist Slidell with technical and planning assistance for the downtown area, along with a survey of residents and businesses conducted by the Southeastern Social Science Research Center (SSSRC), explained John Dardis of the Business Center s planning department. The survey and a building inventory were conducted in cooperation with the Olde Towne Slidell Association and the Olde Towne Slidell Taskforce. The inventory, prepared by the university s Southeast Louisiana Business Center, contains the condition, age and use of every building in Olde Towne. A summary of Southeastern s survey findings was presented to Mayor Ben Morris and the Slidell City Council on Oct. 14 by Southeastern sociologist Bonnie Lewis, director of the SSSRC, and Dardis. Survey respondents were asked to provide information and ideas that would help identify the most important activities that would help spur the economic development and revitalization of the area. Almost three of every four respondents said they have concern for Olde Towne Slidell problems, said Lewis, who co-directed the Olde Towne revitalization survey with SSSRC poll director Kurt Corbello. This indicates strong support to draw on in revitalization efforts. When asked to list what they considered Olde Towne s most important problems, respondents most frequently mentioned economic development aid/lack of business (13.3 percent); abandoned, blighted, unrestored or vacant property (12 percent); bars (7.8 percent); getting people to shop here/more public relations (7.2 percent); and draining/flooding and traffic/speeding (tied at 5.4 percent). We were also interested in their views on amenities that are frequently cited in urban planning, Lewis said. Given a list of 21 such amenities -- ranging from public transportation, restaurants and bars to safety from crime, cleanliness and good streets residents were asked to rate whether they thought Olde Towne Slidell had enough of these features and how important each was to the area s development. On every item except bars, the study found that large percentages of respondents felt safety issues safety from crime (85 percent), safe street crossing (76 percent) and safety for pedestrians (73 percent) and bicycles (61 percent) were most important. Cleanliness also rated highly on the importance scale at 85 percent, as did good streets at 60 percent. While the study indicates that 96 percent believe that there is none or not enough public transportation, only 33 percent believe that this is important. Approximately 80 percent say that there are plenty or too many bars, with only 12 percent indicating that bars are important to development. The contrast of what residents feel is lacking and what they consider most important shows what the community will provide the most support for in revitalization efforts, and what would have the greatest payoff in effort, said Lewis. Southeastern Louisiana University 17

18 Southeastern surveys assist revitalization of Olde Towne Slidell (cont.) Lewis said 166 Olde Towne business and property owners and renters approximately 44 percent -- responded to the survey, conducted by mail in June and July. The survey has a sample error of plus or minus 7.7 percent. In addition to the Olde Towne survey, Business Center planning personnel conducted a building survey, which logged the condition, age, and use of Olde Towne buildings. Even with the significant flooding of buildings in Slidell, the Olde Towne District appears to be recovering quickly as new residents and businesses move back in, according to the study. The inventory found that 269 (82 percent) of Olde Towne s 329 structures are occupied, 84 percent are in very good or good condition, and 38 percent are more than 50 years old. Residential structures account for 56 percent of the buildings and commercial 30 percent. Fifty structures were found to be in poor condition, with a dozen judged very poor. Slightly over half 57 percent of the structures are elevated. The information was compiled to help the city with planning for the future, demolishing buildings that are considered in very poor condition, and in dealing with the issue of flood insurance. The Slidell Planning Department and Olde Towne volunteers assisted greatly with both projects involving Southeastern Louisiana University. The Business Center has also worked with the City to prepare a Main Street program grant application, currently being reviewed on the state level, and lent technical assistance and expertise to the task of formulating economic incentive programs and other items needed for revitalization. Copies of the Olde Towne Slidell survey will be available online at or by calling the SSSRC at TEAMWORK Dr. Bonnie Lewis and the Southeastern Social Science Research Center (SSSRC) have collaborated with the Southeast Louisiana Business Center (SLBC) on two recent projects. The first, the Olde Towne Slidell revitalization project described above, was a joint effort between the SSSRC and the SLBC s Regional Planning Department. The second, a commerce study for the City of Bogalusa, is currently underway. This project combines the efforts of the SSSRC and the Southeastern Business Research Center (BRC). The SSSRC conducted a telephone survey of Bogalusa-area residents in October 2008 to gather information on their shopping patterns and preferences. Meanwhile, the BRC is utilizing secondary data to develop a profile of demographic and economic trends for the area. The survey results and analysis of secondary data will be combined into a report designed to assist the City of Bogalusa s public officials and civic leaders in developing a plan for Bogalusa s economic development and growth. Southeastern Louisiana University 18

19 Supply Chain Management Program designed to address workforce needs A new program being developed by Southeastern is intended to address a pressing workforce need to develop professionals trained in the management of logistical operations. The new program, which will offer a bachelor's degree in Supply Chain Management, will be the first degree offering of its kind in the state. Under development by the College of Business, the program will prepare individuals in both management and logistical functions as they relate to the distribution and supply chain industry. Its core curriculum will include instruction in acquisitions and purchasing, inventory control, storage and handling, logistics planning and shipping and delivery management. According to Interim President John Crain, this new degree offering is part of Southeastern's continued commitment to encourage economic development and enhance job growth in the region by tapping the expertise of its faculty and staff. "Southeastern has a history of working with our business community and we think this program will help meet the needs of this expanding industry that has great potential in this area," said Crain. "The university mission emphasizes the need to partner with the business community for the overall benefit of the region. This is an example of putting that ideal to work." Currently Southeastern offers a concentration in supply chain management through its Department of Marketing and Finance. The new degree program will expand the number of courses offered to create a more comprehensive program. The growth of the I-12 corridor and the convergence of interstates, rail and other transportation modalities make the region an ideal location as a hub of logistical services, Crain added. International trade, logistics and distribution were all highlighted in a recent study as target industries, which are postured to enhance southeast Louisiana's economic development capacities. Angelou Economics of Austin, Tex., was charged with cataloging the region's strengths and weaknesses and then branding those strengths in order to maximize economic development potential. Funding from a Louisiana Economic Development grant made the study possible. The study pointed to the region's geographic location as one prime for the establishment of greater distribution and supply chain productivity, thanks in large part to its transportation corridor, which stretches along Interstate 12. According to Crain, Southeastern's proximity to additional transportation systems including the intersection of Interstate 55 with I-12, two railways and two major U.S. ports in New Orleans and Baton Rouge, both within 50 miles, make Southeastern the ideal location to establish the degree program. The study confirmed the industry's need for the program to support future employees and also led to the formation of the I-12 Alliance. This partnership of agencies and entities with economic development interests in the five Northshore Parishes was created to build upon the study's findings and implement strategies to recruit expanding and relocating businesses to the region. Southeastern Louisiana University 19

20 Supply Chain Management Program cont. The Alliance is housed administratively in the Southeast Louisiana Business Center at Southeastern where planning, research, and technical assistance aid in stimulating regional economic growth. According to William Joubert, SLBC director, the Hammond area alone is home to over 3,500 direct distribution positions through national companies such as Wal-Mart, Cardinal Health, Home Depot, Winn-Dixie and Liquid Container. He stated that the number of positions is expected to double, if not quadruple, in coming years. "Southeastern is taking the lead by putting this program in place to educate and train individuals specifically for future jobs that will need to be filled," he said. "These are future jobs that will contribute to the long-term economic success of the region." The new Supply Chain Management degree program received final approval from the Louisiana Board of Regents on August 27, (Article courtesy of Southeastern s Public Information Office.) Our Special Thanks This edition of the would not exist without valuable contributions from: Southeastern Louisiana University: Dr. A.M.M. Jamal, Dr. David Wyld, Rene Abadie St. Tammany Parish Sales and Use Tax Department Tangipahoa Parish Permit Office and School Board Sales and Use Tax Department Livingston Parish Building Permit Office and School Board Sales and Use Tax Division Washington Parish Building and Planning Department and Sheriff s Office Sales and Use Tax Department MEMBER St. Helena Parish Sheriff s Office and building permit offices of the following municipalities: This publication is jointly produced by the following Southeastern Louisiana University departments: Business Research Center Economic & Business Development Center Southeast Louisiana Business Center College of Business Town of Abita Springs Village of Albany City of Bogalusa City of Covington City of Denham Springs Village of Folsom Town of Franklinton City of Hammond Town of Independence Town of Livingston Town of Madisonville City of Mandeville Town of Pearl River City of Ponchatoula City of Slidell Town of Walker