Across the nation, sales tax income is dropping, the economy is slipping and unemployment is rising.
But up until Superior Industries announced its closure Tuesday, Pittsburg wasn’t in that boat. In fact, the city actually posted higher sales tax numbers last month than it did the year before. Overall, Pittsburg brought in about $5,000 more in July 2008 than in July 2007, and has received $3.3 million so far this year, up from $2.9 million at this point last year.
“We have experienced some growth in sales tax revenue,” said Mark Turnbull, Pittsburg director of economic development. “And there are a lot of factors in that.”
Blake Benson, Pittsburg Area Chamber of Commerce president, said one of the main factors was surprising — higher gas prices.
“With gas prices being what they are, you have fewer people driving and shopping elsewhere in Kansas City or Joplin,” Benson said. “And I think more people are realizing the value of shopping locally and helping their neighbors. That’s something you see more in tougher economic times than in good economic times.”
John Van Gorden, interim Pittsburg City Manager, also cited the gas prices as a reason people might stay home.
“But really, there’s no way to be sure,” Van Gorden said.
Turnbull said other factors included Pittsburg’s reputation as a regional retail hub and a conscious effort to increase retail and sales in the area.
Benson said the increase in population was another boon to the local economy.
Pittsburg and Crawford County also were under the national average for unemployment. According to the Kansas State Labor Report for July released last week, the state unemployment rate was up 4.9 percent from 4.4 percent from June, but still well below the national average of 6 percent. Crawford County’s rate is at 5.7 percent, still under the average, and Turnbull estimated Pittsburg’s rate at 5.0.
Benson said any rate under 4 percent was close to full employment.
But all of that received a big dent Tuesday, when Superior, Pittsburg’s second-largest employer according to Turnbull, announced it would be shutting down Pittsburg’s facility in December, costing more than 600 people their jobs.
While city officials said they couldn’t speculate on the effect on sales tax earnings, Turnbull said “obviously, it’s not going to help.”
“You have layoffs starting the 20th of October, and ending around Christmas,” Turnbull said. “It’s going to be a tough quarter any way you look at it.”
Kevin Flaherty can be reached at kevin.flaherty@morningsun.net or by calling 231-2600 Ext. 134
PITTSBURG —
