Overview / Major Events Annually one of the most difficult and contentious issues that faces the legislature are the decisions regarding changes in the various state funding steams for local K-12 school systems. In fact, given the inordinate share of the general fund that is spent on state school aid, these decisions can drag on for months. However, 2019 proved to be different. This week both the House and Senate passed school funding legislation and sent it to the Governor for her signature. In fact, the debate over K-12 spending was significantly less contentious and acrimonious than it has been for many years. Overall, Iowa’s K-12 schools will see a nearly 3% increase in state funding (which equates to an additional $93.6 million). Without question, this will be the largest budget increase in terms of shear dollars in the upcoming FY20 budget. The speedy passage of this legislation suggests legislative leaders are on a fast track for resolving the FY20 budget and potentially ending the session well before its allotted 110 days. |
January Survey Results at a Glance:
OMAHA, Neb. (Jan. 17, 2019) – The Creighton University Rural Mainstreet Index for January fell, but remained above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The overall index sank to 51.5 from December’s 54.2. This was the 11th time in the past 12 months the index has remained above growth neutral. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Our surveys over the last several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. December Survey Results at a Glance:
OMAHA, Neb. (Dec. 20, 2018) – The Creighton University Rural Mainstreet Index for December rose above growth neutral after slipping below the 50.0 threshold in January, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The overall index climbed to 54.2 from November’s 49.9, its first sub-growth neutral reading since January 2018. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Our surveys over the last several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. Larry Winum, CEO of Glenwood State Bank in Glenwood, Iowa, said, “Glad to see Congress passed a bipartisan farm bill. (It) allows farmers and their community bankers to budget more accurately in the future.”
November Survey Results at a Glance:
OMAHA, Neb. (Nov. 15, 2018) – The Creighton University Rural Mainstreet Index for November fell below growth neutral for the first time since January of this year, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Overall: The overall index sank to 49.9, its first sub-growth neutral reading since January of this year, and down from October’s 54.3. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Our surveys over the last several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. Approximately 37.5 percent of bank CEOs support reducing recently enacted tariffs on imported goods. Jeffrey Gerhart, CEO of the Bank of Newman Grove, Newman Grove, Nebraska, said, “Farmers continue to feel the negative impact of tariffs and that impacts their ability to make a buck. Farmers do not need this kind disruption in their markets. This is bad policy from the White House.” Rural Mainstreet Index Expands for October: Bankers Expect Farmland Prices to Continue Decline12/7/2018 October Survey Results at a Glance:
OMAHA, Neb. (Oct. 18, 2018) – The Creighton University Rural Mainstreet Index climbed above growth neutral in October for a ninth straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Overall: The overall index expanded to 54.3 from 51.5 in September. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Our surveys over the last several months indicate that the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. James Brown, CEO of Hardin County Savings Bank in Eldora, Iowa, said, “Deteriorating crop conditions and the late harvest are the overriding concerns with our farmers.” Rural Mainstreet Index Sinks for September: Eight of 10 Bank CEOs Report Negative Tariff Impacts10/16/2018 September Survey Results at a Glance:
OMAHA, Neb. (Sept. 20, 2018) – The Creighton University Rural Mainstreet Index climbed above growth neutral in September for an eighth straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The overall index declined to 51.5 from 54.8 in August. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Our surveys over the last several months indicate that the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of recent trade skirmishes have begun to surface, weakening already anemic grain prices,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. August Survey Results at a Glance:
OMAHA, Neb. (Aug. 16, 2018) – The Creighton University Rural Mainstreet Index climbed above growth neutral in August for a seventh straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The overall index climbed to 54.8 from 53.8 in July. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Surveys over the past several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of recent trade skirmishes have begun to surface, weakening already anemic grain prices,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. According to Jim Stanosheck, CEO of State Bank in Odell, Nebraska, “The tariffs have and are costing our ag customers on grain prices and items they must purchase. Talking to one of my customers this morning, he thought that maybe the tariffs would bring about better prices in the future.” July Survey Results at a Glance:
OMAHA, Neb. (July 19, 2018) – The Creighton University Rural Mainstreet Index climbed above growth neutral in July for a sixth straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. This is the first time since the July 2014 survey that the overall index has risen above growth neutral for six straight months.
Overall: The overall index slid to 53.8 from 56.1 in June. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Surveys over the past several months indicate the Rural Mainstreet economy is solid but with less positive economic growth. However, the negative impacts of recent trade skirmishes have begun to surface with the weakening of already anemic grain prices,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. Pete Haddeland, CEO of the First National Bank in Mahnomen, Minnesota, said, “Grain prices are at, in some cases, 10-year lows. Not good.” According to Fritz Kuhlmeier, CEO of Citizens State Bank in Lena, Illinois, “The trade issues/tariffs have been devastating on our local dairy industry when tacked on top of already below cost or breakeven milk prices.” Rural Mainstreet Economy Expands for June: Rate of Farm Loan Rejections Almost Doubles Among Banks6/18/2018 June Survey Results at a Glance:
OMAHA, Neb. (June 21, 2018) – The Creighton University Rural Mainstreet Index climbed above growth neutral in June for a fifth straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. This is the first time since July 2015 the survey has recorded five straight months of overall indices above growth neutral.
Overall: The overall index slid slightly 56.1 from 56.3 in May. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Surveys over the past several months indicate the Rural Mainstreet economy is trending upward with improving, and positive economic growth. However, the negative impacts of recent trade skirmishes has yet to show up in our survey results. While agriculture commodity prices have improved recently, prices remain below breakeven for a large share of grain farmers,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. |
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