It was a busy legal day in Arkansas’ Capital city, with a voter ID law pushed by Republicans ruled to be unconstitutional, and harsh criticism pointed at the Arkansas Supreme Court by Arkansas Attorney General Dustin McDaniel.

Pulaski County Circuit Judge Tim Fox struck down the state’s voter ID law – Act 595 of 2013 – late Thursday (April 24) declaring the controversial measure unconstitutional because it adds an additional requirement for voters to meet to cast their ballots.

“Act 595 of 2013 imposes requirements on qualified electors beyond the requirements constitutionally required to register to vote,” Fox wrote.

Fox’s ruling also declared the regulations set forth by the State Board of Election Commissioners related to the law “void and unenforceable.”

The lawsuit in the ruling centered around the way absentee ballots are reviewed if voters do not present a valid identification. Last week in a separate complaint, the American Civil Liberties Union of Arkansas and the Arkansas Public Law Center filed lawsuits on behalf of four individuals who said the law prohibiting them from exercising their fundamental right to vote.

The voter ID law was passed by the Republican-controlled state legislature in 2013 and went into effect on January 1, 2014.

Gov. Mike Beebe, a Democrat, vetoed the measure citing the bill’s unconstitutional merits and expensive costs, which were estimated at $300,000. He also said at the time that the measure was “an expensive solution in search of a problem.”

The legislature overrode Beebe’s veto along partisan party lines. Republicans claim the voter ID law would curtail election day abuses, while Democrats contend the bill would discourage voter participation, particularly low income and minority voters.

MCDANIEL AND THE SUPREMES
The Arkansas Supreme Court’s denial of a petition for rehearing in a case brought by Attorney General Dustin McDaniel could threaten all pending and future litigation in the state, McDaniel said Thursday.

Earlier this month, the state’s high court tossed a $1.2 billion judgment against Johnson & Johnson in a Medicaid fraud case involving the drug Risperdal. The Supreme Court ruling overturned a lower court determination.

The 4-3 decision declared that the state misapplied a Medicaid fraud law because the Arkansas Code Revision Commission “substantively altered” changes to a law that was codified 21 years ago.

With the court’s ruling, McDaniel suggested that lawyers must now research original acts and legislative intent versus reading what is in the published legal code.

“The rationale used by the court was completely new and foreign to the case,” McDaniel said in a lengthier interview to air Sunday morning on KATV Channel 7′s Talk Business & Politics. “They now create in every case in Arkansas the potential risk of malpractice for lawyers because they say you can no longer trust what’s printed in the law books.”

McDaniel said the code revision system does not need to change.

“The system is perfectly formulated. The Code Revision Commission is authorized by law, they’re reviewed by the General Assembly. They have linguistics experts and a team of lawyers. Everything they did was perfectly appropriate,” he said.

With the petition for rehearing denied by the Arkansas Supreme Court – also by a 4-3 decision – McDaniel said there are no more legal avenues to pursue on a Medicaid fraud false claims charge. He said he does plan to pursue a new lawsuit regarding a deceptive trade practices claim tied to the Risperdal case.

But he warned that the high court’s interpretation undermines more than 170 years of legal precedent.

“The Arkansas Supreme Court has the reputation of being a results-oriented court. They get whatever result they want when they craft the law to match what they want done,” McDaniel said. “In this case, they came up with something that no one even argued. It undercuts the credibility of our court and it completely takes away from the Attorney General the ability to ever go after a drug manufacturer no matter what they did or how guilty they are. In this case, the drug manufacturer pleaded guilty to a federal felony and paid $2.2 billion in fines and I’m told we’re never allowed to prosecute them or anyone else.”

For anyone expecting fireworks during the District 9 Senate candidate forum Thursday night (April 24), there were none. But there was plenty of policy discussion to keep the forum hosted by the Van Buren Chamber of Commerce going for more than 90 minutes.

The debate started with Sen. Bruce Holland, R-Greenwood, and Rep. Terry Rice, R-Waldron, jumping into the Private Option, which used federal dollars to purchase private health insurance for individuals who would have otherwise qualified for Medicaid coverage.

Rice called it the "biggest elephant in the room" before deriding the legislation that he voted against in the Arkansas House. He discussed how the program is funded by the federal government for the first three years of its existence, with funding falling on state government at that time.

"The payday's coming and I hate for people to be hurt. I asked for this to be put off and let's see what other states do around us. We were the only southern state — no other state that touched us expanded Medicaid. It's because the Supreme Court ruled we did not have to. We were told (by the federal government) we had to do something. We did not have to do something. We did need to reform Medicaid, but the cost is going to be exorbitant, I believe."

Holland, who voted in favor of the Private Option, had a decidedly different take on the oft-controversial legislation, explaining that there were three options available to the state.

The first option he said was to do nothing. The second option was to just go ahead with the federal government's move to expand Medicaid. The third option, he said, was for the state to take the reigns and create the first of its kind Private Option, using funds meant for Medicaid expansion to instead purchase health insurance for the poorest Arkansans, even though some have argued the state should not accept the federal funding since it is paid for with deficit spending.

"It's accepting federal money that the federal doesn't have. Well, I get that argument. I really get that. But there's money that's gone from this state to DC that I think we should take advantage of and allow these people and these hospitals the support through this Private Option. Now there's nothing perfect about it. It's the crappiest lemonade you could make out of these lemons. That's a fact. But doing nothing was not a good option. Expanding Medicaid was a terrible option because Medicaid is a horrible system. The state doesn't have any business in the insurance business, not the federal government."

He also said that working toward a solution, which Holland said he and his colleagues in the General Assembly did during the legislative session, was the right thing to do.

"And if you want to say I made the deciding vote on it, that's fine. I did."

With the forum being hosted by the Van Buren Chamber, government influence in business was a common theme. When asked to explain what he would do to help small businesses, Holland wasted no time pushing for additional tax cuts (Holland has previously endorsed Republican gubernatorial candidate Asa Hutchinson's tax cut plan).

"I believe the best thing we can do for small businesses is to reduce taxes for working people because I believe the more money you put back into working people's pockets, the more money they're going to have to spend at small businesses. And that's a real short answer, but I believe that's the right answer."

Rice leaned on his background in the furniture business when crafting his answer, explaining that he thinks the state has too much regulation that stifles small business growth.

"There's a lot of rules and regs that go through those committees that get passed without you getting to vote on them or the rest of the legislature getting to vote on them. We need to lessen up some regulations. This goes back where the federal government, we all know, has become overbearing and there's nobody going to push back unless the states push back. And that will help business."

He also favored "responsible tax decreases," as well, though he said legislators must look not only at current spending, but any liabilities and future costs, such as the Private Option when the federal government leaves the program to be fully funded by the state.

Education and workforce development was also an issue, with Holland pushing for more trade education versus a traditional college track for high school students. Rice piggybacked on Holland's statement and added the state should start producing skilled workers that the "industry wants."

"Not everybody is made to go to college. We need vocational training for kids who can get out and be happier and make more money than they would if they had a four-year degree in something that they really didn't like. We've got to work with the employment people to make sure we're getting everything we need for the young people and get them ready to go."

Following are quotes from the candidates on other topics:
• Holland on tourism and how it impacts business recruitment: "When we start thinking about recruiting some of those businesses, we need to think about what our towns look like and what they look like to someone else. We all get an impression when we go off to visit another city somewhere. …What we do with tourism, that's the face of that right now. That's what makes people want to come to live here. Those are the front lines of economic development."

• Rice on why voters should choose him on May 20: "Am I the best person? Am I smartest? No. I have a passion to do what I believe what I believe for people and the state, just as I believe Sen. Holland does."

• Rice on legalization of medical marijuana: "If it's on the ballot, I could not support it. I can tell you this, I went through pain management with a couple of spine surgeries. I have empathy for people with pain. I have empathy with people that need help. But I believe the concerns I see of people getting out on the road and that, I guess you're talking about a Colorado-type program, I would not support as a legislator."

• Holland on an increase of the state's minimum wage: "I am not in favor of raising the minimum wage. If we do raise it, let's make it $1,000 an hour. I think that's a bad argument, but I think it's going to hurt small businesses and I'm against it."

It was 15 years ago that Mark Simmons, chairman of Simmons Foods, and two other members of the John Brown University Board of Trustees, first discussed the possibilities of establishing a center for business and ethics leadership with retired Wal-Mart executive Don Soderquist in mind.

Simmons said they took Jo and Don Soderquist to dinner in Tontitown and it wasn’t long before the center became a reality. He said Don didn’t just lend his name to the center, he and the his entire family have been passionate leaders since day one.

Chuck Hyde, CEO of the Soderquist Center, described Don as the drumbeat within the organization setting the pace and rhythm that never wavers.

More than 500 business and academic professionals gathered Thursday night (April 24) to help the Soderquist Center for Leadership and Ethics celebrate its 15th anniversary on the John Brown University campus in Siloam Springs.

Don Soderquist assembled a cast of corporate heavyweights to have an intimate conversation about leadership and ethics as the main event capping off a full day of celebration.

John Pepper, retired CEO of Procter & Gamble (2003); Doug McMillon; CEO of Wal-Mart Stores Inc.; Steve Reinemund, retired CEO and chairman of Pepsico (2006); joined in the discussion with Soderquist who spent nearly two decades in top management at Wal-Mart including board service until 2003.

Soderquist joked that these corporate leaders were chosen after six other people turned him down. He then said the trio of leaders on stage were his top pick, because they each “walked the talk,” and were leaders he personally admired.

LEADERSHIP LESSON
When asked to share one lesson they learned in leadership along the way, Pepper said sometimes you have to let the other shoe fall. He said there is no compromising what is right. 

He then shared how during the height of the Toxic Shock Syndrome that P&G had a just launched a new tampon product that quickly garnered 30% of the marketshare. Pepper said even though there was no scientific proof the product was linked to the serious medical disorder, P&G pulled it. 

“The cost of pulling the product was immaterial, given the seriousness of the disorder and the unanswered questions in the public sphere,” Pepper said.

He said one last lesson he learned from his wife of 50 years is that “anything is possible,” a conclusion he reached when she agreed to marry him after three years of proposing.

“Leaders have to develop other leaders,” Reinemund said, which sometimes gets overlooked as there are so many distractions and other tasks for top executives to attend to regularly.

He said one program he ran for five years as CEO of Pepsico was taking a full week to pull out 40 junior executives who spent the entire time offsite in professional and personal planning. 

“We provided them with all the counseling they needed for personal and professional (guidance), and the most widely regarded segment in each of the five years was the training Don (Soderquist) provided in business ethics,” Reinemund said.

Soderquist said he was amazed that a CEO for a multinational company like Pepsico invested so much of his own time with 40 individuals. He said that alone made a huge impression on those junior leaders.

“He even gave them his cell phone number, a point of personal contact, and told them to keep him informed if they saw something wrong.,” Soderquist said of Reinemund.

CULTURE KEEPER
McMillon was asked to comment on the importance of corporate culture, something he said was ironic because Don Soderquist, also onstage, was tagged as the keeper of the Wal-Mart culture following Sam Walton’s death.

“Culture is like the operating system for an organization. Everything else works because of the culture,” McMillon said. “I tell a lot of stories, something I learned from Don. We work hard to try and keep the culture contemporary but genuine.”

He said learned may years ago how deep the culture ran on his second day of working a summer job as an unloader at a Wal-Mart Store.

“I was paired with this older guy named Johnny ... I worked hard to keep up with him all day. When we were clocking out he began to tell me what Wal-Mart meant to him, sharing the culture in his own way. I thought to myself if this company means that much to a truck unloader, they must be pretty special,” McMillon said.

He said his second day as a junior buyer some years later, he was met by Ray Hobbs who told him the cups in the cafeteria were cheap, so take two to keep from burning the hands with hot coffee.

“He also told me if you found something wrong to fix it, to take responsibility for it,” McMillon shared.

ETHICS RULE
“Example is not the main thing, is the only thing,” Pepper said when asked about advice on ethics.

When Pepper was running the International business for P&G he said there was an incident in Africa where the company could not transfer in certain items needed for their operation without paying a bribe to authorities.

“We went on without the items and appealed to the government for five months. There was never a question in the chain of command on the ground about the right thing to do,” Pepper said.

McMillon shared a similar story about former CEO Mike Duke, who was traveling in Russia when the corporate airplane broke down. He said to get the part needed to fix the plane they were asked to pay a bribe. 

“Mike left the plane there and he and his team took a commercial flight out of there. The plane was parked there until finally they (Russians) finally gave up,” McMillon said.

Reinemund said a disgruntled employee at competitor Coca Cola sent new product formulations to PepsiCo when he was CEO. 

“I got a phone call from the CEO of Coca Cola one day thanking me for our actions, of course I had no idea what he was talking about. After some investigation I discovered an administrative assistant got the package, opened it and recognizing what it was, she packed it back up and sent it back to Coca Cola’s general counsel. She had told no one and had not showed the information to anyone else. This employee did what she thought was the right thing on her own. It was a great day for PepsiCo,” he said.

In each of the incidents, Soderquist said the ethics were imbedded into the people reacting.

RISK TAKING
Soderquist asked McMillon to talk about the delegation of responsibility given the size of Wal-Mart and how he handles that task.

“I believe we have to create an atmosphere that facilitates risk taking. We have to provide a safety net at times when there are failures. Wal-Mart didn’t get to be where it is today without taking some risks. I believe risk taking should be rewarded,” McMillon said.

One caveat to that, according to Reinemund, is that top leaders should set the parameters for the level of risk taking involved. He also said there should never risks taken when it comes to ethics.

“That is especially true today as it is so hard for a company to recover when there has been some ethical miscalculation,” Reinemund, who is also on the board of directors at Wal-Mart Stores.

Pepper recalled one particular risk he took in 1986 when Tom Muccio came into his office asking if P&G could send 28 people to set up a new office in Northwest Arkansas.

“I agree to send 13 or 14 to start with, and he was back in two months to get the other 14. That was a risk we took,” Pepper said.

Soderquist added that by taking the risk, P&G reshaped the supplier/retailer relationship from an adversarial nature to a more collaborative one. 

“Just think about how that one decision has helped transform this region today with the number of suppliers and economic opportunities that exist,” he said.

IN A NUT SHELL
Each of the respected leaders were asked to boil down in nut shell one thought about leadership advice.

“Do not miss an opportunity to make a bigger difference. Seize the moment,” McMillon said.

“Create a vision for your team to achieve a noble business,” Reinemund said.

“Don’t compartmentalize your life, business, home, church, but let your values be the same because you are just one person,” Soderquist said.

“Do anything that is right, and do it with excellence,” Pepper said.

The mortal side of politicians, more orange barrels for Northwest Arkansas, big money for a Wal-Mart exec and bad bridges are part of the Northwest Arkansas Friday Wire for April 25.

NOTES & ANALYSIS
• Political perspective
During these election cycles when the mere mention of a political issue can ruin a family reunion or Sunday School class and send angry words flying between even the kindest of folks, we forget that those who step out to run for office and put their name on the ballot are breathing, feeling humans.

Or, as Shakespeare might have noted if he were a politician: “If you prick us, do we not bleed? if you tickle us, do we not laugh? if you poison us, do we not die?”

An aortic dissection, a medical issue new to many of us, served – or should have served – as a reminder that the person who may have asked for your vote is mortal. The emergency surgery this week on U.S. Sen. John Boozman (of Rogers by way of Fort Smith and Northside High School and Razorback football) to repair an aortic dissection turned out good for Boozman. As of Thursday (April 24), he was doing remarkably well.

A statement from his Senate office included this paragraph: “His family, who continues to be with him at the hospital, has indicated that doctors are amazed at how quickly Boozman is recovering from the surgery. As he continues to regain strength, Boozman has been conversational with family for long stretches of the day and walking frequently with the aid of medical staff.”

We should know that Boozman’s condition and the emergency surgery performed earlier this week are anything but trivial, routine and easy. The Mayo Clinic notes that a tear in the inner layer of the aorta “is a serious condition,” and that “aortic dissection is often fatal.”

Kudos to the doctors and nurses and other staff who worked on Boozman and continue to work with him, and we hope the good Senator’s recovery will continue to trend as it has in the first few days.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Road work to intensify in NWA
With a population on the brink of 500,000, Benton and Washington counties grew beyond their infrastructure long ago. More than a dozen major road projects are underway in Benton County, which means the growing pains will exist for a few more years.

• Traffic patterns
First quarter 2014 commercial airline enplanements are up 5.36% and 9.1%, respectively, in Northwest Arkansas and Fort Smith, but down more than 6% in Little Rock.

• NWA home values on the rise
The biggest investment most families make is their home, but the past few years it’s been painful to look at neighboring home sales prices, especially for homeowners who purchased in the past decade. And that’s true even in the strong economy of Northwest Arkansas.

NUMBERS ON THE WIRE
$4.31 million: Amount of sales tax collections in the April reports from the cities of Bentonville, Fayetteville, Rogers and Springdale. The amount was up 8.61% compared to the same period in 2013.

$25.592 million: Total compensation for Wal-Mart CEO Doug McMillon in fiscal 2014, with $23 million of that including stock awards linked to future financial performance.

$60 million: Estimate on the cost of Interstate 49 (aka I-540) widening projects set for 2015 through Benton County.

OUTSIDE THE WIRE
• Bad bridges
More than 63,000 bridges across the United States are in urgent need of repair, with most of the aging, structurally compromised structures part of the interstate highway system, an analysis of recent federal data has found. The report, released on Thursday (April 24) by the American Road and Transportation Builders Association, warned that the dangerous bridges are used some 250 million times a day by trucks, school buses, passenger cars and other vehicles.

• Minimum wage pushes around the nation
A wave of efforts to raise the minimum wage at the state and local level will run through November, when voters in eight states could consider ballot measures to raise hourly rates higher than the current $7.25 federal rate.

WORD ON THE WIRE
“One thing we have learned is that consumers don’t mind shopping at multiple stores for what they perceive are the best values. Consumers have a need to feel smart, by cherry picking values they feel they are doing the best they can for their families. We also know that consumers are willing to take advice from complete strangers via social media.”
– Mickey Mericle, vice president for global consumer insight at Wal-Mart, speaking about constantly changing consumer expectations

“The U.S. has seen 200 airlines come and go and we are now down to four major carriers and just a handful of start-up discount carriers (discount airlines). There are hundreds of airports nationwide doing the same things we are in attempts to get service into their individual markets. We are taking an all-inclusive approach to lure new service into XNA.”
– Kelly Johnson, director of the Northwest Arkansas Regional Airport, about ongoing efforts by airport officials to recruit a discount carrier

The mortal side of politicians, improved traffic at the Fort Smith Regional Airport, the push to build a new jail in Crawford County, and bad bridges are part of the April 25 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Political perspective
During these election cycles when the mere mention of a political issue can ruin a family reunion or Sunday School class and send angry words flying between even the kindest of folks, we forget that those who step out to run for office and put their name on the ballot are breathing, feeling humans.

Or, as Shakespeare might have noted if he were a politician: “If you prick us, do we not bleed? if you tickle us, do we not laugh? if you poison us, do we not die?”

An aortic dissection, a medical issue new to many of us, served – or should have served – as a reminder that the person who may have asked for your vote is mortal. The emergency surgery this week on U.S. Sen. John Boozman (of Rogers by way of Fort Smith and Northside High School and Razorback football) to repair an aortic dissection turned out good for Boozman. As of Thursday (April 24), he was doing remarkably well.

A statement from his Senate office included this paragraph: “His family, who continues to be with him at the hospital, has indicated that doctors are amazed at how quickly Boozman is recovering from the surgery. As he continues to regain strength, Boozman has been conversational with family for long stretches of the day and walking frequently with the aid of medical staff.”

We should know that Boozman’s condition and the emergency surgery performed earlier this week are anything but trivial, routine and easy. The Mayo Clinic notes that a tear in the inner layer of the aorta “is a serious condition,” and that “aortic dissection is often fatal.”

Kudos to the doctors and nurses and other staff who worked on Boozman and continue to work with him, and we hope the good Senator’s recovery will continue to trend as it has in the first few days.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Happy workers
A recent Gallup poll exploring workplace satisfaction has ranked Fort Smith as the fifth most content workforce in the United States, while the Northwest Arkansas workforce failed to rank.

• Traffic patterns
First quarter 2014 commercial airline enplanements are up 5.36% and 9.1%, respectively, in Northwest Arkansas and Fort Smith, but down more than 6% in Little Rock.

• A call for city vision
On the 125th anniversary of Oklahoma City's founding, its former Mayor Kirk Humphreys was in Fort Smith to speak to the city Board of Directors about what his city did to transform from a place that was boring and dead after 5 p.m. to a city that is now among the fastest growing in America.

NUMBERS ON THE WIRE
$15.5 million: Estimated cost for new 58,000-square-foot visual arts building planned for the University of Arkansas at Fort Smith. The university recently held a groundbreaking for the project.

9.14%: Increase in first quarter 2014 enplanements at the Fort Smith Regional Airport compared to the first quarter of 2013.

3%: Gain in Van Buren hospitality tax collections for the first two months of 2014 compared to the same period in 2013. The city collects a 1% tax on lodging and a 1% prepared food tax.

OUTSIDE THE WIRE
• Bad bridges
More than 63,000 bridges across the United States are in urgent need of repair, with most of the aging, structurally compromised structures part of the interstate highway system, an analysis of recent federal data has found. The report, released on Thursday (April 24) by the American Road and Transportation Builders Association, warned that the dangerous bridges are used some 250 million times a day by trucks, school buses, passenger cars and other vehicles.

• Minimum wage push
A wave of efforts to raise the minimum wage at the state and local level will run through November, when voters in eight states could consider ballot measures to raise hourly rates higher than the current $7.25 federal rate.

WORD ON THE WIRE
"I'm on probation again until August of this year. The letter (from the state) says they're going to ask me to shut it down. If not, they'll file a complaint with the attorney general and it's basically suing Crawford County. Can it happen? Go ask (former) Sheriff (Mike) Allen. Sheriff Allen was brought before Judge Medlock and Judge Medlock said if you go over 64 beds, I'm going to put you in jail."
– Crawford County Sheriff Ron Brown about the need to approve a countywide sales tax increase to build a new $19 million jail

"It's certainly against the nature to release it back into the wild, so to speak, understanding that the proposed use is to keep it as such. But when you have the city park land, it's unusual for a city to give up park land just to convey it back to somebody."
– Assistant Fort Smith Administrator Jeff Dingman about a request by the Fort Chaffee Redevelopment Authority to give the McClure amphitheater back to the authority

Scott Price, the CEO of Walmart Asia, is stepping down from that role in June to assume a senior management position in the retailer’s real estate and mergers division. He will be based out of Bentonville, according to a company statement issued late Thursday (April 24).


Price is assuming the role being vacated June 1 by Judith McKenna who will become head of new store format development. This is a position created as Wal-Mart accelerates its small store format growth and experiments with other formats such as Walmart to Go and drive-thru pickup depots.

The two management changes trigger a ripple effect within the retailer’s Asian business unit. Greg Foran, who now serves as CEO of China, will move up to become CEO of Asia, replacing Price. Sean Clark, who has been the chief operating officer for Walmart China, will step into the CEO China role replacing Foran, the company said.

"These promotions allow us to tap into the extraordinary talent we have in our company, leverage their unique strengths to benefit the entire organization, and ensure continuity of leadership in China and the region," David Cheesewright, president and CEO of Walmart International, said in the statement. "While these moves highlight the internal talent we have at Wal-Mart, they also show how we are able to build global talent to meet the needs of the company wherever we operate."

Price joined Wal-Mart in 2009 as the CEO of Asia and he held similar roles for DHL Express and Coca-Cola prior to joining Wal-Mart. 

"Over the past five years, Scott oversaw the success of our EDLP strategy in Japan, helped reset the China business for greater success and revamped our India operations. He also played a lead role for the industry as chairman of the National Center for APEC (NCAPEC)," said Cheesewright.

He said Foran’s step up is a logical move, given he has 30 years of global retail experience. He joined Wal-Mart in 2012 but grew his career in New Zealand and Australia with Woolworth’s supermarket division. His experience includes operations, merchandising, marketing and replenishment.

"Greg, Sean and their team laid a solid foundation and built a strong plan for Walmart China," Cheesewright said. "In his new role, Greg will be able to continue to guide our China growth plan as well as provide support and direction for our other Asia businesses."

Clarke has 15 years with Wal-Mart, which began with ASDA. He also served as chief financial officer in Japan and Germany before moving to Canada. Clarke also led real estate and strategy for Walmart Canada. Over the past two years as COO of Walmart China, Clarke oversaw operations, merchandise, logistics, marketing,information systems and asset protection.

"Sean has been a key contributor to our improved performance in China. His experience and background uniquely prepare him for this role and will ensure continuity for our progress in China," Foran said.

Walmart's Asia region serves customers through more than 870 stores and more than 150,000 employees serving customers in China, India and Japan.

One more bank has filed suit against former Arvest bank executive H. Dennis Smiley Jr. for loan defaults totaling $70,000 made in 2013. First Federal Bank noted in its complaint filed Thursday (April 24) in Benton County Circuit Court that it made two loans to Smiley last year — $50,000 line of credit and $25,000 term loan.

Both loans were guaranteed by Smiley, personally and the $25,000 loan was also guaranteed by the Henry Dennis Smiley Revocable Trust, dated Sept. 29, 1994, according to the court filing.

Following Smiley’s resignation in March, First Federal said it made demand for payment   which has not been received. The bank asked the court for two judgments amounting to $49,999.96 and $20,000 with interest accruing until payment is made.

Unlike the other 10 banks who have also filed for payment with the court, this time Smiley did not use his Arvest bank stock for collateral. These loans were made with Smiley’s personal guarantee as collateral. 

It is not known what assets may or may not be contained within Smiley’s revocable trust which has been used as collateral in at least two other loans — Bank of Fayetteville $250,000 and Signature Bank amount not disclosed.

Also Thursday, Smiley filed his first response with the court since the onslaught of legal complaints began March 25. Through his legal team, Kenneth Mourton of Ball & Mourton Ltd. of Fayetteville, Smiley answered the complaint made by Delta Bank & Trust. 

The filing notes that the purported signature of his father “H. Dennis Smiley Sr. that appears on the promissory note and guarantee may not be the actual signature of Smiley Sr.” The junior Smiley admitted nothing except that his father’s signature as it appears on the loan documents may be fake.

Henry Dennis Smiley Sr. was a co-maker in $245,126 loan extended by Delta Bank & Trust on Feb. 20. Delta Bank & Trust also sued him for nonpayment of that loan. The senior Smiley filed an answer with court on April 11, saying he did not sign the loan documents, had no knowledge of the loan, nor did he grant anyone authority to sign his name.
http://www.thecitywire.com/node/32707#.U1riIMcs8jc

There have been no criminal charges filed against Smiley, but sources told The City Wire that federal authorities have been investigating the alleged bank fraud for nearly three months.

Smiley is believed to have borrowed as much as $4.5 million using the same collateral and on his own reputation in the banking community. The tangible collateral used multiple times was his shares in Arvest Bank Group, a non-transferable asset, according to Arvest.

Arvest, hit with 20 demands for payment from banks around the state, placed Smiley’s stock proceeds with the Benton County Circuit Court earlier this month. Those assets totaled $552,000. Arvest asked the court to sort out how gets paid what.

It is still unknown how those proceeds will be divided, given they come no where near what is owed. If the court uses the timeline for when the loans were made. First Western  Bank would be at the head of the line, based on the UCC Finance Statements on file with the Secretary of State. First State Bank of DeQueen, would be second in line. Neither of these banks have filed claims with the court as of Friday (April 25).

U.S. Sen. Mark Pryor, D-Ark., received the endorsement of the state’s largest teachers’ union, the Arkansas Education Association, on Saturday (April 26). Brenda Robinson, president of the AEA, said Pryor was a “strong advocate” for public education.

“The Arkansas Education Association is proud to recommend the re-election of Senator Mark Pryor to represent the great state of Arkansas,” Robinson said. “Mark believes that we have the responsibility to our seniors, our veterans and, most importantly, to our children. He has worked steadily to make higher education more accessible for Arkansas students by reducing the federal student loan rate and increasing funding for pell grants. He also supports raising teachers’ salaries to keep and attract the best educators.”

The AEA endorsement is not a major surprise. The teachers’ union frequently endorses Democratic candidates in many contested general election match-ups. It recently endorsed Democrat Mike Ross in the Arkansas Governor’s race.

Pryor touted votes for Title I funding, which boosts spending in school districts with low income students. He also cited his support for special education programs, trade and job-based education, and student loan money.

He singled out votes made by Cotton – his Republican Senate challenger – by highlighting Pell Grant cuts, budget votes that curtailed Head Start funding, and reduced school lunch program dollars.

“When you look at Congressman Cotton’s record on education, it is very different. Earlier this month, he voted to cut $145 billion in education funding. Last year, Congressman Cotton said he wanted to eliminate the government student loan program, even though those are the very same student loans that helped him go to college,” said Pryor.

Cotton’s campaign offered response comments from his mother, Avis, who has worked in the state’s public school system for four decades.

“As a 40-year educator in the public school system, I know that Tom Cotton is the best candidate for voters who care deeply about education,” said Avis Cotton. “Tom is a product of Arkansas public schools and wants to ensure that all of our children get the best education possible. He believes we can do that by making our public schools as strong as they can be and by giving parents the flexibility and opportunity to make decisions that are best for their children.”

The race for the position seven at-large city director is now a competitive one after Fort Smith Parks Commissioner Sherry Toliver announced her intention Monday (April 28) to seek the seat being vacated by City Director Philip Merry.

By entering the race, Toliver will face former City Director Don Hutchings, who is seeking a return to the Board after sitting out during the last term to focus on a funding and building campaign for a new sanctuary at the church he pastors, Evangel Temple.

In a press release, Toliver said she would seek advice from the business community.

"I believe that growing Fort Smith's economy starts with listening to business leaders," she said. "That's why I'm running for City Director."

She also said that as a city director her focus would be on supporting small businesses and working to foster relationships between companies and the University of Arkansas at Fort Smith's high-tech training programs.

"I believe that growing our regional economy is the key to improving opportunities for all Fort Smith residents and ensuring our City's financial future," Toliver said in the press release.

When reached for comment on the race, Hutchings had nothing but positive things to say about his newly-announced opponent.

"She would be a great city director," he said. "She's a wonderful person and highly qualified."

Toliver said her decision to run for office was not influenced by Hutchings being in the race, adding that she was not aware he was running.

"I didn't know I was running against him," she said. "I did not know who was going to file. Actually, no one has filed yet. The filing period is not until May, so there may be others. But the reason I chose to run for Position 7 is because Director Philip Merry is not going to run. That will be an open seat and I did not want to run against an incumbent."

Asked why Fort Smith voters should elect one over the other, neither candidate offered specifics.

"It would just be about letting the public know what each of us stands for and letting the people decide," Hutchings said. "That's the best way to do it and I encourage more people to get involved. It's a high honor to even be considered for office and we need more people like Sherry."

Toliver said she would just present her argument to voters as to why she believes she should be elected and let the chips fall where they may.

"When you're seeking a position, just be honest, tell the truth and let people know where your heart is and let the voters decide," she said. "And that's what will happen in this case."

So far, the Position 7 At-Large seat is the only contested municipal election in Fort Smith.

Of the other positions up for election later this year, Mayor Sandy Sanders has announced he would seek re-election, as has Vice Mayor Kevin Settle, who holds the Position 6 At-Large seat. City Director Pam Weber, who holds the Position 5 At-Large seat, said in a telephone call that she was not yet ready to announce a decision about her plans.

The filing period for municipal Fort Smith offices runs from May 14 to Noon on May 29. An election will be held Aug. 12. If needed, a run-off election will be held Nov. 4.

Attorney General Dustin McDaniel says that while lethal injections are gummed up in the legal system, other antiquated methods of carrying out the death penalty – such as the electric chair or a firing squad – have problems of their own.

Appearing on this week’s “Talk Business & Politics” program, which airs Sundays at 9am on KATV Ch. 7, McDaniel spoke on the topic that has been a controversial issue in the race to succeed him.

“It’s a very difficult place we’re in legally,” McDaniel said.

The state has not carried out an execution of a death row inmate since 2006 as lawsuits and market forces have prevented lethal injection executions from taking place.

Manufacturers who have the drugs to carry out lethal injections won’t sell to the state due to retaliation from anti-death penalty activists and doctors who might administer the drugs if they were available have been limited due to ethics concerns.

“There’s no way to guarantee the secrecy, the confidentiality of either the supplier of the drug or the executioner,” McDaniel said. “I’m still a strong supporter of the death penalty and am still doing all that I can to see the legal hurdles removed and to see the sentences carried out.”

David Sterling, a Republican candidate for Attorney General to possibly succeed the term-limited McDaniel, has suggested reinstating the electric chair as a method of execution. McDaniel doesn’t see that as a possibility.

“I think the litigation challenges that we’re facing now on lethal injection would be exponentially increased if we attempted an electric chair [execution]. Take the policy out of it – whether it’s a good idea or a bad idea or whether it’s barbaric or whatever – I don’t think you could ever get to the legal point where a federal court would let us use the electric chair,” he said.

“Honestly, if we were going to go to an antiquated and potentially to a more publicly offensive, but maybe more legally defensible method, the only one that my fellow AGs and I think could meet some of the standards would be a firing squad. But I don’t think the voters, I don’t think the general public is at all comfortable with the gruesome nature of a firing squad,” McDaniel said.

The Fort Smith School Board took a step forward in plans for a new district performing arts center and basketball arena, with the board voting 7-0 Monday (April 28) to authorize Superintendent Dr. Benny Gooden to pursue a long-term lease of property owned by the Fort Smith Airport Commission.

The site, which sits on McKennon Boulevard with access from 66th and 74th Streets, was the final site among eight that were under consideration, according to Dr. Deanie Mehl, vice president of the school board.

One of the favored sites by the district was along Riverfront Drive near downtown Fort Smith, though the site ended up not being chosen due to flooding concerns.

Another site that was favored was near the proposed site along Phoenix Avenue, but Mehl said the owner was asking a price that was nearly double the land's appraised value.

"I wanted you all to understand this is an issue that we have evaluated for a great deal of time," she said. "We have spent a lot of time visiting sites, we had multiple meetings. We appreciate that this is not the best… It is the best option we have, all things considered."

She said while the preference of the school board would be to own the land outright, finding a large enough site to host what the school board had proposed was a difficult task.

In all, the site which Gooden will negotiate for with the Airport Commission is 33.2 acres, with 27.5 of those acres available for development.

Should the Airport Commission agree to the terms proposed by Gooden, the school district would begin leasing the property Oct. 1, 2015, for a term of 50 years, with an option for renewal at the lease's termination date in 2065.

The cost of the proposed lease would be 7 cents per square foot per year. That adds up to $7,000 per month, or $84,000 annually. The lease would increase by 3% in 2025, 2035, 2045 and 2055.

"The proposed lease terms are based on appraised property values in the area while also considering the public benefit of the planned project," Gooden wrote in a letter to Airport Director John Parker.

Architect Tim Risley of Risley & Associates, the district's architect for the project, said while some in the community may not be pleased with the site, it was the best choice considering a 6,000 seat and a large auditorium that will be housed on site, in addition to more than 1,500 parking spots.

"This has been important to try to get the site settled because there's not that many choices," he said. "We looked at eight. They all have beauty marks and they all have warts. But there's not that many choices available when you try to put together 30-something acres. I want them to settle and at least start the process on something just so we can have something cornered."

While the school board did vote to move forward in its attempt to secure the site, it’s far from a done deal because voters will have to approve an increase in the district's millage rate next year. No set figure has been announced, though Gooden said in January that the rate could be as low as 4.5 mills or as high was 6.5, largely dependent on how much the district anticipates receiving in partnership funds from the state for projects which could include the nearly $40 million events complex and a proposed third Fort Smith high school, which is projected to cost $65 million.

On the topic of a third high school, the school board voted 7-0 to enter into a contract with Business Information Systems to evaluate the district's view that a new high school was needed. The hiring of BIS followed a February school board meeting in which community leaders questioned the necessity of the new school.

According to Gooden, the district's population of 14,313 students was expected to blossom to about 17,000 students by the year 2023, which would necessitate a third high school and re-alignment of freshman to the city's high schools.Before Monday's unanimous vote, Mehl said the hiring of the consultant was a necessary expense for the district.

"I think the thing that's important to remember is we're going to be going before the taxpayers in about 15, 16 months asking for a millage increase and we need to exhaust all our options so we can get the best plan of action to the taxpayers when we ask for the millage increase," Mehl said.

In other business, the school board voted to raise the base salary of new teachers with no experience to $37,500. The school board also voted to give pay raises to existing staff beginning next school year. The pay raises will range from 2.3% to 5.5%, for an average raise of 3.24%, according to Deputy Superintendent Dr. Gordon Floyd.

There are 47 million consumers receiving SNAP benefits (commonly known as food stamps) that equate to $74 billion in annual food sales. Wal-Mart, as the nation’s largest grocer, has said it garners about 18% of the SNAP market, or roughly $13.2 billion in annual sales.

Nestle, a large food supplier to Wal-Mart Stores, began two years ago to measure the SNAP benefit on its company sales at Wal-Mart using analytics and point-of-sales data. Nestle said this study does not take in account the SNAP cuts that took place late last year.

“We set out to discern when SNAP customers shop — the day of the month. Where they shop — which stores. And we used sales data to figure out what products they were buying. When you know all of this about shoppers you have a trifecta that can help influence sales, by making sure you have the products they want in the stores they shop on the days they shop,” said Ginger Brooks, director of strategic marketing for Nestle.

Brooks and four of her colleagues presented the case study at the recent Supply Chain Conference at the University of Arkansas.

Brooks said Individual states oversee the SNAP payments and dates of fund deployment range from every day of week in some states, while others issue SNAP only on the first to the fifth day of the each month. Still, others pay mid-month and a few states pay at the end of the month.

Nestle then looked at which Walmart Stores were high traffic SNAP sites and began to track the sales data of the large count Hot Pocket items in those stores.

Brooks said Nestle’s sales increase for Hot Pockets mirrored the dates of SNAP fund payments. By the fifth day of the month in Arkansas the product had a 200% lift in sales directly linked to the SNAP payments. In Arkansas, she said about half of the Walmart Stores are high SNAP usage.

“That’a big impact with not a lot of recovery time for the supply chain, especially when you consider they are always shopping on the same day. In Georgia the SNAP funds go out every other day, and the stores have little time to recover,” Brooks said.

The propensity to be out-of-stock is high just after the SNAP deployment dates so Nestle worked with their supply chain and the retailer to make sure they have product in the stores, especially those with high demand. Cheri Dillard, supply chain manager for Nestle, said it is a supplier’s nightmare to have SNAP funds paid and shelves empty at the retailer.  

“Over 50% of SNAP shoppers don’t own a vehicle. They are depending on someone else to get them to store for their shopping. If we don’t have the products they want on the shelf that day, they are not going to come to back. It is a lost sale,” Dillard said.

She said shelf space is limited especially when trying to place enough product to handle a 200% sales increase, and it’s likely suppliers don’t have enough modular space in the typical aisle placement. In some cases Dillard said the sales lift is much higher than 200% on SNAP days. She said it is important to work with the category manager on sales feature promotions that provide for additional buying and storing of product.

But that’s not enough. Nestle has its own team of merchandisers out in the high SNAP user stores working with Walmart Store management to make sure they have enough product on the floor the days SNAP funds are paid. Dillard said every store has its own specific replenishment plan for Nestle product, a plan that was put in place after all data was mined, including SNAP payments dates and regular payday cycles like the first and the 15th of each month.

“We can’t have products sitting unsold for two weeks in one store and shelves empty in other stores. So each store has its own plan,” Dillard said.

Greg Kessman, supply chain director for Nestle, said getting the product to the store on time is just half the battle. Nestle also went to work setting up an alert system that is triggered when shelves are empty, but the product is somewhere in the back room.

“We know out-of-stock is a huge opportunity and Nestle set out to measure its true lost sales from on-shelf availability issues with data analytics written in-house,” Kessman said.

The off-shelf alert system was first tested in five supercenters in California. Nestle put a team of merchandisers in the stores to check all alerts to get a sense how many false positives they could expect. The alert system test triggered 575 off-the shelf alerts, 225 of those were actual out-of stock incidents. The company said it worked to get the system to an 80% accuracy level and now it is used throughout Nestle’s business with Wal-Mart.

Nationwide, Nestle said it gets between 40,000 and 60,000 alerts daily from Wal-Mart Stores for products that are off the shelf. As to a return on investment, this application of data analytics Nestle reports a $100 benefit every time it detects and corrects 10 off-shelf incidents.

The supplier said just using the point of sale data generated by the retailer does not tell the whole story. That is why it has worked with Wal-Mart sharing its own statistics and bringing in the government SNAP data to paint a picture of opportunity for generating more sales —  a win-win for both players. Nestle said that happens because it is making sure it has the products SNAP customers want on the Walmart shelves at the precisely the right time.

The Cherokee Nation broke ground Tuesday (April 29) on a new $80 million Cherokee Casino and Hotel at a site adjacent to its more than 20-year-old facility in Roland, Okla.

The new gaming complex will total nearly 170,000-square-feet, which is just shy of three times larger than its current 50,000-square-foot facility that opened as the tribe's first Cherokee Nation Bingo Outpost in 1990.

Features of the new casino and hotel include 850 electronic games, a high limit poker room, a six-story hotel with 120 rooms, 7,500-square-feet of convention space and two new restaurants, including a Las Vegas-style buffet.

"We are bringing our guests the best in gaming entertainment and hospitality," said Shawn Slaton, CEO of Cherokee Nation Businesses. "The new facility allows us to expand our amenities by adding dining options, live music and a hotel. The best part of it all is our ability to create more jobs in the community where our business started."

The construction will bring about 100 new, permanent jobs to the city of Roland, where the casino already employs more than 300.

Cherokee Nation Principal Chief Bill John Baker said an additional 100 or more short-term construction jobs would be created as a result of the casino and hotel construction.

Baker said the new casino in Roland, as well as the tribe's other gaming and business interests, are in existence to provide for the citizens of the Cherokee Nation by creating something more than jobs, pointing to the tribe's investment of more than $100 million to expand healthcare options across the tribe's vast land area in eastern Oklahoma.

"I was on the Tribal Council when we decided to move from bingo to gaming. We understood then the purpose was to create jobs and provide a better quality of life for the Cherokee people," he said. "Today, we have more Cherokee citizens employed at our businesses than ever, and for the first time in our history as a gaming tribe, casino profits are going directly to improving healthcare for our people."

Tribal Councilor David Thornton told a crowded tent of tribal and local elected officials, as well as employees and business leaders from the region, that the tribe's assets have increased by 22%, or more than $130 million, since 2011 with net capital having risen by 20%.

"These are things that I really enjoy saying because the operating revenues have went up 20% and the dividends to the (Cherokee) Nation (citizens) have went up 100%, people. That's not counting the extra $100 million that the chief and the nation has brought about for these clinics and I want you to realize that's one hell of a job."

Tribal Councilor Janelle Fullbright said the tribe has long paid its workers, including those at the Roland casino, well above minimum wage and she was glad to know that the tribe's efforts would continue with the additional jobs coming to the Roland location, which she said has been in need of upgrades for a long time.

"When I first was elected to the tribal council seven years ago, I wanted a new casino out here at Roland and we got put on the back burner," she said. "And one of my main jobs has been to make sure that Sequoyah County, the southern-most part of the Cherokee Nation, is not the step-child of the Cherokee Nation any longer. We want to be competitive with people across the river."

She was referring to the Choctaw Nation, which completed its own casino and hotel expansion on the Arkansas-Oklahoma state line at Pocola in 2012 at a cost of $60 million.

With the expansion of both casinos, Fort Smith Convention and Visitors Bureau Executive Director Claude Legris said it would be beneficial to the city's marketing efforts as it continues to lure conventions and tourists to the city.

"Gaming is always good for the Fort Smith economy because it's another attraction that we can turn around and offer folks, both on tour busses and convention groups that want to come into the city," he said. "Even though it's not in Fort Smith proper, it still allows us to say that Fort Smith is almost as much a gaming community as West Memphis and Hot Springs."

He said many times, people looking for a weekend of relaxation and gambling do not realize what the Fort Smith region has to offer.

"Nothing against either of them. They're obviously gaming communities, but I don't think people realize how close the casinos are to the Fort Smith market and that allows us another opportunity to explain to potential customers some of the off-site attractions that are available to folks that are coming into Fort Smith."

Cherokee Nation Businesses Media Relations Specialist Alicia Buffer said the casino should open by May 2015, while the hotel is not slated for completion until August 2015.

Cherokee Nation Secretary of State Chuck Hoskin Jr. said the tribe expected to fill all of the newly-formed positions at the casino and hotel with Cherokee citizens.

The new complex will be located at the same location as the original casino, along Interstate 40 and U.S. Highway 64 in Roland.

Partnering for a greener world was the theme of Wal-Mart’s Sustainability Expo event held Tuesday (April 29) in Rogers. The retail giant assembled a cast of global suppliers, environmental advocates, supply chain experts, farmers and ranchers for the three-day event.

Kathleen McLaughlin, president of the Walmart Foundation and administrator over Wal-Mart’s global sustainability initiative, opened the first session by noting that the expo had convened suppliers representing $100 billion in sales at Wal-Mart.

Wal-Mart Stores CEO Doug McMillon announced a partnership with eight corporate partners and the Walmart Foundation to launch a recycling initiative called the Closed Loop Fund, a investment group that will funnel money to cities across America looking to improve their recycling capabilities. The fund aims to invest $100 million in recycling infrastructure projects and spur private and public funding toward making a real difference in the recycling system in the U.S.

PLEDGE PARTNERS
Companies signing to pledge their support to the Closed Loop Fund include: Wal-Mart and its foundation; John Bryant, CEO Kellogg Company; Rob Gehring, global account leader, The Coca-Cola Company; Kees Kruythoff, president, North America for Unilever; A.G. Lafley, chairman and CEO, Procter & Gamble; Roberto Marques, company group chairman for Johnson & Johnson; Denise Morrison,CEO Campbell Soup Company; Indra Nooyi, chairman and CEO PepsiCo; Monique Oxender, senior director-sustainability for Keurig Green Mountain; Ken Powell, chairman and CEO General Mills; and John Weinberg, vice chairman of Goldman Sachs Group.

Nooyl said people have recycled for 20 years and with all the receptacles that have been made available and the push by businesses during that time, recycling has only increased 8%.

“There is huge opportunity here and this Closed End Fund will help bring this down to the city and neighborhood levels where behaviors have to change,” Nooyi said.

Another interesting perspective was that only one in five people recycle plastic bottles used in the bathroom, according to Johnson and Johnson. 

“Walmart and our suppliers recognize that collaboration is the key to bringing sustainable solutions to all of our customers,” McMillon said. “A great deal of innovative work is happening every day, but there are still too many gaps and missed opportunities. Today’s commitments are about creating real systems change from one end of the supply chain to the other — meaning how products are grown and made, how they’re transported and sold, and how we touch the lives of people along the way.”  
 
Eight of the largest food companies joined McMillon on stage to announce pledges to help move the collective needle in the ongoing sustainability movement. The commitments aim to drive more collaboration and efficiency across the current food system. In total, this work is expected to bring eight million acres of farmland into sustainable agriculture programs and eliminate six million metric tons of greenhouse gas emissions (GHGs).

STEPPING UP 
The Expo highlighted several initiatives to further expand access to sustainable products and create more transparency in the supply chain:

Together with Procter & Gamble, Wa-Mart announced a commitment to a 25% reduction in water per dose for all liquid laundry detergent.

In the area of fertilizer management, Wal-Mart last year set a goal of optimizing 14 million acres of farmland with the potential to reduce seven million metric tons of GHGs. Combined with progress already made, the new pledges announced today will help advance that goal by optimizing an estimated 10 million acres and eliminating 8.5 million metric tons of GHGs.

Working with Cargill, Wal-Mart is developing a small-scale pilot focused on improved beef supply chain visibility, including increased traceability elements resulting in more visibility from farm to fork. This is part of the retailer’s goal to source 15% of its beef supply with environmental criteria by 2023.

In collaboration with Conservation International and suppliers, Wal-Mart has converted 27% of the palm oil used in its private-brand products from conventional to sustainable palm oil.

Wendy Cleland-Hamnett director of chemical safety for the FDA, provided an update on the need for sustainable chemistry. 

“I am thrilled with work Wal-Mart and the suppliers are doing to bring about changes in the chemical sector. The FDA guidelines are the floor, Through voluntary leadership we are seeing businesses raise the bar,” Hamnett said. 

‘SHALLOW PROMISES’
Not all Wal-Mart watchers are convinced the new pronouncements will lead to change.

“At the Walmart Sustainability Product Expo today, Walmart CEO Doug McMillan and other senior leaders once again offered shallow promises with little substance and refused to acknowledge major failures in the company's track record on sustainability,” noted a statement from Stacy Mitchell, a senior researcher with the Institute for Local Self-Reliance, and author of Walmart's Assault on the Climate.

Mitchell said Wal-Mart has a history of broken promises related to landfill waste, renewable power, climate change and sustainability efforts.

“By pushing suppliers to lower cost, Walmart has dramatically cut product lifespans, leading consumers to buy and discard an ever growing volume of shoddy clothing, electronics, and other products, according to federal data,” Mitchell said.

Mitchell also alleges that use of renewable power in the U.S. by Wal-Mart has declined 25% in the previous two years, and that sustainability drives rarely produce results.

“Walmart has a history of failing on its pledges to sell sustainable products. In 2011, for example, Walmart abandoned its promise, made 3 years earlier, to ‘work with suppliers to make the most energy-intensive products in our stores... 25 percent more energy efficient.’ It also failed to meet its 2009 promise to reduce phosphates in laundry and dish detergents by 70% by 2011 and abandoned a 2008 promise to sell only Energy-Star rated air conditioners,” according to Mitchell.

‘WALKING THE TALK’
Wal-Mart officials noted throughout the day that sustainability is a journey and after 10 years, there is still much work to be done. In the true Wal-Mart fashion of leveraging its scale, the retailer is asking more from its supplier partners up and down the chain. McMillon said such requests of the suppliers also means Wal-Mart must be seen as “Walking the Talk.”

Wal-Mart announced plans to create a sustainability store on Walmart.com – shopping portal, expected to launch by the of this year. This shop in a shop will allow customers 
to easily identify brands that are leading sustainability within a category via a special icon.

“No one should have to choose between products that are sustainable and products they can afford,” said Manuel Gomez, vice president of sustainability for Wal-Mart. “We want to make sustainability easy by taking the guesswork out of values-based shopping. Accessibility and transparency really put the customer in the driver’s seat.”

Financial literacy ratings assigned by WalletHub based on federal data indicates Arkansas is way behind the curve when it comes to overall financial knowledge in its consumer population.

The Natural State ranked 50th out 51 places in the recent study that looked at education efforts in financial literacy, high school dropout rates, percentages of people with college degrees, the unbanked and those who borrow from non-bank lenders.

Dr. William Bailey, a professor emeritus at the University of Arkansas, has taught consumer finance to college students for three decades. He is not surprised to see Arkansas rank near the bottom of the barrel in overall financial literacy. He said a financial literacy test routinely given to college students in consumer finance/family finance classes have low scores — 62% nationally and 60% locally.

The WalletHub report found Arkansas to have the following rankings:
40th – High school financial literacy program 
29th – High school dropout rate
48th – Percentage of people with a bachelor’s degree
45th – FINRA financial literacy survey
37th – Percentage of people spending more than they make
32nd – Percentage of people with a rainy day fund
38th – Percentage of people borrowing from non-bank lenders

Financial literacy educators across the country agreed more has to be done to improve financial prowess among consumers, and they said the earlier the better.

“This is a life skill. These high schools, these schools are failing to understand this is a life skill. The sooner you can know about finances, investing and so forth the better off you will be, but with all this emphasis on standardized testing, they just don’t have time for it. Financial literacy should definitely be included in public school curricula,” Keith Weigelt, professor at Wharton School of the University of Pennsylvania, said in the WalletHub study.

Bailey told The City Wire that financial teaching should begin at home. He shared a story of a someone he knew who raised his two daughters alone after the wife died suddenly.

“He would sit those girls down at the table each month when he wrote the checks to pay the bills. In the early years they licked the stamps and as they grew older they helped to track expenses, keep spreadsheets and balance a checkbook. He never hid his finances from those girls and they were able to make sound financial decisions as young ladies,” Bailey said.

He said money topics have been viewed as taboo among family discussions for ages but he has seen those parents who teach financial literacy give their children a gift they take with them to college.

Dr. Ed Bashaw, dean of the College of Business at Arkansas Tech University, said higher poverty rates in the state are part of the reason financial literacy is also lagging. Bashaw said those families struggling to make ends meet, may not want to burden their children with that worry. He was not surprised to learn that Arkansas ranked high in the unbanked category (38), given its influx of immigrants and their general mistrust of financial institutions.

“Poverty is generational and with a lack of education the cycle continues. And in terms of non-bank lending, sometimes it may be cheaper to borrow from a payday lender than bounce several checks. But, once they borrow like that it’s easy to become enslaved,” Bashaw said.

Bailey is concerned about the lack of financial prowess among the general college student population. He advocates for courses to be taught each year at the collegiate level, starting with basic financial topics like credit card and debt management to more in-depth maneuvering cafeteria plans and 401(k) options for seniors about to enter the workforce. He said with student loan debt at $1.3 trillion, this young generation is saddled with a financial burden that could last for 20 years or more. 

“With debt levels now between $20,000 to $35,000 owed per student they are looking at postponing home purchase, starting families and other major life events while they whittle down their student loans,” Bailey said.

Bailey said in an ideal world parents would give children a foundation of sound financial teaching that are age appropriate. He said K-12 educators could and should reinforce and extend those learnings at each grade level as part of the standard curriculum. Then those students who go on to college would get more teachings, but those who don’t pursue higher education would still have the basic foundations.

Kimberly Snipes, senior vice president-auditing at First National Bank of Fort Smith, has been an advocate for teaching basic consumer finance to children for the past decade.  Snipes said the bank is active in the Fort Smith and surrounding communities working with local school systems to introduce children to savings principles and a wide variety of basic consumer finance information. It’s a program she has championed for 11 years. During that time, Snipes said the bank has helped 3,046 school children set up savings accounts, with a $5 initial deposit.

“We are in those elementary schools almost every week from September to May, teaching lessons on the discipline of savings, basic money principles and we look at the U.S. Mint. This program hopes to plant early seeds across many diverse socio-economic demographics, Snipes said.

Since 2003, she said First National has contributed $15,230 back into the communities with their $5 kick-start savings investments and they have contributed many hours teaching the weekly sessions and going to the schools to collect the students’ deposits. The teachings are geared to fourth grade and higher.

“We don’t stop at the elementary level. We go back in and teach a six-week course on personal finance to eighth and ninth graders, which is part of the mandated curriculum in Fort Smith schools,” Snipes said.

At the high school level Snipes said they teach the National Endowment Financial Education curriculum which builds on the earlier teachings. This summer Snipes and her team are working with the University of Arkansas at Fort Smith and 100 high schools students taking part in the federal Upward Bound program.

“These students come from lower income families and they are planning to attend college. We will teach the NEFE program that looks at a wide array of areas from credit, borrowing, savings, checking, career options, etc.,” Snipes said. “We know that teaching and reteaching, helping to build savings habits early and making money a topic of discussion is key to breaking the cycle of illiteracy.”

Arvest Bank conducts similar work with the public schools in Northwest Arkansas.

Crawford County Judge John Hall and Sheriff Ron Brown spoke to a decidedly friendly crowd Tuesday (April 29) as the two men brought made yet another pitch to county voters for a new sales tax, a pitch that comes less than a week before citizens can begin early voting.

The meeting, held at the county's emergency management headquarters in Van Buren, was hosted by the Van Buren Chamber of Commerce, a group that has endorsed the plan.

"This Spring, at our board (of directors) meeting, we did and we voted to support the jail initiative," said Van Buren Chamber of Commerce Executive Director Jackie Krutsch.

She said while the chamber board voted to support the plan to fund and build a new $20 million jail — only one board member did not vote in favor of the endorsement — support from chamber members has not been as overwhelmingly supportive of the planned tax. The jail funding plan would tack a half-cent sales tax on purchases made in the county during the next 10 years to build the jail, while an additional quarter-cent sales tax would be in place permanently to fund law enforcement operations for the county, including jail operations.

"You know, mixed reactions. Business never likes taxes, but yet we've had a lot of businesses saying they've been hurt by crime. I've had several say (it is) more than hot checks, but air conditioners units ripped off their building and things like that and knowing that those individuals ether weren't prosecuted because it was a moot point or they were and were never incarcerated."

Krutsch was referring to what Brown has spoken of repeatedly in making his pitch for the new jail — he simply does not have the room to house offenders, leaving him to release individuals who have been arrested on signature bonds.

Brown said since he has no space to house inmates and the county is not always expending more money to transport inmates to other county jails, he is often times pushing criminals back out onto the streets to re-offend.

In literature Brown and Hall have been distributing as part of their campaign for the tax, Uniontown resident Rickey Jones explained an experience he allegedly had that illustrated Brown's point.

"While going on a hunting trip to my wife's grandparents house, we noticed the house and some storage buildings had been broken into. We set up surveillance the next morning and caught the thieves in the act," he is quoted as saying. "While waiting on more officers to arrive, the ring leader said, 'I'm not too worried because I won't stay in jail because they are overcrowded.' This seems to be a scary problem knowing these people are committing crimes and know they won't get the punishment they deserve due to overcrowding."

The sheriff said because he has had to let more than 2,000 individuals out on signature bonds last year to likely re-offend with no worry of jail time, he was "the biggest person undermining the whole judicial system in Crawford County. I'm chopping away at it because I'm letting people go because I swore to uphold the (Arkansas) constitution and overcrowding is a constitutional violation."

The group appeared to be warm to the idea of a new tax to fund the jail, leading Hall to implore the individuals to get their friends to the polls starting Monday (May 5), when early voting opens at the Crawford County Emergency Management Headquarters. He said voting for the two sales tax questions would not only help construct the new jail, but would drive economic development in the county during the construction phase and later, as he claimed more businesses would choose to develop around the jail site at 4301 Highway 64 just outside Van Buren.

"Sacrifice right now, vote for the half-cent sales tax, vote for the quarter-cent operations and maintenance, keep all your money at home."

Van Buren resident Richard Jiminez said he remembered three other attempts to pass a sales tax for the jail in the early to mid-2000s and he said the need now was greater than before, which is why he would vote for the tax and encourage his friends to do the same.

"I'm here again because I see that's it's necessary," he said. "Crime is not decreasing, it's increasing — certainly in our community. And public safety is most important, as important as anything else in our lives. That's what we ask the sheriff to do, is protect us and how's he doing it? By such things as this here — seeing that we have a jail or detention center to hold those who can't abide by the law."

If passed, the new jail would house 265 beds, with infrastructure for up to 400. The new facility would also house all divisions of the Crawford County Sheriff's Department, as well as an arraignment courtroom and the county's 911 dispatch center.

Early voting for the sales tax questions, partisan primary elections and judicial elections begins Monday (May 5) and will take place at the Crawford County Emergency Management Headquarters in Van Buren. May 20 is the scheduled election date, with voters able to vote at their designated precinct locations.

Wal-Mart continues to expand its a la carte financial services with a new partnership with AutoInsurance.com that aims to save consumers money on auto coverage. Wal-Mart is the first retailer to delve into this type of rate comparison service now approved in six states, including Arkansas, Oklahoma and Missouri, according to Daniel Eckert, senior vice president over services at Wal-Mart Stores.

“Our business is driven by a commitment to taking products and services that are complex and pricey and making them easy and affordable,” Eckert said in a media conference call on Tuesday (April 29). 

Eckert said in a media conference call on Tuesday (April 29) that Wal-Mart has heard from many consumers about the cost of auto insurance and for many families it’s a big expense with average families spending $1,530 per year to insure their vehicles. Another 14% of drivers are uninsured, primarily because they can’t afford it, Eckert said.

In Arkansas, the average cost to insure a vehicle for a year is $665.86, according to the National Association of Insurance Commissioners. Also, 16% of Arkansas drivers going without coverage, one of the highest uninsured percentages in the nation, according to the Insurance Research Council.

“Our customers too often have to settle for auto insurance policies that aren’t the best fit and cost more than they want to spend,” Eckert said. “With AutoInsurance.com, we’re helping our customers in Arkansas save money on one of their largest household expenses.”

New Jersey-based AutoInsurance.com, is a licensed property and casualty insurance agency created after Wal-Mart presented their idea for a cleaner, more transparent method for consumers to compare their auto coverage.

The new program provides consumers the option of comparison shopping for insurance rates with a simple online portal. The consumer provides their name, address, birthdate and contact information and has the option to give the system permission to access their policy and do the rate comparison against six insurance carriers. The consumer has the option to enter their vehicle data into the system if they do want to give retrieval access.

A frequent complaint consumers have about using these type of policy comparison services is that users are often inundated with phone calls from agents trying to sell them coverage.

Josh Kazam, founder of AutoInsurance.com, said during the media call that while nine in 10 consumers do comparison shopping online, just one in five uses online comparison sites for comparing the cost of the auto insurance.

“It can take a lot of time and they are usually designed to create leads for salesmen who then are persistent in trying to sell coverage,” Kazam said. 

Once a consumer gets the quotes they can either purchase the policy online immediately, speak with a licensed agent at 800-700-7500, or save the information for a possible purchase later.

“Customers will only be contacted in the future by AutoInsurance.com or the carrier of the policy they purchase,” Kazam said. 

Wal-Mart piloted the program in Pennsylvania and recently beta tested it in Northwest Arkansas. The early results are yielding savings for many families, according to Eckert.

For now consumers can log on to www.walmart.com/autoinsurance and get the comparison or call the toll free number. The program also accepts uninsured drivers and will quote three coverage options, good, better, and best scenario, Kazam said. Wal-Mart expects to soon make the service available nationwide.

While consumers do like to find savings in regular expenditures like insurance costs, professional insurance agents can usually offer discounted premiums when multiple lines of coverage are purchased. For instance, if State Farm, Nationwide or other carriers insure a home, they will discount the typical auto coverage rates. These full service agents argue that personal rates can be tweaked and customized with various discounts that may or may not be included when shown on rate comparison sites.

Analysts said this is just another example of Wal-Mart disrupting the marketplace, helping to bring price transparency to the forefront. There is also the possibility that Wal-Mart can glean consumer data from this venture since the sign-up goes through its website portal.

Data collection is one of the ways Wal-Mart can win with this program. Direct marketing for auto services and tire sales are the tip of the iceberg. The age component also gives the retailer insight to generational data. Analysts also said the new effort is another example of Wal-Mart positioning itself in another service area outside of retail.

Van Buren-based USA Truck continues to lose money, but the losses are trending lower and officials with the trucking company maintain that their turnaround plan is delivering better results.

The company recorded a loss of $1.589 million during the first quarter of 2014, an improvement over the $2.474 million during the first quarter of 2013. Total revenue was $145.489 million, up 10.1% compared to the first quarter of 2013.

The 15 cent loss for earnings per share was better than the consensus estimate of a 20-cent per share loss, according to the earnings report released early Wednesday (April 30).

Company officials said the company improved during a quarter in which several rounds of severe winter weather made operations difficult. The company also recorded an expense of $400,000 related to its defense of the failed hostile takeover attempt by Phoenix-based Knight Transportation.

"The unusual frequency and severity of winter storms disrupted our Trucking operations throughout January, February and the first week of March,” USA Truck President and CEO John Simone said in the earnings statement. “The final three weeks of March, however, were characterized by unusually strong freight volumes, which outstripped both our and the industry's supply of trucks, creating widespread dislocations in the marketplace as pent-up shipping demand from the severe winter met a worsening shortage of drivers in the industry.”

The first quarter loss follows a 2013 that saw improvements, but continued losses. USA Truck posted a net loss of $9.11 million in 2013. While an improvement compared to the net loss of $17.671 million in 2012, it marks the fifth consecutive year of losses for the trucking company.

The company has lost more than $47.9 million in the past five years. The last time the company strung together meaningful numbers was in the middle of the previous decade when 2004, 2005 and 2006 delivered net income of $7.432 million, $15.568 million and $12.441 million, respectively.

"We are continuing to execute our turnaround plan, focusing on the same high-leverage activities that drove significant improvement in our results throughout 2013.  We are pleased with our progress in many areas,” Simone said in the statement. “One obstacle facing the entire industry is the shortage of drivers brought on by more restrictive federal hours-of-service rules, increasing opportunities in other industry verticals such as housing and energy, and long-term demographic trends in which more drivers are leaving our industry each year than are entering it.”

USA Truck shares (NASDAQ: USAK) were set to open Wednesday at around $18 per share. The Tuesday closing price was $17.92. During the past 52 weeks the share price ranged from a $19.57 high to a $5.09 low.

The City Wire will update this story later today.

Wal-Mart is wasting no time in deploying its latest grocery format — a stand alone pick-up center where shoppers can drive up and retrieve their online orders and never leave their car. It’s a new format concept for Walmart U.S. who continues to up the ante for convenience in the highly competitive grocery sector.

The retailer reviewed plans for the first concept depot with Bentonville city officials on Tuesday (April 29.) The proposed development goes to the city planning commission on May 6.

The concept was introduced by Bill Simon, CEO of Walmart U.S., on March 4 during a speech he gave at the Raymond James investors conference in Orlando. He said Wal-Mart has tested drive-through pick-up options for online orders in 11 stores in the Denver area with a 90% approval rating. But, Simon also said the success of the drive-through test prompted the retailer to consider stand-alone depots or modulars that are used as mini fulfillment centers for online grocery orders.

Simon described the concept modular as “Sonic-like,” but he gave no timeline for this launch. The City Wire  recently learned that Wal-Mart is ready to test this new concept just as soon as city officials in Bentonville approve the plans.

BENTONVILLE DEPOT
The Bentonville location slated for the new format is near the J. Street and South Walton Boulevard intersection, behind the Chambers Bank which is located on the southeast corner of the intersection across from Zaxby’s and Firehouse Subs. The 15,000 square-foot facility will house 10,000 fresh and dry grocery products – from cereal, chips and bread to fresh produce, meat and milk, according to Deisha Barnett, corporate spokeswoman for Wal-Mart Stores Inc. 

Barnett said the concept will allow consumers to shop online for their grocery items, schedule a pickup time at their convenience then drive up like they would at a Sonic drive-in, call to the associates who then bring their grocery order to car.

“We know at Wal-Mart our customers’ needs are changing. They want and need more shopping options and we have the means to give them low prices, wide assortments along with value and convenience in a seamless shopping experience,” Barnett said.

She said the new concept will offer local consumers a completely new shopping experience and it’s one of several tests the retailer is conducting from storage lockers in metro Washington D.C., Walmart to Go pick-up and home delivery in Denver and San Jose, Calif., and the new convenience store located up the road from this new grocery fulfillment concept facility. Simon has said the concept centers are designed to provide convenience and in no way are meant to replace traditional stock-up trips that its supercenters provide. Those trips are valued annually at $585 billion and remain about 60% of the total grocery spend.

LESSONS LEARNED
Barnett said Wal-Mart hopes to takes the lessons form innovative concepts it is testing to ensure customers get the services, prices and selections they want and expect.

“We don’t think consumers should have to pay more for convenience which is why we continue to innovate and look for new ways their shopping needs can be met,” she said.

Carol Spieckeman, CEO of NewMarketBuilders, said in the past every new concept or format that retailers launched was seen as a prototype that, if successful, would roll out in current form. In fact, retailers often announced staged rollout plans simultaneously with each launch.

“Wal-Mart exemplifies how much that model has changed and is leading the charge when it comes to diverse and disparate concept launches,” she said.

ENGLISH EXPERIENCE
She said Wal-Mart’s Asda division has more than 100 drive-through pick-up locations in the U.K., with plans for more. But it also launched its first temperature-controlled locker pick-up location in the U.K. a couple of weeks ago.

“Wal-Mart’s international presence and ability to test concepts in non-U.S. markets is a huge advantage, particularly given the wider adoption of online grocery shopping in markets like the U.K.,” Spieckerman added.

Barnett also said Asda has been delivering online grocery orders for sometime in the U.K., as well as using Kiosks to order items that can be picked up at its drive-through locations. 

Retail analysts agree that online grocery is more widely used in the U.K. than in the U.S. at this time.

“In the U.S., Wal-Mart is testing and deploying a dizzying array of convenience, pick-up and delivery options in various markets and I expect the proliferation of options to accelerate,” Spieckerman said. “For the short term, I see diversification, not consolidation, as Wal-Mart’s goal and its U.S.-based competitors will have to formulate a response. They certainly can’t afford to play wait-and-see. ... No retailer other than Amazon is matching Wal-Mart’s ‘multi-testing’ mojo these days and Wal-Mart will reap the benefits of working the kinks (and costs) out before many others even get started.”

CUSTOMER THOUGHTS
The City Wire asked a few consumers their opinion of the new online grocery shopping format proposed for Bentonville later this year. Several shoppers said they would welcome the concept.

Lana Flowers of Rogers said the service could appeal to elderly shoppers and others that don’t feel like getting out. However, she likes the store experience.

“As long as I am healthy enough to walk through a store, I’d rather pick up my own items and pick them out. Otherwise, I may not find new products or different flavors or iterations of favorite brands,” Flowers explained.

Spieckerman said click-and-collect concepts have gained more traction in non-U.S. markets, but U.S. retailers have been slow to follow. It’s unfortunate given the lower associated costs, but she said Wal-Mart is poised to take full advantage. She also sees a connection between Wal-Mart’s recent move to introduce Wild Oats-branded organic foods and its click-and-collect forays.

“Brands like Wild Oats will help Wal-Mart build a bridge to more affluent shoppers who might not otherwise have Wal-Mart top-of-mind for site-to-store grocery shopping,” she said. “Wal-Mart already carries an impressive selection of online-unique ethnic, organic, vegan and other specialty offerings.”

Spieckerman said as Wal-Mart hones its site-to-store and site-to-home model, these items will find their way into more shoppers’ homes, giving Wal-Mart the opportunity to build an omni-channel relationship with new customers before competitors move off the mark.

Christmas may come early to select signage and print companies with Fort Smith-based Arkansas Best Corp. announcing Wednesday (April 30) that as of May 1 the transportation holding company will rename and rebrand to ArcBest Corporation.

The company that began in 1923 as OK Transfer and operated a few truck routes around Fort Smith morphed into a corporate holding company in 1966 under the Arkansas Best Corporation moniker. ABF Freight was the largest subsidiary of the company. In late 1972, the company went public with an initial ticker symbol of ABZ on the New York Stock Exchange. The stock is now listed as ABFS and trades on the NASDAQ exchange.

But that symbol will also change on May 1 to ARCB.

The new name and “unified logo system” was crafted to enhance the company’s identity as a holistic provider of transportation and logistics solutions for a wide variety of customers,” noted the company statement issued Wednesday afternoon.

“This marks an exciting new era for our organization,” ArcBest President and Chief Executive Officer Judy McReynolds said in the statement. “The new name, logo system and advertising campaign we are unveiling allow us to more clearly communicate our total value proposition to our customers, our employees and our shareholders through one unified identity under the ArcBest umbrella.”

With one exception, names of the operating subsidiaries under ArcBest will remain the same. Those are ABF Freight, ABF Logistics, Cleveland-based Panther Premium Logistics and Cherryville, N.C.-based FleetNet America.

The exception is with Data-Tronics, the information technology division. The new name will be ArcBest Technologies.

ABF Logistics will now include the household goods moving services businesses now known as ABF Moving. ABF Moving includes the the U-Pack brand, and services providing corporate relocation and military moves.

The company is holding an event Thursday morning (May 1) at the Fort Smith Convention Center to roll out the new name and branding. Former NASA astronaut Dr. Scott Parazynski is the featured speaker. Parazynski, who flew on five shuttle missions and participated in seven spacewalks, is a popular corporate leadership speaker.
www.parazynski.com

David Humphrey, vice president of Investor Relations for ArcBest, said the name changes were studied for several months. When asked about the costs to implement such changes, he said there will be costs but they will not be “a material number.”

And was the name change partially motivated by any concern about a growing national and global company being linked to one state? Humphrey said that was “one of numerous considerations” but the overriding factor was to “unify the whole thing and get everybody working together” and present a unified array of services to existing and potential customers.

Humphrey also said Board Chairman Robert A. Young III “is fully supportive” of the change. Young is the son of Robert A. Young Jr., who acquired the company in 1951 and is credited with growing it into being one of the largest less-than-truckload carriers in the U.S.

ArcBest is scheduled to release first quarter earnings after the markets close on Thursday. The consensus estimate among the 15 analysts who cover the company is an 8 cent per share loss during the first quarter on total revenue of $551.35 million. The company posted a 52 cent per share loss during the first quarter of 2013.

Company shares (NASDAQ: ABFS) closed Wednesday at $39.2, up $1.42. During the past 52 weeks the share price has ranged from a $39.79 high to a $9.67 low.