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Regional Economic Digest
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| Regional Economic Update By Creg Shaffer The Tenth District economy grew moderately in the second quarter of 1994. Employment and personal income increased and unemployment declined. Construction and durable manufacturing continued to spur growth in the district's economy. In contrast, energy activity in the region slowed and agriculture struggled against low commodity prices and higher interest rates. The district farm economy weakened during the second quarter of 1994, according to a survey of 321 agricultural bankers. Further gains in district farmland values and strong farm loan demand indicate the industry remains in solid financial condition overall. But rising farm interest rates, weak repayments on farm loans, and a steep slide in farm commodity prices suggest the industry s financial prospects eroded somewhat during the second quarter. Welfare Finance
Reform: District States Could Face Funding Challenges Welfare finance reform could have a substantial fiscal impact on the budgets of some states in the Tenth district, although the ability to cope with reform will vary from state to state. This article discusses some of the proposed changes in welfare funding and the effect they may have on the states in the Tenth District. Each state's ability to offset potential reductions in welfare funding will depend on their own budget resources and whether additional funds are provided to states with limited resources and higher administrative costs. The actual Economic Indicators tables from this issue of the Regional Economic Digest are not available because data have been revised. Regional Economic Indicators are available and updated monthly by research staff. |