Month / November 2014

by Hoosier Econ

Indiana State University Selling Debt

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Marketwatch.com is reporting Indiana State University is wanting to sell $20 Million in bonds so it can refund outstanding student fee bonds, and to pay costs of issuance. Fitch provided a detailed analysis and gave the university a grade of (AA-). This should make investors feel comfortable when buying the debt. Debt sale is planned for December 8th.

Here is some highlights of the article:

-As of fall 2014, the university had 11 residence halls with total occupancy for 3,660 students and a 99.5% occupancy rate, including the recently completed Reeve Hall.
-Indiana State has over $110 Million in existing bonds due to residence hall and food services upgrades
– the university’s fall enrollment headcount grew to a record high of 13,183 in fall 2014, increasing by 2,649 students (or 25.1%) over fall 2009.
– ISU’s available funds, defined by Fitch as cash and investments not permanently restricted, grew to about $157 million at the close of fiscal 2014, up 5.8% from the prior year and 39.9% from the period since fiscal 2010.

by Hoosier Econ

Illegal Immigrants Trashing Border

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An unspoken sin not addressed by pro immigrant advocates is the yearly waste and destruction illegals leave behind in the form of trash and human waste. The taxpayers in Southern states and on federal level get the bill for the cleanup according to Judicial Watch:

Each year illegal immigrants leave behind an estimated 2,000 tons of trash—including soiled diapers, plastic bottles and abandoned vehicles—in public Arizona lands along the border.
Getting cleanup crews and equipment to these increasingly remote portions of the desert is, not only tough, but also hazardous. Camp sites set up by illegal immigrants and drug smugglers are the most difficult to clean up.

How much does it cost to clean up?

This so-called “landfill fee” ranges from $37 to $49 per ton in southern Arizona and that doesn’t even include costs for materials, equipment, labor and transportation.

2007 financial report for the state of Arizona titled “The Southern Arizona Project To Mitigate Damages Resulting from Illegal Immigration”. In the report, clean up costs over a span of 5 years totaled $4.4 Million. Damage caused by illegals each year is just not trash but also infrastructure and national monuments in parks located on these corridors they travel on.
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by Hoosier Econ

Current Indiana Gun Permit Numbers

Indiana State Police statistics show 570,712 active firearm licenses in the state, with 22 percent belonging to women.

H/T RTV6

by Hoosier Econ

Medicaid Eating Up State Budgets

Medicaid spending in state budgets is becoming the largest line item costs in many state governments. State Budget Solutions had this national average stat:

Though the federal government provides some Medicaid funds via matching rates, this welfare program has been taking up a larger and larger share of state budgets in recent years. In fact, Medicaid is the largest category of state spending, accounting for 23.6 percent of state budget expenditures according to the National Association of State Budget Officers.  That percentage is likely to increase over time.

Indiana currently spends over 27% of their budget on Medicaid.

by Hoosier Econ

Thanksgiving Turkey Price is Rising

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EconomicPolicyJournal.com is reporting inflation now hitting turkey:

In the week ending last Friday, an 8 to 16 pound hen sold at wholesale for about $1.19 a pound and a 16 to 24 pound tom sold for about $1.17 a pound. Both price are sharply higher than the $1.03 average for hens and $1.04 average for toms in 2013. Last week. the price for fresh turkey was $1.44 a pound according to the USDA.

by Hoosier Econ

U-Haul Truck Rental Prices Shows Basic Economics

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Economist Mark J. Perry frequently gives updates on U-Haul “One Way” truck rental prices as a form of an economic indicator of where people are moving too. U-Haul truck rental prices show how prices are affected by demand. Here is an example that he posted in May of this year:

Check out the Amazing Price Differentials for One-Way U-Haul 26-Foot Truck Rentals:

Chicago to Houston: $2,588
Houston to Chicago: $473
Ratio: 5.5 to 1

Chicago to Dallas: $2,460
Dallas to Chicago: $636
Ratio: 3.9 to 1

Obvisously there is greater demand in people wanting to move out of Chicago then moving to it along with the fact that trucks leaving Chicago is massive. He also addresses “perfect price parity” for doubters of this economic data.

Here’s an example of almost perfect price parity, suggesting almost a perfect balance in one-way U-Haul 26-foot truck rentals in each direction.

Los Angeles to Chicago: $3,878
Chicago to Los Angeles: $3,869

Mark Perry can be followed at his website and Twitter page.

by Hoosier Econ

Walmart Challenges Amazon

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From Reuters –

Wal-Mart Stores Inc has informed managers of its roughly 5,000 stores across the United States that they can match prices with Amazon.com Inc and other online retailers, the head of the company’s U.S. business said on Thursday.

Greg Foran said the directive was meant to formalize a practice already in place in many stores. “About half of the stores were doing it anyway,” Foran said on a call with media following the reporting of its quarterly results.

by Hoosier Econ

Gasoline Taxes Paid by Consumers

Consumers of gasoline pay state/federal taxes when they purchase gas. The tax is per gallon. The federal tax on gasoline is 18.4 cents/gallon. State taxes vary greatly. The map below shows both state/federal. Just deduct the federal to see what you pay in each state.

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Map courtesy of the American Petroleum Institute. Click here for their interactive map.

by Hoosier Econ

Ball State Students Stumble Upon Economics

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Ball State athletics has an annual budget of over $17 Million a year. After revenue is collected from tickets, teams paying the University, parking, donations, etc it still has a budget shortfall of $11 Million. Enter the students. Fees are tact on to their tuition to make up this shortfall. Students did not realize this like this one:

“Wow, I wasn’t aware of that,” Ball State freshman Macon Shroyer from Selma

All the MAC schools are doing what Ball State is doing.

The vast majority of students in the Mid-American Conference, of which BSU is a member, are “flat-out stunned” to learn how much they pay in athletic subsidies, says David Ridpath, associate professor of sports administration at Ohio University, who surveyed 3,243 MAC students.

You can read the rest of the article here.