Recession catches up with Rockies

The Mountain West may no longer be immune to economic hardships gripping the rest of the nation. Leading financial indicators for Colorado, Utah and Wyoming plunged to record lows in January and escalating job losses are expected throughout the region.

The Goss Institute for Economic Research conducts a monthly survey of the three-state region and generates a “Business Conditions Index.” January marked the third month in a row where the index dipped below the “growth neutral” mark. Dr. Ernie Goss, research director, remarked that the numbers point to a deepening recession that could stretch into the summer.

“Our survey results and very negative government data point to a significant economic downturn for the region,” he said.

Growth in the region’s large energy sector had helped the West dodge the national recession. However, that’s no longer the case, Goss reported. Economic hits to the manufacturing sector, especially for firms heavily dependent on international sales has pushed the region firmly into a recession, he said.

“In previous months, growth among firms with ties to the region’s energy sector supported the economy,” Goss said. “However, even firms in this sector are experiencing pullbacks. Recent downturns among durable goods manufacturing companies, especially those dependent on international sales, are becoming a significant drag on the regional economy.”

The Goss report is generated after a monthly survey of supply managers in Colorado, Utah and Wyoming. The group has conducted the study since 1994 to produce leading economic indicators of the Mountain States region. For Colorado, January’s numbers fell sharply, dropping more than 25 percent from December and well below growth neutral. Jobs are also suffering throughout the state.

“On a seasonally adjusted and annualized basis, Colorado has experienced a job loss of almost 6 percent over the past three months,” Goss said. “While I do not expect the state to continue to lose jobs at this pace, it will shed more jobs in the months ahead with an increase in the state’s jobless rate by another half percentage point by the end of the second quarter of 2009.”

Goss concluded that he does expect the Mountain West to begin to rebound this summer. However, a new problem – major inflation – could take the place of recession.  “I am concerned that this excessive stimulus from the Fed and U.S. government deficit spending will result in unacceptably high inflation sometime in 2010,” said Goss.

Mining reform lands in Washington

The mining industry may be in for a rude awakening. Faced with evidence that Americans are subsidizing hardrock mining to the tune of billions of dollars, House Natural Resources Committee Chairman Nick Rahall, D-W.Va., introduced legislation this week to abolish a 137-year-old exemption.

Citing a report by the Pew Campaign for Responsible Mining, Rahall’s bill proposes that mineral-extraction companies pay a royalty for using public lands just like the coal, oil and gas industries.

“Given our economic crisis and the state of our national treasury, it is ludicrous to be allowing this outmoded law to continue to exempt these lucrative mining activities from paying a fair return to the American people,” Rahall said in a statement.

The Mining Act of 1872 was written to encourage mining in the West and remains current despite the passage of 137 years. In essence, the law allows mining companies to stake claims on public lands and extract metals without paying royalties. Taxpayers will cough up nearly $2 billion in the next decade to make up the difference, according to the Pew report.  

“We can no longer afford to ignore a billion-dollar stream of untapped revenues,” said Velma Smith, manager of the Pew campaign. “It’s time for Congress to stop the mining industry’s free ride and start treating it like any other business that uses public resources.”

The National Mining Association, an industry trade group, countered that the legislation will hurt the American economy and cost thousands of jobs. Hal Quinn, president of the association, commented, that mining is responsible for $12.5 billion in payroll and $4.2 billion in personal income.

“These operations truly are the economic engines that drive countless communities across the West,” he said.

An identical bill passed by the House in 2007 on a vote of 244 to 166. However, the Senate did not produce parallel legislation. This year, Sen. Jeff Bingaman, D-N.M., Chairman of the Senate Energy and Natural Resources Committee, has signaled his interest in addressing mining reform.

Iron Horse registrations steam ahead

Economic storm clouds are doing nothing to deter road riders and the 38th annual Iron Horse Bicycle Classic. Registrations for the annual race/tour between Durango and Silverton are already 30 percent ahead of last year’s early sell out, and half the slots in the Memorial Day event have already been spoken for.

The iconic cycling event, which is just 106 days away, pits riders against the D&SNG train in a 50-mile race with more than 6,000 feet of elevation gain. Last year’s ride to Silverton was cancelled for the first time in 37 years due to snow, a fact that had race organizers concerned about the fate of this year’s event.

“We were worried about registrations this year because of the economy and what happened last year, but it seems that demand remains strong,” said race director Gaige Sippy. 

Riders interested in clocking an official time and competing against other riders may choose to register for the Road Race, while those interested in a noncompetitive ride to Silverton may register for the Citizen’s Tour. More than 1,250 people have already signed up for the race and tour, which are capped at 2,500 total riders. Another sold out Iron Horse is not far off. Sippy noted that the Iron Horse office is processing about 35 new registrations each day. Registration is also open for the Downtown Criterium, the 13-mile Animas Valley time trial and the Quarter Horse, a new 25-mile tour between Durango and Purgatory at Durango Mountain Resort.

As an olive branch to registered riders who missed out on last year’s Iron Horse because of foul weather, organizers are knocking $10 off this year’s registration fees. However, the discount only runs until Feb. 15.

For more information or to register before it’s too late, visit www.ironhorsebicycleclassic.com.  

Photo exhibit honors local artists

Community photography continues to enjoy the limelight at the Center of Southwest Studies at Fort Lewis College. The Center’s sixth annual juried photography show, “Images of the Southwest,” will be on display through March 27.

Featuring amateur and professional photographers alike, the exhibit opened in late January to a full house. During the reception, Center Director Kevin Britz announced this year’s winners.

Branson Reynolds took the cash prize for Best Color Photograph for “Approaching Storm.” Patricia Francis’ “Lone Tree” won honors for Best Black and White Photograph. And Best of Show went to John Mumaw for his black and white of “Setting Hen Butte.” The show was juried by David J. West, of Utah.

– Will Sands

Recession catches

up with Rockies

The Mountain West may no longer be immune to economic hardships gripping the rest of the nation. Leading financial indicators for Colorado, Utah and Wyoming plunged to record lows in January and escalating job losses are expected throughout the region.

The Goss Institute for Economic Research conducts a monthly survey of the three-state region and generates a “Business Conditions Index.” January marked the third month in a row where the index dipped below the “growth neutral” mark. Dr. Ernie Goss, research director, remarked that the numbers point to a deepening recession that could stretch into the summer.

“Our survey results and very negative government data point to a significant economic downturn for the region,” he said.

Growth in the region’s large energy sector had helped the West dodge the national recession. However, that’s no longer the case, Goss reported. Economic hits to the manufacturing sector, especially for firms heavily dependent on international sales has pushed the region firmly into a recession, he said.

“In previous months, growth among firms with ties to the region’s energy sector supported the economy,” Goss said. “However, even firms in this sector are experiencing pullbacks. Recent downturns among durable goods manufacturing companies, especially those dependent on international sales, are becoming a significant drag on the regional economy.”

The Goss report is generated after a monthly survey of supply managers in Colorado, Utah and Wyoming. The group has conducted the study since 1994 to produce leading economic indicators of the Mountain States region. For Colorado, January’s numbers fell sharply, dropping more than 25 percent from December and well below growth neutral. Jobs are also suffering throughout the state.

“On a seasonally adjusted and annualized basis, Colorado has experienced a job loss of almost 6 percent over the past three months,” Goss said. “While I do not expect the state to continue to lose jobs at this pace, it will shed more jobs in the months ahead with an increase in the state’s jobless rate by another half percentage point by the end of the second quarter of 2009.”

Goss concluded that he does expect the Mountain West to begin to rebound this summer. However, a new problem – major inflation – could take the place of recession.  “I am concerned that this excessive stimulus from the Fed and U.S. government deficit spending will result in unacceptably high inflation sometime in 2010,” said Goss.

Mining reform lands in Washington

The mining industry may be in for a rude awakening. Faced with evidence that Americans are subsidizing hardrock mining to the tune of billions of dollars, House Natural Resources Committee Chairman Nick Rahall, D-W.Va., introduced legislation this week to abolish a 137-year-old exemption.

Citing a report by the Pew Campaign for Responsible Mining, Rahall’s bill proposes that mineral-extraction companies pay a royalty for using public lands just like the coal, oil and gas industries.

“Given our economic crisis and the state of our national treasury, it is ludicrous to be allowing this outmoded law to continue to exempt these lucrative mining activities from paying a fair return to the American people,” Rahall said in a statement.

The Mining Act of 1872 was written to encourage mining in the West and remains current despite the passage of 137 years. In essence, the law allows mining companies to stake claims on public lands and extract metals without paying royalties. Taxpayers will cough up nearly $2 billion in the next decade to make up the difference, according to the Pew report.  

“We can no longer afford to ignore a billion-dollar stream of untapped revenues,” said Velma Smith, manager of the Pew campaign. “It’s time for Congress to stop the mining industry’s free ride and start treating it like any other business that uses public resources.”

The National Mining Association, an industry trade group, countered that the legislation will hurt the American economy and cost thousands of jobs. Hal Quinn, president of the association, commented, that mining is responsible for $12.5 billion in payroll and $4.2 billion in personal income.

“These operations truly are the economic engines that drive countless communities across the West,” he said.

An identical bill passed by the House in 2007 on a vote of 244 to 166. However, the Senate did not produce parallel legislation. This year, Sen. Jeff Bingaman, D-N.M., Chairman of the Senate Energy and Natural Resources Committee, has signaled his interest in addressing mining reform.

Iron Horse registrations steam ahead

Economic storm clouds are doing nothing to deter road riders and the 38th annual Iron Horse Bicycle Classic. Registrations for the annual race/tour between Durango and Silverton are already 30 percent ahead of last year’s early sell out, and half the slots in the Memorial Day event have already been spoken for.

The iconic cycling event, which is just 106 days away, pits riders against the D&SNG train in a 50-mile race with more than 6,000 feet of elevation gain. Last year’s ride to Silverton was cancelled for the first time in 37 years due to snow, a fact that had race organizers concerned about the fate of this year’s event.

“We were worried about registrations this year because of the economy and what happened last year, but it seems that demand remains strong,” said race director Gaige Sippy. 

Riders interested in clocking an official time and competing against other riders may choose to register for the Road Race, while those interested in a noncompetitive ride to Silverton may register for the Citizen’s Tour. More than 1,250 people have already signed up for the race and tour, which are capped at 2,500 total riders. Another sold out Iron Horse is not far off. Sippy noted that the Iron Horse office is processing about 35 new registrations each day. Registration is also open for the Downtown Criterium, the 13-mile Animas Valley time trial and the Quarter Horse, a new 25-mile tour between Durango and Purgatory at Durango Mountain Resort.

As an olive branch to registered riders who missed out on last year’s Iron Horse because of foul weather, organizers are knocking $10 off this year’s registration fees. However, the discount only runs until Feb. 15.

For more information or to register before it’s too late, visit www.ironhorsebicycleclassic.com.  

Photo exhibit honors local artists

Community photography continues to enjoy the limelight at the Center of Southwest Studies at Fort Lewis College. The Center’s sixth annual juried photography show, “Images of the Southwest,” will be on display through March 27.

Featuring amateur and professional photographers alike, the exhibit opened in late January to a full house. During the reception, Center Director Kevin Britz announced this year’s winners.

Branson Reynolds took the cash prize for Best Color Photograph for “Approaching Storm.” Patricia Francis’ “Lone Tree” won honors for Best Black and White Photograph. And Best of Show went to John Mumaw for his black and white of “Setting Hen Butte.” The show was juried by David J. West, of Utah.

– Will Sands