By By JOHN EBY / Dowagiac Daily News
CASSOPOLIS - Persistent gas price jumps are showing signs of fueling inflation, Cass County commissioners heard Thursday from state Sen. Ron Jelinek's district representative, Chris Siebenmark.
Tourism is taking a hit for the fifth straight year.
Visitors spent more this July than a year ago, but less than expected, the Detroit Free Press reported.
With Michigan's high unemployment, there's not a lot of disposable income for a lot of folks in the state. Those same folks, even those who are working, stay home within the state as dollars become tighter. We're going to feel it statewide."
With tourism and agriculture ranking second and third in revenue production, "It's not going to be a stellar year," he said. "Michigan is in a tough way right now."
Michigan's jobless figure climbed back up to 7 percent in July from 6.8 percent in June, contrary to a continuing national recovery and auto company incentives to prod new-vehicle sales. Michigan continues to have one of the nation's highest unemployment rates. Nationally, unemployment is at 5 percent.
Temporary layoffs in auto plants are one reason for the increase. July saw jobs lost n manufacturing, construction, transportation and utilities. Two-thirds of job losses statewide occurred in the hard-hit manufacturing sector. A bright spot is a gain in professional and business services, one of the fastest-growing sectors nationally.
Though flat, Michigan's economy produced higher than anticipated tax revenue for state government. It is predicted tax revenues this year will be $69 million higher than calculated in May, plus $68 million higher next fiscal year.
Although the extra money is a drop in the state's $40 billion budge, it could avert the closure of state prisons in Newberry and Baldwin and a $13 million trim in state aid to universities.
New state estimates suggest the economy is leveling off after two years of constantly falling tax revenues. It was the second straight forecast of higher-than-expected revenues.
Yet any breathing room sets off a veritable stampede in Lansing.
Dowagiac Commissioner John Cureton praised Siebenmark's boss, Sen. Jelinek, for attending the Berrien County potluck promoting citizenship for Ibrahim Parlak, the Harbert restaurant owner the Department of Homeland Security wants deported to Turkey.
Jelinek, R-Three Oaks, defended Parlak: "He's demonstrated citizenship qualities, even though some bureaucrats don't think so. Ibrahim Parlak has earned the trust of hundreds of people; doesn't that count for something?"
Parlak spent 10 months in the Calhoun County Jail in Battle Creek.