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Thursday, September 08, 2016

SCHMID: LOOKING BACK FROM THE LEFT COAST - SEPTEMBER 8, 2016

THE NDSU FOOTBALL PROGRAM and its impact on Fargo were explored in a Bloomberg Business Week article. The magazine said, “No college town at NDSU’s level gets half the attention” and “The team’s dynasty is unmatched in the 146-year history of college football’s top ranks.” The article dealt with the question of whether NDSU should move to the top tier of college football, the Football Bowl Subdivision (FBS). Various national commentators opined “don’t do it.”

THE LEGACY FUND is a ND rainy day fund with a balance of $3.8 billion growing at the rate of about $30 million a month. ND politicians hinted loudly they may use part of fund earnings to help with a budget shortage in the 2017-19 biennium.

ASSET RICH, CASH POOR Columnist Mike Jacobs likens ND’s budget problems to those of a land-rich farmer who has no cash for a new tractor. He said, “It's not poverty that forced this year's budget cuts. It's lack of foresight. This can be corrected with a broader, more stable tax system and a prudent use of interest accrued on trust funds—not the principal.” Jacobs indicated changes in the state’s tax system left it overly dependent on sales taxes which collapsed amid the slowdown in the oil industry.

JUST A SELECT FEW How many people does it take to draft a strategic plan at UND? Apparently, about 50. President Mark Kennedy has named cabinet members, deans, students and staff to a strategic planning committee which is to have a plan ready for launch a year from now. A spokesman said, "A university can't do everything and do it well, so we want to, among other things, identify the areas we want to excel in."

DID YOU EXPECT THIS? “Campus Reform” reports that UND is offering specialized housing dedicated to social justice. The housing appears to have been arranged for the “GLBTQQIA community,” whatever that means. The report was confirmed by the Executive Director of Housing at UND. I expect you will hear more about this.

FLYING FINGERS are a gruesome discovery. A small child discovered two human fingers on a picnic table in an East Grand Forks park. Much speculation and investigation. Conclusion: “The theory is a bird found them and took them over here." -- EGF Detective Tony Hart. Several weeks ago, a Grand Forks man lost fingers in a fireworks accident -- DNA results connect the two events. If the bird theory is correct, the fingers were flown over the Red River.

CRIME FLOURISHES “We’re not Minneapolis, but we’re not the North Dakota of 25, 30 years ago where you can leave your doors unlocked and you know everybody.” -- Bismarck Police Chief Dan Donlin. Attorney General Wayne Stenejhem confirmed that ND crime per capita jumped 10% from 2014 to 2015. Referring to his annual crime report, Stenehjem said, “There’s really no good news in there except the DUIs are down.”

“TEDDY ROOSEVELT would not be welcome in North Dakota in 2016.” -- Fargo Forum editorial lamenting opposition to public lands in the state. The editorial blamed “short-sighted farming advocates and ranching cabals” and said “The state has become so myopically pro-development” that the idea of setting aside “special places” has foundered.

IS IT WISE? A Star Tribune article indicates that in 2015 Minnesota took in 2,500 refugees, more than any year in the past decade. There is an ongoing tug of war between those who believe Minnesota should accept more refugees and those who feel refugees create a security threat and saddle local government with too many costs. The article follows a case manager from a Minnesota resettlement agency as she assists a Somalian family of seven in their first 90 days in the U.S. The article describes the myriad of federal, state and county benefits available to refugees. After a decade, refugees still require much greater assistance than U.S.-born families.

IS 110 THE NEW 100? At the 2010 census, ND was second in the nation in the percentage of its population 85 and older. In 2010, the state had 14 people age 105 and older. Currently, 111-year-old Iris Westman of Northwood is the oldest person living in ND.

DEVILS LAKE has 19 inches of rain so far this year and Starkweather, in an area that drains into the lake, has 23 inches -- the soil is saturated, that sets the scene for a potential rise in the lake in the spring of 2017.
WHERE’S THE LARD? If you look at ND and its neighbors, I’m sorry, but the fattest are in ND where 31% of adults are obese. Neighbors are sleeker: SD (30%), WY (29%), MN (26%) and MT (24%). Source: 2015 data from Robert Wood Johnson Foundation.
HOUSING PRICES in Grand Forks have outgrown household incomes. The median home price in GF is $220,000, while the median household income is $51,000. That means the price of a home is 4.3 times income -- the national average is 3.0. A GF Herald editorial says the city needs to identify and remove barriers to new home construction.

TITAN MACHINERY, a public company headquartered in West Fargo, has 91 North American ag and construction equipment dealerships. Titan mirrors problems in the industries it serves. Its revenues and earnings from ag were down 27% and 77%, respectively, in the most recent quarter, while its revenues and earnings in construction seem to be stabilizing. Titan consistently reports losses and Morningstar (an investor service) characterizes Titan as distressed, yet shareholders remain patient and hopeful -- the share price for the past year is relatively unchanged. The share price is 70% of book value.

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