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Despite bump in sales-tax revenue, many in Valley fail to feel upswing
STAFF REPORT
YOUNGSTOWN
With the news last week that sales-tax revenue throughout the Mahoning Valley was restored to pre-recession levels, it appears businesses are regaining strength.
The people, however, are still feeling the brunt — whether because of high gas prices, high grocery prices or any other inflation-impacted good or service.
Marilyn Lloyd of Warren, having breakfast at the Coffee Cup with her husband, Joe, said she hasn’t noticed any difference in the local economy in the past year.
“I hear it’s getting better. I don’t notice much,” she said, adding that she and Joe are retired — she from nursing, Joe from the former Copperweld Steel.
“I don’t see a big upturn in the economy, and the gas prices are going up,” she said.
Food prices also rose last year, according to the U.S. Department of Agriculture, and chief economist Joe Glauber said Thursday he expects food prices to rise an additional 2.5 percent to 3.5 percent in 2012.
Meat prices could rise as much as 4.5 percent this year. Egg prices, which jumped 9.5 percent in 2011, could increase 2 percent.
Chris Ehatt has lived in Youngstown for the last 10 years. Still, he does not believe that the sales-tax revenue increase is affecting life in the city.
“I haven’t noticed the cost of living going down, and gas prices are ridiculous,” he said. “I haven’t been making any more money.”
Last year, wages in Mahoning County rose about 3.5 percent but were offset by 2.5 percent inflation.
Adam Hankey of Youngs-town works at a local plastic-manufacturing company and hasn’t noticed any changes in the economy. Hankey said he is optimistic about the future, however, if Youngstown can promote more business.
“To make more money, we have to bring more people here,” he said.
There are a multitude of businesses that have decided to invest or relocate in the Valley, such as V&M Star and Anderson-Dubose Inc., but those permanent jobs are not yet online.
Those companies, which will start business later this spring, could mean a big summer for the Valley.
Some business owners already are seeing the effect of tax returns on their activity.
Kim Walker of Warren, who owns a cellphone business, said she believes people are spending money right now because they are getting tax refunds. “I’m a business owner, so I know every tax time, my sales are up.”
As for 2011 having been a better year for local sales, “I don’t see it being accurate at all because I have to charge sales tax,” she said.
Bonnie Day of Warren, having breakfast at the Mocha House restaurant on High Street Northeast, said she isn’t seeing any improvement, only higher grocery prices.
Walter Gregory of Warren, also eating at the Mocha House, said, “I don’t see it. I guess people are spending the money, but I don’t know where the money is actually going. Being retired, it doesn’t really matter. I’m getting a steady income.”