The economic definition of labor force is a bit different from the conventional view. The labor force is employed plus unemployed, who by definition are those without a job but looking for work. I bring this up to avoid any confusion with the variable actually being forecast.
Alright, we got the update from the city and it was not pleasant. Year-to-date collections are down more than 10%, and cities preferred measure (though we do not know why it is preferred) is down 6.87%. The forecast was for $1.35 million in collections and it came in at $1.02 million. So my pessimistic forecast was still too rosy. Based on this the updated forecast for May is revised down to $1.3 million.
I will be on the Jarrod Thomas Show tomorrow morning, April 26, 2018 at 9AM central (1310 AM Grand Forks) talking economics.
Over the past few weeks the conversation about sales tax has been pretty consistent and fairly intense. That is probably as it should be given the overall importance of revenue generation across the state right now. What have I done so far? I think the best thing to date may be the discussion surrounding the rolling twelve month series used by the city. Rather than accuracy it is more about stability. Eleven of twelve months in the series are the same from one month to the next so of course the series is stable. The flaws of this approach can be seen when you look at the recent decline. A good month is totally outweighed by the totality of the previous eleven. It also begs a statistical question: should all these months be given equal weight while in the series and then just disappear? That seems highly suspect.
Sports unions are a bit of a quandary. In part I think it has to do with the widespread differences in talent and therefore earnings potential within the union membership.