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Washington State: Grim Business Survey

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The most recent quarterly survey from the Association of Washington Businesses indicates a continuing deterioration in outlook of Washington State businesses, with 34% of respondents expecting the state to enter into recession within the next year, and only 9% rating the state’s economy as strong. The number of businesses planning to leave the state increased to 17% from 9% a year ago, and 44% of business leaders indicated that that they were considering moving their personal residences out of state. Additionally, only 14% of respondents planned on expanding their businesses in the state, while 30% said they anticipated expanding in another state. Much of this erosion in confidence stems from the tax package passed by the legislature last year, as 64% “rate the overall tax burden as their most important business challenge”.
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Nebraska Legislature Revamps State’s Minimum Wage Schedule

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The Nebraska Legislature has passed a major restructuring of the state’s minimum wage structure, capping the annual increase at 1.75% rather than the cost of living adjustment approved by voters. The State Senator sponsoring the legislation said that it was done in response to “a request from many of the business community”. In addition to capping the annual minimum wage increases, the legislation also restructures the wage scale for younger workers by instituting a new “youth wage” for 14-15 year olds, and adjusting the “training wage” scale for workers 16-20 years old. All of these changes would take effect in July of this year. The state’s governor is expected to sign the legislation.
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North Dakota to Offer Early Retirement in Response to Low Oil Prices

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North Dakota has announced that it will be offering some state employees early retirement incentives to help alleviate budget pressures. While the overall savings goal is unspecified as of yet, the reductions are intended to offset the drop in oil and gas tax revenues caused by the decline in oil prices, as well as the structural revenue losses resulting from the federal OBBB Act. The state has offered similar incentives in the past when oil prices have fallen.
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15 State Treasurers Send Letter to Trump About Economic Impact of Immigration Actions

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Fifteen state treasurers have sent a letter to President Trump expressing significant concern over the economic impacts of the administration’s aggressive immigration enforcement policies. They stress that these policies affect the willingness of people to go to work and travel freely within commercial districts and, as a result, are damaging economic activity in their states.The treasurers of Rhode Island, Minnesota, Massachusetts, Illinois, New Mexico, Colorado, Oregon, Maryland, Vermont, Washington, Connecticut, New York, California, Nevada, and Delaware are signatories to this letter.
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Kentucky Distillers: Bourbon Contributes $10.6 billion to State Economy

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In its biennial report , the Kentucky Distillers Association concludes that the bourbon industry contributes $10.6 billion to Kentucky’s economy and supports direct and indirect state employment of approximately 24,000. To put that into context, the state’s current dollar GDP was about $295 billion in 2024, according to the US BEA, and its total employment was approximately 2.05 million in December 2024 according to the US BLS. Despite citing generally upbeat statistics, the report does identify several headwinds for the industry from foreign demand and changing consumer tastes, and raises concerns over the distillery industry’s future employment and capital spending trends given these challenges.
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Fraser Institute: New Hampshire Most "Economically Free” State

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Food for thought from the Canada’s Fraser Institute. Its recently released report, Economic Freedom of North America , measures “the degree to which governments in North America permit their citizens to make their own economic choices”. The study uses data from 2023, incorporating government spending, tax, and labor market regulation statistics to formulate its rankings. It finds that the more “economically free” states enjoy higher incomes and faster population growth than their economically “less free” counterparts. The study gives New Hampshire the highest score of the 50 US states, and New Mexico the lowest.
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Cape Cod Potato Chip Factory in Hyannis to Close

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A minor state economic story, but still highly symbolic. The Campbell’s Company has announced that it will close the Cape Cod Potato Chip production facility in Hyannis, Massachusetts, bringing an end to its 40 year operating history. The company cites efficiency and supply chain optimization as reasons for the closure. Production will move to the company’s other facilities in  Beloit, Wisconsin, Charlotte, North Carolina, and Hanover, Pennsylvania.
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