Oregon daily emerald. (Eugene, Or.) 1920-2012, January 18, 2000, Page 4A, Image 4

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    Utah has smallest income gap between rich and poor
By Matt Kelley
The Associated Press
WASHINGTON — Utah had
the smallest earnings gap between
rich and poor in the nation during
the late 1990s, according to a new
study by two think tanks.
•Next door in Arizona, it was
the opposite story: The second
largest gap between rich and poor
and the largest gulf between rich
and middle class, according to the
study by the Economic Policy In
stitute and the Center on Budget
and Policy Priorities.
The states’ neighbors to the east
had a similar split, with Colorado
having the fourth-smallest in
come gap and New Mexico hav
ing the third-largest, said the re
port issued Tuesday in
Washington.
“The urbanized areas of all
these states are doing pretty well,
but there’s a large rural area of the
states that’s not doing well at all,”
said Richard Wobbekind, director
of the University of Colorado’s
Business Research Division.
“There’s more of a split between
urban and rural in Arizona and
New Mexico. It’s one of the issues
that plagues the West.”
The study’s authors developed
the rankings using Census Bureau
data on pre-tax family incomes,
adjusted for inflation, from 1996,
1997 and 1998. The gap between
rich and poor was based on the
difference between the average
income of the poorest 20 percent
of a state’s families and the rich
est 20 percent of a state’s families.
The figures did not take into ac
count stock market profits or in
come from any one job that was
more than $100,000 per year.
The top 20 percent of Utah fam
ilies earned an average of
$125,930 in the late 1990s, the
. study said, while the bottom fifth
of families averaged $18,170. The
rich earnings average was 6.9
times the average poor family’s
wages, for the smallest gap in the
country.
“We are the ultimate middle
class state in Utah,” said R. Thane
Robson, director of the University
of Utah’s Bureau of Economic and
Business Research.
Economist Jared Bernstein, one
of the study’s authors, said part of
the explanation is Utah’s low un
employment rate of 3.8 percent in
1998. Other factors are Utah’s
well-educated population, higher
proportion of two-income families
and younger workforce, Robson
said.
In Arizona, meanwhile, the
rich earned an average of
$141,190, while the poor earned
an average of $10,800, the study
said. The average salary for rich
families was 13.1 times the aver
age earnings for the poor and 3.7
times larger than the average in
come of $38,620 for the middle 20
percent of families, the study
said.
“My strong impression is that
part of what’s driving this has to
do with who’s coming into the
state,” Bernstein said. “At the top
end, you have affluent retirees
moving into some of the cities
and the outskirts of big cities. At
the bottom end, there’s an influx
of low-wage immigrants and oth
er low-wage workers providing
services to affluent retirees.”
New Mexico has similar prob
lems, Bernstein said, and also has
a relatively high unemployment
rate — 6 percent in 1998.
“New Mexico seems to be a
pocket of relatively weak (labor)
demand relative to other parts of
the country,” lessening any pres
sure to raise wages, he said.
New Mexico’s rich earned an
average of $111,300, 12.8 times
the $8,720 in average earnings for
the poor, the study found.
Colorado had the highest over
all wages of the four states. Col
orado’s rich earned an average of
$148,810, 8.1 times the average of
$18,450 earned by poor families.
Reno citizens group wants to ban building new billboards
RENO, Nev, — A citizens group
is organizing an effort to ban new
billboards that are blocking views
of the Sierra Nevada with adver
tisements for everything from God
to liposuction.
“One of the reasons people
move here is scenic beauty,” said
Jim Pilzner, a former Reno city
councilman who has joined the
anti-billboard effort.
Billboard companies are asking
the Reno City Council to expand
areas where they can erect new
billboards.
A new series of signs with reli
gious themes received attention
recently but Pilzner said he’s most
upset by a rash of big-bellied ad
vertisements for liposuction
surgery.
“I don’t think liposuction bill
boards contribute to scenic beau
ty. If we’re serious about making
Reno a destination resort area, we
ought to start trying to class it up,”
he said.
A spokesman for the outdoor
advertising industry said billboard
companies merely are trying to re
gain ground they have lost since
the Reno ordinance last was up
dated 11 years ago.
Since then, companies have lost
■S
70 billboards that didn’t conform
to the ordinance, said Greg Fer
raro, senior vice president of R&R
Partners. That’s because the ordi
nance requires landowners to re
move nonconforming signs before
they can develop their property.
When the council updated the
ordinance 11 years ago, it did not
intend to reduce the number of
billboards in the city, Ferraro said.
Sign companies hired Ferraro
last week after billboard company
executives and anti-billboard citi
zens clashed in a council subcom
mittee that has been meeting for
more than a month to review the
ordinance.
Last week, two representatives
of Donrey Outdoor Advertising
made a pitch to the Washoe Coun
ty Airport Authority Trustees to
erect eight to 12 billboards at
Reno/Tahoe International Airport
and two to three billboards at
Reno-Stead Airport.
The Reno airport now has only
one billboard, at the corner of
Plumb Lane and Terminal Way,
and none at Stead.
Reno now allows new bill
boards only in areas zoned for in
dustrial use. The industry is push
ing the city to also allow new signs
in most of the city’s commercial
zones.
“They are a strong, strong lobby.
We’ve got our work cut out for
us,” said Doug Smith, one of 10
founding members of the anti-bill
board group.
“The removal of billboards, we
feel, would foster economic devel
opment and tourism, attract new
businesses, improve scenery, im
prove motorists safety and protect
property values.”
The Associated Press
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