(AP) — Rising energy costs have been cited as one factor pushing the nation toward recession, but those same increases are keeping some state economies strong. Central states and those in the West with large stakes in oil, gas, minerals and corn — the main ingredient in ethanol — have avoided the economic downturn that threatens tax revenues elsewhere. Ernest Goss, a professor of economics at Creighton University in Nebraska, said there's no doubt that some states with energy reserves will maintain robust economies. Many Midwestern states expect to ride out the economic slump without severely cutting spending. South Dakota, Nebraska, Kansas and Iowa are insulated somewhat from serious impact because farmers are on a spending spree, Goss said. They expect the ethanol boom, which has driven corn and soybean prices to record highs, is here to stay. "This part of the country is weathering the recession much better and the reasons are the very good farm income, alternative energy production and finally the housing downturn has had not nearly the impact here." Tom Fullerton, an economics professor at the University of Texas at El Paso, said a weak dollar also could help drive demand for U.S. farm products. Fullerton recommended that states with large reserves consider spending more to repair roads and bridges, a move that would improve the infrastructure and boost the regional economy.
