Communities across the country are feeling the effects of the recently announced recession, but one business consultant says State College is among a few areas that are "almost recession-proof."
JobBait.com owner Mark Hovind, who works with high-earning executives to help them find employment, compiled the list of "recession-proof" and "almost recession-proof" areas -- which includes State College.
For an area to be given the distinction, it "must have grown faster than the average population growth since 1990, and during the recessions that ended in 1991 and 2002, and today," according to Hovind's Web site.
State College marked periods "growing faster than population growth" and others where it grew slowly, according to the site.
"If a community is growing during the worst of times, then it appears to be 'recession-proof,' " he said.
If State College's 900-job increase over the past year deteriorates, it could fall off the list altogether, Hovind said, adding new numbers will come in at the end of December.
One State College business owner said he's keeping his fingers crossed and would like to see the economy turn around, no matter how insulated the borough is.
Art Fine, owner of Metro, 320 E. College Ave., People's Nation, 126 E. College Ave., and Barefoot, 130 E. College Ave., said his businesses are having a record year in sales, but that doesn't mean the borough is "recession-proof."
"I've been doing this for 35 years," Fine said. "In all the economic downturns, State College has done well -- that's not to say we can't have a downturn and see some unforeseen things happen."
Despite this, he said one particular item at Barefoot is doing so well, it can't be kept in stock.
"In the shoe business, we have the hottest item -- a boot called an 'Ugg,' " Fine said. "They are $150 a pair, and we can't keep them in stock. That's an indication."
Zahi El-Haj, part owner of Are U Hungry, 111 Sowers St. and 222 W. Beaver Ave, said State College food businesses won't feel the effects of the recession as quickly as other towns and communities will.
"Basically, fast food business doesn't get affected," El-Haj said. "It gets better. People don't want to spend $40 dollars on dinner. People rather go for something cheaper."
State College Borough Council President Elizabeth Goreham said the borough is across the street from a large, recognizable university and as Penn State succeeds, so does State College.
"We think that we are relatively insulated because of the university," she said. "We rise and fall together."
The borough has a relatively tight budget, she said, adding taxes make up the majority of its budget revenue. Most of the population does not pay earned income tax and 45 percent of property is tax exempt, she said. A small part of the population is paying for the burden of the whole town, Goreham said. Though new revenue streams are being sought to address budget shortfalls, Goreham said the borough will emerge from the recession "stronger than ever."
After all, Fine said, the borough's biggest business -- Penn State -- is still in great shape.
"When your largest employer is still humming along, the rest of the economy is doing well," he said.
