Friday, June 20, 2008

Motor Home Meltdown

Okay, so I usually love living in the motorhome but right now it is 112 degrees outside and for some reason, I have lost all power to the RV. With Frank in California taking care of his mother, I am having my first MOTORHOME MELTDOWN!

More Opposition to the Big Boondoggle Bill of 2008

NOTE: The Cactus League Baseball Proposal is part of the bill that the Arizona Federation of Taxpayers is calling the Big Boondoggle Bill of 2008. Please call Speaker Jim Weier's office at 602-926-4173 and urge him to rethink his support of this measure. If you would prefer to email, his email address is jweiers@azleg.gov.
Re: Cactus League Baseball Proposal

Dear Representative,

On behalf of the Arizona Restaurant Association (ARA) I am writing to respectfully request that you oppose the Cactus League Baseball proposal which would create a 0.75% tax on restaurants, bars, hotels and rental car companies. As you know, this proposal is part of the Jobs Creation Package which is expected to be voted on very soon. As recently as today, there has been discussion on modifying this proposal but keeping the above mentioned entities as the tax revenue source, we oppose this recommendation as well. The ARA understands the importance of preserving and promoting the sport’s industry in Southern Arizona, however, imposing a tax on restaurants, bars, hotels and rental cars is not the answer.

Issues such as these are not taken lightly and as a member-based organization we contacted each of our Southern Arizona members to get their understanding and position on the proposed measure. We found that members are overwhelmingly opposed to any additional tax increase on our industry including a tax for Cactus League Baseball. Our members are in part against this measure because the revenue generated from sports in Southern Arizona is beneficial to all businesses and forcing a select few to shoulder the burden is not a fair or palatable solution to this problem.

Furthermore, restaurants generate 24% of their revenue from tourism while hotels and rental cars generate 2.5 to 3 times that amount from tourism…clearly the paradigm is different for restaurants in this case. We want to see baseball training thrive in Southern Arizona. However, we cannot support a measure that unfairly taxes an industry and thus forces a select few to pay for a measure that would benefit all Southern Arizona businesses.

On behalf of the Arizona Restaurant Association, I thank you for your consideration and urge you to oppose the Cactus League Baseball component of the Jobs Creation Package. As always, please feel free to contact me with any questions or comments.

Sincerely,

Steve Chucri
President and CEO
Arizona Restaurant Association

SpeakOut Radio Interview

Hey Guys! For those of you that missed it, my radio interview with Paul LaVoie went extremely well! He definitely asked some poignant questions and I look forward to further opportunities to be on his show.

Mark your calendars for my next appearance on SPEAKOUT ~ Friday, July 18th from 11:00 to noon!

* I have a standing appearance on the show scheduled for the third Friday of every month.

ROSE GROE

My precious Mother-in-Law Rose fell last night and broke her hip so Frank left for California to be by her side. I am still in Phoenix since the Legislature was suppose to work today though that did not come to fruition. Please pray for Rose, that she heals quickly and without complications.

SpeakOut Radio Interview Today

I am on KNTR radio today between 11:oo and noon with new SpeakOut radio host Paul LaVoie. This will be my first interview with Mr. LaVoie so tune in to hear us get to know each other as I answer some of his very pointed questions. Turn the dial to 980 AM or 97.1 FM or listen to the show via the Internet at www.kntram.com.

Big Boondoggle Bill of 2008

Dear Arizona Taxpayer:

As I wrote yesterday, the Arizona Senate is considering SB1450, a bill that would award a private company the privilege of issuing $750 million in tax-free bonds, so that it can build a rock music theme park in Eloy.

Proponents of SB1450 have contacted me, arguing that the bill's language removes any legal obligation for taxpayers to bail out the theme park district in the event that it cannot attract enough visitors to pay back the bond creditors.

That appears to be true about the legal obligation, but the legislation does not remove the political obligation to bail out the theme park district. If the Eloy theme park turns out to be a flop, future legislatures will be under intense pressure to bail out the theme park. If they do not, the failure of the district to pay back creditors will hurt Arizona's bond ratings, effectively raising the interest rates for revenue bonds for traditional public-private partnerships, such as road construction projects.

Again, the economic downsides of the Decades Theme Park deal are not nearly as important as the question of principle at stake: Should the government give special taxing privileges to chosen companies? Again, the answer to that question is, "NO." The government should not be in the business of picking winners and losers in the economy.

Further, if we let the Eloy deal pass, it will only encourage the rest of the sharks, who are already pestering the Legislature to pass the Big Boondoggle Bill of 2008, which includes special tax breaks for entertainment districts, ballparks, and other politically-favored industries, all in the name of "economic stimulus." Remember that every dollar given to a favored industry in a tax credit is a dollar that cannot be cut from the taxes of ordinary individuals, families, and businesses. Somehow, that does not seem very stimulating...

For emerging details on the Big Boondoggle Bill of 2008, see this story in the Republic:

http://www.azcentral.com/news/articles/2008/06/18/20080618stimulus0618.html

The tax credit handouts in the Big Boondoggle Bill of 2008 make the Eloy deal look almost innocent. It seems that our politicians just can't break the habit of picking winners and losers in the Arizona economy-no matter how many losers they pick. We will keep you posted on developments related to the Big Boondoggle Bill.

For Liberty,

Tom Jenney
Arizona Director
Americans for Prosperity
(Arizona Federation of Taxpayers)
http://www.aztaxpayers.org/
tjenney@afphq.org

Wednesday, June 18, 2008

No Budget In Sight...

No budget in sight...no rumor of a budget at all...no whispers, NO NOTHING!

On a more positive note, the House did vote on and pass the Partial Birth Abortion Ban and the bill is now headed to the Governor.

We are working tomorrow...the first time in about two months that we will be meeting on a Thursday. I expect to hear details of the monstrous "job stimulus" package that bears the name of the Speaker, Andy Tobin and Michelle Reagan. I am relieved to say that this proposal is not being received enthusiastically by my colleagues so perhaps there is another reason for hope.

I am exhausted, a bit emotionally drained and completely embarassed about all of the garbage that makes up these late days of session. I will post more tomorrow but for now, I am turning off the computer and turning in to bed.

G'night.

Tuesday, June 17, 2008

A Message from Arizona Federation of Taxpayers

Dear Arizona Taxpayer:

Right now, members of the Arizona Senate are considering whether or not to award a private company the privilege of issuing $750 million in tax-free bonds, so that it can build a rock music theme park in Eloy.

If the project turns out to be a flop, and if tourists fail to come to Eloy in sufficient numbers, the state could have to pay back creditors, or it could jeopardize its bond rating, making it more expensive in the future to borrow money for traditional projects, such as road construction.

But the economic downsides of the Decades Theme Park deal are not nearly as important as the question of principle at stake: whether or not the government should not be handing out special privileges to chosen companies. The answer to that question is clearly, “NO.” The government should not be in the business of picking winners and losers in business.

PLEASE CONTACT YOUR STATE SENATOR, AND ENCOURAGE HIM OR HER TO OPPOSE THIS BILL. WE ARE ESPECIALLY CONCERNED ABOUT ANY SENATOR WHO VOTED YES (“Y”) ON THE EARLIER VERSION OF THE BILL:
http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/48leg/2r/bills/sb1450.sthird.1.asp

In response to a query from the Senate, AFP Arizona hereby announces that the bill, SB1450, will be included in our 2008 Legislative Scorecard. Given the potential yearly fiscal impact, and the importance of the principle at stake, the bill will be a 50-point bill. In last year’s scorecard, that would have been just under 5 percent of the total, but there are fewer bills this year, so SB1450 could weigh as much as 10 percent of the overall score.

For more information about why SB1450 is a bad bill, see the pieces from the Goldwater Institute and the AZ Free Enterprise Club (pasted below).

For Liberty,

Tom Jenney
Arizona Director
Americans for Prosperity
(Arizona Federation of Taxpayers)
www.aztaxpayers.org
tjenney@afphq.org
(602) 478-0146


Springtime for Decades: Eloy theme park bill bad for Arizona
By Byron Schlomach, Ph.D., director of the Goldwater Institute Center for Economic Prosperity.

In the Mel Brooks play, The Producers, a planned swindle would only succeed if a joke of a Broadway play was a monumental flop. The play, Springtime for Hitler, ended up being a success against all reason. Right now the Arizona legislature is planning a similar heist: the Decades Music Theme Park.

The Arizona legislature has proposed a law to create a “special attraction district” in Eloy that would only include the Decades park and give it quasi-governmental status. Why is this proposed law a scam? In essence, the law is designed to subsidize private companies that cannot raise the money or otherwise get financing without special government treatment. In this case, the special privilege is the ability to issue government bonds. The bill now being considered would allow the owners of Decades to issue $750 million in government bonds.

People who buy government bonds accept less interest than they would otherwise for two reasons. First, they don’t have to pay federal income tax on the interest earned. Second, government bonds are backed by the ability of a government entity to tax its citizens, so they are generally safe investments.

In the case of the proposed theme park, the bonds will be financed by sales taxes paid only by park visitors. That means these bonds are really every bit as speculative as corporate bonds, because they are entirely dependent on the ability of a company to attract customers.

There are very likely to be good-faith buyers of these special attraction district bonds who will have every reason to think the bonds are as safe as school district bonds. Then, if the park doesn’t work out and goes out of business, widows, retirees, and institutional investors could find their government-grade bonds worth pennies on the dollar at best. If this unfortunate scenario were to happen, disappointed investors would likely sue those responsible, including the State of Arizona.

Even if there’s no lawsuit, Arizona’s bond ratings will suffer if the park goes belly-up. Future bond buyers, with no idea if they’re really buying speculative corporate bonds or genuine government bonds, might avoid buying Arizona bonds all together.

Not only could Arizonans lose financially if policymakers ultimately approve this highly speculative project, we could lose in other ways. The private sector sets a pretty high bar for potential enterprises to pass in order to get funding. That doesn’t mean there is always success when enterprises are privately funded, but it does mean the winners often win big. Who knows what kind of big winner this government-backed project might prevent from opening.

If a theme park comes to Arizona, it needs to stand on its own financial feet. The test any such proposal passes should come from the private sector school of hard work, not the political school of smooth talking.

Decades Music Theme Park Bill Strikes the Wrong Chord~
exempting income and property taxes is corporate and investor welfare
Phoenix, AZ – The Arizona Free Enterprise Club, a pro-economic growth advocacy group, today announced its opposition to SB1450, the Regional Attraction District, otherwise known as the Decades Music Theme Park. The legislation exempts for-profit companies within the district from paying income and property taxes.

During testimony on the bill in Senate Commerce, proponents claimed that without this legislation, the area in Eloy where the park is proposed would not be an internationally recognized music theme park. Proponents of the bill also stated that some of the private investment was contingent on the bill.

“What gets built in Eloy should not be determined by legislating corporate subsidies being pushed by those who stand to benefit financially,” said Steve Voeller, president of the Club. “When corporate welfare is needed so that the private investment pays off, you could say the role of government has been exceeded.”

The legislation exempts businesses who locate with the district from paying property or income taxes. The park’s supporters claim that because they are required to raise $100 million in private investment before the bonds can be issued, the state’s investment is a sound one.
“If building a music theme park in Eloy makes economic sense, so much so that the first $100 million can be raised privately, then the project should be financed like other large projects and the owners should pay taxes like everybody else.”

House to Vote on Partial Birth Abortion Ban

UPDATE: No vote on the partial birth abortion ban today as we do not have the votes to pass the bill. Konopnicki and Brown are not on the floor and are needed for the bill's passage.

Today we head to the floor at 10:00 to vote on three bills including the Partial Birth Abortion ban that passed out of the Senate yesterday. I expect the bill to pass (it passed once in the House already and was changed only slightly in the Senate) and get transmitted to the Governor. Click on the title of this post to the details of the bill.

Monday, June 16, 2008

Sheriff Sheahan Endorses...

NO ONE.

I heard last week that Mohave County Sheriff Tom Sheahan endorsed a candidate for State Representative, District III. I thought this a bit strange as the Sheriff has a campaign of his own to pursue and it just doesn't make sense for him to offer endorsements in this race while he is running for re-election.

What did I do when I heard this "news"? Well, I called and bluntly asked him if this bit of information was true. NOPE. UNTRUE.

I hope that when you hear "news" that doesn't sit well with you, that you will call me first thing to find out if indeed it is fact or fiction.

Thanks for your time!

Catching Up...and Sounding Off!

Today at the House we voted on the two bills mentioned below; both passed without pause. We also caucused two bills that will be COW'd tomorrow. I will link to those in a later post.

Russell Pearce had one of his bills die in the Senate...I am unsure what the subject but I think it had something to do with driver's licenses. You can find the information on the Senate website, if interested. The bill went down pretty hard though, with only 5 or 6 yes votes. Russell swears that it is a good bill...I think there might have been a problem with a way the bill was written, from what I am hearing.

Also in the Senate, Conservative Republican GOP activist Sylvia Allen was sworn in as the District 5 replacement for the late Jake Flake. I visited the Senate Floor briefly with in order to meet her and offer my encouragement as she makes the transition.

Tomorrow I have a House and Senate Joint Appropriations meeting that begins at 1:30 pm. You can watch this meeting live via the Internet.

http://azleg.granicus.com/MediaPlayer.php?view_id=&clip_id=&publish_id=13&event_id=

According to my colleague and House Appropriations Chairman Representative Pearce, he has asked various state agency directors to appear before the committee and testify on what impact government shut down would have on their agency. This is an ever apparent reality as we have 15 days to develop a budget proposal with no acceptable, responsible solution in sight. Not one of my colleagues in the House has an update of any progress though there is rumor that leadership, excluding the Approps Chairmen, are meeting with the Democrats.

How is that for a slap in the face, not only to rank and file republican lawmakers but to the people of Arizona?

Republicans are the majority in both the House and the Senate and their elected leadership has abandon them and are now pandering to the Dems!!!! I believe their plan is to put to a vote the "best" democrat budget they can negotiate. If this is indeed their plan we could have preserved a few precious individual liberties and avoided needless new legislation if they had just run the Governor's budget up the board in the first place.

As usual, I will keep attempt to keep you abreast of the news as it develops.

At your service,
RepGroe

Greater Phoenix Economic Council asks CEOs to Push State for Solar Incentives

...sounds great, huh? As usual, the devil is in the details! The whispering has started and I hear that this is something that the legislature is going to be asked to entertain before session ends in two weeks.

House Third Read for Today

SB1110-->funds; elimination; transfer

SB1235-->state expenditures; searchable database; transparency

Click on the bill number for further information on the proposals.

Catching Up ~ Abeit Briefly




Back and ready to blog!
I will be posting new legislative happenings later in the day...we go to the floor at 11:00 today to entertain a few bills and I plan to get the scoop on the budget proposal. I will share all I learn.
In the meantime, here are a few pictures from my weekend trip to Chattanooga, Tennessee where my youngest brother was married.