It is a sunny new day today and I am thankful for all that it brings!
This morning I am quickly straightening the RV before heading home to Lake Havasu City. Though I am not looking forward to the 4 hour drive, I am tremendously excited to be going home after 6 months in Phoenix. I am excited about reuniting with my friends after this time away and looking forward to the opportunity to assist and serve my community on a local level. The icing on the cake, too, is that our boat is in the slip at the Lake Havasu Marina for the summer and I plan on taking some relaxing evening tours of the lake!
The Arizona House and Senate adjourned Sine Die last night at 10:09 pm after an unusually long and contentious day. In past years, we have adjourned immediately after passing a budget but this session but, in order to allow certain bills to continue through the process (like the marriage amendment) we worked until late last night. Here are three media interpretations to what transpired last night:
Legislature's session ends with testy finale
Contention rules floor on last day of session
Finally! Legislature ends session on 166th day
For any of you reading this in the Kingman area, I will be attending a Candidate Meet and Greet later on this afternoon at the home of Lenny and Nancy Moschcau. The gathering is between 3:30 pm - 6:00 pm. For more information, call me on my cell phone: (928) 230-5641.
Saturday, June 28, 2008
Friday, June 27, 2008
Legislature Breaks Law
Robert Robb claims, in this recent column, that the Arizona Legislature is breaking the law by using a budget gimmick commonly called the "K-12 Rollover". Personally, I abhor the rollover. During my first or second session, we paid back the $191 Million Dollars owed to the school districts from a session prior to my election. I was proud that we accomplished this and never expected that this deceptive practice to be used again while the Republicans held the majority. Unfortunately I was wrong...dead wrong. Hats off to Mr. Robb for shedding some light on this practice.
Sighting Sine Die
Today, both the House and Senate have a slew of Conference Committees with several bills still proceeding through the legislative process. We are expected to go to the floor, simultaneously at 10:00 am to consider bills and, perhaps, Sine Die. Though I am a bit unsure as the calendar for today just shows a COW calendar, with no third readings or final passages scheduled. For a time yesterday there was talk of working over the weekend or even straight through to Monday. I doubt this is the case but lately reason has not prevailed.
With the passage of this abominable budget, I am feeling deflated. In addition to this, I am greatly disturbed about several things that took place yesterday including a brief yet incredibly rude interaction I had with several of my senior colleagues. The chauvinism they displayed was shocking and extremely distasteful. Perhaps I will have to chalk it up to the stress of the past few days...I will try to frame their bad behavior in this light, though at some point in time it might be interesting to examine the chauvinism alive and well in our Arizona Legislature.
My day needs to move forward so I will complete my post. Rest assured that thought the battle over the budget may be lost, I will not give up my fight to protect your hard-earned money, your private property rights, your precious personal freedoms and important individual liberties!
With the passage of this abominable budget, I am feeling deflated. In addition to this, I am greatly disturbed about several things that took place yesterday including a brief yet incredibly rude interaction I had with several of my senior colleagues. The chauvinism they displayed was shocking and extremely distasteful. Perhaps I will have to chalk it up to the stress of the past few days...I will try to frame their bad behavior in this light, though at some point in time it might be interesting to examine the chauvinism alive and well in our Arizona Legislature.
My day needs to move forward so I will complete my post. Rest assured that thought the battle over the budget may be lost, I will not give up my fight to protect your hard-earned money, your private property rights, your precious personal freedoms and important individual liberties!
Thursday, June 26, 2008
Edwards’s 2-to-1 Budget Law
From Chris Edwards, the Director of Tax Policy Studies at the Cato Institute:
How should government officials decide on whether to fund big projects such as fighter aircraft, highways, bridges, and other types of infrastructure? First, they should check the Constitution to see whether they are legally allowed to spend on the object in consideration. Second, they should assume that the item will cost at least twice as much as initial estimates indicate.
There should be a 2-to-1 hurdle when the price tag of a project is being considered.
Government purchases of military hardware, highways, energy projects, space equipment, and other items often cost 50% or 100%, or more (see here and here), above what politicians originally promise.
Let’s be conservative and say that a 50% cost overrun is typical, such that we can expect a new $1 billion project to actually cost taxpayers $1.5 billion. But as economists often point out, paying for $1.5 billion in government spending will cost taxpayers much more than $1.5 billion because of the “deadweight losses” or inefficiency costs created by extracting taxes from the private sector with a complex and high-rate system.
How much more? Harvard’s Martin Feldstein thinks deadweight losses might be $1 for each added dollar of taxes. But let’s be conservative and say it’s only 50 cents on the dollar. So government projects impose deadweight losses of 50% on costs that are likely to balloon at least 50%.
The bottom line is that when America’s taxpayers hear that politicians want to spend, say, $10 billion on a new scheme, they should assume that they will face an ultimate financial hit of $22.5 billion. And that’s conservative!"
How should government officials decide on whether to fund big projects such as fighter aircraft, highways, bridges, and other types of infrastructure? First, they should check the Constitution to see whether they are legally allowed to spend on the object in consideration. Second, they should assume that the item will cost at least twice as much as initial estimates indicate.
There should be a 2-to-1 hurdle when the price tag of a project is being considered.
Government purchases of military hardware, highways, energy projects, space equipment, and other items often cost 50% or 100%, or more (see here and here), above what politicians originally promise.
Let’s be conservative and say that a 50% cost overrun is typical, such that we can expect a new $1 billion project to actually cost taxpayers $1.5 billion. But as economists often point out, paying for $1.5 billion in government spending will cost taxpayers much more than $1.5 billion because of the “deadweight losses” or inefficiency costs created by extracting taxes from the private sector with a complex and high-rate system.
How much more? Harvard’s Martin Feldstein thinks deadweight losses might be $1 for each added dollar of taxes. But let’s be conservative and say it’s only 50 cents on the dollar. So government projects impose deadweight losses of 50% on costs that are likely to balloon at least 50%.
The bottom line is that when America’s taxpayers hear that politicians want to spend, say, $10 billion on a new scheme, they should assume that they will face an ultimate financial hit of $22.5 billion. And that’s conservative!"
Catching Up ~ Abeit Briefly
UPDATE: Arizona Federation of Taxpayers also came out against the Mason Solar Tax Credit bill. Mason has decided to hold the bill at this point.
Forgive my lack of posts over the last two days. We are more than knee-deep in garbage here at the Capitol and instead of pressing forward to negotiate a responsible budget we are passing out bills that without question will result in increased taxes.
Two of these bills I am referring to are provisions that were in the now defunct job stimulus package: Lucy Mason's Solar Tax Credit and Pima County's Cactus League~Spring Training Bill. Unfortunately for the taxpayer, both of these bills passed out of committee despite objections from such groups as the Arizona Free Enterprise Club, the D.C. based Taxpayer Foundation, and the Arizona Restaurant Association. The Mason Solar-Energy Tax Credit received a thorough beating during our recent republican caucus so perhaps there is a ray of hope (get it?) that it will go down in flames.
As you have probably read by now, the Senate passed out their horrific budget proposal last night ( or rather, at 5:33 this morning) that includes $2 BILLION DOLLARS IN NEW BORROWING besides the fact that we are currently facing a $2.3 BILLION DOLLAR SHORTFALL! Ugh! Props to my good friend and seatmate, Senator Ron Gould for seriously doing all he could to protect the citizens of Arizona and prevent the Senate from successfully passing the budget. Senator Gould got almost no assistance from his fellow republicans...it is a shame that he has to take heat from his colleagues for taking seriously his oath of office.
Oh, surprise, surprise...house leadership just put the APPALLING Senate Budget Feed Bill (HB 2209) on the "Board of Truth" and the bill passed with the assistance of the following republicans:
Lucy Mason
Jennifer Burns
Michelle Reagan
Pete Hershberger
Without these REPUBLICANS ( though now perhaps, RINOS), the outrageous Senate Budget Feed Bill would not have passed and we would have then had the opportunity to negotiate a more fiscally responsible budget on behalf of the taxpayers.
FYI, I will list the travesties of the Senate Budget in a later post...must pay attention to the bills as they are voted. Can you believe that I am receiving emails from district 3 AEA members pleading me to vote in favor of this Senate budget? Increased gambling, increased photo radar, increased borrowing...and AEA members believe this is prudent?
Forgive my lack of posts over the last two days. We are more than knee-deep in garbage here at the Capitol and instead of pressing forward to negotiate a responsible budget we are passing out bills that without question will result in increased taxes.
Two of these bills I am referring to are provisions that were in the now defunct job stimulus package: Lucy Mason's Solar Tax Credit and Pima County's Cactus League~Spring Training Bill. Unfortunately for the taxpayer, both of these bills passed out of committee despite objections from such groups as the Arizona Free Enterprise Club, the D.C. based Taxpayer Foundation, and the Arizona Restaurant Association. The Mason Solar-Energy Tax Credit received a thorough beating during our recent republican caucus so perhaps there is a ray of hope (get it?) that it will go down in flames.
As you have probably read by now, the Senate passed out their horrific budget proposal last night ( or rather, at 5:33 this morning) that includes $2 BILLION DOLLARS IN NEW BORROWING besides the fact that we are currently facing a $2.3 BILLION DOLLAR SHORTFALL! Ugh! Props to my good friend and seatmate, Senator Ron Gould for seriously doing all he could to protect the citizens of Arizona and prevent the Senate from successfully passing the budget. Senator Gould got almost no assistance from his fellow republicans...it is a shame that he has to take heat from his colleagues for taking seriously his oath of office.
Oh, surprise, surprise...house leadership just put the APPALLING Senate Budget Feed Bill (HB 2209) on the "Board of Truth" and the bill passed with the assistance of the following republicans:
Lucy Mason
Jennifer Burns
Michelle Reagan
Pete Hershberger
Without these REPUBLICANS ( though now perhaps, RINOS), the outrageous Senate Budget Feed Bill would not have passed and we would have then had the opportunity to negotiate a more fiscally responsible budget on behalf of the taxpayers.
FYI, I will list the travesties of the Senate Budget in a later post...must pay attention to the bills as they are voted. Can you believe that I am receiving emails from district 3 AEA members pleading me to vote in favor of this Senate budget? Increased gambling, increased photo radar, increased borrowing...and AEA members believe this is prudent?
Tuesday, June 24, 2008
Jerry Weier's OHV Bill & the Perils of it's Passage
UPDATE: The Governor signed this bill into law on 6/27/08.
The Senate's passage of this Off-Highway Vehicle (ATV) bill is horrible news; now the bill goes straight to the Governor. I have voiced my opposition to this bill in the past and am inspired to do so again at this time after recievng an email praising the legislation from an otherwise well-informed constituent.
Though this bill has multiple provisions; the one mentioned most by the print media is a provision that creates a special designated fund to mark appropriate riding trails and allows a new licensing fee to be collected to fill the fund. I seriously doubt that the monies collected from the new licensing fee will ever be used for this purpose but intead will be stolen by members of the legislature and used to balance the budget. As you well know, in the past two budget cycles the legislature has robbed from almost every designated fund in existence and with the state of this economy, I do not see this practice coming to an end.
Another problem with this bill is the lack of definable terms. This bill will not only fine but also criminalize people who unknowingly damage desert landscape or impede riparian ways, without defining what “damage” means. (Impeding a riparian way is defined in other AZ statute as blocking it even 99 %.) Game and Fish officials admitted during committee testimony that they could not provide a definition of damage, but would know it when they see it. This is poorly drafted legislation…terms of abuse or damage should be defined. Without these definitions I fear that employees of government agencies will be instructed to pursue ticketing with giddy abandon in order to fulfill their empty coffers. Excuse my cynicism; it is a result of acknowledging the truth of the state of the government.
The intent of this bill is admirable; the execution of the bill is deplorable. I attempted to offer solutions to improve this bill including stripping all provisions with the exception of the new licensing fee. My thought was that at least Game and Fish could collect the monies for a time being until they had enough money to mark the trails. After this first step, then perhaps a fine for violations could be imposed. I strongly stand behind my judgment that this bill is bad for the citizens of Arizona and horrible for those in Mohave County…the intent of the measure I applaud but action on an issue is not enough. Something needs to be done to address the pillaging of our desert but this is not the answer.
The Senate's passage of this Off-Highway Vehicle (ATV) bill is horrible news; now the bill goes straight to the Governor. I have voiced my opposition to this bill in the past and am inspired to do so again at this time after recievng an email praising the legislation from an otherwise well-informed constituent.
Though this bill has multiple provisions; the one mentioned most by the print media is a provision that creates a special designated fund to mark appropriate riding trails and allows a new licensing fee to be collected to fill the fund. I seriously doubt that the monies collected from the new licensing fee will ever be used for this purpose but intead will be stolen by members of the legislature and used to balance the budget. As you well know, in the past two budget cycles the legislature has robbed from almost every designated fund in existence and with the state of this economy, I do not see this practice coming to an end.
Another problem with this bill is the lack of definable terms. This bill will not only fine but also criminalize people who unknowingly damage desert landscape or impede riparian ways, without defining what “damage” means. (Impeding a riparian way is defined in other AZ statute as blocking it even 99 %.) Game and Fish officials admitted during committee testimony that they could not provide a definition of damage, but would know it when they see it. This is poorly drafted legislation…terms of abuse or damage should be defined. Without these definitions I fear that employees of government agencies will be instructed to pursue ticketing with giddy abandon in order to fulfill their empty coffers. Excuse my cynicism; it is a result of acknowledging the truth of the state of the government.
The intent of this bill is admirable; the execution of the bill is deplorable. I attempted to offer solutions to improve this bill including stripping all provisions with the exception of the new licensing fee. My thought was that at least Game and Fish could collect the monies for a time being until they had enough money to mark the trails. After this first step, then perhaps a fine for violations could be imposed. I strongly stand behind my judgment that this bill is bad for the citizens of Arizona and horrible for those in Mohave County…the intent of the measure I applaud but action on an issue is not enough. Something needs to be done to address the pillaging of our desert but this is not the answer.
New Law: The Teenage Driver Safey Act
The Teenage Driver Safety Act, passed in May of 2007, will go into effect on July 1, 2008. With the enactment of the legislation, Arizona is joining 45 other states that have established intermediate programs for new teen drivers. Under the new law, new teen drivers for the first six months of receiving their drivers’ license will have restrictions on nighttime driving, limiting the amount of teen passengers in a car, and adding more hours of instructional driving before an unrestricted driver’s license can be obtained.
Here are its key points:
• Establishes graduated driver license, where licensed drivers, ages 16-17, do not have full driving privileges until six months after licensing.
• Increases supervised training requirement from 25 to 30 hours, of which 10 must be at night.
• Prohibits driving from midnight to 5 a.m. for the first six months, with exemptions for job, religious or school activities or family emergencies.
• Limits number of non-family teenage passengers to one during first six months.
• Establishes fines and extensions of restrictions for non-compliance.
For more details on this legislation and for a list of frequently asked questions, please visit the Arizona AAA website by following this link:
http://www.aaaaz.com/news/documents/TDSAFAQs.pdf
Here are its key points:
• Establishes graduated driver license, where licensed drivers, ages 16-17, do not have full driving privileges until six months after licensing.
• Increases supervised training requirement from 25 to 30 hours, of which 10 must be at night.
• Prohibits driving from midnight to 5 a.m. for the first six months, with exemptions for job, religious or school activities or family emergencies.
• Limits number of non-family teenage passengers to one during first six months.
• Establishes fines and extensions of restrictions for non-compliance.
For more details on this legislation and for a list of frequently asked questions, please visit the Arizona AAA website by following this link:
http://www.aaaaz.com/news/documents/TDSAFAQs.pdf
Theme Park Measure Could Take State for a Ride
UPDATE: This measure passed out of the Senate, despite being poor policy, and is now headed to the Governor.
By Byron Schlomach, Commentary
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 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 talk.
Byron Schlomach is director of the Goldwater Institute Center for Economic Prosperity
By Byron Schlomach, Commentary
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 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 talk.
Byron Schlomach is director of the Goldwater Institute Center for Economic Prosperity
Monday, June 23, 2008
JCCR Meeting Agenda for 6/25/08
JOINT COMMITTEE ON CAPITAL REVIEW
Wednesday, June 25, 2008
8:30 A.M.
House Hearing Room 4
MEETING NOTICE
Call to Order
Approval of Minutes of May 13, 2008.
DIRECTOR'S REPORT (if necessary).
1. ARIZONA DEPT. OF ADMINISTRATION - Review of Tucson Office Complex Renovation.
2. ARIZONA STATE UNIVERSITY - Review of Energy Services and Performance Contract.
3. NORTHERN ARIZONA UNIVERSITY
A. Review of Distance Learning and Arizona Universities Network Facility Bond Project.
B. Review of Recreation Field Expansion and Multipurpose Building.
The Chairman reserves the right to set the order of the agenda.
6/19/08
sls
People with disabilities may request accommodations such as interpreters, alternative formats, or assistance with physical accessibility. Requests for accommodations must be made with 72 hours prior notice. If you require accommodations, please contact the JLBC Office at (602) 926-5491.
Wednesday, June 25, 2008
8:30 A.M.
House Hearing Room 4
MEETING NOTICE
Call to Order
Approval of Minutes of May 13, 2008.
DIRECTOR'S REPORT (if necessary).
1. ARIZONA DEPT. OF ADMINISTRATION - Review of Tucson Office Complex Renovation.
2. ARIZONA STATE UNIVERSITY - Review of Energy Services and Performance Contract.
3. NORTHERN ARIZONA UNIVERSITY
A. Review of Distance Learning and Arizona Universities Network Facility Bond Project.
B. Review of Recreation Field Expansion and Multipurpose Building.
The Chairman reserves the right to set the order of the agenda.
6/19/08
sls
People with disabilities may request accommodations such as interpreters, alternative formats, or assistance with physical accessibility. Requests for accommodations must be made with 72 hours prior notice. If you require accommodations, please contact the JLBC Office at (602) 926-5491.
House Schedule & The Plan of Action
Tomorrow the House goes to the floor at 10:00 to third read one bill and to vote on one final passage. Click the title of the post for additional information.
Wednesday I have a JCCR committee meeting at 8:30 in the morning (I will post a link to the agenda ~ state university projects to be discussed) and then 9:30 we have an Appropriations Committee meeting. The agenda of the committee will be compiled of all budget-related bills. The bills will be discussed and voted on in committee. With their passage, the House Democrats and Republicans will separately caucus the bills. After the bills are caucused, the bills will be COW'd and third read. All of this is expected to happen on this Wednesday. Tune in to the action via Capitol TV or watch via the Internet.
As usual, I will answer any of your questions on the process or the budget proposal, just email me at tgroe@azleg.gov. I look forward to hearing from you!
Wednesday I have a JCCR committee meeting at 8:30 in the morning (I will post a link to the agenda ~ state university projects to be discussed) and then 9:30 we have an Appropriations Committee meeting. The agenda of the committee will be compiled of all budget-related bills. The bills will be discussed and voted on in committee. With their passage, the House Democrats and Republicans will separately caucus the bills. After the bills are caucused, the bills will be COW'd and third read. All of this is expected to happen on this Wednesday. Tune in to the action via Capitol TV or watch via the Internet.
As usual, I will answer any of your questions on the process or the budget proposal, just email me at tgroe@azleg.gov. I look forward to hearing from you!
Hold on to Your Wallet!
UPDATE: Alright, I've had a bit of ice cream to soothe my nerves and refocus my perspective. I thought I would take a moment to mention that I am thankful we have not only one budget proposal (the House) but two, as the Senate just announced their bipartisan budget plan. As much as I might detest both of these measures I just wanted to acknowledge that at least there is a plan. And that ladies and gentlemen, is what you call an attitude adjustment!
A budget solution that robs from cities, counties, almost every designated fund, and still consists of more debt (borrowing) without real reform, without trimming any of the government waste and without addressing the $2.2 BILLION DOLLAR SHORTFALL and then the news that Jerry Weiers stink'n OHV bill passed out of the Senate today...can the day get any worse? Oy vay! What next...the passage of the GOP Economic Stimulus package? Tell me it isn't so!
A budget solution that robs from cities, counties, almost every designated fund, and still consists of more debt (borrowing) without real reform, without trimming any of the government waste and without addressing the $2.2 BILLION DOLLAR SHORTFALL and then the news that Jerry Weiers stink'n OHV bill passed out of the Senate today...can the day get any worse? Oy vay! What next...the passage of the GOP Economic Stimulus package? Tell me it isn't so!
Sunday, June 22, 2008
AZ Free Enterprise Club Press Release
UPDATE: As of today, June 24th, it looks like this proposal is dead in its tracks! The commerce committee hearing scheduled to hear the bill has been cancelled! Glory be...there is still a bit of reason left among my colleagues.
Arizona Legislature Should Reject Stimulus Package
Christmas Tree of goodies will hurt, not help, Arizona economy
Phoenix, AZ – The Arizona Free Enterprise Club, a pro-economic growth advocacy group, today announced its opposition to an “economic stimulus” package that reportedly consists of subsidies for a downtown entertainment district, solar production, and research and development. The package also intends to grant Pima County the authority to hold an election seeking a sales tax increase on restaurants, hotels and rental cars to enhance Tucson-area spring training facilities. The package, the details of which have not been released, is being formulated by a handful of special interest groups and lobbyists.
“There is no way a package larded down with this much pork should ever get off the ground,” said Steve Voeller, president of the Club. “not only is this not economic stimulus, it’s not even decent public policy. Tax credits and exemptions are exactly like spending items. Proponents of this package want to pay people for these activities. Do they need to be reminded that the state faces a $2.2 billion budget deficit?”
The plan does not address the looming statewide property tax increase set to occur next year.
“The state faces a $250 million tax hike next year since the governor vetoed a bill to prevent it from occurring. The notion that you can bestow tax subsidies on a few developers and companies and think you’re going to turn around the economy, all while ignoring a massive tax hike on millions of Arizona taxpayers, is sadly absurd. You want to create jobs? Let’s start by not raising taxes.”
In addition to the veto of the property tax repeal, the governor and some business leaders are pushing for a 17.8 percent statewide sales tax rate increase for roads, trains, light rail, open space, non-profit groups, and other endeavors.
“The policies coming out of the state legislature should scare everybody concerned about the status of the state’s economy.”
Arizona Legislature Should Reject Stimulus Package
Christmas Tree of goodies will hurt, not help, Arizona economy
Phoenix, AZ – The Arizona Free Enterprise Club, a pro-economic growth advocacy group, today announced its opposition to an “economic stimulus” package that reportedly consists of subsidies for a downtown entertainment district, solar production, and research and development. The package also intends to grant Pima County the authority to hold an election seeking a sales tax increase on restaurants, hotels and rental cars to enhance Tucson-area spring training facilities. The package, the details of which have not been released, is being formulated by a handful of special interest groups and lobbyists.
“There is no way a package larded down with this much pork should ever get off the ground,” said Steve Voeller, president of the Club. “not only is this not economic stimulus, it’s not even decent public policy. Tax credits and exemptions are exactly like spending items. Proponents of this package want to pay people for these activities. Do they need to be reminded that the state faces a $2.2 billion budget deficit?”
The plan does not address the looming statewide property tax increase set to occur next year.
“The state faces a $250 million tax hike next year since the governor vetoed a bill to prevent it from occurring. The notion that you can bestow tax subsidies on a few developers and companies and think you’re going to turn around the economy, all while ignoring a massive tax hike on millions of Arizona taxpayers, is sadly absurd. You want to create jobs? Let’s start by not raising taxes.”
In addition to the veto of the property tax repeal, the governor and some business leaders are pushing for a 17.8 percent statewide sales tax rate increase for roads, trains, light rail, open space, non-profit groups, and other endeavors.
“The policies coming out of the state legislature should scare everybody concerned about the status of the state’s economy.”
Legislature Approves Major CPS Reforms
(State Capitol, Phoenix) – Spurred by the tragic and unnecessary deaths of three Tucson children, Reps. Jonathan Paton and Kirk Adams set out to reform Child Protective Services.
Their efforts culminated in the passage of four bills Thursday. HB2453, HB2454, HB2455 and HB2159 are all on their way to the governor for her signature.
Most significant of the package, HB2454 opens the CPS records of those children who are killed or seriously injured. Currently, the public must sue CPS to obtain the records, a costly and sometimes prohibitive process.
Another important reform affects all state employees. HB2159 opens all disciplinary records of state employees. This reform came about because some CPS workers who had been disciplined escaped public scrutiny because the records were not available.
HB2453 opens some court proceedings to add another layer of accountability.
“These reforms are meant to do one thing: Protect children,” Paton, R-Tucson, said. “Only by shining the light on CPS can we hope to prevent further deaths.”
“The action, and sometimes the inaction, of CPS raised a lot of concerns and the agency only made changes after their failures came to light,” Adams said. “It clearly shows the more people know about CPS the safer our children will be.”
The reforms came about after the deaths of three children in the Tucson area even after contact with CPS. The bills are supported by open government advocates, the media and child advocacy groups.
Their efforts culminated in the passage of four bills Thursday. HB2453, HB2454, HB2455 and HB2159 are all on their way to the governor for her signature.
Most significant of the package, HB2454 opens the CPS records of those children who are killed or seriously injured. Currently, the public must sue CPS to obtain the records, a costly and sometimes prohibitive process.
Another important reform affects all state employees. HB2159 opens all disciplinary records of state employees. This reform came about because some CPS workers who had been disciplined escaped public scrutiny because the records were not available.
HB2453 opens some court proceedings to add another layer of accountability.
“These reforms are meant to do one thing: Protect children,” Paton, R-Tucson, said. “Only by shining the light on CPS can we hope to prevent further deaths.”
“The action, and sometimes the inaction, of CPS raised a lot of concerns and the agency only made changes after their failures came to light,” Adams said. “It clearly shows the more people know about CPS the safer our children will be.”
The reforms came about after the deaths of three children in the Tucson area even after contact with CPS. The bills are supported by open government advocates, the media and child advocacy groups.
Big Boondoggle Bill of 2008
The latest attempt to garner good press at the expense of good public policy, otherwise known as the Big Boondoggle Bill of 2008 is now posted on the AZLEG website in the form of an 81-page amendment to Senate Bill 1433. If you do not have the fortitude to read the entire amendment, I will touch on the 4 main ideas:
Solar Tax Credits - This would offer incentives for qualifying new businesses that manufacture solar energy components in Arizona.
Research and Development Tax Credits - This would enhance current corporate and income tax credits for new research and development projects.
Cactus League Baseball - This would allow Pima County voters to approve targeted taxes, proposed by a private Tucson-area group, to pay for improvements to new and existing Cactus League ballpark facilities, and is targeted at keeping teams in their southern Arizona location.
Urban Redevelopment Project - This would establish new entertainment districts, targeted at urban downtown areas.
Though these proposals may sound innocuous, the devil is in the details. The list of organizations opposed to this measure is growing and now includes:
Arizona Federation of Taxpayers
The Arizona Free Enterprise Club
Arizona Restaurant Association
New Law ~ SB 1238: Outdoor fires;Counties
The Governor recently signed the late Senator Jake Flake's bill to assist in the prevention of damaging and dangerous wildfires.
SB 1238 is an measure that expands the authority of counties to adopt and enforce ordinances prohibiting open fires and campfires in designated unincorporated areas when a determination of emergency is issued by the county emergency management officer and the Board of Supervisors deem it necessary to protect public health and safety on those lands.
SB 1238 is an measure that expands the authority of counties to adopt and enforce ordinances prohibiting open fires and campfires in designated unincorporated areas when a determination of emergency is issued by the county emergency management officer and the Board of Supervisors deem it necessary to protect public health and safety on those lands.
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