Friends,
Just a reminder that I am in Kingman for the day today and am available to meet with you if you have a moment. I will be "manning" the new Kingman Republican Headquarters this morning from 9:00 am til noon. Call or stop by; I would love to see you!
Thursday, July 10, 2008
Tuesday, July 8, 2008
A List of Arizona Ballot Measures
Check out this list from the Secretary of State's office that provides information regarding what measures may be on the ballot this November. BTW, you will note the fine print on the web page reminds us that July 11, 2008 is the last day to submit an argument for or against a proposal.
A True & Honorable Solider
The monthly Kingman Republican Women's Club meeting took place yesterday and I was one of the featured speakers though the highlight of the meeting was my introduction to a local hero, Major Josef Hatch, recent recipient of the Purple Heart.
I had the opportunity to speak with Major Hatch after the meeting and he shared with me that though he has several years of service ahead of him, he plans to return to our community and serve our citizens in a different way ~ by running for public office!
For more information on Major Josef Hatch, click on the title of this post to read a recent article in the Kingman Daily Miner.
Major Hatch, our hats off to you for your courage, dedication to the freedoms ton which this country was founded, and your unending sacrifice of self! May God provide strength and comfort to you and those you love!
Monday, July 7, 2008
A Must Read Piece by Tom Jenney:
More than ever, AZ government needs a spending limit!
By Tom Jenney
The Legislature and Governor have passed a budget for Fiscal Year 2009, but Arizona’s budget crisis is far from over. Thanks to heavy borrowing, fund transfers, and accounting gimmicks, the state government in January will have a total deficit of over $1.5 billion.
The obvious question is, What Next?
The answer depends on your political orientation. Big Spenders, Muddled Middlers, and Fiscal Conservatives* see the FY 2009 budget in very different ways, and will come to very different conclusions about what to do next.
For the Big Spenders in both parties, who wish to expand the size and influence of government, the FY 2009 budget is a major victory. It actually increases spending commitments by over $700 million–during a recession, and in a supposedly conservative state. State government spending now takes up 7.01 percent of the state’s economy—the biggest portion since 1980—and is set to get even bigger.
For Big Spenders, the recipe for the future calls for more of the same: use every expedient to keep spending high, while blaming the deficit on the 2006 tax cuts and suggesting that Arizona’s tax system is “broken.” The Big Spenders are pushing the state toward a constitutional crisis in which the Arizona Supreme Court must choose between Prop 108, the rule that mandates a two-thirds legislative majority for tax increases, and Props 301 and 204, which mandate large automatic spending increases for government schools and government-subsidized health care. With Prop 108 safely out of the way, the Big Spenders will raise taxes and increase per-capita government spending to the economy-strangling levels of California, Michigan, or New Jersey.
For members of the Muddled Middle, the FY 2009 budget process was very difficult. Middlers wanted to shield families and businesses from tax increases, but they also wanted to increase government “services,” in an attempt to satisfy constituents and spending interests. In response to the budget crisis, the Middlers will listen earnestly to those who say our tax system is broken, and to lobbyists peddling “stimulus” and “job creation” plans, searching for a nonexistent free lunch that combines low taxes with high spending.
More productively, the Middlers may focus on the problem of voter-mandated spending increases. Middlers probably do not have the stomach to send 301 and 204 back to the voters for revision, but they may support a reform such as the Majority Rules ballot initiative, which would make it more difficult for spending interests to enact new voter-approved spending mandates.
For Fiscal Conservatives, the FY 2009 budget is the worst state budget in memory, and comes on the heels of four very bad budgets (FY 2005-2008), in which spending increases greatly outpaced the growth rate of the state’s private economy. Fiscal Conservatives understand that the FY 2009 budget will continue to push government spending to unsustainably high levels, paving the way for future budget crises, the end of Prop 108, and massive tax increases.
Looking forward, Fiscal Conservatives recognize that the Big Spenders and Muddled Middlers who currently dominate state government are not likely to limit their spending voluntarily. Since 2003, Fiscal Conservatives have issued repeated warnings that state spending was growing at unsustainable rates. Their warnings were deliberately ignored by the Big Spenders, and unheeded by the Middlers.
Fiscal Conservatives also put forth several proposals to implement spending limits, including one called the Taxpayer Bill of Rights (TABOR), which would have limited state spending to the rate of growth of Arizona’s population, plus inflation. [See Graph] If TABOR had been adopted in 2004, after the state’s last major budget crisis, Arizona would have had a small surplus for FY 2009, instead of a $2.2 billion deficit. The government also would have refunded over $4.5 billion to taxpayers—a boon to the state economy. TABOR and other spending limit proposals went nowhere during the last five years. But spending limit ideas are not dead. For Fiscal Conservatives, who wish to restrain spending, avoid budget crises, stop massive tax increases, and preserve economic prosperity, a strong spending limit is the only way forward.
Tom Jenney is Arizona Director for Americans for Prosperity (www.aztaxpayers.org).
*Brought to your attention by your humble fiscal conservative, RepGroe
By Tom Jenney
The Legislature and Governor have passed a budget for Fiscal Year 2009, but Arizona’s budget crisis is far from over. Thanks to heavy borrowing, fund transfers, and accounting gimmicks, the state government in January will have a total deficit of over $1.5 billion.
The obvious question is, What Next?
The answer depends on your political orientation. Big Spenders, Muddled Middlers, and Fiscal Conservatives* see the FY 2009 budget in very different ways, and will come to very different conclusions about what to do next.
For the Big Spenders in both parties, who wish to expand the size and influence of government, the FY 2009 budget is a major victory. It actually increases spending commitments by over $700 million–during a recession, and in a supposedly conservative state. State government spending now takes up 7.01 percent of the state’s economy—the biggest portion since 1980—and is set to get even bigger.
For Big Spenders, the recipe for the future calls for more of the same: use every expedient to keep spending high, while blaming the deficit on the 2006 tax cuts and suggesting that Arizona’s tax system is “broken.” The Big Spenders are pushing the state toward a constitutional crisis in which the Arizona Supreme Court must choose between Prop 108, the rule that mandates a two-thirds legislative majority for tax increases, and Props 301 and 204, which mandate large automatic spending increases for government schools and government-subsidized health care. With Prop 108 safely out of the way, the Big Spenders will raise taxes and increase per-capita government spending to the economy-strangling levels of California, Michigan, or New Jersey.
For members of the Muddled Middle, the FY 2009 budget process was very difficult. Middlers wanted to shield families and businesses from tax increases, but they also wanted to increase government “services,” in an attempt to satisfy constituents and spending interests. In response to the budget crisis, the Middlers will listen earnestly to those who say our tax system is broken, and to lobbyists peddling “stimulus” and “job creation” plans, searching for a nonexistent free lunch that combines low taxes with high spending.
More productively, the Middlers may focus on the problem of voter-mandated spending increases. Middlers probably do not have the stomach to send 301 and 204 back to the voters for revision, but they may support a reform such as the Majority Rules ballot initiative, which would make it more difficult for spending interests to enact new voter-approved spending mandates.
For Fiscal Conservatives, the FY 2009 budget is the worst state budget in memory, and comes on the heels of four very bad budgets (FY 2005-2008), in which spending increases greatly outpaced the growth rate of the state’s private economy. Fiscal Conservatives understand that the FY 2009 budget will continue to push government spending to unsustainably high levels, paving the way for future budget crises, the end of Prop 108, and massive tax increases.
Looking forward, Fiscal Conservatives recognize that the Big Spenders and Muddled Middlers who currently dominate state government are not likely to limit their spending voluntarily. Since 2003, Fiscal Conservatives have issued repeated warnings that state spending was growing at unsustainable rates. Their warnings were deliberately ignored by the Big Spenders, and unheeded by the Middlers.
Fiscal Conservatives also put forth several proposals to implement spending limits, including one called the Taxpayer Bill of Rights (TABOR), which would have limited state spending to the rate of growth of Arizona’s population, plus inflation. [See Graph] If TABOR had been adopted in 2004, after the state’s last major budget crisis, Arizona would have had a small surplus for FY 2009, instead of a $2.2 billion deficit. The government also would have refunded over $4.5 billion to taxpayers—a boon to the state economy. TABOR and other spending limit proposals went nowhere during the last five years. But spending limit ideas are not dead. For Fiscal Conservatives, who wish to restrain spending, avoid budget crises, stop massive tax increases, and preserve economic prosperity, a strong spending limit is the only way forward.
Tom Jenney is Arizona Director for Americans for Prosperity (www.aztaxpayers.org).
*Brought to your attention by your humble fiscal conservative, RepGroe
Saturday, July 5, 2008
More Mischief in the Desert
Move afoot to revive spring training bill
Make sure you read the comments...most folks are against this tax increase that would build a new stadium and agree that private entities like the ball club itself, should finance this endeavor.
Make sure you read the comments...most folks are against this tax increase that would build a new stadium and agree that private entities like the ball club itself, should finance this endeavor.
Thursday, July 3, 2008
Downtime...with a Side of Links
I made it into town last Saturday evening and promised myself (and my family) that I would take a week to relax before jumping full speed into campaign mode. I am thankful for this down time and relishing having the grandkids in town!
Please excuse the lighthearted posts but my heart just sings having the two boys around. Besides boating on Lake Havasu, we have been swimming in the pool, making cupcakes, playing Wii bowling, watching Veggie Tales, and countless other fun activities. I have roasted two herb and garlic-rubbed pork loins, slow-cooked two tri-tips for BBQ sandwiches, grilled chicken for my famous chicken pasta salad, and tried a new recipe for Brown-Sugar Bacon that I saw Billy Joel's wife make this on the Food Network last week. Yummmmm...
For those of you who need some meat and potatoes to accompany this family fluff I gladly provide the following Arizona-related links:
That's it for now...there is a messy kitchen and a couple of hungry kids calling my name!
Tuesday, July 1, 2008
Radio Interview on Wednesday
I am on KNTR radio tomorrow (Wednesday, July 2) between noon and 1:00 pm with new SpeakOut radio host Paul LaVoie. This will be my first in- studio interview with Mr. LaVoie so tune in to hear us get to know each other as I answer some of his questions about the end of session wrap. Turn the dial to 980 AM or 97.1 FM or listen to the show via the Internet at http://www.kntram.com/. Call in; I look forward to hearing from you!
Monday, June 30, 2008
2008 Session Worst In Memory
Americans For Prosperity
FOR IMMEDIATE RELEASE
June 30, 2008
AFP AZ calls '08 Session “worst in memory”
PHOENIX—The Arizona chapter of Americans for Prosperity (AFP Arizona) said today that the Legislative Session that ended Friday was the “worst in memory” for fiscal conservatives.
"This is a $10.9 billion budget masquerading as a $9.9 billion budget," said AFP Arizona director Tom Jenney. "And it comes at a time when general fund revenues are about $9.1 billion." Because the budget uses debt and accounting gimmicks to push spending commitments off the books, the Legislature and Governor in January will face a cash deficit carry-forward of over a billion dollars, something Jenney said is unconstitutional. Combined with the impact of automatic voter-mandated spending increases, the deficit in January could be more than $1.5 billion.
"This Legislative Session was a near-total disaster for fiscal conservatives," said AFP Arizona chairman Chad Kirkpatrick, citing the failure to pass measures that would permanently repeal the state equalization property tax rate. That failure leaves open the possibility that Arizona politicians will attempt to impose a $250 million property tax increase on homeowners and businesses next year.
AFP Arizona also condemned other measures adopted last week by the Governor and majorities of legislators, including a scheme to finance a billion dollars in new debt for university capital projects by expanding the Arizona lottery, and a scheme to grant the special privileges of issuing tax-free bonds and levying taxes to the developer of a rock and roll theme park in Eloy.
The group did cite several small victories, such as blocking the passage of special tax breaks for solar companies and for an entertainment district in downtown Phoenix, and preventing the creation of a new taxing district for baseball stadiums in Pima County. Also, fiscal conservatives in the Legislature prevented the referral of a transportation sales tax to the November ballot, forcing the TIME Coalition to raise private funds for its ballot initiative.
Here is the Senate vote on the main FY2009 Budget bill (a “Y” indicates a vote in favor of massive debt spending and accounting gimmicks):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2209.sthird.1.asp
Here is the House vote on the main FY2009 Budget bill (a “Y” indicates a vote in favor of massive debt spending and accounting gimmicks):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2209.hfinal.1.asp
Here is the House vote on HCR2072 (a “Y” indicates a vote in favor of permanent repeal of the state equalization property tax):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hcr2072.hthird.1.asp
Here is the Senate vote on HB2220 (a “Y” indicates a vote in favor of permanent repeal of the state equalization property tax):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2220.sthird.1.asp
Here is the Senate vote on SB1450 (a “Y” indicates a vote in favor of granting special taxing and bonding privileges to the Eloy theme park):
http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/48leg/2r/bills/sb1450.sfinal.1.asp
Here is the House vote on SB1450 (a “Y” indicates a vote in favor of granting special taxing and bonding privileges to the Eloy theme park):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/sb1450.hthird.1.asp
Here is the House vote on SB1084 (a “Y” indicates a vote in favor of giving taxing authority to baseball stadiums in Pima County):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/sb1084.hthird.1.asp
Contact: Tom Jenney, Arizona state director, Americans for Prosperity
tjenney@afphq.org (602) 478-0146
FOR IMMEDIATE RELEASE
June 30, 2008
AFP AZ calls '08 Session “worst in memory”
PHOENIX—The Arizona chapter of Americans for Prosperity (AFP Arizona) said today that the Legislative Session that ended Friday was the “worst in memory” for fiscal conservatives.
"This is a $10.9 billion budget masquerading as a $9.9 billion budget," said AFP Arizona director Tom Jenney. "And it comes at a time when general fund revenues are about $9.1 billion." Because the budget uses debt and accounting gimmicks to push spending commitments off the books, the Legislature and Governor in January will face a cash deficit carry-forward of over a billion dollars, something Jenney said is unconstitutional. Combined with the impact of automatic voter-mandated spending increases, the deficit in January could be more than $1.5 billion.
"This Legislative Session was a near-total disaster for fiscal conservatives," said AFP Arizona chairman Chad Kirkpatrick, citing the failure to pass measures that would permanently repeal the state equalization property tax rate. That failure leaves open the possibility that Arizona politicians will attempt to impose a $250 million property tax increase on homeowners and businesses next year.
AFP Arizona also condemned other measures adopted last week by the Governor and majorities of legislators, including a scheme to finance a billion dollars in new debt for university capital projects by expanding the Arizona lottery, and a scheme to grant the special privileges of issuing tax-free bonds and levying taxes to the developer of a rock and roll theme park in Eloy.
The group did cite several small victories, such as blocking the passage of special tax breaks for solar companies and for an entertainment district in downtown Phoenix, and preventing the creation of a new taxing district for baseball stadiums in Pima County. Also, fiscal conservatives in the Legislature prevented the referral of a transportation sales tax to the November ballot, forcing the TIME Coalition to raise private funds for its ballot initiative.
Here is the Senate vote on the main FY2009 Budget bill (a “Y” indicates a vote in favor of massive debt spending and accounting gimmicks):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2209.sthird.1.asp
Here is the House vote on the main FY2009 Budget bill (a “Y” indicates a vote in favor of massive debt spending and accounting gimmicks):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2209.hfinal.1.asp
Here is the House vote on HCR2072 (a “Y” indicates a vote in favor of permanent repeal of the state equalization property tax):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hcr2072.hthird.1.asp
Here is the Senate vote on HB2220 (a “Y” indicates a vote in favor of permanent repeal of the state equalization property tax):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2220.sthird.1.asp
Here is the Senate vote on SB1450 (a “Y” indicates a vote in favor of granting special taxing and bonding privileges to the Eloy theme park):
http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/48leg/2r/bills/sb1450.sfinal.1.asp
Here is the House vote on SB1450 (a “Y” indicates a vote in favor of granting special taxing and bonding privileges to the Eloy theme park):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/sb1450.hthird.1.asp
Here is the House vote on SB1084 (a “Y” indicates a vote in favor of giving taxing authority to baseball stadiums in Pima County):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/sb1084.hthird.1.asp
Contact: Tom Jenney, Arizona state director, Americans for Prosperity
tjenney@afphq.org (602) 478-0146
Groe Photo Shoot
More painful than a trip to the dentist was this photo shoot last Friday. I needed new pictures for my campaign material so Friday morning I scheduled this "dance with the devil". Since it was around 9:00 am, the temperature was only 99 degrees as opposed to the usual 114-117 degrees felt in Phoenix last week! Feel free to leave a comment below each photo, weighing in on which photos should make the cut...and which definitely should not.Blessings,
Trish
Sunday, June 29, 2008
Groe Campaign Events for July
The upcoming month of July is going to be a fun-filled month of campaign events that offer plenty of opportunity to meet with me face to face and ask me all of those burning questions that are at the tip of your tongue. Please check out my google calendar to the right of this post!
Moschcau Meet & Greet
I rushed home from Phoenix yesterday in order to attend a meet & greet held by my great friends Lenny & Nancy Moschcau at their beautiful Valle Vista home. What a wonderful way to put the ugliness of this past legislative session behind me while celebrating the beginning of my time back home!
At the Moschcau's I met folks who share my deep sense of patriotism for all of the principles on which this country was founded. We talked about new laws passed this session that effect your CCW permit, where you can ride your ATV, the ELL lawsuit, and new illegal immigration policy.
I also had the opportunity to answer questions about the reality of my DUI experience versus what was reported in the paper. The subject of my DUI and the conversations about this experience continue to be a blessing. Not only can I bring to light the truth of what happened as opposed to what was reported in our local papers but I can share my ongoing experience of hope and faith since my sobriety. I spoke with a gentleman yesterday who told Frank he would not have thrown me a rope if I was drowning...his opinion of me framed by what he read in the local rag. After we sat and spoke for a couple hours, he is now willing to assist me with my re-election campaign! Praise God! What a awesome Heavenly Father we have!
**If you would like to help me in my fight against unnecessary government regulation, if you would like to send me, a staunch conservative Republican back to Phoenix, please consider hosting one of these meet and greets at your home or place of business. I value the opportunity to meet you along with three or four of your neighbors, family members or friends. If you yourself would like to grab a cup of coffee and pick my brain, I am up for that too! Think about it and give me a call!
I also had the opportunity to answer questions about the reality of my DUI experience versus what was reported in the paper. The subject of my DUI and the conversations about this experience continue to be a blessing. Not only can I bring to light the truth of what happened as opposed to what was reported in our local papers but I can share my ongoing experience of hope and faith since my sobriety. I spoke with a gentleman yesterday who told Frank he would not have thrown me a rope if I was drowning...his opinion of me framed by what he read in the local rag. After we sat and spoke for a couple hours, he is now willing to assist me with my re-election campaign! Praise God! What a awesome Heavenly Father we have!
**If you would like to help me in my fight against unnecessary government regulation, if you would like to send me, a staunch conservative Republican back to Phoenix, please consider hosting one of these meet and greets at your home or place of business. I value the opportunity to meet you along with three or four of your neighbors, family members or friends. If you yourself would like to grab a cup of coffee and pick my brain, I am up for that too! Think about it and give me a call!
Saturday, June 28, 2008
A New Day
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.
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.
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.
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