Economic Development Archives - ��ϳԹ��

Arizona and Texas business leaders say U.S. House team of McCarthy and Scalise looking out for job creators

Robert Clarke — Thu, 09 Mar 2023 17:59:06 +0000

Speaker of the House Kevin McCarthy and Ariz. Rep. Debbie Lesko visit with members of the Arizona ��ϳԹ�� and Texas Assoc. of Business.

House Speaker Kevin McCarthy, R-Calif., and Majority Leader Steve Scalise, R-La., heard from Texas and Arizona business community leaders recently about the threat to economic growth posed by government overreach and regulation.

A joint delegation of the Texas Association of Business and the Arizona ��ϳԹ�� of Commerce & Industry met with the two pro-business congressional leaders in Washington last week, discussing issues like overly stringent EPA rules, how the federal government stymies the development of new energy sources, and the debt ceiling.

“The American business community is incredibly fortunate that Kevin McCarthy and Steve Scalise are leading the House,” TAB President and CEO Glenn Hamer said. “Job creators couldn’t ask for two better leaders to promote a free-market agenda that supports innovation, competition, and growth.”

Arizona ��ϳԹ�� President and CEO Danny Seiden said the two congressional leaders have a firm grasp on how an overreaching federal government can negatively affect economic development, citing the example of onerous EPA air quality regulations that could thwart the ability of manufacturers to expand in Arizona.

“Overly aggressive EPA regulations put our states’ ability attract and grow jobs at serious risk,” Seiden said. “Speaker McCarthy and Leader Scalise know that states like Arizona and Texas are driving this economy, thanks in large part to the work we’ve done to create pro-business regulatory environments that have made it easier and more attractive for manufacturers and job creators to grow and thrive. Issuing stricter standards would hurt the economy and potentially discourage future investments, including in the types of clean energy projects needed to address climate change. We appreciated the opportunity to visit with two leaders who clearly understand that meddlesome federal bureaucracy can snuff out jobs.”

Hamer said the meeting with McCarthy and Scalise was a perfect complement to TAB meetings with several members of the Texas delegation, including Rep. Roger Williams, Rep. Michael McCaul, and Rep. Kay Granger, who chair the House Small Business, Foreign Affairs, and Appropriations committees, respectively.

“Four members of the Texas congressional delegation chair committees, which is great news for the Texas business community,” Hamer said. “The Texas delegation is working hard to pursue policies that drive economic growth. Texas members of Congress are working shoulder-to-shoulder with Speaker McCarthy and Leader Scalise to put the brakes on an administration that too often would tie up our job creators in red tape.”

Hamer and Seiden said the two groups stressed in the dozens of meetings they had on Capitol Hill what Texas and Arizona are doing to attract jobs, including from the semiconductor industry. Hamer and Seiden said the implementation of the CHIPS and Science Act, which is designed to spur domestic semiconductor production, is poised to be a shot of adrenaline for their state and national economies.

“Our two states are already winning huge investments in the semiconductor space. If I had to bet on two states whose future in semiconductor manufacturing is the brightest, I’d bet on Texas and Arizona,” Hamer said.

Seiden agreed, saying the feedback he’s gotten from chipmakers has been very positive.

“Speaker McCarthy and Leader Scalise are well aware of what states like Arizona and Texas are doing to attract advanced manufacturers with good-paying jobs,” he said. “We look forward to working with them to help advance these sorts of policies at a national level to grow jobs and strengthen our country’s international competitiveness.”

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Opinion: Super Bowl, other big sports events generate massive revenue

Joe Pitts — Thu, 16 Feb 2023 19:35:35 +0000

This column originally appeared in .

With another successful Super Bowl in the books, Arizona says goodbye to the hundreds of thousands of visitors who flocked to the Valley this past week, and hello to the hundreds of millions of dollars in revenue that will benefit our state economy for years to come.

Super Bowl LVII marks the fourth time Arizona has hosted the big game, and it’s easy to see why we’d be an obvious choice. What better place to spend a few days in February than a state that welcomes out-of-towners with sunny skies and temperatures in the mid-70s? That it happens to coincide with the “Greatest Show on Grass” certainly doesn’t hurt.

These are the kinds of events other states clamor for. They provide an unmatched opportunity to showcase Arizona to the world. They generate massive revenue that not only benefits our sales tax base, but also the bottom line for our hoteliers, restaurateurs, retailers and attractions.

Economists estimate that in 2015 the Super Bowl resulted in a nearly $720 million windfall for our state, and Super Bowl LVII is expected to bring a similarly massive boost to the state economy.

It’s all part of Arizona’s sports tourism sector, which is responsible for a $24.2 billion contribution to the state’s Real Gross Domestic Product, according to new from the Common Sense Institute Arizona. The study finds that nearly 350,000 Arizona jobs are directly or indirectly related to the sports and tourism sector.

But those numbers don’t even tell the full story. They don’t account, for example, for the long-term and significant business investments that these opportunities create. Because in addition to attracting hundreds of thousands of football fans and tourists to Arizona, the Super Bowl also brings to town the top executives from all over the country – and gives us a platform to show off the pro-growth policies and talented workforce that have made Arizona among the best places in the nation to do business.

Arizona recognizes the power of the Super Bowl in driving economic activity and business investment, and in 2022 the state created a Major Events Fund to attract and support large-scale events in Arizona. Housed under the Arizona Commerce Authority, the Fund not only helps cover the costs of hosting these events, but also can be used for providing grants to local organizing committee partners and paying for associated economic development activities.

As established under the Fiscal 2023 budget, the state provides $7.5 million annually to the Fund. This year, that appropriation is in doubt, as the funding was removed as part of the governor’s proposed Fiscal Year 2024 executive budget.

Maintaining the Major Events Fund will become increasingly important as hosting the game becomes increasingly expensive. According to , Arizona had to pledge between $12 million and $13 million to score the Super Bowl in 2008; by 2015, the price tag rose to about $28 million.

Not only is hosting the Super Bowl becoming more expensive, it’s becoming more competitive every year. We’re competing with other states that have similar funds and more cities with gleaming new facilities, including next year’s host Las Vegas, are vying to enter the competition to host a Super Bowl. Keeping our event fund in-tact and as robust as intended in the FY 2023 budget will ensure Arizona continues to have a leg-up in attracting mega events and conventions that might otherwise be held elsewhere.

We know lawmakers have a lot of decisions to make when it comes to negotiating Arizona’s state budget, and we recognize the need to prioritize wisely and invest in what’s going to be best for our economic future. If that’s their commitment, then keeping our Major Events program funded should be a priority.

We all want to see Arizona continue to be a top-tier destination for the Super Bowl and other mega-events, like the NCAA Men’s Basketball Final Four, which Glendale will host in 2024. We look forward to working with the state Legislature and Gov. Katie Hobbs to ensure this $7.5 million commitment is reflected in the FY 2024 budget. It’s a small price to pay for the outsized and long-lasting impact it will have on Arizona’s economy.

Danny Seiden is the president and CEO of the Arizona ��ϳԹ�� of Commerce & Industry.

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Future of Maricopa County transportation uncertain as sales tax nears end

Craig Ruiz — Wed, 15 Feb 2023 17:25:54 +0000

Elected officials and business leaders are sounding the alarm on the nearing end of a voter-approved sales tax that funds important transportation projects in Maricopa County.

The half-cent sales tax approved by Maricopa County voters under Proposition 400 in November 2004 expires in 2025. The transportation sales tax was by voters in 1985.

During a roundtable last month with mayors, business leaders, and officials from across the Valley, Sen. Kyrsten Sinema, I-Ariz., highlighted the importance of Proposition 400 in supporting economic growth in the state. She encouraged community leaders to inform lawmakers of what Proposition 400 will mean “in dollars and cents to their constituents.”

Also present was Avondale Mayor and Chairman of the Maricopa Association of Governments (MAG) Kenn Weise, who stressed the urgency of securing approval from the state Legislature to send the question to Maricopa County voters.

“We are going to be at a critical juncture here in the next six months to a year because it expires at the end of 2025 and transportation in the Valley will come to a halt,” Weise said.

Maricopa County is the only Arizona county that requires legislative and gubernatorial approval before a transportation excise tax question can appear on a countywide ballot.

Since it was established, Proposition 400 funds have been used to fund some of the most significant transportation projects in the Phoenix metropolitan area, such as Loop 101, Loop 202, Loop 303, and light rail investments. Maricopa County leaders that these investments were essential in supporting the economy and enhancing property values, which increased 150% from 2000 to 2019.

In June of last year, the MAG regional council an extension for another 25 years that would include funding for 350 miles of new freeway lanes, 1,300 miles of new arterial road lanes, 12 miles of new light rail, 37 miles of bus rapid transit, and investments in bicycle lanes, air quality, and road safety. The measure was approved by the state Legislature and, with the governor’s signature, was set to appear before voters in a March 2023 special election.

However, Gov. Doug Ducey on July 6 the bill, surprising many county officials and business leaders who were expecting it to be ratified.

Since then, Maricopa County leaders to promote the extension this year to lawmakers before the proposition expires.

“We need to act, and we need to act now. Quality of life is at risk without an extension to Prop. 400,” said John Bullen, the transportation, economic, and finance program manager at MAG.
At a recent meeting in Mesa, Gov. Katie Hobbs her willingness to work with Maricopa County in extending Prop 400. “I can assure everyone in this room that you have a partner in my office to make sure that we are doing it again and getting it across the finish line,” Hobbs said.

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New report: Sports and tourism sector brings $24.1 billion to Arizona economy

Nick Guptil — Mon, 13 Feb 2023 18:13:51 +0000

A new from the Common Sense Institute (CSI) found that $24.1 billion and hundreds of thousands of jobs have been generated by Arizona’s growing sports and tourism sector.

According to the report, the sports and tourism sector employs 11% of Arizona’s total workforce and accounts for over 6% of the state’s total gross domestic product.

The state now boasts professional teams in each of the U.S.’s top four sports leagues, over 30 state parks, and a staggering 24 national parks, including the Grand Canyon. According to CSI, Arizona’s moderate climate and numerous attractions places the state in a prime position to attract year-round tourism for major sports events such as the Super Bowl and the WM Phoenix Open, along with outdoor activities like golfing and hiking.

Of the $24.2 billion contributed by sports and tourism, $13.7 billion was generated through “Direct sales by Arizona’s hotels, casinos, performance venues, and other components of the state’s sports & tourism sector in 2022.” One hundred sixty-seven thousand workers are currently employed directly by businesses in the sports and tourism sector with nearly another 200,000 jobs indirectly supported.

According to Katie Ratlief, executive director of the Common Sense Institute, “Arizona’s moderate climate, excellent hospitality industry and major event spaces have made it a magnate tourism destination.”

“This growing sector is a massive contributor to our economy, and big events like this weekend’s Super Bowl will only continue the momentum. Arizona’s hospitality industry is truly the ‘welcome mat’ for millions of visitors to our state,” she said.

CSI’s report finds that the sector has not reached its peak yet. The think tank estimates that over the next 10 years Arizona will see the sports and tourism sector grow on average 3% per year. With Arizona hosting its fourth Super Bowl since 1996, the state’s ability to consistently attract major events will ensure that the sector can grow in the future.

When Arizona last hosted the Super Bowl in 2015, the Arizona Sports and Tourism authority found that the event contributed more than $719 million dollars alone. CSI and other observers project that Super Bowl LVII will turn out to be an even bigger event, contributing even more to the growing Arizona economy once the dust settles.

The Super Bowl also offered Arizona the chance to showcase its friendly business environment, as the Arizona Commerce Authority and host committee welcomed CEOs from across the country at a CEO Forum to learn more about why Arizona is a great place to grow a business.

Arizona ��ϳԹ�� of Commerce & Industry President and CEO Danny Seiden moderated a on the state’s workforce that featured the presidents of UArizona and Northern Arizona University, Arizona State University Executive Vice President Sally Morton, and Pima Community College Chancellor Lee Lambert, who gave attendees an insider’s view at how their schools are preparing graduates for today’s economy.

“The CEO Forum is the perfect opportunity for business leaders from across the country and even around the world to get an up-close look at why Arizona has one of the nation’s strongest and most dynamic economies,” Seiden said. “It’s just one example of how the sports tourism market is about much more than just what happens on the field.”

Like many other industries, the sports and tourism sector was hit hard by the 2020 pandemic. But since then, the sector has come roaring back even stronger than ever.

Kim Sabow, the vice chair of the Arizona Sports and Tourism Authority Board and the president and CEO of the Arizona Lodging and Tourism Association said the sector has faced recent pandemic-induced headwinds, but hosting the Super Bowl brings tremendous momentum

“Arizona’s sports and tourism industry has been through a lot of challenges over the past three years,” she said. “Thanks to our operators and our dedicated employees, we’ve come out the other side stronger. This weekend is an opportunity to highlight the value and contributions of our industry to an international audience, and CSI’s report shows that this is an industry that has a massive ripple effect across all of Arizona.”
To learn more about the Common Sense Institute, click .

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Students Go 7,000 feet Under the Earth

Humaira Zafari — Mon, 14 Nov 2022 19:08:05 +0000

Two weeks ago, four intrepid adventurers traveled nearly 7,000 feet deep into the earth during their visit to Resolution Copper, a mining project located in Superior, Arizona. The Arizona Junior Fellows, a project of the Arizona ��ϳԹ�� Foundation, were joined by representatives from the Arizona Mining Association and led by employees of Rio Tinto, the parent company of Resolution Copper, as they explored the mine.

Arizona leads the nation in copper production, making up of U.S domestic production in 2021. The Copper Project has the potential to supply nearly 25% of U.S. copper demand and is expected to become the largest copper mine in North America when it initiates operations. The project is located 60 miles east of Phoenix, near the town of Superior. It’s a joint venture owned by and BHP, two of the world’s largest mining companies. The mine is estimated to as much as 40 billion pounds of copper over 40 years.

Mila Besich, the mayor of Superior, has been a supporter of the mine’s opening. “If the Resolution Copper project comes to fruition, it will employ some of the most technologically-advanced and modern mining techniques ever,” she , emphasizing the project’s innovative design. “It will have passed the most thorough and exhaustive environmental permitting ever and it will boast new jobs focused on robotics and other innovations that will make this the most sophisticated, advanced and environmentally-sensitive mine in the United States.”

In June, 2013 the Resolution copper mine a Mine Plan of Operations to the U.S. Forest Service, the federal agency in charge of the approval process. The Mine Plan of Operations document outlines how Resolution intends to design, construct, operate, and eventually close the mine. Resolution believes that it has considered and taken into account the environmental impacts that copper extraction may bring to that area such as water, air, and biology in and around the project and how the company plans to protect these valuable resources.

The approval took longer than expected from the federal agency under the Biden administration. In January 2021 the U.S. Department of Agriculture directed the Forest Service to rescind the final Executive Information System to allow the agency for further review.

Generating approximately $61 billion in economic value and 3,700 direct and indirect jobs, Resolution is an economic juggernaut. Arizona business leaders consider the project a great source of growth and have opposed USDA’s decision to rescin the final EIS.

“I am extremely disappointed in the Administration’s decision to cease progress on Arizona’s Resolution Copper project, which is set to grow jobs and is estimated to create a direct and indirect economic impact of more than $1 billion to Arizona’s economy every year,” Governor Doug Ducey .

About the Fellows

The Arizona Junior Fellows is a program of the Arizona ��ϳԹ�� Foundation, launched with the intent of mentoring and fostering a new generation of young, pro-enterprise leaders who understand both the larger societal implications of civic education, and the tactical and practical skills needed to navigate the public and private sectors with moral strength, human excellence, and civic virtue.

Its mission is “to build and promote the next generation of civically minded, pro-enterprise Arizona leaders through hands-on, applied experience in public affairs, policy research, event planning, project-building, and business operations.”

The program’s founder and adviser is Hon. Eileen Klein, former treasurer for Arizona and president emerita of the Arizona Board of Regents. Its inaugural program director is Joe Pitts, a student at Arizona State University, who continues to hold the title.

“The Fellowship has several major components,” Pitts said. “The Fellows hear from speakers in industry and politics every week through our weekly speaker series. They write for ��ϳԹ�� to improve their writing and researching abilities. They help out ��ϳԹ�� staff on everything from legislative work to communications. And, they participate in site tours and facility visits, like we did at Resolution Copper.”

The Arizona Junior Fellows is the only statewide program dedicated to developing next-generation, civically-minded, pro-enterprise leaders through applied experience in public affairs, business writing, communications, research and analysis, and organizational management. Its existence beneath the Arizona ��ϳԹ�� Foundation gives Fellows the advantage of directly working with some of the state’s top businesses and their leadership, as well as top public officials.

The program operates from an interdisciplinary perspective, understanding that civics, business, public sector leadership, and the future of our state are all mutually reinforcing parts of the same common good. Junior Fellows come from a variety of backgrounds with diverse interests, with graduates pursuing careers in law, public policy, electioneering, executive business leadership, and other related fields.

In addition to its direct collaboration with the Arizona ��ϳԹ�� of Commerce and Industry, the Fellowship has cultivated a partnership with Arizona State University’s School of Civic and Economic Thought and Leadership (ASU SCETL). This connection allows Fellows a window into higher education and its management, culminating in the planning of panel discussions on-campus in partnership with ASU SCETL.
More information can be found .

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Five questions with Jay Timmons, president and CEO of the National Association of Manufacturers

Craig Ruiz — Thu, 13 Oct 2022 17:56:14 +0000

The Arizona Manufacturers Council on Tuesday hosted the Manufacturer of the Year Awards and Summit. Jay Timmons, president and CEO of the National Association of Manufacturers, delivered the keynote address and later spoke with the ��ϳԹ�� to discuss several issues affecting the manufacturing sector in Arizona and nationally.

The answers have been edited slightly for clarity and length.

CBN: You discussed in your remarks the NAM, the Arizona ��ϳԹ��, and the Arizona Manufacturers Council’s work together opposing elements of the so-called Inflation Reduction Act. Why is it important for a national organization like the NAM to partner with state affiliates?

Jay Timmons: State affiliates and the folks who run them know their elected officials better than anybody. They’re on the ground, they’re in their communities, and they are the respected voices of local businesses in the state, so having that partnership is, frankly, critical for us to get anything done in Washington.

CBN: You discussed USMCA and its importance in your remarks and you stressed why adhering to the agreement is important. Talk about why it is important to adhere to the letter and the spirit of a free trade agreement like USMCA.

Timmons: To maximize potential benefits for both sides. That’s the goal of a free trade agreement, that it’s going to be a win-win, so Americans have access to markets that we may not have had access to before, and that the same is true for whoever our trading partner is as well. That leads to a stronger economy, more jobs, and more opportunity.

CBN: Wage growth and employment are high, but so are interest rates. Are you concerned about an overheated economy?

Timmons: Yes. I think the Fed is doing what the Fed needs to do. The question is, are we going to have a soft landing or are we going to land with a thud? Manufacturers want to make sure that we are paying attention to all the fundamentals and that the Fed is paying attention to all the fundamentals and lands this plane as gently as we possibly can.

Our members generally have a very optimistic view of the future. Yes, they think that there might be a recession coming up, but there is no consensus on whether it will be a short or long recession and how hard it’s going to be. We hope, obviously, that it will be as short as possible to help the economy cool and get us back on some normal economic footing.

CBN: We’ve been hearing a lot about supply chain issues lately. We thought we had averted a rail workers strike, but now it seems more uncertain. Do you have any comment on what’s going on from a logistics perspective?

Timmons: If (a strike) does happen, it will be an enormous crisis for manufacturers and consumers. We don’t need any forced errors. You have the Biden Administration, the most pro-labor administration that I have ever experienced in my lifetime, saying this is a good deal. So, if they’re saying that, I’m not sure what the unions are holding out for.

Look, I don’t know all the details, all I know is the politics and if the politics say that you have the most pro-union administration weighing in and saying this is a good deal, you might want to take it.

CBN: How are labor shortages impacting the manufacturing sector and how have manufacturers responded?

Timmons: Over the last year, we have an average every month of 800,000 job openings in the sector. That is up from about 500,000 pre-pandemic and the lowest we have seen is about 300,000 during the pandemic. We’ve always had many openings in the sector, but we just can’t find people to fill the jobs. Our Manufacturing Institute has many programs to try to attract women, to try to attract veterans, they have apprenticeship programs.

But Creators Wanted is targeted specifically to inspire the next generation. It’s a road tour with a triple-wide trailer that is an escape room concept that shows young people some of the skills, both hard skills and soft skills, that they need in the sector.

When these kids walk through it, they may be shuffling their feet in the beginning before they go in, thinking, “Why am I here? Oh, well, at least I’m not in school.” They come out and they’re just electrified. You see the excitement on their faces and they say, “This could be for me.”

We then explain what jobs might be available in the sector. Some don’t require any further education out of high school, some might require some technical training and some might be requiring a four-year degree or an advanced degree, but there is something for everybody in manufacturing and our job is to make sure that young people know what is available.

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Trip to Taiwan and South Korea reveals strength of Arizona brand

Joe Pitts — Mon, 19 Sep 2022 19:39:22 +0000

My recent trip to Taiwan and South Korea as part of a delegation led by Gov. Doug Ducey was a chance to share with business and government leaders Arizona’s approach to business and why the state is such an attractive place for investment.

Our group, which also included Arizona Commerce Authority CEO Sandra Watson, didn’t have to do much selling, though. Arizona’s reputation as a welcoming, business-friendly state preceded us.

We heard it from executives with TSMC, the semiconductor manufacturer making a multi-billion-dollar investment in the Phoenix area for the company’s next fabrication plants. The company said its dealings in Arizona at all levels of government had been characterized by a desire to get things done and cut through red tape.

From both business and government, we heard about the tremendous opportunity presented by passage of the CHIPS and Science Act, bipartisan legislation that will help spur the production of semiconductors here in the U.S. and create new opportunities for investment from firms currently manufacturing almost exclusively in Asia. It’s good news for the diversification of the supply chain, as well as U.S. national security, ensuring that access to these essential component parts of our defense and aerospace technology isn’t dependent on one overseas source.

Words of praise were directed to Arizona’s two U.S. senators, Kyrsten Sinema and Mark Kelly, for their work to get the bill passed, proving that the benefits of a functioning U.S. Congress aren’t appreciated just here at home.

Speaking of praiseworthy U.S. senators, at every stop, without fail, our Taiwanese and Korean hosts extended their thanks to the service of the late Sen. John McCain. No U.S. leader was more consequential and indispensable in the cause of freedom and solidarity with those striving to throw off the shackles of tyranny than Sen. McCain.

We got an up-close look at the power of his work and beliefs. Taipei is a bustling, modern metropolis. It celebrates innovation and free enterprise. But mainland China looms large, attempting to assert its position over Taiwan with regular military exercises and shows of force in the Taiwan Strait, which only increase in frequency when U.S. leaders like Speaker Nancy Pelosi and Indiana Gov. Eric Holcomb, whose own delegations preceded ours, visit.

In South Korea, we got an object lesson in the power of markets over central planning and command and control. Anyone who’s looked at a satellite image of the Korean peninsula at night can see how the vibrant economic powerhouse that is South Korea outshines figuratively and literally its Hermit Kingdom neighbor to the north.

In a meeting with Taiwan President Tsai Ing-wen, we were proud to extend our support to the people of Taiwan in their pursuit of democratic self-governance and to commit to strengthened Arizona-Taiwan ties, including the opening of an Arizona trade office in Taipei, which Gov. Ducey rightly called “a sure recipe for success.”

Arizona is also soon to open a trade office in Seoul. It’s another excellent opportunity not only to extend the Arizona brand, but to stand shoulder-to-shoulder with a democracy in a tumultuous region. We were heartened by the thanks extended by South Korean President Yoon Suk-yeol to all the Arizonans who fought in the Korean War.

While the conversations were always warm and positive, leaders in both countries couldn’t ignore the threat of inflation – it’s a global phenomenon – and its effect on production costs as the price of inputs spike. Additionally, we heard concerns about the global talent pipeline and whether nations like the U.S., South Korea and Taiwan will have the people power necessary to keep these enterprises growing. The work of Arizona’s universities to produce graduates ready to compete in today’s economy was noted throughout the trip, including Arizona State University’s concentration on increasing the number of engineering graduates.

Trips abroad are always a valuable chance to learn something new, and this one was an eye-opener. But sometimes they also confirm or refute assumptions. In this case, the confirmations were good news. Arizona’s reputation as one of the country’s best places to build a business is causing the world to take notice, and the state’s pursuit of public policy that will lead to job growth is paying off in a major way.

Danny Seiden is president and CEO of the Arizona ��ϳԹ�� of Commerce & Industry.

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Arizona taxpayers can breathe a sigh of relief

Garrick Taylor — Mon, 02 May 2022 17:32:55 +0000

This column by Arizona ��ϳԹ�� President and CEO Danny Seiden originally appeared in the Arizona Capitol Times.

The state Supreme Court has ruled that the historic income tax reduction passed by the Legislature and signed by Gov. Ducey last year will not be referred to the November ballot.

That means Arizona is on its way to having a simple, low, fair and flat state income tax of 2.5% –the lowest in the nation. But it’s worth remembering how we got to this point. In 2014, Arizona was fighting to emerge from the Great Recession, hit harder than almost every state in the country. We were staring down a billion-dollar budget deficit.

I was on the campaign trail for then-candidate Doug Ducey when he made a pledge that, to many, may have sounded like a pipe dream – as governor, he would make Arizona the No. 1 state to live, work, and start and run a business – all while reducing the state income tax to as close to zero as possible.

Skeptics mocked the idea, believing it wasn’t possible. Opponents called instead for higher taxes, claiming his plan would bankrupt Arizona. Cynics, perhaps disillusioned by years of empty promises, assumed they were being fed another speech by an ambitious politician who’d say anything to get elected. All stump, no substance.

Undeterred, Governor Ducey was elected – not once, but twice – and he has been delivering on those promises since Day One. I’ve known our governor a long time. And if there’s one thing you should know, it’s that his administration is about results – not rhetoric. And the results speak for themselves.

Fast forward to today. Arizona has dug itself out of a $1 billion hole, and now sits on a record $5 billion surplus. Our economy is booming. Our population is growing. Since taking office, Arizona has welcomed 18,000 new businesses and over half-a-million new residents. We’ve created almost 400,000 new jobs and recovered those lost during the pandemic faster than nearly every other state. Our 3.3% unemployment rate, better than the national average, represents a historic low not seen in over 45 years.

All of this, while pumping record investments into K-12 education, supporting vital infrastructure needs, and funding core priorities like public safety, health care and more. All of this, while cutting taxes every year and advancing pro-growth policies that have made our state among the most competitive in the nation.

None of this was by accident. The current circumstances reflect 7-plus years of good policy and relentless salesmanship by a leader who had a strong vision for what our economy could be. And as for that campaign promise? Last session, Governor Ducey championed and signed into law a historic tax reform package that slashed rates for every Arizona taxpayer and implemented a 2.5% flat rate – the lowest among all other states with an income tax.

The fate of that plan hung in limbo over recent months, as opponents attempted to overturn it via a voter referendum. Thankfully, the Arizona Supreme Court blocked those efforts, rightfully recognizing our Constitution does not allow for the referral of tax measures that impact the “support and maintenance” of state government.

This would be a win for Arizona taxpayers and small businesses under any circumstance, never mind during this period of unprecedented inflation. This decision provides relief for every Arizonan who finds themselves spending more than ever before to fill up their cars, put food on the table, and shelter and clothe their families – and yes, that’s every Arizonan. It also provides the much-needed certainty that Arizona will have the lowest flat-tax rate in the nation – keeping our business environment among the most attractive and competitive for job creators and ensuring the continued long-term economic growth of our state.

We’re grateful to Governor Ducey and the state Legislature for delivering on a promise that Arizonans can take to the bank.

Danny Seiden is president and CEO of the Arizona ��ϳԹ�� of Commerce and Industry.

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Nestlé USA to invest $675 million in new factory in Glendale

Jacob Salas — Mon, 04 Apr 2022 15:38:49 +0000

Nestlé USA has announced to invest $675 million in building a 630,000-square-foot beverage factory in Glendale. The facility is scheduled to open in 2024 and create more than 350 jobs.

“Nestlé’s investment for their sustainable and innovative beverage manufacturing facility is a valued addition to Arizona’s manufacturing industry, creating quality jobs in Glendale while making a positive impact in the community,” Arizona Commerce Authority President and CEO Sandra Watson ,

In hailing Nestlé’s decision to invest in the Valley, Ariz. Gov. Doug Ducey the increase in manufacturing in the state.

“Nestlé selecting Arizona is great news,” Ducey said. “Manufacturing in our state is surging and Nestlé’s decision adds to this momentum, as well as bringing diversification to this fast-growing sector of our economy.”

gathered by the ACA shows that manufacturing in Arizona has seen considerable growth and now makes up the second largest industry in the state.

According to Nestlé, the Glendale facility will be its most technologically advanced factory and distribution center and will provide an ideal location to reach consumers in the Western states. The factory will strengthen its manufacturing capabilities in order to meet an increased consumer demand and changing dairy market.

This comes after a recent report by Bloomberg Intelligence, which that the plant-based food market could surpass $162 billion in the next decade. If estimates are correct, this will be a 451% increase from when this market was valued at $29.4 billion in 2020.

Daniel Jhung, president of beverage for Nestlé, said, “Beverages play an increasingly important role in the lives of consumers, a trend that’s been accelerated by the pandemic and is expected to continue to grow. This investment illustrates our continued commitment to leading and growing categories where we play, providing consumers with a variety of high-quality, innovative products to meet their needs.”

Beginning this summer, the company will be hiring workers for the factory, including positions in professional staff, manufacturing and production leaders, technical staff, and engineers.

to the ACA, Nestlé could receive up to $7 million in state tax incentives for newly created jobs.

“We appreciate the partnership from state and local officials and look forward to contributing to the local economy and Glendale community for many years to come, including through the creation of over 350 jobs,” Jhung said.

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Bill to lower Arizona commercial property tax inches closer to passage

Stephen Matter — Wed, 23 Mar 2022 17:11:13 +0000

A bill to decrease Arizona’s commercial property tax assessment ratio to 15% over the next five years would achieve a goal set decades ago by the Citizen’s Finance Review Commission and others if it becomes law.

Senate Bill 1093, sponsored by state Sen. J.D. Mesnard, R-Chandler, would continue the scheduled assessment ratio decrease under last year’s SB 1108, which called for a gradual reduction from 18% to 16%, but lower it an additional percentage point by 2027.

Property taxes in Arizona are not based on what a property would sell for on the open market, but rather the property’s assessed value, which is determined by applying the assigned assessment ratio to the limited property value. There are eight property classes, each assigned an assessment ratio. For example, the assessment ratio on residential property is 10%, while agricultural or other properties, which are in Class 2, have an assessment ratio of 15%.

Tax policy experts say the commercial property tax assessment ratio reduction is necessary to ensure the state’s continued economic competitiveness and to help reduce the disparity in the property tax burdens borne by commercial property taxpayers versus homeowners

“Arizona commercial property makes up roughly one-fifth of the property owned in the state, and yet we pay around one-third of the total cost incurred by property taxes,” said Tim Lawless, the president of CREED, Commercial Real-estate Executives for Economic Development .

Lawless says that during the 1970s and 1980s, state lawmakers sought to make Arizona more attractive to out-of-state transplants by keeping residential property tax rates low. Competitive tax rates and the growth of air conditioning helped fuel Arizona’s economic and population expansion as thousands of new residents made the state their home.

Arizona is one of 18 states that treats commercial property differently from other property classes, which places a greater property tax burden on Arizona businesses.

“Residents are half of all the property value at 49%, and they only pay a few more percentage points than the business community who own 20% of the taxable property,” Lawless said.

Amid the post-September 11 economic downturn, Arizona’s normally reliable tourism sector suffered, prompting leaders to reexamine the state’s economic policies and mix of tax bases.

Former Pinnacle West CEO Bill Post was appointed by then-Gov. Janet Napolitano to co-chair the Citizens Finance Review Commission to determine how Arizona could diversify its economy and identify what hindered the state’s ability to attract jobs.

The commission found one of the biggest hurdles to economic growth was Arizona’s uncompetitive commercial property taxes. Lawmakers and successive governors responded.

In 2006, the state Legislature and Gov. Napalitano were successful in lowering the assessment ratio from 25% to 20%. Under Gov. Jan Brewer in 2011, the commercial property tax assessment ratio was lowered again from 20% to 18%. The Legislature and Gov. Ducey last year passed legislation to phase-in a further reduction to 16%.

“Of the western states, we compete with nine of them, and eight of them, including California, have lower overall commercial property tax than Arizona,” Lawless said. “At the time of the first commission, Phoenix had the third-highest commercial property tax in the United States; only Michigan and New York were higher. And although rankings often depend on cities and types of offices and manufacturing facilities, overall we are roughly around 18th in the nation. However, It is still more important to look at the states that we compete with.”

During a House Ways and Means Committee hearing on the Mesnard bill earlier this month, committee members expressed concerns over how an assessment ratio reduction would affect education funding and taxpayers in Arizona’s other property tax classes.

Lawless and other witnesses testified that SB 1093, if it becomes law, would hold K-12 education harmless, and would use the general fund to ameliorate any kind of tax shifts from other classes of real estate.

The legislation is supported by a large coalition of the business community, including utilities, health care, taxpayer advocates and chambers of commerce. Opponents include organized labor, the County Supervisors Association, and the Arizona Center for Economic Progress, a progressive public policy group.

The bill passed the Senate last month with bipartisan support. An amended version of the bill is awaiting a vote of the full House. If the House gives the legislation a passing vote, the Senate will need to adopt the House’s amended version before it can be sent to Gov. Doug Ducey for his signature.

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