A that analyzes the economic impact of Proposition 208 in Arizona shows it will likely place Arizona 8th or 9th in the nation for the highest income tax rates. Negative unintended consequences will likely follow, two nationally renowned economists said Tuesday.  

The ballot initiative is intended to tax the state’s highest earners, but those at the bottom of the income scale would suffer most, said Stephen Moore, an American author and television commentator on economic issues, who released the report during a press conference hosted by the Arizona ���ϳԹ��� of Commerce and Industry. 

“It’s not the rich people that are going to be hurt. The rich can pay higher taxes or they can go somewhere else. It’s really the people at the bottom who will lose jobs,” Moore said. “About half the impact of this tax will be paid not by big corporations and not, you know, the very, very wealthy, but will be paid by the small business owners. 

Moore and fellow economist and researcher Dr. Arthur Laffer conducted an analysis of how tax rates have affected states over the past 30 years for the report, “Arizona’s Proposition 208 Loses Jobs and Harms Small Businesses.” 

What they found is that almost all states with lower income tax rates perform better than higher income tax rate states in most economic indicators. 

Initiative would almost double top tax rate

Proponents of the measure, also known as Invest in Ed, want to tax high income earners to provide funding for K-12 education. 

Under the initiative, Arizona’s top income tax rate would be raised from 4.5 to 8 percent – almost an 80 percent increase for individuals who earn $250,000 and joint filers who earn $500,000.  

Couldn’t come at a worse time for small business

The tax increase would come at a time that could further devastate a large number of small businesses that may be affected by the new tax, said Laffer, who is known as the “Father of Supply-side Economics” for inspiring a world-wide tax-cutting movement in the 1980s. 

Those most at risk are small businesses still struggling to keep their doors open during the pandemic. 

Simply put, Arizona would move from having the 13th lowest income tax rate on small businesses to the 8th or 9th highest in the nation, Laffer said. 

Raising taxes when the nation is trying to recover from the COVID-19 is “inappropriate and foolish,” Laffer said. 

Almost all states with lower tax rates perform better

Such a drastic increase would dampen investment and growth, and research backs that up, they said. 

In conducting their research, the economists examined how similar types of tax increases over the past 30 years have affected states. Almost all states with low or zero income tax rates performed better in most economic indicators than those states with high tax rates, they found. 

High tax states saw less revenue for government responsibilities, including education, Laffer said. 

An analysis of the 11 states that introduced income taxes since the 1960s shows they are at the “very bottom of performance” in not only economic and population growth, but revenue for public services, Laffer said. 

Harsh implications for Arizona

Using data from other states, the economists measured the impact Arizona’s Proposition 208 would likely have on jobs, wages, interstate migration, tax revenue collections, state competitiveness, and small businesses.

They found that all areas would likely suffer, making “Arizona residents poorer and the state’s economy less competitive.” 

Among their findings:

•An estimated 200,000 jobs and about $25.5 billion in personal income would be lost over the  next 10 years. 

• Fifty percent of the tax would be borne by small business owners and operators that typically generate from half to two-thirds of the jobs in a state.  

• Arizona’s economic competitive position among the 50 states would fall from No. 10 to No. 16, according to the ALEC-Laffer competitiveness index.

•The state would lose 700,000 people in net instate migration over just the next decade.

•Wage growth would decline in the state and after a decade average household income would be roughly $6,000 lower with the tax hike. 

•A loss of businesses, jobs and taxes from in-migration would reduce by half the proponents estimate of $1 billion in tax revenue gains 

“The preponderance of the evidence shows a negative effect when states raise income taxes,” Laffer said. “That’s because we’re a country where people can move across borders. We’re a very mobile population. Businesses, corporations and financial capital can move across borders and they do.

“They move to places where they have the best pro-growth and pro-business atmosphere.”

About Stephen Moore

Stephen Moore is FreedomWorks’ chairman of the Task Force on Economic Revival. He previously served as president of the Club for Growth, chief economist of the Heritage Foundation, and as a member of the Wall Street Journal editorial board.

About Arthur Laffer

Arthur Laffer is the founder and chairman of Laffer Associates, an institutional economic research and consulting firm, as well as Laffer Investments, an institutional investment management firm utilizing diverse investment strategies. Dr. Laffer’s economic acumen and influence in triggering a world-wide tax-cutting movement in the 1980s have earned him the distinction in many publications as “The Father of Supply- Side Economics.”

The post National economists: Prop. 208 to reduce state’s competitive edge appeared first on ���ϳԹ���.

To check the pulse of entrepreneurs across the nation during COVID-19, Arizona U.S. Representative David Schweikert and other members of Congress met with business owners from across the nation during a virtual roundtable last week.

The lawmakers said they wanted to hear directly from business owners so they can better craft effective legislation going forward and find gaps where small businesses are falling through the cracks. 

Schweikert said small retailers and restaurants are showing some of the highest displacement numbers, and an “unusually high” number of new business filings indicates they are starting new businesses. 

Congress needs to find a way to help them succeed, he said.

“This may be really important for the country’s economic recovery and those in the policymaking world are going to have to think about everything from access to capital, to the regulatory state, and how do we help microbusinesses that are going to be run from home for awhile,” Schweikert said. “How do you help them hit the launchpad and take off? That needs to be part of the economic recovery plan as we work through this.”

Schweikert co-hosted the event with Rep. Bill Foster (IL) and Rep. French Hill (AR) who spoke of legislation to help, including possibly extending the federal Paycheck Protection Program that helped millions of small businesses keep their employees on the payroll, their lights on and rent paid for months during COVID-19 shutdowns. 

All three, once young entrepreneurs themselves, are co-chairs of the bipartisan House Entrepreneurship , which serves as a forum for lawmakers to stay abreast of the most pressing issues facing businesses.  
The event, the Entrepreneurship Roundtable, was hosted with the . The center is a nonpartisan research, policy, and advocacy organization that works with policymakers in Washington and across the country to achieve a policy environment that promotes new business formation, survival, and growth.

Bumpy ride for all 

At the roundtable event, entrepreneurs from a range of industries including technology, real estate, digital food service, engineering, and marketing detailed the damage all experienced and what they need moving forward. 

All reported deep dives in revenues from the disruptions. All have also managed to keep their companies open. 

Federal stimulus programs helped, they said. 

“We might have survived without federal assistance, but it would have meant significant layoffs and downsizing. We did not lay off one person,” said Jimi Allen, CEO and founder of , a marketing and visual services company in Aurora, Colorado.

Almost all of the executives said they benefited from two federal stimulus loan programs created earlier this year to help businesses with 500 or fewer employees: the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, they said.  

Remote workers here to stay?

All of the companies said they have had to go to completely or partially remote operations.  

Lori Anna Harrison of Scottsdale real estate marketing firm , said working remotely has been so successful for her company, they have no intention of switching back. 

“We will never go back to brick and mortar,” said Harrison. “It hasn’t impacted clients at all. We are able to give the same level of service.”

Businesses owned by people of color being left behind 

Sky Kelley, the Black owner of Avisare, a Los Angeles company that uses artificial intelligence (AI) to help government agencies and small businesses procure contracts, said COVID-19 almost devastated her business. 

When the pandemic hit, Avisare was in the late stages of negotiating a major contract with their first private client. That deal instantly went away, she said. Other deals also fell through with government agencies that suddenly were financially strapped as well. 

Meanwhile, all of her highly skilled engineer employees, who were earning six figure incomes, had to move to independent contractor status.

When Kelley applied for a PPP loan, she was turned down. After repeated phone calls and reapplying for an EIDL loan she finally received $68,000. 

Nevertheless, Avisare has survived by scrambling to find new business, she said.

“We were able to ride through it, but we had to get really creative and do double duty while also managing kids and home and childcare.” 

Kelley also expressed concerns that businesses owned by people of color are falling by the wayside during the pandemic, especially companies owned by African Americans.

Legislation to support entrepreneurship 

After hearing from the company heads, Schweikert and the other congressional members spoke of measures they and others are making to help spur innovation and prevent entrepreneurs from falling through the cracks. 

The New Business Preservation Act, for example, would provide funding for innovation and startups. The bill also has provisions to protect women and people of color. 

Schweikert said Congress is continuing to work to come to agreement on a stimulus package for small businesses. 

America’s edge relies on entrepreneurship, he said. 

“Small businesses have always been, and will continue to be, an integral part of our communities,” Schweikert said.

The post Keeping entrepreneurship alive and thriving in the pandemic appeared first on ���ϳԹ���.

As wildfires flare across the West, Arizona’s congressional leaders are calling once again on the federal government to press forward on an ambitious plan to reduce forest fires in the state.

Sen. Martha McSally (R) and Rep. Tom O’Halleran (D) led a bipartisan group of Arizona’s congressional members to send another request to the U.S. Forest Service to step up the pace on the second phase of a huge RFP. The is part of a public-private partnership called the Fourth Forest Initiative, or , whose goal is to restore 2.4 million acres in Northern Arizona.

McSally has sent similar requests for over a year. 

Forest officials said the delays are due to industry and partners’ requests to amend the RFP nine times to make it more attractive to potential bidders. 

Attracting investment proved challenging in the first, smaller, phase.  

While the changes added delays, they “dramatically improved the request for proposals,” said Jeremy Kruger, CEO of the 4FRI project for the Forest Service.

Time is running out  

There is no more time to waste, McSally and the other congressional members said in a September 25 letter to the U.S. Secretary of Agriculture Sonny Perdue. 

“In Arizona this year, there have been more than 1,600 wildfires and more than 700,000 acres burned, which is more land burned than in 2018 and 2019 combined,” they said. “Entire communities, industries, and businesses across the state are waiting on the 4FRI project to move forward.” 

Eight other members are signees: Senator Kyrsten Sinema (D) and Reps. Ann Kirkpatrick (D), Paul Gosar (R), Andy Biggs (R), David Schweikert (R), Ruben Gallego (D), Debbie Lesko (R), and Greg Stanton (D).

“Originally, Phase 2 was going to be awarded in December 2019.  We have learned that the earliest we may see an award is December 2020, but that this could slip into 2021,” they said.

Long term contracts now available for companies 

The RFP is one of the largest – if not the largest – stewardship contract ever for the agency. It’s also the first 20-year contract it has ever offered. 

It calls for awarding contracts to companies to mechanically thin 605,000 to 818,000 acres of forests in Northern Arizona. 

The Forest Service plans to spend $550 million over the next 20 years to work in four national forests: Apache-Sitgreaves, Coconino, Kaibab and Tonto. Business and industry are needed to harvest, process, and sell wood products. 

The RFP will be available to both small and large reforestation businesses and seeks proposals that are “sustainable, innovative, feasible, and cost-effective to increase the pace and the scale of forest restoration.”

Biomass energy companies wanted 

Biomass companies are included in the proposal. These are facilities that can burn woody forest debris – called biomass – and transform it into energy for the electric grid. Biomass energy produces significantly less emissions than traditional burning of debris or fossil fuels.  

As home to the largest contiguous tract of ponderosa pine forest in the world, Arizona is a prime location. But currently, there is only one biomass facility in the state, NovoBio in Snowflake. It’s not nearly enough.  

New bill adds incentives for business 

To help encourage more interest from industry, McSally introduced a bill last month that would free up some of the regulatory barriers and reduce some costs. 

Called the Forest Health and Biomass Energy of 2020, it would advance forest restoration by incentivizing biomass energy development in fire-risk regions. 

“One of the biggest challenges we’ve had in forest restoration in Arizona is the crushing expense of removing low-value biomass like branches, slash, and undergrowth from the forest,” McSally said during a hearing on the bill before the Senate Natural Resources Committee last month. 

The bill includes measures that would:

• Advance forest restoration and fire resilience by incentivizing biomass energy development as a method to reduce hazardous fuel build-up in fire-prone forests
• Direct the federal government to assess the biomass energy fuel potential in U.S. forests with a focus on identifying the most viable sources for energy use such as ladder fuels and by-products of forest restoration including branches, slash and other low-value biomass
• Establish a fund using a percentage of timber sale revenues to assist timber operators and biomass energy producers with the collection, harvesting and transportation of biomass material out of high hazard areas

Reforestation will brings jobs, tax revenue

Since 2010, the Forest Service and the other 4FRI stakeholders have spent more than $220 million in reforestation in the region. Over the past decade 4FRI has treated over 140,000 acres with mechanical treatments designed to restore forest health and reduce the likelihood of severe fires damaging key watersheds.

During the first phase,13,000 acres were thinned out, generating more than $150 million in economic development benefits including $50 million in labor income, Kruger said.

The second phase is expected to create hundreds of new jobs and tax revenue for rural communities in the region, partners in the project said. 

Public-private partnership to restore forests and watershed

The 4FRI project is unique in that it is the first collaborative effort of its kind. The Forest Service, U.S. Bureau of Reclamation, Arizona Commerce Authority, Arizona Department of Forestry, Salt River Project, and private organizations are working as a team to protect Arizona citizens, structures, natural areas, streams and lakes from high intensity wildfires.

The post McSally, O’Halleran push to speed up huge RFP to clear out forests appeared first on ���ϳԹ���.

If you are in charge of one of the nearly 5 million American companies that has received funds as part of the Paycheck Protection Program (PPP) or you are still planning to apply for a PPP loan, it’s important to be aware of the significant updates and changes to the program that come as part of the Paycheck Protection Program Flexibility Act (PPPFA), signed into law on June 5, 2020.

• First of all, if you are interested in applying for PPP funds and have not yet done so, new applications are being accepted again as of July 6, 2020, through August 8, 2020.
• Loan recipients now have 24 weeks instead of 8 to spend loan proceeds and still be eligible for forgiveness.
  • While this period has been extended, recipients are still able to apply for forgiveness starting at 8 weeks after receipt of funds.
• PPP proceeds are still calculated off of your business’s payroll expenditure and, as before, the funds are intended to be applied primarily to your payroll to, although the qualification for forgiveness has been reduced from 75% of funds spent on payroll to 60%.
  • Eligible expenses for the remaining portion of the loan remain the same (rent, mortgage interest, utilities); however, a new requirement that comes as part of PPPFA is that if 60% or less of the loan is spent on payroll, none of the loan will be eligible for forgiveness, and will revert to the repayment terms, below.
• The portion of the loan that is not eligible for forgiveness will still be subject to a 1% interest rate, but the repayment term for loans issued after June 5, 2020 has been increased from two to five years. Loans issued prior to June 5, 2020, will still have a maturity of two years, although borrowers and lenders may mutually agree to modify the maturity terms to conform with the PPPFA.
• Additionally, the deferral period for PPP loan repayment has been increased to six months after the SBA makes their forgiveness determination.
  • Currently, your PPP lender has 60 days to make their initial forgiveness determination, after which point the SBA has an additional 90 days to accept or adjust the lender’s determination. It’s only after this point that the 6-month deferral begins.
• PPPFA also extended the deadline to rehire workers and still have their salaries qualify for forgiveness, from June 30, 2020 to December 31, 2020. It also introduced a couple exceptions to this requirement, although it’s worth noting that documentation will need to be provided to demonstrate that good-faith, written offers to rehire workers were declined.
  • The exemptions include the inability to rehire a similarly qualified employee prior to the deadline OR an inability to return to the same level of business activity as prior to February 15, 2020 due to compliance with COVID-related restrictions.

As guidelines are regularly being clarified, for the most up-to-date guidance on PPP expectations/best practices borrowers should reach out to their lenders.

Mark Khazanovich is the director of operations at KORE Accounting Solutions, a future-focused management accounting firm specializing in providing legal professionals and business owners with the data and insights they need to stay compliant and run more profitable businesses.

The post Paycheck Protection Program Flexibility Act (PPPFA) brings updates for small business borrowers appeared first on ���ϳԹ���.

With the challenges of an enduring pandemic and an economy just starting to recover, America needs strong leadership more than ever.

Last week, we saw that leadership in action when the U.S. Senate approved the Paycheck Protection Program Flexibility Act. This bipartisan legislation will expand loan forgiveness and adds much-needed flexibility for the small businesses that have been hard hit by the economic shutdown.

Thankfully, Arizona is blessed to have two effective and principled leaders in the U.S. Senate who helped make this happen.

Senators Kyrsten Sinema and Martha McSally may be freshmen, but they are quickly distinguishing themselves for their hard work and leadership. And though they hail from different parties, they are following in the footsteps of the late Sen. John McCain, who put Arizona’s and the country’s interests above partisan politics.

These accomplished women have a few things in common. Both have worked hard on COVID-19 relief legislation and implementation. Both support the U.S.-Mexico-Canada Agreement (USMCA), which is critical for Arizona’s economy. Both are deeply concerned about what job creators care about and work in close partnership with the business community.

Here is another commonality: Both were honored with  that seek to elevate the work of members of Congress who are committed to growing the economy and to working in a bipartisan manner.

The Abraham Lincoln Leadership for America Award recognizes those members of Congress who have demonstrated leadership critical to advancing policies that support American enterprise, while the Jefferson-Hamilton Award for Bipartisanship recognizes those members of Congress who have demonstrated a willingness to work across the aisle in support of common objectives.

Senator Sinema, elected in 2018, earned both awards. In fact, she was the only honoree to score 100% in both categories. She earned a 100% rating for her legislative record on jobs and the economy, as well as a perfect rating based on the number of bills — except those formally opposed by the U.S. ���ϳԹ��� — that are introduced by a member of the opposite party.

For instance, Senator Sinema led the charge to reauthorize the Export-Import Bank, which is critically important to Arizona’s manufacturing sector. This has helped Arizona businesses reach new customers around the globe. In the last six years, the Export-Import Bank has financed $2 billion in exports, 80% of them small businesses.

Senator McSally, whose leadership as the first female pilot to fly in combat and the first to command a fighter squadron has been well documented, was also awarded the Abraham Lincoln Leadership for America Award. Her support for a strong national and Arizona economy has been unwavering.

She has led efforts to ensure Arizona has the water resources needed to support the state’s population growth and economic development. Last year, Senator McSally successfully shepherded the Drought Contingency Plan through Congress to keep water flowing to Arizona. After two years of negotiations among the seven Colorado River Basin states, it took only six days for Congress to pass it. Much of this was due to Senator McSally’s leadership.

The public service excellence of Senator McSally and Senator Sinema goes beyond legislation. They both have dedicated, thoughtful, and resourceful staff who listen to constituents’ issues and help them find solutions. No problem is too big or too small – a posture that is especially important in helping the people and businesses of Arizona deal with the pandemic and economic crisis. That nitty-gritty, day-to-day effort doesn’t make newspaper headlines, but it means a lot to Arizonans.

The bipartisanship we’ve seen from Senators Sinema and McSally will be needed as our nation  through education, employment, entrepreneurship, and criminal justice reform.

These well-earned awards demonstrate the importance of leadership and hard work right now. At a time when American desperately needs a governing center, Arizona is fortunate that both of our senators are part of it.

Glenn Hamer is president and CEO of the Arizona ���ϳԹ��� of Commerce and Industry. Thomas J. Donohue is the CEO of the U.S. ���ϳԹ��� of Commerce.

This article was originally published in the Arizona Capitol Times.

The post Senators Sinema and McSally – award-winning, dynamic duo appeared first on ���ϳԹ���.

Arizona’s favorite tourist hot spots are trickling back to life with safety protocols in place as the state’s economy continues its reopening this month.  

To help get the word out, the Arizona Office of Tourism (AOT) just launched a new Rediscover Arizona marketing campaign.

For now, the marketing blitz is focused on getting Arizona residents excited about stargazing, staycations and the wide open spaces right here, said Debbie Johnson, director of AOT, which is charged with assisting Gov. Doug Ducey in reenergizing the economy. 

Billboards showcasing those themes are going up initially in metro Phoenix, followed by Southern and Northern Arizona later in the campaign.

“For so many of us who live here, we forget to sometimes vacation here. I’m guilty of that. I know so many of my friends and family around the state are guilty of that as well,” said Johnson, who announced Rediscover Arizona Friday on Channel 3 KTVK Phoenix. “But we have so many amazing things here and that’s why we’ve started this campaign.” 

With the pandemic in place, now is the time to revisit places like the Grand Canyon, Sedona, and Verde Valley Wine Country, she said. Anyone looking to plan a road trip, can get ideas and tips at . It also includes a “Know Before You Go” section to help visitors stay safe.

“What’s really important for people is their comfort level in traveling, so we have something at every end of the spectrum for you. If you’re still really concerned about getting out there, then you can go on a road trip or go camping and still have that seclusion and privacy,” Johnson said.

“But if you want to get out in a different way, you can do an amazing staycation at one of our resorts and have the pools and the restaurants that are still practicing physical distancing and safety protocols.

“So there’s something for everyone.” 

“Most beautiful place on earth” sees uptick in visitors 

With the lifting of the governor’s stay-at-home order, restaurants, resorts and other businesses statewide are reporting new activity, Director Johnson said.  

Among those seeing an uptick are the red rocks of Sedona, said Jennifer Wesselhoff, president and CEO of the Sedona ���ϳԹ��� of Commerce & Tourism Bureau.

“Many stores are open, restaurants are serving, sites are back, people are out,” she said. “Often-maligned day trippers, whose spending is sorely needed now, are here again. The energy is obvious.”

Sedona businesses sign up for Safe, Clean, Ready campaign 

To keep employees and visitors safe, the chamber and the city of Sedona have  launched a marketing campaign called Safe, Clean, Ready. 

In support of the campaign, hundreds of businesses are volunteering to enact rigorous safety practices while delivering the message that customers – locals and visitors alike – must do their part, too, Wesselhoff said. The list of participating restaurants, hotels, stores and other businesses can be found at: . 

Wesselhoff said that businesses that weathered the sharp financial downturn, now must operate at a lower capacity to be able to social distance and protect employees and guests.

“The next step leads to the economic middle ground between the devastation of the past three months and pre-coronavirus norms,” Wesselhoff said. “In this middle ground, safety remains the priority while businesses reopen and people recover their livelihoods. 

“We are getting an early glimpse of what that looks like now.”

Fractured industry 

Sedona and other communities that rely heavily on tourism and business visitors are hoping the shattered industry will gradually recover. 

In 2018, visitors to the state spent $24.4 billion, according to the . 

Before the coronavirus struck, there were more than 200,000 employees in the hospitality industry here. Since then, almost 90,000 have been laid off or furloughed, Johnson said. 

A next important step will be the phased-in return of the meetings, events and conventions industry, which contributes up to 60-70 percent of hotel/resort revenue. The Governor’s Office and the AOT will determine when that happens. 

Meanwhile, to help out of work employees, the AOT is connecting displaced hospitality workers with new opportunities through its website, available in both English and Spanish.

For industry questions and tips, the office also offers a series of weekly .

Executive order requires businesses to follow safety guidelines

As tourism starts to bloom again, businesses and recreation sites are under to follow CDC and Arizona Department of Health Services (DHS) guidelines to protect employees, customers and visitors. 

Expect to see social distancing, protective gear and heightened sanitary measures everywhere. Community and business leaders are asking visitors to extend the same courtesy.   

“As always, these services are able to resume with the understanding that all operators, be it resorts, hotels, attractions, restaurants and all other tourism industry businesses, act with strict adherence to AZDHS and CDC guidelines,” Johnson said. “This includes communications and visible efforts to guests that facilities are being sanitized at higher levels and increased intervals. It is our job as leaders in the hospitality industry to set an example.”All current Arizona reopening guidelines are posted on the state Office of Tourism at:  .

The post State launches Rediscover Arizona campaign appeared first on ���ϳԹ���.

Arizona Gov. Doug Ducey joined Glenn Hamer, Arizona ���ϳԹ��� of Commerce and Industry president and CEO, on stage for a Fireside Chat at the ���ϳԹ���’s Legislative Forecast Luncheon last Friday. Ducey gave an exclusive preview of Monday’s State of the State address, confirming his commitment to keep taxes and regulations low in Arizona and make it easier for people to open, operate and expand their businesses in the state.

The post Ham(m)er Time! Episode 44: Fireside Chat with Gov. Doug Ducey appeared first on ���ϳԹ���.

Arizona Gov. Doug Ducey laid out a multitude of goals for 2020 that revolve around issues important to business and industry during his sixth State of the State address Monday.

Among his priorities? No new taxes. Stronger ties with Mexico. Innovation in water conservation and management. Broadband for rural areas. Workforce training. Highway expansion. And much more.

Ducey, whose tenure has centered around spurring economic growth and boosting the state’s “rainy day” reserves to a whopping $1 billion, stated that businesses and citizens can expect more of the same this year.

“We got here by doing things our way. The Arizona way. And I’m here to tell you, you ain’t seen nothin’ yet,” Ducey said as he addressed a crowd of lawmakers, civic leaders and others at the state Capitol to coincide with the opening day of the legislative session.

Building on state’s economic boom

The governor spoke for over an hour, laying out plans to increase funding for academic achievement for low-income children, pay raises for many state workers, increased mental health services and reduced government fees and “red tape.”

He also touted Arizona’s successes.

The state now outshines most of the country in almost every venue, he said: “The prime rate is dropping, school test scores are rising, and our debt is way down. Household incomes have hit a record high and our poverty rate has dropped faster than any other state in the nation.”

Arizona already outshines rest of nation

Arizona now is in the top ten when it comes to jobs in transportation, technology, science and healthcare, Ducey said.

He highlighted keystones of his administration: eliminating regulatory red tape, reducing government fees and making Arizona the first state to grant universal recognition of out-of-state occupational licenses.

It’s no surprise why 300 people are moving here every day, he said.

“Other states and Washington, D.C. politicians may be focused on growing government. Arizona grows opportunity,” Ducey said. “Our population is surging, but the size of our government is actually shrinking.”

Here are eight business takeaways from Ducey’s speech:

No new taxes

“Let me reiterate what I’ve said in five prior State of the State speeches and two inaugural addresses, because apparently it bears repeating. No new taxes. Not this session. Not next session. Not here in this chamber. Not at the ballot box. Not on my watch.”

Investment in teachers, students and schools

“In total, we’ve pumped $4.5 billion in new investments into Arizona schools. With our latest budget, that figure will rise to $6.6 billion. And we’ve done all of this without raising taxes.

“In addition, an even larger investment in school counselors, cops on campus and school safety. A stronger focus on CTE (Career and Technical Education) and the trades. More money for the Arizona Teachers Academy and Teach for America. And a full, complete and accelerated restoration of flexible funding two years ahead of schedule.”

Rural jobs

“There’s no shortage of new jobs in Arizona, but many vital jobs remain unfilled in our rural communities. So, we’ve got a plan — a Rural Jobs Initiative.

“First, tourism and state parks. There’s no place more beautiful to vacation than scenic Arizona, and with an infusion of new dollars, we’re going to work with Tourism Director Debbie Johnson to ensure the whole world knows it.

“Next, workforce. Small business is the backbone of our economy. So, we’re launching a partnership with Local First Arizona to strengthen small businesses, get rural Arizonans back to work and bolster our local economies.”

Long term water planning

“We will continue to protect Lake Mead, the Colorado River, groundwater and our [agriculture] jobs. But we shouldn’t be dealing with this issue one generation at a time. We need a strategic ongoing effort to turn Arizona into the international capital for water technology.

“Look at all that Israel has done. Why not Arizona? We’ve been a leader on water, and with this approach, we will continue to be an even stronger leader far into the future.”

Improving infrastructure with I-10’s widening

“The Phoenix-Tucson corridor is an economic artery for our state, and it needs expanding. It’s time to accelerate completion of I-10’s widening — in both directions — between our two largest cities.

“Our budget puts the pedal to the metal with the construction of a new six-lane bridge over the Gila River. This replaces a 56-year-old bridge. 62,000 people drive over it every day. That’s 23 million a year. So, let’s break ground ASAP.”

Connecting rural Arizona to high-speed internet

“Rural areas still lack high-speed internet. Let’s triple our investment in Rural Broadband Grants and also invest $50 million in Smart Highway Corridors to install broadband along our rural interstates.

“This will make our highways safer and smarter than ever before and pave the way to get all of rural Arizona logged on.”

Filling labor gaps

“ASU, U of A and NAU have also stepped up to fuel our economy, and we’re about to pour on the gas. [Arizona Board of] Regents Chair Larry Penley has proposed what he calls ‘The New Economy Initiative.’

“It’s an innovative approach that enhances our capacity to graduate more students for the critical jobs of today and tomorrow. It’s just the latest effort by our universities to solve problems and do it the Arizona way.”

Eliminating government red tape

“I’ve issued a new Executive Order, with a new reform: If the government ever deems a new regulation absolutely necessary, it must first identify three others to eliminate. The result: New regulations will naturally mean less regulations.”

Business community cheers

The Arizona business community leaders cheered the governor’s message of continued economic momentum.

“Small-business owners are thrilled to hear that despite record state revenues, our governor will not be going on a spending spree with our taxpayer dollars,” said Chad Heinrich, the Arizona state director for the National Federation of Independent Business. “While states like our neighbor California and others like Illinois and New York continue to lose residents, Arizona is the No. 1 inbound state for a reason: Low taxes, reasonable regulations and a government that is open to small-business entrepreneurs.”

Arizona ���ϳԹ��� of Commerce of Industry President and CEO Glenn Hamer was equally enthusiastic about the governor’s message and his pledge to hold the line on efforts to overspend.

“The governor made clear that he is going to work to improve our state’s tax climate, while removing regulatory barriers to growth. Competitive tax and regulatory environments have been central to our economic growth,” Hamer said. “We share his commitment to strongly resisting measures that will reverse our economic progress.”

The post Arizona governor vows to take commerce higher in 2020 appeared first on ���ϳԹ���.

The Arizona ���ϳԹ��� of Commerce and Industry hosted its annual Legislative Forecast Luncheon on Friday, offering members of the business community the chance to meet with and hear from the governor and state legislators about the most pressing issues for the state.

Susan Anable, chair of the Arizona ���ϳԹ��� executive board of directors and vice president of public affairs for Cox Communications, welcomed 1,200 guests during the event at the Arizona Biltmore hotel in Phoenix.

“As I stand here reflecting today on the year ahead, as we kick off 2020 as a state, it strikes me that there’s some irony — the irony of the frustrations that we as a business community face today — and they are truly indicators of how successful our economy is, and how strong our growth is right now,” Anable said.

“As businesses, we have an ever-tightening labor market, low unemployment, more-than-ever jobs to be filled to keep up with a booming economy; it’s harder than ever,” she said.

New businesses and new residents — including employees, students and retirees — are entering the state at a rapid pace, tightening the labor market and making it more challenging to get building and construction permits, she said.

“And there’s money to fight over: I don’t envy the job of the governor and the legislators who have to figure out how to spend those surplus revenues that we haven’t seen in a very long time,” Anable said. “But don’t get me wrong; these are good problems to have, and I’m grateful for them.”

The highlight of the luncheon was a fireside chat with Gov. Doug Ducey hosted by Glenn Hamer, president and CEO of the Arizona ���ϳԹ���.

“How’s the economy?” Hamer asked to start off the discussion.

“It’s pretty good; it’s pretty good,” Ducey said. “It’s booming, and in addition to the growth that we’re seeing, I would say the biggest difference is our economy is diversified.

“We’ve got more manufacturing jobs in the state of Arizona today than construction jobs, so this is all very positive,” he said. “And I think the future is bright — blue skies ahead.”

Ducey said he’s not losing any sleep about a possible recession, because the Arizona state government is prepared for it.

“The first time [I spoke at the Legislative Forecast Luncheon] we had a $1 billion deficit, and our state was still coming through the Great Recession,” he said. “Today, we’re in a completely different position. We’ve planned ahead.”

Ducey said an eventual economic downturn is inevitable and often unexpected.

“We’ve been able to repeal a lot of regulations; we have not been able to repeal the law of economics,” he said.

But $1 billion in the state’s Rainy Day Fund, lower debt and a balanced budget will make any future recession easier to navigate, he said.

Ducey said the state’s reputation has also improved since the Great Recession, turning Arizona State University from “the No. 1 party school in the country” into “the No. 1 most innovative university in the nation.”

The state economy has contributed to that as well, he said.

“If you look at Arizona when the Recession did come, and we were so dependent on homebuilding and construction, it was seen as an economic basket case,” Ducey said. “Today, we’re seen as a jobs juggernaut, and we’re locking down companies and cutting ribbons and making announcements like never before. So, that reputation and brand of the state really matters.”

The governor said he is looking forward to a productive legislative session in 2020 that is “brisker” than normal.

“We want to give the appropriate time to conduct the people’s business, but I don’t think we have to spend more time than is necessary,” he said.

Public education for kindergarten through 12^th grade is another major topic for the upcoming session.

“We’re always going to talk K-12 education, and of course we’re going to complete the teacher pay raise — the 20×2020 teacher pay raise will be completed in this next budget,” Ducey said. “I think we can also talk about how we have some targeted spending where it’s needed most. We have such great examples in the state of Arizona of public schools — both district and charter — that are excelling, and we’re doing this in all parts of our state — not just Maricopa and Pima, but our rural areas and lower-income areas — and taking those best practices and finding the right way to structure the funds so that we can replicate that.”

Ducey said he made a promise when he was first elected that he would lower or simplify taxes every year he is in office, and he said he remains committed to that pledge.

When asked about his legacy after office, the governor said he has too much to do in his remaining days — 1,085 as of the State of the State address — to have “the legacy discussion.”

“If you think these first five years have been transformative to our state, you should have the same expectation for what happens in these next three years, and that’s what we’re going to kick off on Monday afternoon,” he said.

The luncheon ended with a panel discussion between four Arizona legislators, hosted by Arizona 360’s Lorraine Rivera. All four panelists noted education as a pivotal issue for 2020.

House Minority Leader Charlene Fernandez, D-Yuma, said House Democrats would like to see a raise in pay for public school teachers and support staff.

“This is an issue that, when we’re knocking on doors throughout Arizona, the people that we talk to, no matter who they are — whether it be a mom with a child in a play pen right behind her or a 75-year-old man that comes to the door — they tell us that they want to see significant investments in public education, and that is the message we’re taking back,” Fernandez said.

Speaker of the House Rusty Bowers, R-Mesa, said the state’s Career and Technical Education (CTE) programs across the state have provided a very important function by increasing graduation rates and helping kids focus on the important aspects of school, both academically and socially.

“But CTED is supposed to bring us something at the end, that these kids can be ready to plug into a working economy, which we all in the room have expressed interest in having, and more employees,” he said. “So, getting the jump on that is always important to us.”

Bowers said the way additional CTE funding is structured is “very critical” but that he will look at outcomes to determine how to proceed.

There are 14 CTE Districts, or CTEDs, across Arizona.

Senate Minority Leader David Bradley, D-Tucson, warned that any budget surplus could quickly be eaten up by paying off the capital needs of K-12 and higher education institutions. Instead, he proposed the Legislature stop making tax cuts that could damage long-term education goals.

“There are needs that are enormous, and we have to stop the cuts in order to start to attend to those needs,” Bradley said.

Senate President Karen Fann, R-Prescott, said her one-on-one conversations with members of the state Senate of all parties revealed that education is the No. 1 priority for 2020 — especially K-12 — and right behind that is infrastructure.

“We know that for goods to move, for us to have a good economy, that means we have to have a good infrastructure system with our highways. So, I think those two are going to be right at the top of the agenda,” Fann said.

In response to a question from Rivera about higher education funding, Fann said state legislators had met with the Arizona Board of Regents and lobbyists for higher education to learn more about their request for additional funding for state universities.

“I think the number was somewhere close to $200 million that they want, and we know that investing in education is huge; it’s very important,” Fann said.

One thing to watch out for, though, is separating ongoing funding with one-time funding in order to protect the state’s robust economy, she said.

“We cannot afford to be put in the position where we allow too much ongoing funding, and then that recession hits and we cannot sustain it,” Fann said. “We’re going to be very, very careful about figuring out how to spend that money.”

The post Annual Legislative Forecast Luncheon sets stage for 2020 state legislative session appeared first on ���ϳԹ���.

We’re hours away from ringing in 2020! But before the ball drops and before we pop the champagne, it’s time for Arizona’s favorite year-end tradition, Glenn Hamer’s Ham(m)er Awards, where the Arizona ���ϳԹ��� of Commerce and Industry president and CEO looks back at the people and events of 2019.

If you’ve been reading Glenn’s commentaries throughout 2019, you can probably guess what this year’s theme is going to be.

Trade, trade, trade. We’re on the edge of the adoption of the most important trade deal in a generation and there’s a lot of praise to go around.

We also had a big year on water with passage of the Drought Contingency Plan. Finally, the state continues to be at the top of the leaderboard when it comes to education funding and reforms that drive results.

When you add it all up, we live in one of the fastest-growing states in the country, with the fastest-growing county (Maricopa) and big city (Phoenix), with now more jobs than people to fill them.

Here’s who and what stood out to me in the year that was…

The Jim Kolbe Congressional Trade Hero Award

This Ham(m)er is named for my first boss in Arizona politics. (I was a law school fellow, but he says I was an intern.) Former U.S. representative Jim Kolbe was essential to getting the original trilateral trade agreement, NAFTA, through Congress. He will always be royalty in trade circles.

The award goes to Rep. Greg Stanton. The so-called freshman stepped up early and often to make the case for USMCA among his fellow Democrats. I call him a “so-called” freshman because few lawmakers on Capitol Hill arrived on the job with his level of insight into one of the most important issues before Congress.

He and 13 of his Democratic colleagues penned a letter to Speaker Nancy Pelosi in August on the importance of bringing USMCA up for a vote. He tapped into his experience as the former mayor of Phoenix, where he led 18 trade missions to Mexico—our friend, neighbor, and ally. He brought the relationship between Mexico and Arizona back and elevated it.

Mexico and Canada are Arizona’s top trading partners—by far—and our state needs these countries to continue to invest, travel and trade with us to be successful. Few understand that better than Rep. Stanton.

Most Deserving of Nobel Peace Prize Award Award

United States Trade Representative Robert Lighthizer.

In a meeting with about a dozen Arizona business leaders in 2018, Ambassador Lighthizer said that he wanted a revised trade deal with Mexico and Canada that would pass overwhelmingly in Congress and receive the endorsement of Tom Donohue, the head of the U.S. ���ϳԹ���, and Richard Trumka, the head of the AFL-CIO. Let’s just say that this seemed like a stretch at the time.

Well, both men did endorse the deal and the USMCA passed the House with the most votes of any trade pact since the very first U.S. free trade agreement, which was signed with Israel way back in 1985. For his work, Ambassador Lighthizer gets a Ham(m)er.

The Trade Supergroup Award

Think of this Ham(m)er Award as recognition of a group effort—a supergroup effort along the lines of the Traveling Wilburys. Many inside and outside the Beltway had a hand in the House’s passage (and soon-to-be Senate passage) of the USMCA. The U.S. ���ϳԹ���’s Myron Brilliant, John Murphy and Neil Bradley all did outstanding work, as did the National Association of Manufacturers’ Linda Dempsey. The Wilson Center’s Mexico Institute, under the leadership of the swashbuckling Duncan Wood and his partner in crime Chris Wilson, puts out useful content on a daily basis.

The best chamber of commerce trade advocate outside of D.C., Paola Avila of the San Diego Regional ���ϳԹ��� of Commerce (home to the Western Hemisphere’s busiest land border crossing!), positioned the agreement for success. A Ham(m)er is also deserved by our friends in Mexico, starting with José Andrés Garcia for scheduling an insane amount of high impact meetings for business leaders. At a state legislative level, Arizona state Rep. César Chávez was an important leader inside and outside of Arizona advocating for USMCA and giving the deal some bipartisan chops. Thanks also go to Arizona Morena leader Lorena Schmit and my volunteer Spanish-language publicist and the owner of Pescaderia el Puerto de Guayman Irayda Flores. Finally, I want to thank Garrick Taylor of our shop who does a better job of articulating the case for trade and explaining tariffs better than anyone I know.

The Paul Fannin Legacy Award

This Ham(m)er Award goes to the Arizona-Mexico Commission, the best run gubernatorial commission in the U.S. Under the direction of Gov. Doug Ducey, Senior Advisor Juan Ciscomani, President Jessica Pacheco, and secret weapon and consultant Luis Ramírez, the commission is tremendously effective on every level. Paul Fannin, the former Arizona governor, founded the organization 60 years ago, and in 2019 the AMC lived up to his vision in major ways.

Start with its work on USMCA, where the commission developed a special website that outlined trade’s importance to all 50 states. No U.S. governor was more active in pushing USMCA than Gov. Ducey. His fireside chat with Ambassador Lighthizer moderated by U.S. ���ϳԹ��� President Suzanne Clark, energized the nation’s top chamber leaders at a September meeting and motivated the business community to make a final push for the agreement’s passage.

Beyond USMCA, the AMC’s work on behalf of Arizona’s ports of entry helped secure $150 million for San Luis. Our chamber joins the AMC in its continued advocacy for important initiatives on tourism, transportation, education, streamlined cargo inspections—you name it. Kudos to the AMC for a great, Ham(m)er Award-winning year.

Albert Einstein Leader of the Year

This Ham(m)er Award goes to our senior senator, Kyrsten Sinema. She’s a genius. Her poll numbers are sky-high and it’s no wonder. She has the most bipartisan voting record in the U.S. Senate. In addition to running in endurance races all over the world (she set a personal record at Ironman New Zealand) and being a model of bipartisanship, she is putting points on the board. Take a look at her recent win on a seven-year reauthorization of the Ex-Im Bank—a huge deal for Arizona manufacturers who want to reach customers beyond U.S. shores. Her work on rebalancing trade policy powers between the executive branch and Congress can be legacy-type stuff.

The Ping-Pong Diplomacy Award

Give the Phoenix Suns a Ham(m)er for their return to Mexico City. It was a big deal. The game against the Spurs was an overtime thriller before a sold-out crowd of 20,013 fans who loved the game. (The same can’t be said for the officiating.) Kudos to my friend Maria Lourdes Delgado of Visit Phoenix for leading a business group to the game, and to the team at Molera Alvarez and Arizona Lodging and Tourism Association boss Kim Sabow for helping pull the trip together.

Sports are a great export industry for us. The Yankees and Red Sox headed to London in 2019, but give me Mexico any time. I can’t wait for the Diamondback to play ball in Mexico City in 2020 in the first regular season games ever in that country.

Bipartisan Accomplishment of the Decade Award

The Drought Contingency Plan.

What a way to close out the 21st century’s second decade. Start with the work of Gov. Ducey, Central Arizona Project’s Ted Cooke and Arizona Department of Water Resources honcho Tom Buschatzke, who grinded out a deal on a water stewardship plan that earned near unanimous approval in the state Legislature. Ensuring the health of Lake Mead and the Colorado River requires adult leadership, which is what Senate President Karen Fann, House Speaker Rusty Bowers, House Minority Leader Charlene Fernandez, and state Sen. Lisa Otondo delivered. When the baton was passed to Capitol Hill, Sen. Martha McSally and House Natural Resources Committee Chairman Raúl Grijalva grabbed it and got the Drought Contingency Plan through Congress.

Outside the elected officials, the efforts of Valley Partnership President and CEO Cheryl Lombard were indispensable, as were her fellow members of the Governor’s Steering Committee and Water Augmentation Council. They all deserve Ham(m)ers for ensuring that Arizona’s water future remains secure.

Best Motivational Speech on Education Award

It’s not quite a Grand Slam championship, but tennis great Andre Agassi deserves a Ham(m)er. He wowed a crowd of charter advocates at the 25th anniversary gala of the Arizona Charter School Association with his reflection on why he entered this arena: to give kids quality educational choices.

It was a special evening for the Association, which honored education choice pioneer Lisa Graham Keegan and named an award in her honor. The work of the Charter School Association—now under the outstanding leadership of Jake Logan—and the entire education choice movement has changed lives for the better.

The Tony, Tony, Tony Award

State Rep. Tony Rivero.

No, it’s not a 90s R&B throwback. This award is named for the state legislator who once again proved to be the driving force at the Legislature for raising Arizona’s global profile.

Rep. Rivero has led the effort to increase Arizona’s trade presence in Mexico and, in 2019, he was the prime mover for the establishment of a trade office in Israel, a world tech superpower.

A few years ago, he led a bipartisan delegation of about 15 lawmakers to Mexico. This year he topped that with a group of 18 lawmakers to mark the opening of the trade office. For all of that, he certainly deserves a Ham(m)er.

The Art of the Deal Award

State Rep. Ben Toma.

This Ham(m)er goes to the lawmaker who put together the most significant tax reform deal since the original jobs package that marked the beginning of the decade of economic recovery and chart-topping growth.

The deal that Rep. Toma shepherded to passage included massive simplification, a reduction in our top individual income tax rate, and a reform to online sales tax collection.

My Main Man Award

A.P. Powell gets the nod. A.P. has created an environment where, by working with veteran advocates like Admiral Hal Pittman, various groups are working together to improve policies at all levels of government for our military veterans. There’s nothing ordinary about A.P.’s background—it’s fascinating. Give him a follow on Instagram and you’ll see what I mean and why I love rolling with him…and why he deserves a Ham(m)er.

The Tom Seaver You Can Come Home Again Award

Every year I sprinkle in some baseball heroes of my youth. This year’s edition is named for the Cy Young Award winner and Hall-of-Famer whose long career included two stints with my hometown New York Mets. This Ham(m)er goes to former state treasurer Jeff DeWit, who’s now the COO at NASA. DeWit returned to Arizona in October for Manufacturing Month to deliver an update on the space agency before a packed Arizona Manufacturers Council audience.

Don’t be surprised next year if we recognize the contributions of Barbara Barrett, the former Arizona ���ϳԹ��� Heritage Award winner whose nomination to be secretary of the Air Force sailed through the confirmation process, or ASU’s Dr. Sethuraman “Panch” Panchanathan, who’s been nominated to be the next director of the National Science Foundation. All three are making Arizona proud on a different stage.

Art of the Selfie Award

Karin Jimenez.

Formerly of the Arizona-Mexico Commission and now with the Arizona Lodging and Tourism Association, Karin has helped me develop a special appreciation for the art of the selfie photo. (My kids have put the kibosh on me taking any selfies involving them.)

Karin is everywhere and, in every selfie, looks happy and proud to be representing her organization—and she is! Karin is a great champion of trade, tourism and the relationship with Mexico, too.

We end the year on all sorts of positive. Wishing all a healthy and Happy New Year. Let’s make the 20s our best decade yet!

Glenn Hamer is president and CEO of the Arizona ���ϳԹ��� of Commerce and Industry.

The post Glenn Hamer’s 2019 Ham(m)er Awards appeared first on ���ϳԹ���.