PHOENIX, ARIZONA – The Arizona Free Enterprise Club has again emerged as one of the prolific defenders of the state’s values and principles against the onslaught of the radical agenda proposed by Governor Katie Hobbs in her latest budget for Fiscal Year 2026. Scot Mussi, President of the Arizona Free Enterprise Club, issued the following statement:
“In the first month of this new year, Governor Hobbs and her regime on the Ninth Floor have continued to push one of the most radical agendas in our state’s storied history. We have seen another nonsensical budget proposal from this incompetent administration that certainly does not reflect the will of the Arizona people. For example, the governor’s budget draft results in a staggering $390 million deficit in 2028, extends and expands a state level low-income tax credit program that is rife with fraud and abuse, attacks Arizona’s historic school choice opportunities for thousands of children, and purposefully neglects to support President Donald J. Trump’s efforts to secure our border and enforce our immigration laws. One might think, when reading Hobbs’ proposals, that she was the chief executive of California or Illinois – not Arizona.”
Mussi added, “These priorities – and others – from the governor should be a non-starter for the Arizona Legislature. Thankfully, we have majorities in both the state House of Representatives and Senate that understand the importance of rejecting this budget proposal and the rest of the Hobbs’ agenda. The Arizona Free Enterprise Club has been proud to stand against this agenda since the beginning of the Hobbs administration, and we will continue to oppose the radical policies that are being championed by the Governor’s Office. We look forward to seeing a budget from state legislators that better reflects the desires of Arizonans.”
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As President Trump gets to work cleaning up Joe Biden’s failed economy, the last thing the people of Arizona need is to be sending their hard-earned dollars to woke Hollywood. But that’s exactly what’s happening.
Thanks to a law passed in 2022, movie companies that film in Arizona will begin receiving refundable tax credit subsidies this year—up to 15 percent if they spend up to $10 million in production costs, 17.5 percent if they spend between $10 million and $35 million, and 20 percent if they spend over $35 million. Then, to top it all off, these movie companies can get an additional 2.5 percent if they meet other criteria.
But here’s the real kicker. The keyword in all of this is “refundable.” This essentially means that if a movie company qualifies for more credits than they owe in taxes, the State of Arizona sends them a check!
So, how much does this outrageous tax scheme cost the people of Arizona?
Up to $125 million each year!
For that kind of money, there must be at least some kind of return on this investment, right? Nope.
If a company comes to Arizona, films a movie, mentions our state in the credits but decides not to release or distribute the film, it still receives the money.
Yes. You read that right. Arizona taxpayers could be funding Hollywood movies that won’t ever see the light of day. Who came up with this scheme?
This is not only absurd, it’s unconstitutional. That’s why the Goldwater Institute filed a lawsuit against these Hollywood handouts last week.
The Arizona Constitution’s Gift Clause is clear. The state cannot handout subsidies or cash for private purposes unless taxpayers receive a direct benefit. And the Arizona Supreme Court even ruled in 2021 that the government cannot include “anticipated indirect benefits” such as projected sales and tax revenue as part of the consideration with a private party under the Gift Clause in the Arizona Constitution. In other words, Hollywood dazzling our state’s leaders with projected economic development leading to increased tax revenue is an “irrelevant indirect benefit” that can’t be included in the consideration.
While Goldwater litigates the issue, the Arizona legislature needs to get to work as well. Movie production is a multi-billion-dollar industry. They do not need a subsidy. And if that’s not enough of a reason, consider this. Our state has been down this road before.
Years ago, Arizona lawmakers passed an “incentive” program similar to this one that cost us millions of dollars. And guess what happened? It offered no benefits to the people of Arizona and was allowed to expire. On top of that, other states like New York, Louisiana, Georgia, Connecticut, and Massachusetts have enacted Hollywood subsidies. But a recent study showed that despite $10 billion in taxpayer spending, there wasn’t even a statistically significant impact on employment.
It’s time to stop this terrible tax policy in our state. The people of Arizona don’t want to subsidize Hollywood’s woke movies while thousands of liberal California voters are shipped to our state. Arizona’s lawmakers need to do taxpayers a favor and repeal this awful program before the court is forced to shut it down.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
With the new year here and the 2025 legislative session officially underway, Democrats are already proving they can’t learn a lesson. Led by Governor Katie Hobbs, one of their primary targets is once again…you guessed it…Arizona’s Empowerment Scholarship Account (ESA) program. Stop us if you’ve heard this before.
You would think that Democrats would find a different target after getting trounced in an election where teachers’ unions and other anti-school choice groups made it a referendum on school choice. But no. After 2 ½ years and multiplefailures trying to overturn school choice, they’d rather double down on their same tired and out-of-touch policies.
This time, Hobbs and the Dems say they want to roll back ESAs because of all the supposed “fraud” in the program. Never mind the fact that the rate of waste, fraud, and abuse in the ESA program is extremely low. Never mind the fact that ESAs have proven to be far more financially accountable than other government programs. Democrats don’t care about facts. Instead, they want to regulate this popular program while Arizona’s Democrat Attorney General Kris Mayes asks for more funding to investigate ESA fraud.
But here’s a message for Hobbs, Mayes, and the rest of the Democrats:
If you care so much about fraud, why not investigate Arizona’s public school districts?
They could start with Isaac Elementary School District (IESD).
Earlier this week, IESD was placed under a state receivership after it was determined that it had a budget shortfall of over $12 million!And this didn’t come as a surprise. The Auditor General has been trying to stop the mismanagement of funds in this school district for five years!
A $12 million budget shortfall in just one school district is mind-blowing, but IESD is certainly not alone. School districts throughout our state have been mismanaging millions, going into default, and committing fraud for years.
Back in 2022, Mesa Public Schools (MPS) failed to explain where $32.3 million of their federal emergency funds slated for COVID expenses went. The investigation came after reports that MPS teachers were asking parents to donate basic school supplies they were running out of because the district wouldn’t cover them. But instead of having a clear explanation for the money that was buried under expenses listed as “other,” “indirect costs,” and “etc.,” MPS officials dodged the question and claimed no records existed for those categories.
Also, in 2022, a former superintendent and another employee from Toltec Elementary School District were indicted for fraudulent schemes, misuse of public monies, and theft. This came after the employees secretly used their personal monies to fraudulently inflate their Arizona State Retirement System benefits.
Then, there’s Higley Unified School District (HUSD). Back in 2021, HUSD’s now-former superintendent, Dr. Denise Birdwell, was indicted on 18 counts related to procurement fraud, misuse of public monies, fraudulent schemes and practices, and more. This came after the Auditor General found that Dr. Birdwell conspired with employees of Education Facilities Development Services (EFDS) to circumvent school district procurement rules to improperly award the group with a $2.5 million project development service contract for the construction of two new schools. On top of that, the Auditor General also found that Dr. Birdwell misused public monies when she authorized the unlawful use of $6 million in restricted public funds toward the construction of the schools.
And let’s not forget what happened in Yuma County toward the end of last year when a former superintendent secretary with the Hyder Elementary School District was indicted for theft, misuse of public monies, and forgery. The indictment came just eight weeks after the same woman was arrested in Scottsdale in connection with an elaborate scheme against the Cocopah Middle School Association of Parents and Teachers.
You won’t hear about any of this type of fraud from Hobbs, Mayes, or other Democrats because this isn’t about fraud. It never was. They just want to find any way they can to regulate our state’s historic school choice program—all to protect their buddies in the teachers’ unions.
But here’s a message for Hobbs and Mayes. Whether you like it or not, school choice is here to stay in Arizona. And we will keep fighting back with this winning message because every student in our state deserves the best education possible and the funding to make it happen. Instead of griping about ESAs, which have way more oversight than the typical school district, show us that you really care about fraud and start investigating our public schools.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
PHOENIX, ARIZONA – This week, the Arizona Legislature commenced its 57th Regular Session with Opening Day ceremonies for both the state House and Senate and the State of the State from Governor Katie Hobbs. Scot Mussi, President of the Arizona Free Enterprise Club, issued the following statement:
“It’s another year, but Governor Katie Hobbs continues to push her tired and out-of-touch policies on hardworking taxpayers of this state. During her address on Monday, Hobbs discussed her relentless desire to regulate the state’s historic school choice program and to waste funds on housing tax credits that we cannot afford. Our organization is again committed to being the tip of the spear in opposition to the governor’s radical agenda as we stand with state legislators at the Arizona Capitol. Future generations are depending on our efforts to stand for freedom, prosperity, and opportunity for all Arizonans.”
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
PHOENIX, ARIZONA – The Arizona Free Enterprise Club is saddened to announce the passing of Dean Riesen. Dean was a founder of the organization and served as Chairman for over a decade.
Scot Mussi, President of the Arizona Free Enterprise Club, issued the following statement:
“Our organization and the state of Arizona suffered a great loss with the passing of our Chairman Dean Riesen. As one of the founders of the Arizona Free Enterprise Club, Dean was instrumental in building one of the most influential and effective policy organizations in the state. Our countless legislative and ballot box victories over the last 20 years would not have been possible without Dean’s guidance and unwavering commitment to limited government and pro-growth policies. He will be sorely missed.”
Riesen began his life in the State of Iowa and commenced a fulfilling journey of learning, leadership, and service that took him to Cornell College for education. It was here at this institution that he met his love of his life – his wife of 42 years, Bambi Hull Riesen. They had three children together and now three grandchildren. Dean rose to prominence with the Carlson Real Estate Company – even helping to negotiate a multi-billion-dollar, international merger.
After the turn of the century, Riesen and his family moved to Scottsdale, Arizona, and he helped lead a commercial real estate investment and development firm, Rimrock Partners. He then founded, what is described as his biggest philanthropic project, the Tanzania Water Fund, which provided clean water to over 200,000 individuals. Dean was highly involved in a number of other private and public efforts and organizations throughout his life, including the Arizona Free Enterprise Club, where he sacrificed countless hours to strengthen Arizona’s standing as one of the most free-market and conservative states in the union.
Our members, supporters and activists at the Arizona Free Enterprise Club will forever be grateful for Dean Riesen and his life of service to this state, our nation, and the world. He will be missed, and his work will live on for future generations of Arizonans and Americans.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
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