by admin | Oct 10, 2016 | News and Updates
This November Arizona voters will decide the fate of Prop 206, an initiative that implements job killing wage and benefit mandates on Arizona employers. The Club has communicated why this is a bad deal for our state.
Small business owners throughout the state are now speaking out against the initiative. Barb, a local owner of a family business, explains why voters shouldn’t be fooled by this out-of-state special interest ploy to unionize Arizona workers. Join Barb in voting NO on Prop 206.
by admin | Oct 5, 2016 | News and Updates
Earlier this year, the Club lamented the effort by out-of-state special interest groups to force a slate of anti-business initiatives onto the Arizona ballot. While 2 of the efforts failed to qualify, arguably the most damaging proposal of the slate will be on the November ballot: Prop 206. If approved by voters, Prop 206 would increase the minimum wage to $12/hour (indexed to inflation, so it will go higher) and mandate that all businesses, no matter the size, provide paid leave for employees.
Arizona Voters should reject Prop 206. Legislating employment law from the ballot box is a dangerous idea. Sweeping measures such as this one force all businesses into a one-size-fits-all and disproportionately harm small businesses and entry level workers. The economic damage this will cause to the state by suppressing growth is inevitable.
However, the real kicker is tucked deep into the ballot language, with the hopes that AZ voters won’t be savvy enough to realize it. The Big-Union Bosses backing the initiative have exempted themselves out! Such hypocrisy reveals these sinister groups from California are simply making a play to unionize as many workers in Arizona as possible. More union workers mean more union dues; more unions’ dues mean fatter paychecks for Union Bosses.
We hope Arizonans see through this ruse in November and vote “NO” to keep California interests from ruining Arizona prosperity.
by admin | Oct 3, 2016 | News and Updates
Over the last 30 years, Pinal County taxpayers have put their money where their mouth is when it comes to improving their transportation infrastructure. Similar to Maricopa County, Pinal residents in 1987 voted to pass a 20 year half-cent sales tax increase dedicated to transportation improvements. In 2005, voters voted to extend this tax, with the promise that the funds would be used to connect Pinal County communities to freeways and urban centers.
Yet 10 years into the latest extension, the Pinal Regional Transportation Authority is asking an additional half-cent sales tax increase in hopes of collecting more from tax payers. They are arguing that growing infrastructure needs and “bad luck” are the reasons for the recommended tax hike. What they don’t want you to know is that mismanagement and missallocation of the transportation tax revenue is primarily responsible for the current crisis, not a lack of funds.
Transportation Dollars for Christmas Bonuses?
Under Arizona law, when a county or regional transportation authority approves an excise tax for transportation, the Arizona Office of the Auditor General has the power to review and randomly audit how benefiting jurisdictions expend the funds. Specifically, all benefiting jurisdictions are
strictly required to use transportation excise funds “for street and highway purposes or for transportation projects included in the regional transportation plan.”
In 2006, the Auditor General randomly selected Pinal County as well as several participating cities: Mammoth, Superior, and Apache Junction. What they discovered was rampant abuse and misuse of the transportation funds in all three municipalities. Specifically, the Town of Mammoth used transportation funds to pay employee Christmas bonuses and unknown credit card expenses. They also failed to track employee work schedules and were unsure if some non-roadway public works projects were being improperly charged to the transportation fund. The Town of Superior and Apache Junction had similar infractions.
The abuse has continued throughout the years. The AG’s report in 2011 uncovered multiple towns using transportation dollars to cover deficits in other departments; a practice strictly prohibited by law. Mammoth again was one of the biggest offenders, “borrowing” over $600,000 of restricted funds. Superior was caught in the act as well, using $2.6 million of their transportation dollars to subsidize other city departments. In a follow-up report, nearly three years after the previous report, neither city had rectified the deficiency in the transportation account and the Town of Superior had not even begun to make any repayments.
Finally, in
this year’s Auditor General’s report, Superior’s indiscretions were so pervasive that the State Treasurer withheld funds in 2015 for non-compliance. Mammoth too is under threat of having its funds withheld. In addition to these financial discrepancies, Kearny, Mammoth, and Superior were all reported to have insufficient record keeping for road projects as well as inadequate planning processes for future projects. The Auditor General has cited all these same exact problems in reports as early as 1998; suggesting a continuing problem that has yet to be corrected for over 15 years.
Pinal County Taxpayers Subsidize Municipal Road Improvements
Misuse of transportation excise tax dollars is just part of the problem. The larger issue is that the current (and proposed) transportation plan requires Pinal taxpayers in unincorporated areas to subsidize road improvements for residents living in cities and towns.
How big is the shift? According to numbers provided by the Auditor General in 2011, unincorporated Pinal County (such as San Tan Valley) received only $80 per resident, a tiny fraction when compared to what municipalities received per resident.
| Jurisdiction |
Excise Monies |
Population |
Lane Miles |
$ Per Resident |
$ Per Lane Mile |
|
|
|
|
|
|
| Pinal County |
$30,286,896 |
395,776 |
4,229 |
$80 |
$7,161 |
| Apache Junction |
$14,355,561 |
34,004 |
372 |
$420 |
$38,590 |
| Casa Grande |
$11,480,528 |
48,571 |
827 |
$236 |
$13,882 |
| Coolidge |
$3,543,727 |
11,825 |
411 |
$299 |
$8,622 |
| Eloy |
$4,722,079 |
16,631 |
560 |
$283 |
$8,432 |
| Florence |
$7,832,095 |
25,536 |
211 |
$307 |
$3,706 |
| Kearny |
$1,023,665 |
1,950 |
29 |
$525 |
$35,299 |
| Mammoth |
$801,983 |
1,426 |
36 |
$562 |
$22,277 |
| Maricopa |
$6,219,820 |
43,482 |
509 |
$143 |
$12,219 |
| Queen Creek |
$54,152 |
1,558 |
14 |
$35 |
$3,863 |
| Superior |
$1,481,100 |
2,837 |
46 |
$522 |
$32,198 |
Overall, unincorporated residents get only 37% of the total tax allotment even though 55% of the population lives in the county.
This unfair funding distribution was not an accident. The transportation planning process in Pinal County is dominated by Mayors, Council Members and city insiders. They control the planning process, and by extension control where the money will go. So it is not surprising that a large majority of county taxpayers are subsidizing local street projects that benefit a fraction of the population, with the result being no significant road improvements being constructed for over a decade.
It is also not surprising that the new Pinal Regional Transportation Plan, funded by the proposed sales tax increase, will discriminately benefit a few select cities at the expense of unincorporated county residents. The largest project in the plan is a parkway that runs from the east side of Apache Junction south to Florence and Coolidge. The problem with this road design is it weaves around and excludes one of the largest unincorporated communities in all of Pinal county – San Tan Valley – approximately 90,000 residents (22% of the county population). Other large unincorporated areas such as Gold Canyon and the Saddlebrook Retirement Community get virtually nothing from the tax increase.
Fortunately, voters will get to decide whether or not they think this latest tax increase is a good idea. Given the past abuse and the politically driven distribution of the funds – perhaps Pinal County voters will push for a tax decrease instead.
by admin | Sep 29, 2016 | News and Updates
Phoenix, AZ – The Arizona Free Enterprise Club PAC today has released a second slate of legislative candidate endorsements for the general election.
The candidates who received endorsements share the key beliefs in free market economics, tax reform, school choice, regulatory reform, and fair and equitable tax policy.
Endorsed candidates include:
- Frank Schmuck, District 18, Senate
- Ana Henderson, District 9, House
“The Club is honored to endorse this slate of candidates for the Arizona Legislature. Both Mr. Schmuck and Ms. Henderson are passionate about fighting for Arizona taxpayers and we are confident they will be principled in their votes on the important issues facing the state.” Free Enterprise Club President Scot Mussi said.
Mussi continued, “We are excited to see newcomer Frank Schmuck on the scene and believe he will bring a fresh enthusiasm and energy to the Senate. Mr. Schmuck is a Persian Gulf War Veteran and brings his combat instincts to campaigning. He is serious about taking a hard look at the Arizona income tax and is dedicated to the kinds of reforms that will make for a prosperous Arizona in the future.
Ana Henderson is a tireless worker from Tucson. Ms. Henderson cares deeply about the educational and employment opportunities in her district and will be a fantastic advocate for her constituents.”
For additional information on the Club PAC’s candidate endorsements, contact Scot Mussi at info@azfree.org or at 602-508-6088.
To see prior 2016 endorsements: Slate one, Slate two. General Election endorsement: Slate one.
by admin | Sep 22, 2016 | News and Updates
Phoenix, AZ – The Arizona Free Enterprise Club announced today the 2016 Free Market Champion Award recipients. The Free Market Champion Award is given to members of the Legislature that demonstrate leadership and a commitment to free market, pro-growth policies in Arizona. This year’s award includes a picture and quote from world renowned economist and true defender of economic liberty, Ludwig Von Mises. The quote on the award reads, ““Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping toward destruction. Therefore, everyone, in his own interests, must thrust himself vigorously into the intellectual battle.”
The two recipients of the Free Market Champion Award are:
- Senator Judy Burges (District 22)
- Representative Eddie Farnsworth (District 12)
“The Free Enterprise Club is proud to honor these two legislators for their hard work and consistent support of economic freedom and prosperity at our state capitol,” President Scot Mussi said. “They truly made a difference for Arizona taxpayers and businesses.
###
The AZFEC is a 501(c)(4) policy and advocacy group not affiliated with any other organization. For more information visit www.azfree.org
by admin | Sep 8, 2016 | News and Updates
Phoenix, AZ – The Arizona Free Enterprise Club PAC today has released their first slate of legislative candidate endorsements for the general election.
The candidates who received endorsements share the key beliefs in free market economics, tax reform, school choice, regulatory reform, and fair and equitable tax policy.
Endorsed candidates include:
- Sylvia Allen, District 6, Senate
- Bob Thorpe, District 6, House
- Brenda Barton, District 6, House
- Jill Norgaard, District 18, House
- David Cook, District 8, House
- Todd Clodfelter, District 10, House
- Chris DeRose, Phoenix City Council, District 3
“The Club is honored to endorse this slate of candidates for the Arizona Legislature. Each individual is passionate about fighting for Arizona taxpayers and we are confident they will be principled in their votes on the important issues facing the state.” Free Enterprise Club President Scot Mussi said.
Mussi continued, “We are fortunate to have incumbent, Sylvia Allen, who has proven to be a stalwart champion of the taxpayer. Both her incumbent seatmates, Bob Thorpe and Brenda Barton, have also demonstrated their commitment to sound policy coupled with a practical and hardworking attitude.”
Jill Norgaard is rerunning for her seat in District 18; and she has proven to be a formidable freshman in her last two years. Jill is a true fiscal conservative who has had successfully championed and passed legislation that has given greater flexibility to schools as well as regulatory relief to the business community.
David Cook and Todd Clodfelter would both make strong additions to the legislature. Mr. Cook has deep knowledge of water, natural resources, agriculture, and mining policy issues. Mr. Clodfelter will be a passionate advocate for small businesses. Chris DeRose will be a spending hawk for taxpayers and fight the Phoenix establishment’s insatiable appetite for taxing its residents.”
For additional information on the Club PAC’s candidate endorsements, contact Scot Mussi at info@azfree.org or at 602-508-6088.
To see prior 2016 endorsements: Slate one, Slate two.
Recent Comments