#Arizona Steps Up #Coronavirus Response with Emergency Declaration & $55 million (video)

Arizona House

A week ago, on Monday, March 9, I urged for the state of Arizona to make a serious financial investment in prevention and control of the Coronavirus (COVID-19).

On Tuesday, March 10, several House Democrats met to discuss prevention, control, treatment, and economic strategies to combat the Coronavirus in Arizona. Later that day, the House Democratic Leadership met with Governor Doug Ducey’s staff, urged appropriation of significant funds to get ahead of the outbreak, and discussed House Democratic Caucus ideas.

On Wednesday, March 11, Ducey declared a state of emergency in Arizona, hours after health officials announced the ninth case in Arizona and the World Health Organization declared COVID-19 a pandemic. At that point, there were three cases in Maricopa County, five in Pinal and one in Pima.

On Thursday, March  12, our first vote of the day was to suspend the rules and pass SB1051 to continue the Arizona Department of Health Services (ADHS) and appropriate $55 million from the Rainy Day Fund to ADHS to fight COVID-19. Any funds that are unspent at the end of the fiscal year (June 30, 2021) will go back to the Public Health Emergency Fund. In addition, KTAR reported that the federal government had promised $12 million for Arizona.

Continue reading #Arizona Steps Up #Coronavirus Response with Emergency Declaration & $55 million (video)

#HCR2045 Limits #Marijuana Research, Adds #MMJ Sales Tax & Spends #MMJ Funds (video)

Marijuana plant

On the Floor of the House on Tuesday, Speaker Rusty Bowers, and Reps. Warren Petersen, Kelli Butler, Isela Blanc and I had a rousing debate over Bowers’ HCR2045.

You may remember that I mentioned this bill a few weeks ago in a blog post about Reefer Madness. HCR2045 has been amended. The worst part of it is gone, but it’s still bad.

HCR2045 is the bill in which Bowers wanted to artificially lower the amount of THC in products sold in Arizona to 2%. This is a politically motivated, artificial limit on a chemical compound found in a plant that has been used as an herbal remedy for CENTURIES and has never killed anyone. HCR2045 would destroy successful small businesses by eliminating their products from the market, hurt patients, cripple the medical marijuana program, and revive the black market.

Continue reading #HCR2045 Limits #Marijuana Research, Adds #MMJ Sales Tax & Spends #MMJ Funds (video)

More Transparency in Commerce Authority Tax Giveaway Deals Is Needed (video)

UA College of Medicine

Today’s video is about HB2409, small business investment tax credit extension. This is also known as the Angel Investor Tax Credit. In the big scheme of tax giveaways in the state of Arizona, this one is sort of small potatoes dollar wise, but I still have issues. It is an extension if $2.5 million per year tax credit for 10 years. The angel tax credits are for “qualified investors,” people who are licensed, trained, and smart enough to play the stock market and make otherwise risky investments wisely because of their expertise. [My layman’s definition.] 

I have attended several Bioscience Roadmap events where they showcase research and new discoveries from the universities that are … just …about… ready for market. What they need is venture capital to get the new drug discovery or the next medical device from our universities to production to market.

I am very familiar with this topic because ever since I started my own small business in 1986, I have been writing about or working in public health and medical research. In fact, the first Bioscience Roadmap event that I attended featured Dr. Gene Gerner, Dr. Tom Grogan and the story of how their research at the Arizona Cancer Center blossomed into huge NCI research grants, new drugs, and successful UA spinoff businesses. I knew them, wrote about their research, and photographed them when I worked in the communication office at the cancer center.

My point is that I value scientific research and believe that research jobs (and related jobs that come with big grants) are some of the best jobs in our state. One of the reasons that I don’t support the angel investment tax credit is that I found out that only 30% of the funds go to businesses that spinoff from our research universities. Also, there is a $10 million ceiling to qualify as a “small start-up business” (who is eligible to receive funds from angel investors). If your business has $9 million in assets, is it really as “small business start-up”? 

Continue reading More Transparency in Commerce Authority Tax Giveaway Deals Is Needed (video)

#AZLeg Should Add Coronavirus Prevention & Control to Budget (video)

hospital

The Coronavirus is spreading rapidly in some US states, including Arizona.

Let’s put this contagion into perspective. One man in New York has been linked to 28 cases of Coronavirus. Last week, we heard about Coronavirus in one senior living facility in the Seattle area; one week later, there are Coronavirus cases in nine senior living facilities in that area. When I recorded my video (below), there were three cases in Maricopa County. By the end of the day, there are six confirmed cases of Coronavirus in Arizona, including one in Pima County, and at least one Arizona Congressman has been exposed. Everything is moving fast.

Can the state of Arizona do more to protect the public? I think so. For the second year in a row, the state has extra funds to invest– $635 million in one-time funds and $300 million in ongoing funds. If you follow my video updates, you know that House Republicans have proposed 18 tax giveaway bills, which, if they all passed and were signed into law, could total more than $1 billion. [For the record, I am not criticizing the state’s response to the Coronavirus. I am suggesting that the state take a more active role in preventing the spread by investing in tactics to keep people healthy.]

For months, I have been saying instead of giving away taxes to big corporations, utility companies, and selected special interest groups, we should be investing it in programs to help the people of Arizona, like reducing Adverse Childhood Experiences, fully funding public education, and fixing our roads.

Enter the Coronavirus… here is something we should be budgeting for… now.

Continue reading #AZLeg Should Add Coronavirus Prevention & Control to Budget (video)

Tax Giveaways, Gentrification, & Housing in Tucson (video)

Rep. Pamela Powers Hannley

On Sunday, March 1, 2020, I was the keynote speaker at a South Tucson community forum on tax giveaways (specifically the GPLETs), gentrification, housing, and poverty. The following is my speech.

Thank you all for coming, and I especially want to thank Brian Flagg of Casa Maria for organizing this.

You may know me as a Legislator now, but old friends in the audience also know me as a political blogger with Blog for Arizona.

Gentrification, Rio Nuevo, incentivizing development with tax giveaways, corporate welfare… these are topics that I have been researching and writing about for more than 10 years.

During that 10-year time frame, I have also been advocating for public banking as a way to self-fund infrastructure projects, tackle student debt and spur economic development through low-interest loans—not giveaways. Public banking is based upon a public private partnership between a state bank and local community banks and small local businesses—like those represented by Local First.

The major problem with public banking is that you have to trust the government to make the system work for everyone—not just for the corporations and the wealthy, as out current system works. After almost four years in the Legislature, I trust the Arizona government far less than I did before. The belly of the beast is not a pretty site.

So… where does that leave us?

As a blogger, I theorized that layers of tax breaks—beyond Rio Nuevo– were fueling the development in the city core.

Do you remember when Molly McKasson lost the mayoral race to Bob Walkup in 1999? She was successfully painted as an old hippie chick who wasn’t ready to lead. Walkup was the successful Raytheon exec who would run Tucson like a business.

McKasson was quoted in the newspaper as saying, “It’s too bad that Tucson has decided to put all of its eggs in the developers’ basket.”

She was spot on!

Twenty years later, downtown is gleaming with new buildings, and everyone in power points to the new buildings as a sign of success downtown.

But at what cost?

Continue reading Tax Giveaways, Gentrification, & Housing in Tucson (video)

#HB2752 Gives Away Future Revenue Automatically– Bad Idea! (video)

Throughout last week as we debated multiple tax giveaways, I repeatedly asked, “Is $1 billion in new tax giveaways too much?”

In debate on Thursday, Rep. Mitzi Epstein and I showcased the 18 Republican bills that give away potentially $1 billion and revealed how little the bill sponsors actually know about the revenue losses that their proposals will create. (I say “potentially” because seven tax giveaway bills have an unknown cost. We shouldn’t be passing bills when we don’t know the economic impact!)

On Thursday, we were debating Rep. Bret Roberts’ HB2752, which was projected to be a $64 million hit to the general fund in FY21, $71 million in FY22, and $110 million in FY23. There was a floor amendment that said it change the calculations for the tax break. Roberts refused to answer a my question regarding how the calculations had changed and whether the cost was going to go up or down from the projected figures. It doesn’t necessarily work out well for the Republicans when they refuse to answer questions. Since he refused, I asked Epstein about this. The upshot is that the amendment made Roberts’ bill even worse and pushed it into the unknown cost column, bringing that total to eight tax breaks with an unknown cost.

Continue reading #HB2752 Gives Away Future Revenue Automatically– Bad Idea! (video)

Is $1 Billion in New Tax Giveaways Too Much? (video)

AZ Tax Breaks

Crossover week– when hundreds of bad bills are pushed through both houses– is always difficult. In addition to four 12-hour days this past week, Democrats had the extra pressure of trying to stop the tax giveaway parade before it dances off the cliff with our state’s future.

I used to call these tax giveaways fiscally irresponsible, but with 18 tax breaks poised to pass the Arizona House and more coming our way from the Senate, we have crossed the line into insanity. Of the 18 tax giveaways, 11 have some cost estimate. Those 11 total close to $500,000 annually in new tax breaks starting next fiscal year; there are another 7 tax breaks with unknown costs. They’re not free; the Joint Legislative Budget Commission (JLBC) doesn’t know how to estimate their cost. You can read more detail about these bills these three articles herehere, and here. With so many unknowns, if they all pass, Arizona could be looking at $1 billion in new tax giveaways (AKA lost revenue) in next fiscal year or in the near future, since several of them automatically increase over time, and it takes a two-thirds majority to repeal any of them.

Continue reading Is $1 Billion in New Tax Giveaways Too Much? (video)

What Is the Cost? 18 Tax Giveaways Pass #AZ House Ways & Means (video)

Arizona's fiscal cliff

The sheer volume of tax credits, tax cuts, tax shifts, and miscellaneous tax giveaways in this Legislative session is mind boggling. Will the Arizona House pass one billion dollars in tax giveaways in 2020? It could happen. To say that this behavior is fiscally irresponsible is a gross understatement.

The House Ways and Means Committee has passed 18 tax giveaways in 2020, and those bills are now hitting the House floor for debate and votes. Six of the 18 already have passed the House: HB2355, HB2356, HB2293, HB2732, HB2778, and HB2779. (See descriptions below.) These six will eliminate hundreds of millions of dollars in future revenue from the General Fund, and there are 12 more tax giveaways to be voted on. As noted in previous blog posts, these tax giveaways primarily benefit large corporations– like Microsoft, APS, TEP, SRP, SW Gas– specific business groups or industries, and wealthy Arizonans.

It is often said that a budget is a moral document. In our state budget, the Legislature supports corporations and wealthy Arizonans with never-ending, multi-year tax giveaways, that often have inflation adjusters. Arizona wouldn’t have an affordable housing problem, crumbling infrastructure, and grossly underfunded education system if the Legislature had long-term plans and multi-year, inflation-adjusted budgets to address those problems. Instead, programs and services that benefit the people of Arizona are lucky to get one-time funding and beg for more each year (or pass citizens initiatives).  We don’t have a budget surplus; we have chronically underfunded programs.

Continue reading What Is the Cost? 18 Tax Giveaways Pass #AZ House Ways & Means (video)

#AZLeg: Look Beyond Tax Credits & Take Comprehensive Approach to Housing (video)

Trailers in Midtown Tucson

There are multiple reasons why Arizona has an affordable housing crisis. Chronically low wages; years of under-funding social safety net programs; high student loan, credit card or medical debt; and aggressive evictions have forced far too many Arizonans to live with housing insecurity.

Wages in Arizona are 85% of the national average. Only 6% of Arizonans who are eligible for Temporary Assistance for Needy Families (TANF) actually get it. In Pima County, the eviction rate is 30 per day– that’s roughly 1000 per month. 

To use a medical analogy, HB2732 (affordable house tax credits) treats the symptoms of the affordable housing crisis– not the disease. The disease is poverty. 

Continue reading #AZLeg: Look Beyond Tax Credits & Take Comprehensive Approach to Housing (video)

With #HB2872, #AZGOP Uses #ALEC Legislation to Attack Labor Unions (video)

Writers Union joins ASARCO picket

Arizona Republicans are on the attack in 2020. We have heard anti-woman, anti-LGBTQ, anti-voter, and anti-immigrant legislation so far, and now to round out the set– we have anti-union legislation. Today’s featured bad bill is HB2872 proposed by Majority Leader Warren Petersen. It is an anti-union model bill from the American Legislative Exchange Council (ALEC).

Unions are private organizations, and this bill puts unnecessary, burdensome regulation and reporting requirements on unions that are not required of any other businesses. In fact, when I read HB2872, I thought, “Gosh, I would love to have this level of cost-benefit analysis reporting from my private insurance company regarding their profits and losses, salaries, and how much they actually spend on my care, compared to how much I pay.” But they aren’t required to do that.

HB2872 is national, model legislation that is duplicative and unnecessary because the reporting is already required by the federal government, and it is published online– for everyone to see. So, why is this bill necessary?

Continue reading With #HB2872, #AZGOP Uses #ALEC Legislation to Attack Labor Unions (video)