Housing Shortage Threatens Arizona’s Economic Gains

Housing Shortage Threatens Arizona’s Economic Gains

By Pat Nolan |

Last year, Arizona was the most popular state for people to relocate to. Those new arrivals helped boost our economy and put the state’s budget in the black. That’s the good news. But the bad news is that the state is falling behind in building homes to meet the needs of current families as well as newcomers.

Some may say that is just fine because they liked the Grand Canyon State before those people moved here. But they likely haven’t considered the consequences when the government restricts new housing.

The demand for housing goes up as families have children, residents get pay raises, and workers bring their skills and talents to our state. We celebrate these events, and to make sure it continues, we must allow the supply of housing to meet this increased demand.

When governments restrict the supply of new housing, it reduces the choices available to buyers, which drives up the cost of their new homes. It is the buyers who bear the cost of these restrictive policies. This year Arizona has a shortfall of 270,000 housing units, and that deficit in housing will continue for years to come.

This shortage of housing is quickly putting our state beyond the reach of many qualified young workers. If businesses can’t attract capable workers, the owners will think long and hard before moving their business here or expanding their current operations. And that’s bad news for all Arizonans because businesses pay the lion’s share of our taxes. Without a healthy economy, the state budget will slide into deficits again. And that means cutbacks for schools and roads.

If Arizona is to remain prosperous, we must be attractive and affordable for new businesses and new residents. As The Wall Street Journal wrote, “The shortfall of affordable housing hurts America’s businesses and the broader economy by preventing workers from living in areas with economic opportunities but high housing costs. Employers are forced to operate below their potential because they can’t attract or retain workers.”

Local land use restrictions bear most of the blame for the housing shortage. In many areas, it is hard or impossible to add a casita for an aging parent or young renter. Local regulations often prohibit empty nesters from renting a single bedroom to a senior. And cities often dictate design elements such as floor plans, styles, and materials for homes. Such restrictions do not protect public safety or health. They merely impose the preferences of politicians and bureaucrats and limit the choices for property owners.

Navigating through the planning bureaucracy is difficult and there are frequent delays. Not long ago, it took about six months to complete the planning process. Now, it often drags on for a year or more. The clerks handling the applications do not have to pay the price for those delays. It is the new buyer who bears the added costs. But these huge added costs are not obvious to home buyers.

One way to inform consumers would be to have a sticker price for each home, much like we see when buying a car. The sticker would list the actual costs of the land and construction. Then, the sticker would lay out the costs of the myriad government requirements, then list the multiple fees for the city, the county, and all special districts, and finally the costs for connections for electricity, gas, sewer, etc. The sticker would make it clear how much the land and construction actually cost, and what was added on by government regulations and processing.

The Legislature had the opportunity to deal with the shortage this year but dropped the ball. Speaker Ben Toma’s HB 2536 proposed allowing property owners to build casitas attached to or in the backyard of their home, and would have allowed owners to rent a single bedroom to seniors. The bill would have also prevented cities from dictating design elements and aesthetics. Arizonans should have the right to choose the style and layout of their homes, and not have their aesthetics dictated by the bureaucracy.

After passing the House unanimously, the Senate killed it under pressure from local politicians. Those politicos want to protect their monopoly on housing decisions, even if their decisions cause young families and seniors to be priced out of their city. I was surprised that ten Senate Republicans voted against this important bill: Bennett, Borrelli, Carroll, Hoffman, Kavanagh, Kern, Kerr, Mesnard, Rogers, and Wadsack.

They claim they voted to kill the bill to protect the prerogatives of local government. While I agree that most decisions are better left up to officials closest to the people, I strongly dispute that local governments have unfettered power to ignore the rights of their residents. Local governments do not have the authority to dictate the color and floor plan for new homes. That goes far beyond the proper scope of their duties and interferes with the basic rights of property owners.

I am particularly troubled that several members of the Freedom Caucus helped kill this bill. I don’t understand how they can believe that their votes to allow local politicians to excessively interfere with the rights of property owners doesn’t infringe on our basic rights. The members of the Freedom Caucus would do well to re-read Alexis de Tocqueville’s warning about the terrible impact imposed on the people by bureaucratic rules:

“It covers the surface of society with a network of small, complicated rules, minute and uniform, through which the most original minds and the most energetic characters cannot penetrate, to rise above the crowd. The will of man is not shattered, but softened, bent, guided; men are seldom forced by it to act, but they are constantly restrained from acting: such a power does not destroy, but it prevents existence; it does not tyrannize, but it compresses, extinguishes, and stupefies a people, till each nation is reduced to be nothing better than a flock of timid and industrious animals, of which the government is the shepherd.”

It is the duty of our state representatives to forestall efforts to make us sheep under the care of government bureaucrats. Our legislators are not elected by local governments; they are elected directly by the people. They should not think of themselves as protectors of local governments’ prerogatives; rather, they should be vigilant guardians of our freedoms no matter which level of the government tries to violate them. I would remind our legislators that our Constitution does not begin with the words “We the state and local governments” but “We the people.”

Pat Nolan is the Director Emeritus of the Nolan Center for Justice at the American Conservative Union Foundation. He and his wife live in Prescott.

The Battle Over Highway Funding Is Coming to a Head in the Arizona Legislature

The Battle Over Highway Funding Is Coming to a Head in the Arizona Legislature

By Pat Nolan |

Arizona legislators will soon have to choose between two very different plans to spend funding from the highway sales tax originally passed in 1985. One plan, SB1246 by Senator Farnsworth, would keep faith with the promises made to voters that the sales tax would fund highways to relieve traffic congestion around Phoenix.

The alternative proposal, SB1102 by Senator Carroll, would siphon off money from road projects and instead fund “green energy” giveaways proposed by the bureaucrats at the Maricopa Association of Governments (MAG). SB1102 proposes to divert $2 billion from highway construction to fund bike lanes, walking trails, bus lanes, and other unspecified “special projects.” In other words, it establishes a slush fund comparable to the “Green New Deal” of the Biden Administration.

The Farnsworth bill, on the other hand, will fully fund the freeway expansions promised to the voters, and there will be no green slush fund. Also, none of the transportation money could be used to remove traffic lanes to make room for bike paths.

It also requires government-subsidized transit to operate efficiently and recover 25% of the cost from the riders, as they promised. In reality, the government-run system falls woefully short of that requirement, collecting a mere 7% currently. Senator Farnsworth’s bill will make public transit meet their revenue projections. If they fail to do so, private companies could bid to provide transit services and guarantee the revenue as promised to the voters.

The Left’s fixation with public transit has resulted in hundreds of millions pouring into the black hole of failing transit systems. Yet, despite the clear evidence that transit systems run by the government are a white elephant, they keep pumping more tax dollars into them. They cannot point to any city where the ridership has met their projections. The reason is simple. When pollsters ask the public, they say they want more public transit. However, when asked if they intend to use it, they say they have no intention of using it. They want other drivers to use transit to get those cars off the freeways.

SB1102 would help MAG pursue their far-Left agenda, which now includes imposing California-like restrictions on Arizonans, including banning the internal combustion engine and gas appliances. We must end such power grabs by the bureaucracy, and the Arizona Legislature can start by killing this bill and passing Senator Farnsworth’s SB1246.

The late, great conservative Senator Everett Dirksen famously explained the thinking of legislators when he said, “When I feel the heat, I see the light.” Taxpayers can hold legislators’ feet to the fire by telling them to vote NO on SB1102 and AYE for SB1246.

Pat Nolan is the Director Emeritus of the Nolan Center for Justice at the American Conservative Union and lives in Prescott.

It’s Time to Hold Republicans’ Feet to the Fire on the Budget

It’s Time to Hold Republicans’ Feet to the Fire on the Budget

By Pat Nolan |

Governor Hobbs has proposed a budget that is a radical’s dream. It increases funding for a laundry list of pet programs of the radical left, while at the same time cutting programs that are supported by the vast majority of Arizonans. The Hobbs budget expands funding for illegal immigrants and increases taxpayer funding of abortions. At the same time, Hobbs would kill the expansion of our popular parental school choice program and defund the Border Strike Force.

House Majority Leader Leo Biasiucci describes the Hobbs budget: “Attacking school choice, peddling state-funded abortions, and incentivizing illegal immigration in Arizona are all non-starters and, frankly, something you’d expect to see proposed by a politician in California, not Arizona.”

In response to Hobbs’ radical budget, Republicans passed a responsible, “baseline budget” which would continue state spending at last year’s budget levels, with adjustments to education and health care programs to account for inflation. When asked if Hobbs would reject the baseline budget Rep. Biasiucci responded, “If she does that, it’s party politics. This is everything we need to make sure that schools don’t shut down, make sure government stays open, make sure all our essential services stay open while we figure out what we need to do with the rest of the money.” Unfortunately, Hobbs vetoed the legislature’s reasonable budget. She is playing a game of chicken, threatening a government shutdown.

If Republicans stay united, the taxpayers will be protected from the free-spending Democrats. Given the one-vote margin in each house, we can’t afford to lose a single Republican vote. To protect us from Hobbs’ costly budget, it is essential that Republicans stick together.

I have heard disturbing reports that some Republicans are quietly signaling they are willing to cut a deal with the Democrats behind the backs of their leadership. That would severely weaken the bargaining position of Republicans as they negotiate for smaller government. More important, it would betray their constituents who voted for them based on their promises to limit the growth of state government.

Why on earth would Republicans be willing to cave to the Hobbs budget? There are a couple of possibilities. They could trade their votes for a pet project. Or they could be self-promoters with a messianic complex seeking acclaim from the liberal press as “rising above the partisan bickering.”

Believe it or not, it could happen here in Arizona. Around the country and in Congress, turncoat Republicans have made side deals to expand government spending. And though it seems odd, these quislings frequently represent “safe” Republican districts. Senator Romney comes to mind, and he is not alone.

In California, back when Jerry Brown was governor, a Republican representing the most Republican district in the state voted for the bloated budget after she had promised to oppose it. When asked why she flipped, she blithely replied that she got a new library for UC Irvine. Another Republican sold out for even less—Willie Brown promised him an office with a wet bar in it. Judas at least got thirty pieces of silver. As sure as night follows day, the press heaped praise on both of them for their “courage” in avoiding a budget impasse. But in truth, they voted against the interests of their constituents.

To avoid such a betrayal from happening here in Arizona, conservatives must press their representatives for a firm commitment that they won’t cut a side deal on the budget. We must lock in those commitments now and shut down any side deals before negotiations start in earnest.

My State Senator is Ken Bennett, and my representatives are Quang Nguyen and Selena Bliss. LD 1 is the most Republican district in the state. Conservatives shouldn’t have to worry about them keeping faith with their promises to the voters, but as President Reagan told us, “Trust but verify.”

Therefore, I am asking all three for a firm commitment that they will only vote for a budget that is supported by the rest of their Republican colleagues. The great conservative Senator Everett Dirksen famously said, “When I fell the heat, I see the light.” And I hope conservatives in all Republican districts will turn up the heat, so Republicans stay united to protect the wallets of the taxpayers.

Otherwise, it will be every legislator for themselves, and they’ll cut the hog fat. And we the taxpayers will be the hog.

Pat Nolan is the Director Emeritus of the Nolan Center for Justice at the American Conservative Union, and lives in Prescott.

To Halt the Surge in Fentanyl Deaths, Arizona Must Target the Distribution Networks

To Halt the Surge in Fentanyl Deaths, Arizona Must Target the Distribution Networks

By Pat Nolan |

The surge in deaths from Fentanyl overdoses is overwhelming communities across the country. Fentanyl is responsible for at least 70 percent of all drug deaths in the U.S. According to the Drug Enforcement Administration (DEA), the United States suffered more fentanyl-related deaths than gun- and auto-related deaths combined last year. And it is the number one cause of death among U.S. adults, aged 18-45.

Here in Arizona, the Fentanyl crisis is particularly acute. Fentanyl flows easily into our state across our southern border. Until Washington gets serious about controlling it, Arizona has to take decisive action now to disrupt the supply lines of the drug cartels.

In the rush to “do something” about this very real crisis, some well-intentioned legislators have proposed HB2167, which would spend precious law enforcement resources on seeking murder sentences for individual sellers rather than going after large traffickers. Certainly, we want to punish those who support their drug habit by selling small amounts of Fentanyl, and current Arizona law sends a person who provides illicit drugs to prison for up to 25 years. That is a substantial sentence.

HB2167 would go further so that if a person dies after receiving the drugs – even if it is not “the immediate cause of death” – the person who gave them the drug would be sentenced by the judge as a murderer.

This is problematic because the cartels often press Fentanyl into pills to make them like prescription pills. They do this because Fentanyl is cheaper than the ingredients of the real prescription drugs. And profit is what motivates the cartels. Keith Humphreys, a Stanford University professor who tracks the opioid crisis wrote, “You don’t need land, good weather, peasant labor, processing of crops, etc. Instead, you can whip it up in a small lab, and every gram is 50 times as strong as heroin.”

It is impossible for a buyer to know if the drugs they buy also contain Fentanyl. HB2167 calls for sentencing the person who gave or sold these ersatz drugs as a murderer even if they were unaware that Fentanyl had been added. That could result in real injustice.

Take for example, your daughter goes away to college and falls in with friends who enjoy getting high. If she gave a pill to a friend who later died, your daughter could be sentenced as a murderer without the state having to prove that the drug caused the death! Certainly, your child deserves to be punished, and she can be imprisoned for up to 25 years without HB2167. But it would be wrong to punish her as a murderer with a much longer sentence.

The DEA’s top priorities are interdicting the traffic in Fentanyl and prosecuting the large drug trafficking organizations. But by including “small fish” as I explained above, HB2167 in its current form puts Arizona out of step with the DEA’s priorities. The House Judiciary Committee should amend HB2167 so that it aligns with the DEA by targeting resources to taking down the leaders of the large distribution networks, and putting them out of business. That is the most effective way to make our communities safer.

Pat Nolan lives in Prescott and is the founder of the American Conservative Union Foundation’s Nolan Center for Justice. He is a respected national leader on crime issues.