by Staff Reporter | Jun 22, 2024 | Economy, News
By Staff Reporter |
Congress’s Joint Economic Committee (JEC) warned that the Biden administration’s economic policies have caused an unsustainable debt crisis and historic inflation.
This assessment was announced formally earlier this week by JEC Vice Chairman and Congressman for Arizona’s first district, David Schweikert, through the 160-page Republican Response to the Council of Economic Advisers’ 2024 Economic Report of the President.
Schweikert stated in a press release that 2024 serves as a “critical juncture” for the nation’s fiscal health, one that transcends political parties.
“The challenge before us is neither Republican nor Democrat — it is our moral obligation to ensure American families aren’t left behind. Congress holds the keys to determine which path we choose,” said Schweikert. “We can either behave like adults and choose the path of fiscal responsibility or continue our partisan gamesmanship that will put the American dream further out of reach for future generations.”
Schweikert said that the problems and proposed solutions put forth by the JEC report were inherently bipartisan, focusing on common-ground economy boosters like a healthier population and secure social safety net programs.
The JEC assessed that the Biden administration’s demand-side policies financed by increased borrowing have placed unsustainable pressure on constrained supply. As a result, JEC predicted that debt-to-GDP would grow from 99 percent to 116 percent by 2034, with interest costs rising. JEC noted that the labor force participation rates haven’t recovered to prepandemic levels; historic mortgage payments for new homebuyers, the highest in 30 years; constraints on budding American industries due to new restrictions on trade; and the cost of clean energy subsidies amounting to $1.2 trillion over 10 years, despite emissions from electricity production declining.
Further exacerbation of the economy comes from an aging population, declining fertility rates, and decreased prime-age labor force participation among men, per the JEC. The aging population is anticipated to drive Social Security spending to 6 percent of GDP by 2035, an increase from the present 5.2 percent and the 1970s at 3.1 percent, though no major expansions have occurred in over 20 years. The JEC reported that one in nine prime-age men remain out of the labor force; if just 25 percent of those entered, the economy would grow by $215 billion.
JEC disputed the Biden administration’s belief that increased taxes of wealthier individuals would amount to their desired revenue, a dwarfed amount of around 1.1 to 2 percent of GDP compared to future deficits. JEC stressed that only reduction in spending would improve fiscal consolidation.
Another demographic with an outsized impact on the economy, according to the JEC, is the rapid increase in obesity. Excess medical expenditures are anticipated to amount to over $9 trillion, as well as federal government spending of over $4 trillion within the next decade. Labor productivity and supply reductions impacted by obesity are projected to cost nearly $3 trillion and $12 trillion, respectively.
As for a positive solution to the nation’s current and looming fiscal woes, JEC indicated that artificial intelligence could grow the economy and improve government efficiency.
JEC also issued a lengthy assessment of the Congressional Budget Office’s revised budget and economic projections for the next decade. This included a $400 billion increase in projected FY2024 deficit, with about 80 percent of the increase coming from President Joe Biden’s student loan forgiveness, the Federal Deposit Insurance Corporation failing to recover payments from 2023 bank failures quickly, new legislation, and higher than expected Medicaid outlays.
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by Staff Reporter | Jun 20, 2024 | News
By Staff Reporter |
The driver behind the killing of Senate candidate and Pinal County Sheriff Mark Lamb’s son and family, Brian Alexander Torres-Perez, 22, was indicted by the Maricopa County Attorney last week.
According to Maricopa County Attorney Rachel Mitchell, Torres-Perez faces three counts of manslaughter, a class two felony.
Torres-Perez was driving intoxicated in December 2022 when he crashed into Cooper Lamb, his fiancée Caroline Brooke Patten, and their 11-month-old daughter, Lainey. The baby and Cooper perished at the crash, and Caroline later died at the hospital.
Patten was driving their vehicle when the crash occurred.
Torres-Perez drove 70 MPH, about 25 miles over the speed limit, with a blood alcohol content level of .03 and the presence of THC in his blood.
The case was referred to Mitchell’s office in February 2023.
“This defendant’s reckless disregard for life wiped out an entire family,” said Mitchell. “After an extensive review of the evidence, it’s time for Torres-Perez to be held responsible for his actions.”
Torres-Perez is in custody with the Maricopa County Sheriff’s Office on a $150,000 bond.
Sheriff Mark Lamb posted the following after the passing of his son and granddaughter:
“We are truly humbled and touched by the outpouring of love from our Family and Friends/Community. We cannot thank you enough. Our hearts are broken but we are comforted in your love and the love of God and Jesus Christ.
We are praying for our precious Caroline who is still in critical condition.
We would also like to express our gratitude for those citizens and first responders who rendered aid to our son Cooper and our granddaughter. God Bless you all!”
A GoFundMe for their funeral expenses far exceeded the asking amount of a $35,000 goal: over $70,500.
The following was posted by a family friend to honor the memories of Cooper, his fiancée Caroline, and infant daughter Lainey:
“If you know about Sheriff Mark Lamb, then you may know about his son Cooper.
Everyone has their struggles in life… and Cooper was not exempt from this.
He was on a downward path with no hope in sight.
Then something wonderful happened:
He was arrested and went to jail.
He paid his price…
And from this point forward, his life had only gone upwards…
He now had a fiance who loved him.
A new daughter who admired him with her big doe eyes.
So he stepped up to become what they needed…
A husband to be. A father. A man.
He was committed to becoming better…
And building a life for his family was his new mission.
Mark and Janel are so proud of their son…
He figured it out and he was on his way.
But on Friday, December 16th — just yesterday — there was a knock at the door.
It was past 8 PM and his son and family weren’t home… This was not normal…
Then came another knock at the door.
Mark swung it open, with a smile on his face. Ready to hold his granddaughter again.
But instead of seeing them…
He saw the Maricopa County Sheriff and Mark’s Chief Deputies at the door.
His son Cooper, Caroline, and their daughter Lainey were in a car accident…
Cooper and little doe-eyed Lainey… didn’t make it.
Cooper’s wife Caroline is in critical condition.
The world stopped spinning.
The police say the other driver was impaired…
But does it really matter at this point?
They are gone.
How do you comfort someone who lost their child?
How do you comfort someone who lost their grandchild?
The truth is… you can’t… Only God can deliver his peace to his children.
So please, tell your family you love them.
It may be the last time.
God Bless.”
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by Staff Reporter | Jun 17, 2024 | News
By Staff Reporter |
Attorney General Kris Mayes, a pro-choice Democrat, applauded the Supreme Court’s ruling on the controversial abortion drug, mifepristone.
Mayes issued a press release on Thursday in response to the Court’s ruling that the doctors and medical groups suing to roll back the FDA’s expansion of access to mifepristone had lack of standing, or the legal right to sue. The Supreme Court ruled that the doctors and medical groups couldn’t show that they would be harmed directly by the FDA’s mifepristone policies, specifically citing past rulings in which courts were determined to not be the forums for all “general complaints about the way in which government goes about its business.”
Although the High Court’s ruling hinged on the technicality of the plaintiffs’ identities, the attorney general depicted the ruling as supportive of mifepristone’s safety and efficacy.
“Millions of Americans have used Mifepristone safely and effectively for over two decades,” said Mayes. “By reversing the disastrous ruling by the Fifth Circuit, today’s decision will save lives and avoid widespread confusion among providers, distributors, pharmacies, and patients.”
Mayes also indicated that she would support those fights to expand abortion access. Arizona law currently restricts abortions to 15 weeks.
“I will never stop fighting against any attempts to restrict the rights of Arizonans to make their own healthcare decisions without interference from anti-abortion politicians and activists,” said Mayes.
The author of the Court’s opinion, Justice Brett Kavanaugh, admitted that the doctors and medical groups turned away for lack of standing had “sincere legal, moral, ideological, and policy objections” to mifepristone.
The FDA approved mifepristone over 20 years ago during the Clinton administration through a controversial fast-tracked approval process. The FDA reclassified pregnancy as a “serious or life-threatening illness,” with mifepristone therefore validated as a “meaningful therapeutic benefit.”
The Governmental Accountability Office issued a 2008 report highlighting the criticization of the FDA’s reclassification.
“Critics have argued that unwanted pregnancy should not be considered a serious or life-threatening illness,” read the report.
The FDA restrictions such as a risk evaluation mitigation strategy have faced rollback considerations on mifepristone as well.
The lawsuit at the center of this most recent Supreme Court ruling was prompted by the FDA’s announcement in 2021 that it would no longer enforce an initial in-person visit for practitioners to prescribe mifepristone.
Past court rulings and research have indicated that there have been thousands of adverse event cases from mifepristone.
The attorney general has been a vocal and repeat proponent of mifepristone.
Mayes joined an amicus brief last May advocating for the federal approval of the abortion drug. Since taking office earlier last year, Mayes encouraged major pharmacy chains to continue to offer mifepristone regardless of the ongoing or potential legal challenges.
The attorney general also launched a Reproductive Rights Unit tasked with advancing pathways for abortion, such as taking on legal challenges against medical providers and offering guidance to women on hiding their data when seeking abortion.
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by Staff Reporter | Jun 15, 2024 | News
By Staff Reporter |
Governor Katie Hobbs is under investigation for an alleged “pay-to-play” scheme with a group home that donated to her inaugural fund and the Arizona Democratic Party.
Last May, following the donations, the Arizona Department of Child Services (DCS) drastically increased the rates for the for-profit, state-contracted group home operator and major Democratic Party contributor, Sunshine Residential Homes (formerly Sunshine Group Homes). The nearly-60 percent rate increase was approved several months after the company gave $100,000 to Hobbs’ “dark money” inaugural fund. That $100,000 rendered to them by the second-largest donor after Arizona Public Service (APS). The governor raised nearly $2 million.
As the Arizona Republic reported, that $100,000 to the fund came several days after the group home operator was denied a rate increase in December 2022. No other group homes have been awarded rate increases under Hobbs, and none came close to the rate granted to Sunshine Residential Homes: over $230 a day, where the average was about $170.
The governor’s fund earned the unofficial “dark money” pejorative following reports that Hobbs pushed for $250,000 donations to her inaugural event, though the event itself only cost around $200,000.
Sunshine Residential Homes also donated $200,000 to the Arizona Democratic Party in September and October of 2022, and another $100,000 to the party in August 2023.
The group home operator’s CEO and founder, Simon Kottoor, and his wife, Elizabeth, also donated $10,000 collectively to Hobbs’ campaign.
Hobbs appointed the Kottoors to her inaugural committee.
Last year, the group home operator received a nearly 60 percent increase in rates: much higher than the rates awarded to other group homes, and unique given DCS choosing to cut contracts with dozens other group homes: 16, to be exact.
DCS blamed budget constraints coupled with a desire to scale back on the reliance of group homes for the contract denials.
Hobbs’ spokesman, Christian Slater, claimed the allegations came from a place of unsubstantiated scrutiny similar to other attacks by “radical and partisan legislators.”
“Governor Hobbs is a social worker who has been a champion for Arizona families and kids,” said Slater “It is outrageous to suggest her administration would not do what’s right for children in foster care.”
Some have questioned whether Sunshine Residential Homes wired additional funds to Hobbs’ inaugural fund after their $100,000 donation cleared in February 2023, or whether the group home operator or its executives issued donations to other groups operated by Hobbs, like the “An Arizona For Everyone” entity.
An Arizona For Everyone, a nonprofit, was activated in December 2022 and voluntarily dissolved in September 2023. No tax filings exist for the nonprofit on the IRS public search portal of tax-exempt entities.
Last Thursday, Attorney General Kris Mayes announced an investigation into the matter. On Friday, Mayes also ordered Maricopa County Attorney Rachel Mitchell to back off her investigation and for Auditor General Lindsey Perry to stay away.
“It would not be appropriate or in the best interest of the state to conduct parallel investigations into the same matter. Furthermore, a separate process conducted by the MCAO could jeopardize the integrity of the criminal investigation that my office will now proceed with,” wrote Mayes.
However, Treasurer Kimberly Yee urged Mitchell to continue her own investigation into Hobbs to complement Mayes’ investigation. In a press release on Monday, Yee announced request letters to both Mitchell and Mayes.
“Arizona taxpayers deserve financial accountability. Giving state dollars to political donors is a grave misuse of public funds,” posted Yee on X.
In her letter to Mitchell, Yee advised that Mitchell continue her investigation over Mayes’ conflict of interest.
“Pursuant to these legal authorities and due to concerns related to Attorney General Mayes’ ethical conflict of interests because her office is required to provide legal services to the agencies at issue and the fact that her representatives have personal and professional relationships with those individuals potentially involved in any alleged wrong-doing, I respectfully request that you investigate the allegations that have occurred in your jurisdiction, Maricopa County,” wrote Yee.
In Yee’s letter to Mayes, the treasurer advised the attorney general that her assertion of singular control over any investigation — especially one involving the state agencies she represents — was inappropriate and unlawful. Yee suggested that Mayes transfer the investigation wholly to Mitchell or another independent county attorney.
“[T]hat is the only action that will ensure the integrity of the investigation and avoid the duplication of efforts you raise as a concern in asserting sole jurisdiction,” wrote Yee.
Sunshine Group Homes was recognized as a nonprofit by the IRS until 2022, when they were placed on the auto-revocation list that August (EIN: 86-0815254).
According to the latest publicized tax filings from a decade ago, the Kottoors received a collective $623,500 annually in reportable compensation from related organizations.
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by Staff Reporter | Jun 12, 2024 | News
By Staff Reporter |
Over the last three years, the city of Phoenix spent over $180 million in its attempts to address its growing homeless population.
New research from The Goldwater Institute suggests that the millions had little impact, if any, in reducing the rates of homelessness. The population grew 92 percent in Phoenix from 2018 to 2023, and 72 percent in Maricopa County from 2017 to 2023. Homeless population totals for 2021 weren’t collected due to the COVID-19 pandemic.
The growth became evident in certain areas, such as the downtown area unofficially ignored by police for most response calls known as “The Zone.”
The $180 million constitutes a low estimate of total expenditures; when adding in funds from the state, federal government, and private entities considered to be budget line items, that number grows to over $250 million, per their research.
About one-sixth of those city funds went to the Community Bridges organization — $30 million — which provided property and housing services as well as outreach for shelter support services.
The other major contracts put up by the city to address homelessness were $16 million for BRYCON, which provided shelter space and general contracting; $13 million for St. Vincent de Paul, which provided emergency shelter, transitional housing, and hotel operations; $9.4 million for Central Arizona Shelter Services (CASS), which provided housing, shelter, and homeless support services; $9 million for Mercy Care, which provided behavioral health and mental health services; $7 million for Human Services Campus, which provided relief sprung structure for shelter; $6.2 million for Salvation Army, which provided shelter and street outreach; $4.6 million for A New Leaf, which provided rapid rehousing and homeless youth reunification; $4.5 million for UMOM Day Centers, which provided shelter and street outreach; $2.6 million for Steel & Spark, the provider of the X-Wing Shelter Units; $2.3 million for Homeward Bound, which provided homeless prevention efforts such as GED and job training; $2 million for St. Joseph the Worker, which provided workforce villages and paying housing costs; $1.2 million for Child Crisis Arizona, which provided shelter for homeless minors; and $1 million for Southwest Behavioral Health Services, which provided criminal justice for the homeless and outreach.
Four of the city’s contractors for homeless services — Southwest Behavioral Health, Chicanos Por La Causa, CASS, and Mercy Care — have seats on the city’s task force to address homelessness.
Per the Goldwater Institute, the city has yet to disburse $63 million for city-owned shelters, emergency rental assistance, property acquisition, hotel conversion, and affordable housing.
The city’s Office of Homeless Solutions (OHS) reports that it has committed $140 million since 2021 through the end of this year to address homelessness through shelter and heat relief, outreach, supportive and behavioral health services, homelessness prevention, and supportive housing.
According to the Goldwater Institute, OHS has only provided public accounting for 34 percent of that $140 million. Additionally, that 34 percent consisted of vague reporting, such as the absence of program start and end dates.
The unrelenting growth in the homeless population, despite expensive efforts to stymie, it has prompted alternative actions from city leaders. Earlier this month, the city council enacted an ordinance banning homeless encampments near parks and schools.
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