On Monday, an Arizona court ruled that government “prevailing wage” mandates for businesses were unlawful.
The Maricopa County Superior Court issued a ruling against the cities of Phoenix and Tucson concerning their prevailing wage ordinances, which required contractors on public works to pay its workers according to city and federal rate determinations. The Department of Labor defines prevailing wage as that average wage paid to similarly employed workers in a specific occupation in that area of intended employment.
The Maricopa County Superior Court agreed that state law (A.R.S. § 34-321(B)) prohibited any city from enacting such prevailing wage ordinances as the cities of Phoenix and Tucson had done in January.
“This Prevailing Wage Statute, by its plain language, prohibits any Arizona political subdivision, such as the City of Phoenix and the City of Tucson, from enacting an ordinance that requires contractors and subcontractors to pay their workers less than the prevailing rate of wages. Nevertheless, both cities did just that on January 9, 2024,” read the ruling.
Phoenix Ordinance G-7217 and Tucson Ordinance No. 12066 required city contractors or subcontractors under a contract with an aggregate value of $4 million or more and $2 million or more, respectively, to pay workers not less than the prevailing wage rate for the same class and kind of work in the Phoenix metropolitan area. Both cities required certain record keeping and instilled penalties for violations including contract rescission, disqualification from future city contracts, and liquidated damages up to three times the wages owed.
Yet, the cities argued that their ordinances were protected under Proposition 202, or the Raise the Minimum Wage for Working Arizonans Act. The cities claimed that the act functioned under the doctrine of implied repeal: since the act and state law were inconsistent, the act took precedence since it came after state law. The superior court rejected that interpretation, since the act itself didn’t address the term prevailing wage, and there remained definable differences between prevailing wage and minimum wage.
“A prevailing wage ordinance is not a minimum wage law, and the Minimum Wage Law did not impliedly repeal the prevailing wage prohibition because the two laws can be harmonized by ‘reasonable construction,'” stated the court. “They have fundamentally different underlying policy goals. Moreover, unlike minimum wage laws, which set a single, across-the-board floor on wages, prevailing wage measures impose a complex, fluctuating schedule of wage standards (determined by federal law and regulation) meant to approximate average wages for specific occupations and localities.”
The Goldwater Institute, in partnership with attorney Robert G. Schaffer, sued Phoenix over its prevailing wage ordinance on behalf of the Associated Minority Contractors of Arizona, the Arizona Chapter of the Associated General Contractors of America, and the Arizona Builders Alliance.
The institute’s vice president for legal affairs, Timothy Sandefur, said in a press release that the ruling protected fairer wages for workers.
“Today’s decision is a victory for Arizona taxpayers — who deserve to have public works projects run as closely as possible to true market conditions, instead of having their costs decreed by politicians in order to benefit their political friends,” said Sandefur. “It’s also a win for workers themselves, who deserve to do work in a competitive environment where wages are based on merit, instead of political dictate.”
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On Saturday, Democratic Mesa lawmaker Lorena Austin hosted a drag show fundraiser open to all ages.
The legislature’s first “nonbinary,” “gender nonconforming” elected official planned the event from 9 to 11 pm at Meno’s Place in Mesa. The event required a $10 cash cover charge to enter. Along with offering $5 raffle tickets, Austin teased the appearance of an unnamed, special guest, in addition to the MC, a drag queen named Gypsy Rose.
Austin first posted about the fundraiser event back on June 1 to commemorate the beginning of Pride Month.
Back in March, Austin drew ire for hosting a controversial drag queen story hour event hosted at the state capitol. House leadership claimed Austin misled them to reserve the conference room where the story hour took place. House Speaker Ben Toma revoked Democrat access to House meeting rooms as a result of Austin’s event.
“Use of House facilities for radical activism to promote dangerously perverse ideology will not be tolerated while I am Speaker,” posted Toma.
Democrat Rep. Lorena Austin deliberately misled House leadership to reserve a conference room to host a drag story hour with Planned Parenthood.
Use of House facilities for radical activism to promote dangerously perverse ideology will not be tolerated while I am Speaker.
Austin responded that it was “ridiculous” that she was accused of being dishonest or deceitful, let alone perverse for promoting LGBTQ+ ideologies in children.
The drag story hour took place ahead of an “LGBTQ+ Youth Day” at the Capitol, arranged in part by One-N-Ten. That organization recently made headlines for hosting a name change clinic advertised by the DeMiguel Elementary School in the Flagstaff Unified School District.
One-N-Ten provides LGBTQ+ programs to minors as young as 11 years old, focusing on topics such as sexual health and gender identity.
The gender nonconforming lawmaker won her first election thanks to a majority of funding from out-of-state Democratic money. Austin campaigned in part on rolling back laws prohibiting males from joining female sports teams and gender transition surgeries for minors.
This time around, Austin is campaigning on some of the same things — increasing teacher pay, establishing more affordable housing, expanding Medicaid access, and greater legalization of abortion — though missing from her priorities are those related to LGBTQ+ policies.
Austin is defending a seat in a historically Republican district, though she and another Democrat, Seth Blattman, won in 2022.
According to testimony from Austin in a promotional video for her alma mater, Arizona State University, she discovered her gender identity after joining an LGBTQ+ activist community in St. Louis, Missouri following the 2014 death of Michael Brown. This epiphany occurred after she dropped out five times from Mesa Community College; Austin credited her involvement in the ensuing protests to her desire to return to continue her degree at MCC and then finish at ASU.
ASU awarded Austin a scholarship through a leadership program launched by President Michael Crow. She graduated ASU in 2020 as the dean’s medalist for the School of Transborder Studies.
Austin was one of the primary opponents of a bill prohibiting schools from using preferred pronouns or names rather than those that align with a child’s biological sex or birth certificate, respectively.
Governor Katie Hobbs cited Austin’s testimony in opposition to the bill as evidence that the legislation would be harmful, and that transgenderism among children was something to be supported, not opposed.
Hobbs’ husband, Patrick Goodman, helped children embark on gender transitions in his capacity as a Phoenix Children’s Hospital Gender Support Program counselor.
The hospital was known for its provision of comprehensive gender-affirming care to gender dysphoric children. As part of his job, Goodman consulted with minor patients about the application of puberty blockers and cross-sex hormones.
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The Arizona legislature’s new budget for the state nixed the Kindergarten Entry Assessment (KEA) at the behest of Department of Education Superintendent Tom Horne, who called the program a “waste of classroom time.”
The KEA required teachers to assess their students within the first 45 calendar days of enrollment.
Horne issued a press release earlier this week acknowledging the change as motivated by educators’ disdain for the program, which the superintendent said was reportedly viewed as “an unnecessary bureaucratic requirement.” Horne said eliminating the KEA would improve academic results through reducing teacher paperwork.
KEA’s elimination wasn’t sudden: the education department reported that it reduced the program’s administrative requirements by over 80 percent last year. Although, Horne said he would have eliminated the KEA earlier if he’d had the legal authority to do it on his own.
“Over time, the KEA had ballooned into an endless morass of paperwork that meant teachers had to spend too much time on bureaucratic requirements versus time with students,” said Horne. “Now the legislature has taken the welcome step of entirely removing the legal requirement for the KEA, which frees up more time for teachers to spend on classroom instruction.”
Several public school leaders offered support for Horne’s decision.
“Superintendent Horne reviewed our feedback on the KEA in our Kindergarten classes,” said Dysart Unified School District Superintendent John Croteau. “The KEA duplicated many of our current practices and took away valuable instructional time. This decision prioritizes student interests by focusing on maximizing valuable classroom time to enhance student learning opportunities.”
“Superintendent Horne and his department sought feedback directly from kindergarten teachers and families about the time, student privacy, and resources lost to KEA and we appreciate the swift and effective action taken to eliminate this program in the best interests of Arizona kids!” said Challenger Charter School CEO Wendy Miller.
According to last year’s KEA requirements, teachers were to observe the following learning and development objectives in their students during instruction: social emotional development (manages feelings, follows limits and expectations, responds to emotional cues, interacts with peers, solves social problems); physical (uses fingers and hands); language and literacy (tells about another time and place, follows directions, notices and discriminates rhyme, notices and discriminates alliteration, uses and appreciates books and other texts, uses print concepts); cognitive/approaches to learning (attends and engages); and mathematics (counts, quantifies, connects numerals and quantities).
School districts and charter school governing bodies were given discretion through the last legislative session as to the appropriate evaluation methods or assessments to accomplish the KEA. Prior to that, educators had to rely on the Teaching Strategies GOLD (TSG) platform to complete KEA. TSG usage and accurate KEA completion required additional training from teachers, with the introductory course amounting to three hours alone.
Arizona’s KEA requirement can be traced back to 2013 when the state launched a pilot initiative, The Kindergarten Project, through partnership with the Arizona State Board of Education, First Things First, Alesi Group, and Virginia G. Piper Charitable Trust.
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Democratic congressman and Senate candidate Ruben Gallego recently held a fundraiser in California with Hollywood elites, a move punctuating his continued reliance on out-of-state donors to bankroll his campaign.
Deadline first reported that Gallego had his fundraising event at the home of political strategist Donna Bojarsky, with major guests including Leslie Gilbert-Lurie, author and former TV executive and member of the Cal State University board of trustees; Christy Callahan, former creative executive and TV writer; former Rep. Howard Berman; actress and dancer Stephani Sosa; Flame Ventures’ Tony Krantz; and attorney and former Los Angeles City Controller Wendy Greuel.
According to OpenSecrets, over 75 percent of Gallego’s funds come from outside Arizona: nearly $11.7 million, compared to just over $4.8 million from Arizona.
A majority of the millions from Arizona came from the Phoenix-Mesa area (over $2 million) and Tucson (over $1 million).
Aside from Arizona, the other top four individual states to contribute to Gallego’s campaign were: California at $3.5 million, New York at $1.4 million, Massachusetts at $911,000, and Texas at $812,000.
Top out-of-state metro areas were New York ($915,000), Los Angeles-Long Beach ($731,000), and Washington, D.C. ($726,000).
In March, Gallego attended another Democratic mega-fundraiser out of state, that time in New York City. His presence was marked by George Soros’ son and now-leader of the Democratic dark money empire, Alex, in an Instagram post, where Gallego and Alex stood alongside the famed playwright who played co-host to the fundraiser, Lin-Manuel Miranda.
“Kicking off campaign season with my co-host [Lin Manuel] for congressman Ruben Gallego’s Senate run in Arizona,” wrote the young Soros. “Ruben has an impressive life story and the stakes of this year’s election couldn’t be higher, they’re existential.”
The Soros family has given over $13,000 to Gallego’s campaign.
According to the FEC’s latest data through March, Gallego’s top Arizona donors include Nathan Sandler, an investor out of Paradise Valley; Donald Martin, chairman of Competitive Engineering out of Tucson; William Lewis, an investor out of Phoenix; Charlotte Hwang, president of Competitive Engineering out of Tucson; Timothy Riester, chief executive and owner of Riester Advertising out of Phoenix; Francis Najafi, CEO of Pivotal Group out of Phoenix and his wife, Cheryl; Gene Banucci out of Scottsdale; James O’Keefe, a consultant out of Scottsdale; William Cook out of Phoenix; Donalyn Mikles out of Sedona; James Pederson with the Pederson Group out of Phoenix; Jim Mapstead with Accurate Signs & Engraving out of Phoenix; William Humphreys a rancher out of Tucson; Subhash Thathi out of Mesa; Gilbert Lara out of Prescott; Kathleen Counihan, a gallery owner out of Tucson; Nieves Riedel with Riedel Construction Company out of San Luis; Kent Heath, vice president of Bruker out of Scottsdale; Phyllis Banucci out of Scottsdale; Karl Obergh, president/CEO of Ritoch-Powell out of Phoenix; Christina Isner out of Scottsdale; Pamela Powers, a physician out of Prescott; Stephen Golden out of Tucson; Pat Deconcini with 4-D Properties out of Tucson; David Young with Trifecta Clinical out of Tucson; Pamela Werth out of Scottsdale; and Reuben Merideth, a veterinarian out of Tucson.
Among Gallego’s top individual out-of-state donors as of March were Arthur (Art) Lipson, an investor out of Utah, Ronald (Ron) Conway, an investor out of California; Rogelio Sosa, the CEO of OURO out of Texas; David Trone, a Democratic congressman out of Maryland, and his wife, June; Vincent Ryan, multimillionaire chairman of Schooner Capital out of Massachusetts, and his wife, Carla Meyer; Ken Olum, professor of Tufts University out of Massachusetts; Molly Munger, a California attorney; Charles Mostov, a California attorney; Roger McNamee, an investor and retired venture capitalist out of California; Anthony Maceira and Andres Guillemard, Puerto Rican lawyers; Anne Lovett out of New Hampshire; George Krupp, co-founder and CEO of Berkshire Property Advisors out of Massachusetts; Chris Hughes, senior fellow at the Institute on Race, Power And Political Economy in New York; Mitzi Henderson, former president of PFLAG (Parents, Families, and Friends of Lesbians and Gays) National; Robert Haselow, a doctor with Minneapolis Radiation Oncology out of Minnesota, and his wife, Justine; Stephen English, a retired attorney out of California; Joseph Cotchett Jr., a California attorney; Sundae and Mark Breen out of Connecticut; Joseph Albright, a retired journalist out of Wyoming and husband to the late Madeleine Albright, the first female Secretary of State; and Oscar Ramirez, government relations personnel with Fulcrum Public Affairs out of Washington, D.C.
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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.
“Those of us on the Republican side, we built a report that offered actual moral, great economic solutions instead of the election year rhetoric.”
— Joint Economic Committee Republicans (@JECRepublicans) June 21, 2024
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.
CBO recently released its updated budget and economic projections for 2024-2034 from the original forecast in February 2024. Below are some key takeaways from the revised estimates 🧵
— Joint Economic Committee Republicans (@JECRepublicans) June 19, 2024
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