The number of small business owners across America who expect business conditions to improve over the next six months dropped considerably in June, hitting the lowest level in the 48 years the National Federation of Independent Business has conducted the survey.
That was the dismal news released Tuesday by Chad Heinrich, NFIB’s state director for Arizona.
“With small-business-owner expectations dimming to a record low, it becomes even more important that we have state leaders focused on ways to improve business conditions for the small-business owner,” Heinrich said. “All Arizonans have benefited from state legislative and executive leaders who have adopted pro-small-business policies year-after-year.”
Heinrich’s statement drew attention to the NFIB’s Small Business Optimism Index for June which showed a drop for the sixth consecutive month. That means the expectations of small business owners for better conditions have worsened every month of 2022.
NFIB Chief Economist Bill Dunkelberg also addressed the pessimistic news revealed by the Small Business Optimism Index.
“On top of the immediate challenges facing small business owners including inflation and worker shortages, the outlook for economic policy is not encouraging either as policy talks have shifted to tax increases and more regulations,” Dunkelberg said.
Among the key findings in Tuesday’s report is that 50 percent of small business owners reported job openings that could not be filled, a historically “very high” rating. Of those hiring or trying to hire, 94 percent reported few or no qualified applicants for the positions they were trying to fill.
Even one bit of good news in Tuesday’s report wasn’t all that positive. According to NFIB’s Small Business Optimism Index, the net percent of owners raising their average selling prices decreased three points. However, the decrease comes after May’s record high reporting of price increases.
Heinrich advised that Arizonans cannot rest on the successes that have kept the state at or near the top of post-pandemic economic gains.
“We must continue to support leaders who understand that most new jobs are created by small business owners,” he said. “Small businesses drive the Arizona economy forward.”
The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the 4th quarter of 1973 and monthly surveys since 1986. Survey respondents are randomly drawn from NFIB’s membership.
Arizonans will pay an average of 17 percent more for their July 4 cookout than last year due to the inflation and supply chain crises. That averages $10 more for 10 people.
Nearly all staples increased by double digit percentages:
2 pounds of ground beef increased 36 percent — $8.18 to $11.12
2 pounds of boneless, skinless chicken breasts increased 33 percent — $6.76 to $8.99
32 ounces of pork and beans increased 33 percent — $1.90 to $2.53
3 pounds of center cut pork chops increased 31 percent — $11.65 to $15.26
2.5 quarts of fresh-squeezed lemonade increased 22 percent — $3.63 to $4.43
2.5 pounds of homemade potato salad increased 19 percent — $2.75 to $3.27
8 hamburger buns increased 16 percent — $1.67 to $1.93
Half-gallon of vanilla ice cream increased 10 percent — $4.69 to $5.16
13-ounce bag of chocolate chip cookies increased 7 percent — $4.03 to $4.31
Certain foods declined in cost: strawberries by 86 cents, sliced cheese by 48 cents, and potato chips by 22 cents.
The data came from the latest American Farm Bureau Federation (AFBF) survey. As of the latest Bureau of Labor Statistics (BLS) Consumer Price Index report from May, inflation in Arizona is at a historic high, rising over eight percent in one year with Phoenix bearing the worst of it at 11 percent.
For last year’s July 4 celebrations, the Biden administration boasted that they helped Americans save an average of 16 cents on cookout foods.
Planning a cookout this year? Ketchup on the news. According to the Farm Bureau, the cost of a 4th of July BBQ is down from last year. It’s a fact you must-hear(d). Hot dog, the Biden economic plan is working. And that’s something we can all relish. pic.twitter.com/7h9qLauIbC
The White House claim was widely criticized, and its corresponding tweet was heavily ratioed: over 23,400 comments and over 17,300 quote tweets, a majority of which were negative, with only over 11,200 likes.
The White House account does not get ratio’d very often but the “we saved you .16 cents on potato chips from last year” has done it.
Critics like Congresswoman Elise Stefanik (R-NY-21) pointed out that gas prices at the time were at a seven-year high, or a 42 percent increase from 2020. At present, gas prices are hitting all-time highs in recent weeks — even with adjustments for inflation.
Apparently, no one at the Biden @WhiteHouse has been to the gas station recently.
The average price for a gallon of gas is $3.15.
This is the HIGHEST price for a gallon of gas since 2014 and a 42% INCREASE from last year.
Additionally, last year’s Fourth of July food costs may not have been as good as the White House claimed. The Washington Examiner pointed out that the White House ignored certain food items that rose in price: hamburger buns, potato salad, chicken breasts, chocolate chip cookies, and strawberries. The report noted that the Department of Agriculture data reflected an overall increase in food prices of 1.4 percent.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Walmart announced last Tuesday that they were bringing drone delivery to Arizona and five other states by the end of this year. Those other states will be Arkansas, Florida, Texas, Utah, and Virginia.
The retail giant projected that it would reach 4 million households across the six states, averaging about 1 million packages in its first year.
We continue to reach new heights when it comes to delivery. 🚀 We’re working with @godroneup to expand the convenience of drone delivery to six states with the potential to reach 4 million U.S. households. Read more: https://t.co/0WtkaumbPQpic.twitter.com/3cZmVtbnq6
The drone service would be available between 8 am and 8 pm. Only certain items would be eligible, in packages weighing up to 10 pounds. The delivery fee would be about $4, guaranteed to deliver within 30 minutes.
When it comes to solutions for last-mile delivery, we keep looking to the skies. We’ve invested in @godroneup to continue working toward a reality where drones deliver for our customers. Read more: https://t.co/8gSzaXSRUppic.twitter.com/OEjMJJ51Kv
Walmart is the latest in a race with other corporations seeking to capitalize on speedier delivery services using technology like drones. Amazon has been testing a fully autonomous drone delivery service. Although they completed their first human-free delivery in 2016, the corporation hasn’t launched that delivery option officially.
Walmart contracted with DroneUp, a drone service based out of Virginia Beach, Virginia, last November. The drones require a flight engineer to navigate them from the stores to the homes.
Their latest partnership hasn’t been the first. During initial months of the pandemic, Walmart used DroneUp’s technology to deliver COVID-19 tests to Las Vegas residences.
The future is now! In North Las Vegas, we’re offering free COVID-19 self-collection kits via drone delivery. https://t.co/54V5CEzmrv
We’re partnering up with @Zipline to pilot a first-of-its-kind drone trial. Set to launch in early 2021, this trial will enable deliveries of select health and wellness products in under an hour. 🚀 Read more: https://t.co/5swkvBtXzxpic.twitter.com/ol7Isyhevu
Prior to launching drone delivery test runs in the U.S., Walmart tested drone delivery in 2019 with the Japanese supermarket company it owned at the time, Seiyu.
Shortly after being sworn into office more than seven years ago, Gov. Doug Ducey made it clear to the heads of every state agency that he wanted the needs of residents to be better served and to make Arizona an attractive location for businesses.
The result was the rollout of the Arizona Management System (AMS), a results-driven philosophy which empowers state employees to identify ways to make the government work more efficiently while eliminating waste, all with an emphasis on enhancing customer service. And AMS is paying dividends, according to several agency directors who recently provided updates to Ducey.
Arizona Department of Veterans’ Services
Building upon Arizona’s commitment to veterans, the Arizona Department of Veterans’ Services embraced AMS to identify and work to solve the root causes of veteran suicides. Stakeholders -including the Department, the Governor’s Office, and the Arizona Coalition for Military Families- came together with a different approach to veteran suicide prevention.
The result, according to Col. Wanda Wright, is Arizona’s Be Connected program, which was recognized by the U.S. Department of Veterans Affairs with the 2021 Abraham Lincoln Pillars of Excellence Award.
Arizona Department of Water Resources
Drought response and preparedness plays a vital role in guiding Arizona Department of Water Resources, but there was a time that the state’s water professionals had limited involvement in federal strategic planning related to drought.
Under AMS, ADWR expanded its network of experts in academia, the private sector, and industry groups to lead statewide drought planning efforts. One outcome, according to ADWR Director Tom Buschatzke, is Arizona’s active participation in the Intermountain West Drought Early Warning System.
Arizona Department of Transportation
Prior to integrating the AMS philosophy in Arizona Department of Transportation projects, stakeholders often complained that deadlines were of higher concern than local impacts. But with AMS in place, Director John S. Halikowski says ADOT employees are applying several innovative approaches to keep vehicles -and commerce- moving during construction projects to minimize potentially disruptive restrictions and closures.
Arizona Department of Environmental Quality
Misael Cabrera was named director of the Arizona Department of Environmental Quality shortly after Ducey announced the AMS initiative in 2015. In response, ADEQ has developed the “My Community” dashboard to provide environmental and demographic map data on its website. The timely information is accessible via an easy-to-use, online tool the public can use to understand what ADEQ is doing to address environmental issues in various communities.
Arizona Department of Housing
Another state agency which embraced the AMS philosophy early on is the Arizona Department of Housing. It saw several increases in efficiency by implementing a more visual method of keeping staff updated on deadlines and department goals. And that has continued since Director Tom Simplot took the helm in 2021, with an emphasis on faster inspections and decision-making. More information on how AMS is improving state agencies is available here.
One of President Joe Biden’s signature initiatives is not going smoothly, with one of the government’s largest users of construction materials taking steps to forgo the May 14 deadline to ensure the manufacturing of all construction materials used in federally assisted infrastructure projects occurs in the United States.
In January 2021, Biden issued Executive Order 14005 to announce his Made in America initiative. It directed all federal agencies to maximize the use of goods, products, and materials produced in the U.S. when providing financial assistance awards and in procurements.
There have been longstanding federal rules for when iron and steel is American made, but implementing the Build America, Buy America Act enacted in November as part of the Infrastructure Investment and Jobs Act is not something the U.S. Department of Transportation can have in place by May 14 deadline.
Federal agencies had to wait for the Office of Management and Budget to determine the manufacturing process criteria for other construction materials. Which did not happen until two weeks ago when OMD announced its “preliminary and non-binding guidance.”
And that poses “a significant problem,” according to Polly Trottenberg, DOT’s deputy secretary.
DOT is responsible for funding thousands of road, bridge, rail, and transit infrastructure projects across the country through the Federal Aviation Administration, Federal Highway Administration, Federal Railroad Administration, Federal Transit Administration, and the National Highway Traffic Safety Administration. Under the new law, DOT will now also be responsible for ensuring those federally funded projects comply with Buy America.
But figuring out criteria for compliance based on non-binding guidance released only two weeks ago is not workable. Which is why Trottenberg is moving toward obtaining a 180 day temporary, transitional waiver of the deadline under a public interest declaration.
“The Department recognizes both the importance of ensuring Buy America compliant construction materials and the need to implement the requirement in a way that is not overly burdensome,” Trottenberg recently wrote.
According to Trottenberg, DOT officials have received concerns from stakeholders about the new Buy America manufacturing requirements as it relates to construction materials other than iron and steel. A waiver would avoid delays to much needed projects.
“Until we have more complete information on how construction materials are manufactured, and whether the manufacturing process complies with the OMB guidance, the Department is unable to ensure that transportation infrastructure projects continue to be obligated in compliance with these new requirements,” Trottenberg wrote.
The impact of new Buy America’s construction materials standards “could be significant,” said Trottenberg, who noted the National Bridge Inventory shows more than 62,500 bridges in America made with wood or timber elements, of which nearly 17,000 bridges have a main span consisting of wood or timber elements.
Another 19,562 bridges contain polymer-based products elements while 2,281 bridges contain non-ferrous metal elements, none of which have currently defined manufacturing processes to ensure compliance with Buy America standards.
DOT officials would use the waiver period to seek information state, local, industry, and other partners and stakeholders on challenges and solutions in connection with the Buy America construction materials mandate. It would also allow DOT to gather data on the sourcing of a full range of materials and products used in federally funded transportation projects while giving officials time to strategize for building up domestic capacity of construction materials.
Further, DOT hopes OMB will have issued its final standards by then.
“By the end of the waiver period, DOT expects state, industry, and other partners to establish an effective review process, as already in place for products such as iron and steel, as appropriate for construction materials, consistent with the [Bipartisan Infrastructure Law] and interpreting guidance and standards,” according to Trottenberg.
Comments and feedback on the proposed temporary waiver can be made here. All submissions received, including any personal information therein, will be posted to the agency’s website without change or alteration.
On Wednesday, the State Senate approved legislation lowering the percentage of assessed valuation for commercial property to 15 percent. SB1093 would reduce the property assessment ratio gradually over the next five years.
According to the bill sponsor in a press release, State Senator J.D. Mesnard (R-Chandler), explained that the aim was to ensure that Arizonans have more money to spend and, ultimately, invest back into the economy.
“Property taxes are a critical issue to all businesses, but especially for our smaller establishments. This bill will provide broad relief to our job creators,” said Mesnard. “Reducing the tax burden allows our small businesses to invest more money in their workforce and in expanding operations.”
The bill passed along party lines in both the House and Senate.
SB1093 would impact class one property: commercial and industrial properties that include those for mining, telecommunication companies, utilities, standing timber, airport fuel delivery, oil and gas production, pipelines, shopping centers, golf courses, and property devoted to any commercial or industrial use. Additionally, SB1093 prohibits fire district tax from increasing beyond $3.75 per $100 of assessed valuation.
State Senator Kelly Townsend (R-Mesa) commended Mesnard for the bill.
Grateful to Sen. @JDMesnard for his efforts in passing SB1093 which lowers the % of assessed valuation for commercial properties. It will reduce the imbalance in taxes that affect small businesses. Good job!
Legislature Democrats disliked that funds accrued from those property taxes would no longer be available, arguing that the state would turn elsewhere for the lost funds: homeowners, sales taxes, and the general fund.
State Senator Lela Alston (D-Phoenix) insisted during the Senate floor vote that the legislation would result in a tax increase on homeowners down the road.
State Representative Mitzi Epstein (D-Chandler) offered similar sentiments last month during the House floor vote. She added that the fund was a slippery slope mindset that would ultimately lead to steep cutoffs of education funding. State Representative Pamela Powers Hannley (D-Tucson) argued that the bill was based on trickle-down economics that she said only made the rich richer and the poor poorer.
“This bill picks winners and losers with the regular folks being losers in the state of Arizona,” said Powers Hannley.
State Representative Kelli Butler (D-Phoenix) added that the bill would result in county deficits that must either be mitigated or result in cuts. Butler said that the deficit would hurt rural areas the most.
“If you want to continue to fund law enforcement, like I do, if you want to continue to fund really important things in your counties and rural Arizona, you need to vote against this bill,” said Butler.
State Representative Neal Carter (R-Queen Creek) rebutted the arguments put forth by his Democratic colleagues. He insinuated that their calculations were simplistic and neglecting the potential for exponential and possibly unprecedented growth inspired by low tax rates.
“In reality, the loss is less than it may appear by simply subtracting the revenue that’s brought in,” said Carter.
State Representative Shawnna Bolick (R-Phoenix) noted that the assessment ratio is applied across the state equally and would eventually make Arizona more competitive with Texas, Colorado, and Utah.
SB1093 now heads to Governor Doug Ducey for approval.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
