Congressman David Schweikert (R-AZ-01) offered his fellow Congress members a gift in his weekly speech on Thursday. The former Arizona State Treasurer and nation’s de facto accountant presented solutions to the problems “that directly contribute to rising costs and decreasing wages in America.” In a press release last week, Schweikert shared video of his speech in which he points out the Consumer Price Index (CPI) for November reflected a 2.7 percent price increase from November of last year, indicating continuing inflation while wages continue to stagnate.
The Arizona Republican stressed the need for Congress to pursue a modernized immigration approach based on talent and merit in 2025, which promotes both productivity and wage growth while simultaneously offsetting declining birth rates and population decline.
Schweikert explained, “Here’s the reality: if the president is looking at you in the camera, and telling you [we have] the best economy ever—that’s not factual—but why don’t you feel it? It’s because much of America is poorer today than the day President Biden took office. If you live in the Phoenix-Scottsdale area—my home—if you don’t make 27 percent more today than the day President Biden took office, you are poorer.
Having someone telling you, ‘Oh, the economy is great,’ and yet, you’re having trouble paying for things… The reason we made this board, functionally, for you to maintain your purchasing power. If you are an average American in my district, these numbers are substantially higher because I am from a district with some of the highest inflation in America. If you are not making $1,115 more a month—because that’s what you have to be [making] from four years ago—your purchasing power… you’re poorer.
And I think that’s the reason that voters turned and said, ‘Okay, I see these Democrats running lots of ads saying crazy things,’ but yet, it turns out the voters are actually really smart. They would look at their checking account. They’d look at the cost of their kids’ clothes. They’d look at the grocery store and try to figure out why in the last week of the month they were losing their minds under stress.”
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The congressman stressed the incoherence of current immigration policy, which invites foreign nationals into the U.S., educates them in our institutions, and then ships them back to their home countries rather than encouraging skilled legal immigrants to become citizens. In the release, Schweikert notes, “When wages go up, we actually take in more tax receipts and then begins the cascade event of changing society and the economy for the future and the better.”
Regarding reforming the tax code to favor research and development and immigration laws to favor talent-based immigration, he posited, “One of our economists is trying to model what would happen if you said we’re going to do expensing of research and development because we know that pops economic growth. But if you also did talent-based immigration at the same time, you may get a multiplier effect. This is thinking like an economist. This is what we have to do to get ourselves out of this hole.”
The Maricopa County Board of Supervisors’ Public Safety Funding Committee (PSFC) presented its findings last week and has recommended that it pursue a 20-year extension of the existing voter-approved tax rate of 1/5th of a cent, set to expire in 2027. It also recommended the expansion of various partnerships to address the funding needs of adult and juvenile correctional facilities, correctional healthcare, and other county programs.
According to a press release from the Board of Supervisors, Chairman Jack Sellers said, “Providing for public safety is a core function of our government, and how we fund those efforts should be transparent and open to public feedback. We established the PSFC to ensure a wide range of views are considered as we determine how to prioritize and pay for evolving public safety needs. I’m grateful for the committee’s diligent work and look forward to a thorough review of their recommendations.”
The committee, established in January, conducted a series of public hearings, toured existing jail facilities, and interviewed several figures within the system before brining its recommendations for long-term funding and other changes to several established policies.
The Board of Supervisors largely appeared to concur with the recommendation to extend the funding, with Supervisors Clint Hickman, Bill Gates, and Steve Gallardo voicing support. Hickman said, “The Jail Excise Tax brings in about $300 million in revenue per year and has been an effective way of funding our public safety needs as the county grows, at a low burden to the individual taxpayer.”
He added, “I agree with the committee’s recommendation that an extension of the tax, at the current rate, is the best way to make sure we continue to live in a safe community where people can thrive economically.”
The 165-page report detailed policy recommendations touching “Reentry, Community Services and Coordination, Programming and Courts, Capital, and Data and Long-Term Initiatives.”
The Committee explained:
“In the first category, they suggested pursuing partnerships for crime prevention and reentry, engaging with the state on Medicaid waivers for pre-trial and pre-release individuals, and engaging in efforts to strengthen the behavioral health system.
The second category focused on maintaining funding for probation and diversion programs, upholding treatment standards, coordinating Initial Appearance Hearings with the City of Phoenix, and discussing juvenile placement policies.”
In addition it recommended replacing outdated facilities, improving the county’s Intake, Transfer and Release facility, enhancing security at the Durango campus, and addressing shortages in the county’s correction workforce.
Vice Chairman Thomas Galvin noted, “The PSFC engaged with residents and key stakeholders honestly and openly over the past year, and now with their recommendations, we can move forward in a united manner to keep our streets safe and support our law enforcement officers.
Chaired by John Lewis, the former mayor of Gilbert and CEO of East Valley Partnership, the committee is composed of nine community members from fields ranging from law enforcement, correctional health, criminal justice, government, and business.
As noted by KTAR News, the Board of Supervisors may agree with the extension of the Jail Excise Tax, and could lobby for it, but it has very little choice in the matter. Ultimately Maricopa County cannot place it on the ballot. That power falls to the Arizona Legislature and the sitting governor to pass and sign into law.
Given the past disconnect between the Republican-dominated Arizona Legislature and Democrat Governor Katie Hobbs, it is uncertain how successful any effort to extend an existing tax would be, or how well received it would be by the voters.
The city of Phoenix is one of the cities with the most debt in the country, according to a new study.
Per a study from LendingTree, Phoenix ranks 18th among the 50 largest metropolitan cities for debts held. The average Phoenix resident has a debt surpassing $39,000. That’s higher than the average nonmortgage debt across all 50 of the country’s largest metropolitan cities (about $37,800).
The average Phoenix resident’s income amounts to $79,600 according to Census Bureau data, above the median household income for the rest of the country (over $75,100). The average Phoenix resident debt amount is nearly half of the city’s median income.
LendingTree retrieved its data using anonymized credit reports from around 210,000 users on their platform from April through June of this year across the 50 largest cities. Nonmortgage debt includes auto loans, student loans, credit cards, personal loans, and all other types of debt excluding mortgages.
Nearly 97 percent of consumers in Phoenix have nonmortage loan debts, per the study. That tracks with the debt averages for rest of the 50 most populated metros: on average, 97 percent of residents across all those cities have nonmortage debt.
45 percent of Phoenix residents also have auto loan debt, 85 percent have credit card debt, 24 percent have personal loan debt, and 24 percent have student loan debt.
Phoenix ranked even higher with its average auto loan debt, placing eleventh with the average auto loan debt sitting at nearly $14,000. That’s higher than the average auto loan debt for the state, which amounts to around $6,000. Auto loan debts accounted for the greatest portion of average debts held by Phoenix residents, which is also the case for 26 of the other 50 major metros included in the study.
Average credit card debt in Phoenix amounted to just over $8,200, average personal loan debt amounted to about $4,200, and average student loan debt amounted to over $10,300.
The average Phoenix resident’s credit card debt came out higher than the state’s: the average for all of Arizona amounts to over $6,300.
At the end of last year, Arizona ranked among the top ten states for the highest average unsecured personal loan debts: around $12,300. Arizona also ranked among the top 20 for highest average household debt increases from last year to this year: an increase of over $700, making total household debt in the state amount to over $429.6 billion.
The city’s student loan debt is lower than that of the state. As a whole, the state has an average student loan debt of nearly $35,700, with about 902,600 borrowers living in the state.
Phoenix was the only metro city from Arizona listed on the top-50 ranking by LendingTree.
The top three cities for debts held were all in Texas: Austin, San Antonio, and Houston, in order of highest to lowest.
The three cities with the lowest amounts of debt, in order from least to greatest, were: San Jose, California; Louisville, Kentucky; and Milwaukee, Wisconsin.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
A major infusion of public bond-funded dollars into Arizona’s first “nonprofit Green Bank,” the Sustainable Home Improvement Loans of Arizona (SHILA), was announced last week by the Maricopa County Industrial Development Authority (MCIDA). The MCIDA was appointed by and answerable to the Maricopa County Board of Supervisors. The $500,000 investment will reportedly be “focused on providing affordable financing solutions for low- and moderate-income homeowners.”
In a press release, Maricopa County Supervisor Clint Hickman said of the decision, “Maricopa County is committed to fostering economic growth and supporting sustainable communities for all residents. By investing in SHILA, we are helping low- and moderate-income homeowners access affordable financing options for energy-efficient improvements that will lower their utility bills, renovate their homes, and improve their overall quality of life.
This partnership not only strengthens our local economy but also contributes to a more resilient and sustainable future for Maricopa County. We are excited to support SHILA’s work and the positive impact it will have in our community.”
SHILA, equipped with the infusion of funds from the MCIDA, will reportedly assist 425 Maricopa County residents with $5 million worth of energy efficiency projects within the next three years. These projects include homeowners upgrading their insulation, roofing, door, window, electrical, and HVAC upgrades to increase energy efficiency with the average project costing $12,000.
As Maricopa County's green bank, we're excited to be attending our first OFN conference. Looking forward to all the new connections and information available. #OFN40#cdfi#Maricopacountypic.twitter.com/0YPD67T0cV
— Sustainable Home Improvement Loans of Arizona (@SHILAAZ0823) October 21, 2024
Ty Lorts, CEO of SHILA explained, “We are honored to receive this foundational investment from the Maricopa County Industrial Development Authority. With their support, we can start making home improvement financing accessible for families who need it most. This funding will allow SHILA to begin transforming homes across Maricopa County, helping residents access a healthier living environment, lower utility bills, and have a greater quality of life.”
The MCIDA, founded in 1973 was created with the mandate to help “create and maintain jobs within Maricopa County and assists residents of the County to achieve a better standard of living and way of life.” But with a catch: it is to accomplish this with no government money involved. To that end, the Maricopa County Board of Supervisors’ appointed Board of Directors issues revenue bonds which are exempted from Arizona State taxes and, if compliant with IRS code, can also be exempt from federal taxes. Through these bonds, the MCIDA’s projects are funded.
Since its founding, the MCIDA has issued over $12 billion in bonds and invested millions into expanding access to affordable housing.
Speaking with KJZZ, Lorts explained that the nonprofit licensed just six weeks ago is working to help support affordable housing with a different strategy as opposed to predatory lenders or banks with high HELOC and credit card interest rates. “As money gets paid back in, we’re able to grow the business to a point where we don’t need any more outside money; where we are serving the outside community not just over the next five years but over the next five generations,” Lorts said.
“We’re trying to keep people in their homes, so they don’t have to seek alternative housing; so they don’t lose the house they’ve been in for the last 30, 40 years,” he added.
Arizona Republican efforts to lower monthly bills for renters around the state have come to fruition.
Late last month, Arizona Senate President Warren Petersen shared a screenshot from an apartment property manager, alerting residents that rental taxes would no longer be on their bills. The manager wrote, “For years, Arizona has been one of the few states to allow cities and government entities to charge tax on rent. In 2023, a law was passed banning such transaction privilege tax. While the law was passed in 2023, it was not set to go into effect until January 1, 2025. Therefore, starting in January, rental tax will no longer be charged, and you will see a decrease in your monthly charges.”
Its happening. Renters are about to get relief from the rental tax repeal passed by the Republican led legislature. The rental tax repeal was an important part of our majority plan to deliver inflation relief. To get the governors signature we had to delay the effective date to… pic.twitter.com/1qnhGWEa93
Petersen responded to the news, saying, “It’s happening. Renters are about to get relief from the rental tax repeal passed by the Republican led legislature. The rental tax repeal was an important part of our majority plan to deliver inflation relief. To get the governors signature we had to delay the effective date to Jan 1 2025. Many people said the Dems would take the majority and put the tax back in place. Fortunately for renters we held the Senate and the House.”
Senator Shawnna Bolick also weighed in on the announcement from her chamber’s leader, indicating that additional plans to lower costs for Arizonans might be forthcoming from Republicans in the state legislature. She said, “In 2022, when I first sponsored that bill I met a guy from southern Arizona who asked me to do something about the residential rental tax. I spoke with this same gentleman this past week once again and he asked me to look at another tax issue since it is now going away. Stay tuned.”
In 2022, when I first sponsored that bill I met a guy from southern Arizona who asked me to do something about the residential rental tax. I spoke with this same gentleman this past week once again and he asked me to look at another tax issue since it is now going away. 🥳
Representative Travis Grantham echoed Petersen’s comments, writing, “So happy we made this happen. Wouldn’t have happened without you endlessly pushing for it!”
So happy we made this happen. Wouldn’t have happened without you endlessly pushing for it!
In August 2023, Governor Katie Hobbs signed SB 1131, the rental tax elimination bill for Arizona tenants, into law.
According to Arizona Senate Republicans at the time of the signing, “There are approximately 70 municipalities within our state charging this tax, while cities and towns continue to collect record revenues. From fiscal years 2019 to 2023, state-shared revenues from both sales and income taxes combined grew $733 million, or 59%. This increase is on top of any sales taxes or property taxes individually levied by each city. Between FY 2024 and FY 2025, those shared revenues are expected to grow by an additional $389 million.”
Hobbs had vetoed an earlier version of the rental tax prohibition. She gave two reasons for her action, stating, “First this bill lacks any enforceable mechanism to ensure relief will be provided to renters. As noted by the legislature’s own attorney, provisions in the bill that purport to require that tax savings be passed on to renters face challenges under both the state and federal constitutions. If we are going to promise relief to renters, it’s important that we are able to ensure they actually receive it.”
The League of Arizona Cities & Towns – as well as several cities and towns across the state – opposed the updated bill as it progressed through the state legislature and through the Governor’s Office in 2023. The Senate passed the bill on March 2, then the House on May 15. The Senate then concurred with the amended proposal on June 13. SB 1131 was not transmitted to Governor Hobbs until July 31 – the same day that the Legislature approved the negotiated Prop 400 plan.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
During a city council meeting this week, Mayor John Giles and the Mesa City Council voted to approve across-the-board increases in the city’s utility rates and fees covering solid waste removal, electricity, gas, water, and wastewater. Over two-dozen Mesa citizens spoke during the meeting, which stretched over two-hours. Mesa, lacking a primary property tax, derives much of its funding from utility rates and fees.
The city is facing increases in electric rates of up to 39% for Winter Tier 2 usage charges for residents and a $2.75 per month service charge increase according to the council report. Non-residential users will face increases from 2-6 percent. Solid waste residential barrel rates will increase 5.5%, with commercial roll-off rates jumping 6.5%. Gas rates are increasing 6-15% for residences and from 9-25% for non-residential users. Water rates are increasing 4-9% for residents, 5.5% for non-residential, 8.5% for commercial users, and 19.5% for large commercial or industrial users. Finally wastewater service and usage components charges will increase by 7.5% for residents and 8.5% for non-residential.
City staffers told The Mesa Tribune that the typical residential bill for water, wastewater, and solid waste will see an increase of about $5.60, from the current average of $100.21 to $105.81
As reported by the Tribune, Giles answered criticism at a meeting in late November telling the frustrated residents, “This proposed water-rate increase of less than 5% in Mesa is dramatically less than you see in every other community,” said Giles, zeroing in on the water utility increase.
“Cities around the Valley are increasing water 25%, talking about increasing wastewater charges 95%. We’re not doing anything remotely like that in the City of Mesa.“
“So if you’re upset about the increasing price of water, I’m with you. But if you want to vent those feelings, probably every other city council in the state would be a more appropriate place to do that because the increases are less than what you’re seeing in other cities.”
Kevin Medema, a Mesa resident who led the organization of a petition opposing the utility increases reportedly signed by 2,000 people, stressed, “We have citizens that are hurting financially. The city shoots for that 20% reserve (in the utility accounts). Well, you know a lot of residents won’t have that in themselves. So, please consider voting ‘no.’’’
Medema suggested that residents have offered to help the city find ways to reduce spending.
During the November 18th meeting, one Mesa resident, Lynda Patrick-Hayes poignantly called upon the council to “entertain the idea of cutting the utility rates and encourage the city manager to eliminate government waste. The City of Mesa has no revenue problems. It has a spending problem.”
Citing the city’s reliance on utility charges and sales tax due to lacking a property tax, Giles told the citizens, “There’s not an apples-to-apples comparison because the City of Mesa has a different model. We’re going to use utilities to help subsidize city services.”
Multiple attempts to reinstate a primary property tax, eliminated in 1945, have failed over the years.
“Now if you don’t like that model…the answer is not to come to the City of Mesa and say, ‘We don’t want you to raise utilities because that’s denying the reality of math.’”
Responding to calls to reduce city spending, Giles told the gathered objectors, “What your proposal is, you’re saying, ‘I want to dramatically cut spending on public safety in the City of Mesa.’ That’s what you’re asking us to do.”
Republican State Representative Barbara Parker spoke on behalf of her constituents in the area and told the council, “They call me when they lose their homes. They call the state when they can’t afford their insurance. And on behalf of them, I am telling you they are hurting and even one dollar makes a huge difference.”
Parker castigated the mayor and council for suggesting the city cut public safety spending, “The fact that we use the threat of fear and emotion that we are going to cut police and fire is so disingenuous and inappropriate. And to all the gentlemen and women in uniform tonight: I am one of you and I have trained many of the firefighters, and I want you to know we have your backs. And we need to elect people who will fund you first and then find funding for everything else. We are never going to cut funding to police and fire. That is always a tactic. It’s disingenuous, it is inappropriate, it lacks accountability, it is intellectually dishonest, and they are not pawns and you deserve better. Don’t let them use you as a pawn police and fire. It’s inappropriate to have a bond and then immediately after that election to suddenly have a tax increase or a rate payers increase.”
She concluded, “One of the things I was able to communicate to the legislature as a member of the Appropriations Committee is that: EVERY. SINGLE. DOLLAR. IS. SACRED. Every single penny is sacred. And when I’ve asked the citizens would they rather have one more penny in their pocket than have it go to waste or redundancies or excesses. Absolutely they say yes. I hope you’ll have the courage to do the right thing tonight. I can tell you on behalf of the state: we were able to cut budget, balance our budget, give money back to the taxpayers and fund every single program. And if the state of Arizona can do it, Mesa can do it better.”
The rate increases were passed by the city council unanimously with Giles stating, “I know all of that is not appreciated by this crowd to the extent that we’d like it to be, but it’s the facts. For those reasons I am compelled by math and the reality of the situation to support this increase.”
