The Grand Canyon State is one of the best in the country for starting a business.
According to a recently released report from WalletHub, Arizona ranked sixth in the nation for entrepreneurs looking to start a business. The 2024 Best & Worst States to Start a Business report had Utah as the number-one ranked state in the country and Rhode Island as the last-ranked. Two of Arizona’s other neighbors, Nevada and Colorado, came in at fifth and seventh, respectively.
Cassandra Happe, a WalletHub Analyst, said, “Starting a business is a difficult and risky process, but where you live can highly influence your chances of success. Before establishing a business in any location, make sure to do research to ensure it’s an ideal place for your customer base, has enough labor and supplier availability, and suits your needs when it comes to financing.”
Happe pointed to Utah’s great “access to loans” and “largest annual employment growth in the country” as two major indicators for its first place showing in the report.
The report factored average growth in number of small businesses, labor costs, availability of human capital, average length of work week (in hours), and cost of living. Arizona ranked sixth and seventh in small business growth and human capital, respectively; yet fell to twenty-fifth in both labor costs and work week hours, and twenty-seventh in cost of living.
In a separate WalletHub study, Best Large Cities to Start a Business, Scottsdale and Phoenix appeared in the top-30, at twenty-seventh and twenty-eighth, respectively. Three east valley cities, Gilbert, Chandler, and Mesa, clocked in at thirty-first, thirty-fifth, and thirty-eighth, respectively. Glendale and Tucson were noted at forty-sixth and fifty-first, respectively.
WalletHub gave several tips to men and women contemplating a business start-up. Those suggestions were as follows:
Thoroughly Research Your Market
Create a Solid Business Plan
Focus on a Unique Value Proposition
Choose a City that Fits Your Needs Well
Manage Finances Wisely
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Gov. Katie Hobbs’ proposed education funding plan is “dangerous and unsustainable” according to State Treasurer Kimberly Yee.
Hobbs’ plan, if passed by the state legislature, would renew Proposition 123 for another decade and increase the state land trust fund to nearly nine percent. In a statement on Tuesday, the treasurer accused the governor of irresponsible mismanagement of taxpayer funds amid record inflation.
“Governor Hobbs wants to raid the land trust to cover for her mismanagement of the state budget and overzealous spending plans in an ever-increasing inflationary environment,” said Yee.
Yee warned that Hobbs’ plan would violate the Enabling Act, the terms under which Arizona achieved statehood in 1910. She recommended a four to five percent distribution, declaring Hobbs’ vision “unfeasible” based on past performance.
“My office has not reported a 10-year return over 8.9 percent in nearly two years. Over the span of the last 10 years, only 32 months have had a 10-year return over 8.9 percent,” said Yee.
Governor Hobbs' proposal to increase Prop 123 distributions to 8.9% is dangerous and unsustainable.
— Arizona Treasurer Kimberly Yee (@AZTreasurerYee) January 16, 2024
That’s something the governor acknowledged in her announcement of her plan: the average 10-year annualized return amounts to just over seven percent.
Proposition 123, the Arizona Education Finance Amendment, was a voter-approved 2016 constitutional amendment to increase education funding by $3.5 billion over a decade using monies from the general fund and state land trust fund. Yee oversees the land trust fund.
Although Yee declared the funding plan wasn’t sustainable, Hobbs claimed that there were ample funds going unused.
“[We shouldn’t] let billions of dollars accrue in a bank account and do nothing to address our immediate needs,” said Hobbs.
Hobbs marketed her renewal plan as a means of increasing education funding without raising taxes.
“The choice is clear: we can give our children a quality education or let billions of dollars stand idle without addressing our immediate needs,” said Hobbs.
My Prop 123 renewal plan will increase compensation for educators & make schools safer for our kids – all without raising taxes.
The choice is clear: we can give our children a quality education or let billions of dollars stand idle without addressing our immediate needs.
Under the governor’s plan based on a decade-long average distribution, 2.5 percent will continue general school funding ($257 million), 4.4 percent will raise educator compensation ($347 million), 1.5 percent will increase support staff compensation ($118 million), and .5 percent will invest in school capital for safety and security ($39 million).
State Sen. Christine Marsh (D-LD04) is sponsoring the bill with the governor’s plan. Marsh also sits on the Senate Education Committee.
“Renewing and expanding this vital funding source for our schools is crucial to ensuring Arizona’s students receive the high quality education they deserve,” said Marsh.
Today, @GovernorHobbs announced her #Prop123 renewal plan, which will expand on the current Prop 123 funding to continue building a quality public education for the more than 90% of Arizona children who attend public schools.
Rep. David Schweikert, R-Ariz., urged Congress to “take our nation’s fiscal health seriously” in response to the growing national debt.
Schweikert’s Daily Debt Monitor shows the federal government’s gross national debt increasing by $839 billion already this fiscal year, which began in October.
So far this fiscal year (3 months in), the total national debt has increased by $839 billion. That's ~$8.65 billion per day, and just over $100,000 per second.
I implore my brothers and sisters in Congress to take our nation's fiscal health seriously. pic.twitter.com/7XACzQ0mjM
“That’s ~$8.65 billion per day, and just over $100,000 per second,” Schweikert tweeted.
“I implore my brothers and sisters in Congress to take our nation’s fiscal health seriously,” the congressman continued.
The national debt has increased by more than $360 million per hour, $6 million per minute, and $100,00 per second this fiscal year.
The total national debt as of Jan. 4 was more than $34 trillion, compared to around $31 trillion on Jan. 4, 2023. This includes both intragovernmental and publicly held debt. Between 2023 and 2024, there was an increase in debt of more than $7 billion per day and $300 million per hour.
The national debt hit the $34 trillion record this month. The Congressional Budget Office’s January 2020 projections didn’t expect gross federal debt to surpass $34 trillion until fiscal year 2029.
The Congressional Budget Office expects the debt to only get worse in coming years. An estimate shows America’s entitlement spending, mandatory spending, and net interest payments on the debt will exceed the government’s total revenue by the early 2030s.
In June, Republican lawmakers and the White House agreed to temporarily lift the nation’s debt limit, making an agreement that lasts until January 2025.
The Congressional Budget Office estimated in its 30-year outlook last June that publicly held debt will be equal to a record 181% of American economic activity by 2053.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
The state of Arizona is among the top ten in the nation for having the most credit cards.
According to a new study by WalletHub, Arizonans rank ninth among all states concerning credit card ownership.
The average Arizonan has an average of five credit cards. The average American has around four open credit cards, per their data.
There was an average of between one and two credit cards opened by Arizonans in the third quarter of 2023, with the average number of credit cards owned ballooning to between five and six that quarter.
Compared to last year, that marked a six to seven percent decrease in the average number of new credit cards opened. However, there was an overall increase of nearly seven percent in the number of average credit cards owned by Arizonans in the same time frame.
Outranking Arizona, in order for most to least, were: Alaska, New Jersey, Nevada, Wyoming, Arkansas, Florida, Georgia, and California.
The combined high ranking and increase in credit card ownership in the state may be another symptom of the poor health of the economy.
Last November, Arizona was among the states facing the highest inflation rates in the nation. According to the latest Consumer Price Index data, prices have gone down by less than half a percent over the past month, but up by over three percent compared to one year ago.
Over the last quarter of 2023, Arizona’s cost of living ranked 36th in affordability. RentCafe data reflects Arizona’s cost of living to be around six percent higher than the national average: 20 percent higher in housing, two percent lower in utilities, two percent higher in food, four percent lower in health care, even in transportation, and one percent higher in goods and services.
Earlier this month, CBS News reported that Arizonans would have to spend over $13,000 more annually to maintain the same basic cost-of-living standards from last year. That’s over 16 percent higher than the national estimation: over $11,000.
In September, the National Low Income Housing Coalition reflected in its annual report that the average Arizonan would need to make nearly $30 an hour to afford a two-bedroom rental home. That translates to 86 hours at the $13.85 minimum wage, or 71 hours for a one-bedroom rental home.
Yet, Arizona was ranked among the top 20 in the nation for business.
Coupled with these facts, credit card debt ballooned to a record high of nearly $1.1 trillion in the third quarter of this year, part of a record high of over $17 trillion of overall household debt. Per a previous study by WalletHub over the summer, Arizona ranked 10th for credit card debt.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Minimum wage in Arizona will rise to over $14 an hour in the new year, a 50-cent increase from the previous amount of over $13.
At $14.35, that will make Arizona the state with the ninth-highest minimum wage in the country. Only eight Democratic-led states — California, Washington, New York, Connecticut, New Jersey, Maryland, Massachusetts, and Colorado — outrank Arizona in their minimum wages offered.
Arizona was one of 22 states to receive a minimum wage increase.
The state’s minimum wage adjustment originated with Proposition 206 — referred to as the Fair Wages and Healthy Families Act — passed by voters in 2016 under former Gov. Doug Ducey. At the time of the act’s passage, the minimum wage was about $8 an hour. The act initiated an incremental increase in the minimum wage from $8 in 2016 to $12 an hour in 2020, with all subsequent annual changes based on cost of living increases.
The act exempts individuals employed by parents or siblings, babysitters, state or federal government employees, and small businesses that gross less than $500,000 annually and don’t have to pay a minimum wage per federal law.
Since 2006, municipalities have been allowed to set a local minimum wage higher than the state.
Flagstaff and Tucson both have their own minimum wage ordinances; Flagstaff requires its wage to be at least $2 higher than the state, while Tucson currently has an incremental increase to reach $15 by 2025.
2024 marks the first year Flagstaff will adjust its minimum wage based on cost of living. Tucson will adopt the same schedule after 2025.
According to those parameters, Flagstaff’s minimum wage will rise to $17.40 come January. Tucson was set to reach a $14.25 minimum wage this year according to its schedule, but according to the law will match the state raise to $14.35.
In recent years, Flagstaff has battled with the state in court over its minimum wage schedule. The Arizona Court of Appeals ruled in February that the city would have to pay the state over $1.1 million for its minimum wage ordinance, per a 2019 law requiring annual assessments of municipalities with a minimum wage exceeding that imposed by the state. These assessments review estimated state agencies’ costs attributable to the higher minimum wage.
The federal minimum wage remains at $7.25 an hour, unchanged since 2009. Democrats in the House and Senate are looking to change that with proposed legislation to increase the minimum wage to $17 by 2028.
According to an Economic Policy Institute analysis, the raise would result in an estimated $86 billion annually in wages for over 27.8 million workers, averaging out to about $3,000 more per worker annually. Those millions affected make up about 19 percent of the national workforce.
In Arizona, the proposed federal minimum wage raise would impact roughly 629,000 workers with an average annual increase of over $900.
The Congressional Budget Office (CBO) issued a review of similar legislation which proposed a minimum wage increase of $15 an hour by 2027. CBO estimated that earnings would raise for some, but overall there would be a decrease in employment.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Rep. Debbie Lesko’s office showed off this year’s Christmas decorations available to them due to “Bidenflation”: a single, plain sign poking fun at historic inflation rates.
“Due to Bidenflation all we could afford was this crummy sign,” read the sign, with a classic depiction of Charles Dickens’ Oliver Twist begging for more food with an empty bowl of porridge, next to a picture of a Christmas hat-wearing Biden pointing at Twist with the caption “I did that!”
Lesko explained in a post that “Bidenflation” had a detrimental impact on her office’s tradition of decorating for Christmas.
“It’s a long-standing tradition that the second floor of Longworth is decorated for Christmas,” said Lesko. “My staff and I wanted to participate, but with Bidenflation who can afford it?”
It’s a long-standing tradition that the second floor of Longworth is decorated for Christmas. My staff and I wanted to participate, but with Bidenflation who can afford it? pic.twitter.com/IG0z5YVIXJ
The Bureau of Labor Statistics (BLS) reported last month that the Consumer Price Index (CPI) of all items increased by 3.2 percent compared to last year, with food at about three percent higher, all other items at four percent higher, and energy down over five percent.
On Tuesday, the BLS confirmed a .1 percent increase in the CPI last month, noting that overall cost of living reflected in the shelter index offset the decline in the energy index.
The greatest increases occurred in the cost of meals eating out, medical care commodities (drugs, medical equipment, and supplies), and services less energy services including shelter and transportation.
Meals at home increased by 1.7 percent: cereals and bakery products increased by 3.4 percent; meats, poultry, fish, and eggs increased by .1 percent; dairy and related products decreased by 1.4 percent, fruits and vegetables increased by .4 percent, nonalcoholic beverages and beverage materials increased by 2.9 percent, and all other foods increased by 3.3 percent.
Eating out increased by 5.3 percent: full service meals and snacks increased by 4.3 percent, and limited services and meals increased by six percent.
Energy commodities decreased by 9.8 percent: gas decreased by 8.9 percent and fuel oil decreased by 24.8 percent. Energy services decreased by .1 percent: electricity increased by 3.4 percent, while utility gas decreased by 10.4 percent.
Commodities less food and energy commodities sustained their price levels: new vehicles increased by 1.3 percent, while used cars and trucks decreased by 3.8 percent; apparel increased by 1.1 percent; medical care commodities increased by five percent; alcoholic beverages increased by 2.9 percent; and tobacco and smoking products increased by 7.7 percent.
Services less energy services increased by 5.5 percent. Shelter increased by 6.5 percent, with rent of primary residence increased by 6.9 percent and owners’ equivalent rent of residences increased by 6.7 percent.
Transportation services increased by 10.1 percent: motor vehicle maintenance and repair increased by 8.5 percent, motor vehicle insurance increased by 19.2 percent, and airline fare decreased by 12.1 percent.
Medical care services decreased by .9 percent, with physicians’ services decreased by .7 percent and hospital services increased by 6.3 percent.
Under President Joe Biden, the CPI hit a four-decade high last June: a 9.1 percent increase.
Annual inflation rates under former President Donald Trump averaged out to 1.9 percent: 2.1 percent in 2017, 1.9 percent in 2018, 2.3 percent in 2019, and 1.4 percent in 2020. The average annual inflation rates under Biden — factoring in 2021, 2022, and the latest inflation rate from this year — sits at over 5.5 percent.
These increases translate to Arizonans having to spend tens of thousands of dollars more for everyday necessities on average.
A study released earlier this year found that the average Arizona household must spend over $13,300 more to maintain the same standard of living they had in January 2021 — the state with the third-highest averages, just after Utah and Colorado.
The Thanksgiving dinner table may have also looked different this year. This year’s annual American Farm Bureau reported an average cost of $61 for a basic 10-person Thanksgiving dinner, down three dollars from last year but still eight dollars higher than 2021.
The average gas price in Arizona is currently at about $3.30.
Biden administration officials indicated to reporters this week that they anticipate 2024 will bring a continued decline in inflation. The Federal Reserve didn’t modify interest rates on Wednesday; Chairman Jerome Powell indicated that they would cut them next year.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
