by Daniel Stefanski | Oct 9, 2023 | Economy, News
By Daniel Stefanski |
A state representative is expressing disgust with the rising gas prices in Arizona.
Last week, Arizona State Representative Teresa Martinez posted a picture of the price of gas at a pump, showing the cost to be $4.899 per gallon. The total cost for whomever was filling up a tank (almost 13 gallons) was just under $64.00.
Martinez posted, “This is not Build Back Better! It’s more like BAD, BUSTED AND BROKE!”
The Republican lawmaker isn’t alone with her observation or feelings about the increasing costs at the pump. Heritage Action shared that gas prices have skyrocketed 59% since President Joe Biden took office on January 20, 2021.
And the financial sticker shock hasn’t just hit conservative politicians or organizations – let alone everyday Americans. Jimmy Butler, a professional basketball superstar, filmed a short video, where he reacts to the final cost of filling up his vehicle. Butler exclaimed, “This is highway…robbery! This is crazy. I’m going electric.”
As of October 5, AAA reports that the national average for gas is $3.768, but the Arizona average is almost a dollar more expensive at $4.594. One year ago, the average price per gallon of regular gas in Arizona was $4.512, meaning that while costs have fluctuated throughout the year, consumers haven’t received many – if any – breaks when filling up their tanks. According to AAA, the highest recorded average price of regular gasoline in the Grand Canyon State was $5.388 on June 17, 2022.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Corinne Murdock | Oct 4, 2023 | Economy, News
By Corinne Murdock |
The Arizona Commerce Authority (ACA) may have misspent $2.4 million to court private CEOs, according to a new report from the Arizona Auditor General (AG). The ACA is a state agency managed as a public-private partnership.
The report found that the ACA spent more than $2.4 million to court private CEOs with accommodations, experiences, and refreshments between 2018 and 2023. These gifts spread across five private CEO Forums were intended to entice private CEOs to bring their business to the state; none did. Only 23 of 118 companies courted proposed “potential non-binding investment and job commitments.”
The ACA courted the CEOs in “marketing campaigns” around the Waste Management Phoenix Open (WMPO) golf tournament and the 2023 Super Bowl. At these events, the ACA paid for hotel rooms; transportation; suites at the WMPO; Super Bowl sponsorship that came with access to Super Bowl LVII and related VIP events; gifts like events tickets, hats, sunglasses, tumblers, and tote bags; VIP nightclubs and concerts at the WMPO; and the Super Bowl Music Festival.
The ACA told the AG that their CEO courting didn’t violate the Arizona Constitution’s Gift Clause because the CEOs’ projected, but non-binding, promise of tens of thousands of jobs and billions in investments would far outweigh the $2.4 million.
Below is the cumulative cost breakdown of all six years of CEO Forums:
- Super Bowl sponsorship package: $1.85 million
- WMPO Suite: $288,600
- Transportation and lodging: $193,200
- Educational events (speakers, panels): $65,000
- Birds Nest VIP and other concert or theater tickets: $42,000
- Small gifts (sunglasses, sunscreen, water, hats, tumblers, red wine, desserts): $7,600
The Super Bowl sponsorship package included 140 game tickets, 140 tickets to the Super Bowl VIP Tailgate Party, 140 tickets to the Super Bowl Experience, a party loft at the Super Bowl (with food and drinks), gift packages for event attendees (four tickets and two premium parking passes for one Arizona Cardinals regular season football game), 70 hotel rooms at the Arizona Biltmore (all event attendees), and Arizona Biltmore Resort events (hospitality lounge, planned dinner events, welcome event with Gov. Katie Hobbs, and panel discussions).
The WMPO Suite was for 17th hole suites, which include daily complimentary alcohol and other beverages, and breakfast and lunch buffets; suite tickets for up to 34 people daily; an additional 20 general admission tickets daily; and 15 parking passes for each day of the WMPO.
The ACA plans to host another two private CEO Forums in February and April 2024, in conjunction with the WMPO and the NCAA Men’s Final Four basketball tournament.
READ THE AUDITOR GENERAL REPORT
The AG also found at least two instances in which the ACA had invited company executives after awarding them a grant or approved tax incentive.
The over-$2.4 million was the smallest amount of expenditures that earned concern from the AG. Over $111 million may have been misspent on business incentives and broadband grants as well.
The report found that the ACA failed to provide documentation proving that $11 million in incentives were given to businesses that met required targets on job creation and/or capital investment. ACA staff also disclosed to the AG that they frequently didn’t conduct wage verifications for tax credits.
In all, the ACA lacked documentation showing it verified job creation requirements prior to approving 21 tax credits totaling $7.5 million. Those 21 tax credits were a sample out of 99. The AG also discovered that the ACA couldn’t provide documentation demonstrating that it investigated discrepancies in business applications for tax credits.
The AG declared that the lack of oversight created an increased risk of fraud and waste of taxpayer funding.
The ACA also failed to provide required documentation, guidance, or policies and procedures for $100 million in Arizona Broadband Development Grant Program for similar targets.
The ACA had an end-of-year fund balance of $202 million last year.
The ACA has 91 full-time employees, with nine vacancies. A board of directors governs the ACA. Voting members consist of the governor, the ACA CEO, and 17 private sector business leaders. The ACA CEO is Sandra Watson, who also oversees the Workforce Arizona Council and the Arizona Office of Economic Opportunity.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Daniel Stefanski | Sep 16, 2023 | Economy, News
By Daniel Stefanski |
American small business owners are not becoming more optimistic with the trends of the nation’s economy.
This week, the National Federation of Independent Business (NFIB) released its Small Business Optimism Index for August 2023, showing a decrease that month, marking twenty straight months that the index has been under the 49-year average of 98.
NFIB revealed that “twenty-three percent of small business owners reported that inflation was their single most important business problem, up two points from last month,” and that “the net percent of owners raising average selling prices increased two points to a net 27% (seasonally adjusted), still at an inflationary level.”
In a statement, NFIB State Director Chad Heinrich said, “For Main Street, inflation has yet to be tamed. Between the pressure on prices and the worker shortage, the challenges of this economy continue to make it difficult to own and operate a small business.”
NFIB Chief Economist Bill Dunkelberg added, “With small business owners’ views about future sales growth and business conditions discouraging, owners want to hire and make money now from strong consumer spending. Inflation and the worker shortage continue to be the biggest obstacles for Main Street.”
The press release issued by NFIB Arizona noted key findings from the Index, including:
- Small business owners expecting better business conditions over the next six months deteriorated seven points from July to a net negative 37%, however, 24 percentage points better than last June’s reading of a net negative 61% but still at recession levels.
- Forty percent of owners reported job openings that were hard to fill, down two points from July but remain historically high.
- The net percent of owners who expect real sales to be higher decreased two points from July to a net negative 14%.
NFIB’s unveiling of its Small Business Optimism Index for August preceded the release of the U.S. Bureau of Labor’s Consumer Price Index, which was published Wednesday. The U.S. Bureau of Labor reported that its Consumer Price Index for All Urban Consumers (CPI-U) “rose 0.6 percent in August on a seasonally adjusted basis, after increasing 0.2 percent in July,” and that “over the last 12 months, the all items index increased 3.7 percent before seasonal adjustment.”
The U.S. Bureau of Labor wrote that “the index for gasoline was the largest contributor to the monthly all items increase, accounting for over half of the increase” – as well as “continued advancement in the shelter index, which rose for the 40th consecutive month.” According to the Bureau, “the energy index rose 5.6 percent in August as all the major energy component indexes increased.”
In addition to its Consumer Price Index, the Bureau of Labor also published its Real Earnings Summary on Wednesday, which showed that “real average hourly earnings for all employees decreased 0.5 percent from July to August, seasonally adjusted.”
Arizona Senate President Pro Tempore T.J. Shope reposted a reaction to this week’s economic update, which summarized the August inflation and wages reports. The post, from a Senior Fellow of the Manhattan Institute, said, “I am legitimately baffled by fellow economists who seem to think that a few months of lower inflation negate the 17% price hike since 2021 that continues to outstrip wage growth. Until wages fully catch up, the higher prices will remain a family burden.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Sep 13, 2023 | Economy, News
By Daniel Stefanski |
The top prosecutor for Arizona’s largest county continues to take a tough stand against organized retail theft in her jurisdiction.
Last week, Maricopa County Attorney Rachel Mitchell announced that charges were being filed against an individual who allegedly robbed a jewelry store in Old Town Scottsdale.
The crime occurred in the late morning of September 1 at Marina Jewelers. People outside the store were alerted to the fact that a man running out of the store had purportedly stolen jewelry from the store, and acted to detain him until police arrived to make the arrest.
Mitchell revealed that the Maricopa County Attorney’s Office would be charging this individual with Class 2 Theft – in addition to other charges – because of the amount he tried to take from the store. The primary charge, she informed reporters, came with a mandatory prison sentence.
In her opening statement to the press, Mitchell explained that organized retail theft prosecutions have been a priority for her office – not only because of the impact on the businesses experiencing the direct heists – but because of the impact to the community, which includes empty buildings, and loss of jobs, services, or goods. She pointed out that the consequences of these crimes often affect poorer parts of town before trickling to more affluent neighborhoods, making it more difficult for consumers to acquire the goods and services they need for their everyday lives.
The County Attorney highlighted how other states and jurisdictions handle organized retail thefts – especially where prosecutors have set a threshold of $1,000 to activate charges. She emphasized to any potential or current criminals who may be watching: “in Arizona that has not been done.” Her office is willing to prosecute some cases, when appropriate, as felonies.
During her opening remarks, Mitchell twice stated that “this is not the state you want to be in to mimic the behavior you see on the news in other parts of the country, such as Los Angeles.” She referred to Los Angeles as a “hellscape,” in part, due to its lax standards for holding criminals accountable for their organized retail theft offenses.
Later in her press conference, Mitchell returned to this issue of organized retail theft due to a reporter’s question. Mitchell shared that when she took office, she “felt like our specialized retail theft prosecutors were limited to too high of a dollar amount before they could get involved,” noting that some of these lawbreakers commit smaller offenses at place after place. She informed her audience that upon taking office, one of her initial acts was to lower the value threshold to allow her prosecutors to get involved in the cases earlier, and the second was to create a task force within the Maricopa County Attorney’s Office and link their efforts with those of the Arizona Retailers Association.
Mitchell promised that her office is continuing to look at ways to reduce the instances of organized retail theft in the county and to make sure that her jurisdiction does not become like Los Angeles.
In July 2022, the Maricopa County Attorney’s Office formed an organized retail theft taskforce, featuring “a group of specialized prosecutors and detectives who will work with local law enforcement and the Arizona Retailer’s Association to address criminal acts involving organized retail theft.” Mitchell at that time said, “Retail stores are being devasted by groups who recklessly and intentionally take what they want and leave destruction in their wake. Many are organized gangs who have found new funding sources with stolen merchandise and the impact of this affects everyone of us.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Sep 13, 2023 | Economy, News
By Daniel Stefanski |
An internet search engine giant is making a significant investment in the Grand Canyon State.
Last week, Google unleashed a significant announcement, revealing that it would soon be constructing a $600 million data center in Mesa, marking the first time the company has put down physical roots in Arizona.
Governor Katie Hobbs, who attended the event with Google executives and other local leaders, issued the following statement to commemorate the news for her state: “Google’s investment in Arizona will be critical for the Mesa community and our state’s economy. Arizona continues to attract global technology leaders due to our skilled workforce, dynamic economy and focus on innovation. We are proud to welcome Google to Arizona and look forward to the many opportunities this partnership will bring.”
Mesa Mayor John Giles added, “The City of Mesa is thrilled to welcome Google to our community. Google’s decision to designate Mesa as the home for its first facility in Arizona underscores its profound confidence in our city and residents.”
According to a release published by the City of Mesa, “the new Mesa data center will help power popular digital services – like Google Search, Gmail, Maps, Google Cloud, and others – for people and organizations worldwide.”
The Vice President for Google’s Data Centers, Joe Kava, said, “We are proud to put down roots in Arizona with both the data center in Mesa and the Phoenix cloud region. Not only do data centers help keep digital services up and running for people and businesses, they are economic anchors in the communities where we operate. We are appreciative of the continued partnership with the local leadership across the state.”
In addition to the multi-million-dollar infrastructure project, Google revealed that the Phoenix area would soon be welcoming “a new Google Cloud region to complement its existing network of regions around the world, bringing Google Cloud technologies closer to local customers – ranging from small, medium and large businesses to public sector entities and other organizations – to help them deliver digital services to their own users more reliably and at higher speeds.”
The Arizona Governor’s Office stated that “Google’s Mesa facility is the first data center in the United States to use zero-water cooling and has announced plans to be completely carbon-free and pursue net-zero emissions across its operations by 2030.”
Per an internal economic report, Google “helped provide $11.43 billion of economic activity for tens of thousands of Arizona businesses, publishers, nonprofits, creators and developers in 2022,” and “more than 367,000 Arizona businesses used Google’s free tools to receive phone calls, bookings, reviews, requests for directions and other direct connections to their customers.” Google also “provided $15.55 million of free search advertising to Arizona nonprofits through the Google Ad Grants program in 2022.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Sep 6, 2023 | Economy, News
By Daniel Stefanski |
Arizona’s housing costs continue to climb at a concerning rate for minimum-wage workers.
The National Low Income Housing Coalition recently released its annual report, showing how much renters need to earn to afford a modest apartment in each state across the United States. Arizona checked in with the 12th highest housing wage among all 50 states and the District of Columbia and Puerto Rico.
According to the report, Arizonans need to bring home $29.93 an hour to afford a two-bedroom rental home. Individuals would need to work 86 hours each week at the state’s $13.85 minimum wage to hold onto that two-bedroom apartment – or 71 hours for a one-bedroom rental.
In comparison, Arizona’s neighbor to the west, California, has the highest housing wage in the country. California renters must make $42.25 an hour to afford a two-bedroom rental home, and the state’s minimum wage workers ($15.50/hour) would need to toil for 109 hours each week to maintain their living arrangements.
Arkansas took the trophy for the State with the lowest housing wage around the union with a $16.27 per hour rate required to afford a two-bedroom rental home and only 59 hours of employment per week at minimum wage ($11.00/hour).
Arizona has 2,683,557 total households according to the report, and 917,899 of those households classified as renters (34% of households in the state). The percentage of renters in California is 45% of total households, while that number is 34% in Arkansas.
The report shows that the fair market rent for a 1-bedroom apartment in Arizona is $1,287 and $1,556 for a 2-bedroom apartment. The median renter household income ($52,391) would support a monthly payment of $1,310 for an apartment.
Addressing the increasing housing costs for the state was a priority for Arizona legislators, though those efforts produced few results. Republican lawmakers were able to strike a deal with Democrat Governor Katie Hobbs during the final stretch of the extended session to prohibit the rental tax for Arizona tenants. Arizona Senate Republicans claimed that “approximately 70 municipalities within our state charge this tax,” and that “this tax can cost as much as $200 per month.”
Senate Majority Whip Sine Kerr applauded the signing of this bill, explaining how important the removal of rental taxes across the state would be for countless Arizonans. She stated, “Rental prices aren’t going down anytime soon, and Arizona tenants are agonizing over just how much more expensive it is now to rent an apartment or house than ever before. For Metro Phoenix, June of this year saw the second-highest monthly total of evictions since the 2008 Great Recession. According to Maricopa County records, landlords filed to evict nearly 7000 times last month. We needed to act promptly. This bill will provide some help, and I’m proud the Majority Caucus spearheaded this change in tax policy.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
