by Terri Jo Neff | Jul 7, 2021 | Economy, Education, News
By Terri Jo Neff |
Chairman Larry E. Penley of the Arizona Board of Regents has high praise for the investment made by Gov. Doug Ducey and the State Legislature in the Fiscal Year 2022 budget passed last week which recognizes the role the state’s three public universities play in Arizona’s economic wellness.
“This spending plan invests in Arizona’s competitiveness by supporting public university instruction, research and development, especially in the key growth sectors of health care, the sciences, biomedicine and engineering,” Penley recently said. “State funding also will assist ongoing efforts by Arizona State University, Northern Arizona University and the University of Arizona to meet the needs of a growing number of Arizona students.”
The 12 members of the Arizona Board of Regents (ABOR) serve as the governing board for Arizona’s three public universities – Arizona State University, Northern Arizona University, and the University of Arizona. The board is tasked with providing policy guidance for nearly every aspect of the university system, including capital development plans, strategic plans, and legal affairs.
The regents also set policy related to financial and human resource programs; academic and student affairs; public outreach; and the all-important student tuition, fees, and financial aid programs.
The main Higher Education budget bill, SB1825, involved more than just funding appropriations. Among other things, it requires the UA cooperative extension office to establish an Agricultural Workforce Development Program to provide incentives to food-producing agricultural organizations to hire apprentices.
“As Arizona emerges from the COVID-19 pandemic, focus shifts toward ensuring our state is ready for the challenges of a New Economy increasingly built on the innovation, adaptability and skills of our workforce,” Penley said.
Another SB1825 provision allows the three state universities to offer pro bono assistance to claimants in the general stream adjudication of water rights if the claimants are small landowners and not represented by counsel.
The legislation also calls for ABOR to administer and implement a Promise Program to provide financial assistance to students in a baccalaureate degree who qualify for in-state student status, graduated from an Arizona high school with a qualifying grade point average, and meet eligibility criteria for the Federal Pell Grant.
“With the state’s initial investment in the board’s Arizona Promise Program scholarship, qualifying low-income Arizona students will have their tuition and fees paid in full to attend the Arizona public university of their choice,” Penley said. “The value of a university degree has never been higher, and this program represents our promise that cost won’t be a barrier to any deserving Arizona student.”
ABOR will take on yet another new responsibility thanks to the budget bill. On Jan. 1, 2022, the statutory duties of the Commission for Postsecondary Education and the e Arizona Teacher Student Loan Program will be transferred to ABOR.
State law designates the governor and the superintendent of public instruction -currently Kathy Hoffman- as ex-officio ABOR members along with two student regents who serve two-year terms. The other regents serve eight-year terms after being appointed by a governor and confirmed by a majority of the 30-member state senate.
In addition to Penley, the current regents are Fred DuVal, Kathryn Hackett King, Lyndel Manson, Cecilia Mata, Bill Ridenour, Ron Shoopman, and Karrin Taylor Robson. ASU student Nikhil Dave is serving as a student regent until 2022; the second student regent seat is currently vacant, according to the ABOR website.
Next up for the ABOR is a Sept. 9 meeting of the Finance, Capital and Resources Committee as well as the Academic Affairs and Educational Attainment Committee.
by Dr. Thomas Patterson | Jul 4, 2021 | Economy, Opinion
By Dr. Tom Patterson |
The Biden/Harris administration is ignoring established budget tradition in their determination to spend yet more money.
Since the Reagan era, each federal budget has included a list of achievable spending cuts. The final Obama/Biden budget boasted of their averaging 140 cuts, saving $22 billion, yearly. Then-VP Biden headed up these cost cutting efforts as he did the spending reductions in the 2011 Budget Control Act.
Obama praised Biden‘s leadership in the Campaign to Cut Waste, calling him “the right man to lead it because nobody messes with Sheriff Joe.”
So Biden was justified in campaigning on his record of cost-cutting, which he did (although overall spending never fell during his tenure). But, as we have seen on almost every front, the rhetoric of candidate Biden meant nothing.
His initial budget was the first in 40 years to not include a section on savings. Instead, he withdrew President Trump’s final 73 rescissions, which would have saved taxpayers $24.4 billion, including several, such as the Commission on Fine Arts and the Presidio Trust, that had been included in earlier Obama/Biden reductions. His address to Congress in April in lieu of the SOTU contained no mention of waste reduction, nor has any other communication so far.
The contrast is striking. In 2011, President Obama proposed a $4 trillion deficit reduction over 12 years. We now know he fell far short of the mark, yet 10 years later, President Biden proposed a $14.5 trillion increase in deficits over 10 years. Success seems quite probable this time.
What’s going on here? Biden’s inference that there is no waste available in federal spending is laughable. State and local governments are awash in newfound largess. Unemployed beneficiaries have received so much compensation that millions have understandably quit their jobs.
Americans in no financial stress, nursing home residents and dead people by the millions have received COVID stimulus checks. Meanwhile, the Department of Education, an inconsequential agency that has overseen the decline of American education at all levels despite a massive funding surge, was given a $67 billion boost.
The tsunami of spending is relentless. Our national debt has now reached $28 trillion, including a 30 percent increase from spending on the Covid shutdowns alone. Federal spending this fiscal year is about $8 trillion, fully half of which will be put on the tab.
Biden’s next budget is $6 trillion, plus $6 trillion or so of additional spending on anticipated campaign promises. If Biden’s budget plan is adopted, the projected national debt would be $44,800,000,000 by 2031. Moreover, the current value of obligations to finance legal entitlement programs is $132 trillion more.
We are clearly on an unsustainable course. Easy money and goosing the economy with government spending can only take us so far. Eventually, our luck will run out when interest rates return to normal, creditors run out of confidence, inflation and lack of productivity gains take their toll or all of the above.
Technology may help some to delay the deterioration of our standard of living. But our descendants will be far worse off and America will be permanently damaged from our foolish selfishness.
Yet there is a preternatural calmness in Washington circles over the consequences of pushing massive debt out to future generations. When the ruling Left discusses their multi-trillion dollar spending proposals, they typically don’t bother to address the revenue problem. The fact that they are politically popular (and Biden’s “free” spending proposals are) is rationale enough in Dem World.
The spenders act as if spending itself is a social good. Deeply in debt, they spend for unnecessary frills like taxpayer-supplied benefits for illegal immigrants and middle class social programs.
They profess to believe that money will always be available so long as government can figuratively print more, but that is patently ludicrous. More likely, they just don’t care.
These are people who fervently believe in the power of Big Government to make life better, the overwhelming evidence to the contrary notwithstanding. The more money that is spent on anything, the larger their constituent base grows. As in the border crisis, the chance to maintain power drives policy.
Literally nothing else matters.
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
by Terri Jo Neff | Jun 26, 2021 | Economy, News
By Terri Jo Neff |
Positive reactions continue to come in from business groups in response to the Arizona Legislature’s passage this week of a Fiscal Year 2022 budget package which includes more than $1.3 billion in tax cuts, $1 billion in payments toward state debt, and a transition of the state’s multi-tied income tax system to a flat rate.
The nonprofit, nonpartisan Arizona Tax Research Association called passage of the FY2022 budget “a watershed moment” for Arizona, while Scot Mussi, president of the Arizona Free Enterprise Club, commended the Legislature for passing what he called “historic” tax cuts.
“Every single taxpayer in Arizona will now get a tax cut,” Mussi said. “This is great news for the future of our great state!”
The National Federation of Independent Business, which advocates for small and independent businesses across the country, gave a shout out to the Legislature via Twitter for adopting “landmark property & income tax reforms” which support small businesses. “Your work will allow small businesses to grow our state economy and create more jobs #ForArizonans,” the message said.
On Friday, Gov. Doug Ducey issued a video statement celebrating passage of the 11 bills which make up what he calls the state’s “fiscally conservative, forward-looking budget” that starts July 1.
“Here in Arizona our economy is booming,” said Ducey, thanking House Speaker Rusty Bowers, Senate President Karen Fann, and all the legislators. “New people and businesses are moving here every day. And at the state level that’s resulted in record revenue. With this budget we’re investing those dollars in the things that matter: schools, universities, community colleges, and new roads and bridges, just to name a few.”
Ducey added that “most importantly we’re giving a bulk of the surplus dollars back to the people who earned them.”
A budget signing ceremony must wait until at least Monday when the Senate returns from recess to formally transmit the budget bills to the governor.
Meanwhile, supporters of the voter initiative known as Proposition 208 are promising a court fight over a bill Ducey is also expected to sign next week.
Prop 208 passed last November by a slim margin of 51.75 to 48.25 percent. The purpose of the initiative was to provide additional funding for public and charter school by way of a new 3.5 percent income tax surcharge for many Arizonans.
Among those subject to the new tax surcharge would be thousands of small business owners who currently report business profits on their state personal income tax return. SB1783, however, provides a small business alternate income tax as an option for those who operate as sole proprietors, LLCs, professional partnerships, and S Corporations.
Under the alternate tax, income derived from small business can be reported on a special small business income tax form. This will ensure the income is not added into personal income for purposes of calculating the amount of Prop 208 surcharge a taxpayer owes.
Critics contend SB1783 is a way to unlawfully circumvent the taxation provision of Prop 208. Proponents of the bill point to the many statements made prior to the 2020 General Election which assured business owners that “business income” would not be subject to the surcharge.
by Goldwater Institute | Jun 26, 2021 | Economy, Opinion
By Victor Riches of the Goldwater Institute |
The Arizona Legislature just approved the Goldwater Institute’s plan to dramatically reduce income taxes and simplify the state’s tax code, making Arizona one of the lowest-tax states in the country. This historic reform will restore Arizona’s competitive advantage as a low-tax state and provide a boost for small business owners still struggling to recover from the COVID pandemic.
This plan collapses Arizona’s pre-Prop. 208 tax rates into a single, low 2.5% rate, and it caps the maximum tax rate at 4.5%. This means that no one’s taxes will increase because of Prop. 208. In fact, everyone’s income taxes will go down as a result of this victory.
Additionally, the Goldwater Institute has challenged the constitutionality of Prop. 208, and we’re now awaiting a decision from the Arizona Supreme Court. Fortunately, this new tax reform measure will mitigate the negative effects of Prop. 208—which otherwise would have decimated our economy—and help ensure the state’s future economic success.
>> READ MORE >>>
by Doug Ducey | Jun 26, 2021 | Economy, Opinion
By Doug Ducey, Karen Fann & Rusty Bowers |
>>READ MORE >>>
by Brad Palumbo | Jun 25, 2021 | Economy, Opinion
By Brad Palumbo |
Founding father and the second president of the United States John Adams once said that “Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.” What he meant was that objective, raw numbers don’t lie—and this remains true hundreds of years later.
We just got yet another example. A new data analysis from Harvard University, Brown University, and the Bill and Melinda Gates Foundation calculates how different employment levels have been impacted during the pandemic to date. The findings reveal that government lockdown orders devastated workers at the bottom of the financial food chain but left the upper-tier actually better off.
The analysis examined employment levels in January 2020, before the coronavirus spread widely and before lockdown orders and other restrictions on the economy were implemented. It compared them to employment figures from March 31, 2021.
>> READ MORE >>>
