by Matthew Holloway | Sep 14, 2024 | Economy, News
By Matthew Holloway |
The Common Sense Institute of Arizona (CSI) released a report Wednesday which outlines the implications and economic impact of the City of Glendale’s far-reaching “Hotel and Event Center Minimum Wage Protection Act” (Prop 499). The act is set to be considered by voters on November 5.
The initiative, launched by the non-profit organization “Worker Power Political Action Committee,” has been challenged by the City of Glendale on the basis that it violates the State of Arizona’s “Single Subject Rule” limiting initiatives to act upon a single issue, The case is now headed to the State Supreme Court according to AZ Central.
The report from CSI Arizona details that the initiative, if it becomes law, would mandate that hotel and event center employers pay their staff a minimum of $20 per hour, and places narrow restrictions on the duties they may perform and the duration for which they may perform them. As Brunner explains, “For example, it prescribes how many square feet can be cleaned in a hotel before the employer is required to pay twice the room attendants’ regular rate of pay for each hour worked during that workday, and establishes new requirements on how Hotel and Accommodation firms treat certain revenues and records.”
The act would furthermore require the City of Glendale to create an entirely new enforcement division in order to enforce the mandate and hire staff to conduct investigations. It would also price non-union labor out of the market per the report.
The CSI found that the new law, if enacted, would, “reduce Gross Domestic Product (GDP) in Glendale by between $120 million and $1.9 billion.” Given that the city’s event and accommodation industries account for approximately 8.2% of Glendale’s entire economy, the blow to the city’s tax base could be severe.
“Depending on how the industry responds to the new policies, between 1,700 and 32,000 Glendale jobs could be impacted. Impacts will range from the elimination of existing jobs subject to the new rules, to reduced work hours, to the movement of jobs outside the city. How much of each and when will determine where things fall in this range.”
In a post to X, the CSI explained, “The Minimum Wage Act would impose significant costs on the city of Glendale, requiring the creation of a new Department of Labor Standards to enforce the Act’s provisions. CSI estimates the city would need to spend $995,000 to $1.9 million annually to manage these new requirements.”
Compellingly, the CSI report referecnces similar policies put in place around the country as “instructive examples,” of the likely ramifications of enacting the restrictive law.
“This year California instituted a $20 per hour minimum wage for fast food workers leading restaurant owners to reduce staff hours, lay off part-time staffers, and limit overtime pay. Also this year, Long Beach, CA passed a ballot initiative instituting a $23 per hour minimum wage for hotel workers. On the consideration of increasing hotel and airport workers’ minimum wage to $25 per hour, the President of the Valley Industry and Commerce Association said ‘increasing the hourly wage by $6 or $7 this year alone could cost an employer about $14,000 more per worker.’ For Arizona to pass a $20 minimum wage for hotel and event center workers in Glendale, it could cost employers up to $10,756 per affected worker -through a combination of either direct increased wage costs or efficiency losses as employers mitigate the impacts by reducing staff, cutting hours, or moving business activity. Much of this cost will likely be passed onto consumers in the form of higher prices and increased fees (as has been the case in California). This may further incentivize both customers and operators to seek alternatives outside the city.”
With Glendale and the city’s businesses banking heavily on the much ballyhooed Mattel Adventure Park at the VAI Resort set to open in late 2024, according to a park representative, and the growing impact of the Westgate Entertainment District and State Farm Arena on the local economy, the impacts of this measure could be devastating.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Staff Reporter | Sep 1, 2024 | Economy, Education, News
By Staff Reporter |
A progressive Democrat incumbent legislator is key to her party’s hopes of flipping both chambers in Arizona.
Mariana Sandoval is running for reelection to the Arizona House of Representatives in Legislative District 23. She was first elected in November 2022 and has served alongside Republican Michele Peña in the state House over the past two legislative sessions. In the House, Sandoval is a member of the Land, Agriculture & Rural Affairs Committee and the Ways & Means Committee.
On her campaign website, Sandoval proudly promotes endorsements from left-leaning organizations, including, Human Rights Campaign PAC, Save Our Schools Arizona, Living United for Change in Arizona, National Organization for Women Arizona Political Action Committee, Sierra Club, Arizona Education Association, Climate Cabinet, Moms Demand Action, and others.
Over her first term in office, Sandoval has proven that she does not share the values of many of the men and women who she represents. In 2023, she voted no on SB 1063, which would have “prohibit[ed] a city, town or other taxing jurisdiction from levying a transaction privilege tax, sales, use, franchise or other similar tax or fee on the sale of food and certain beverage items intended for home consumption.” After Republicans passed the bill out of both chambers, Democrat Governor Katie Hobbs vetoed it, writing, “From potential cuts to service – including public safety – to increased property taxes, it’s clear that this bill doesn’t actually eliminate costs for our residents.”
When Hobbs rejected the proposal, Arizona Senate President Warren Petersen blasted her decision in a statement. He said, Senate Republicans have been working toward introducing legislation necessary to provide financial relief to all Arizonans, especially low-income families who are feeling the tremendous burden of inflation. It’s very clear the governor has no interest in helping with that financial burden.”
Sandoval also opposed legislation that protected Arizona’s children. In February, she voted against HB 2586, which would have “add[ed] a new section of statute regulating the publishing and distribution of material harmful to minors on the internet.” Hobbs vetoed this bill, claiming that it went “against settled case law.” Other advocates for the proposal disagreed with Hobbs and her Democrat allies, including Arizona Women of Action. Amid the legislative process, the organization posted, “This nonpartisan bill needs SUPPORT. It would effectively protect AZ kids from accessing pornography. Age verification is a must.”
Terry Schilling, the president of the American Principles Project, also weighed in on the governor’s action. She said, “Up until now, protecting kids from online porn had been a cause with nearly unanimous, bipartisan support. Polls have shown the vast majority of American voters, across the political spectrum, back these laws. Both Democrat and Republican governors in a dozen states from Louisiana to Utah to Virginia have signed this legislation. And many more are on track to join this list shortly.”
Additionally, Sandoval opposed efforts to enhance safeguards for law-abiding Arizonans who have increasingly fallen prey to the rising tide of criminal activity across the state. This year, she voted against SCR 1021, which would “statutorily require an adult who is convicted of a class 2 felony for any child sex trafficking offense to be sentenced to natural life imprisonment.” The measure was passed by the Arizona Legislature and transmitted to the Secretary of State for inclusion on the November General Election ballot.
When the legislation was introduced, Senator Shawnna Bolick, the Republican sponsor of the effort, said, “We believe in holding traffickers accountable for their heinous crimes, and that’s why we’ve filed legislation for a ballot referral to put convicted child sex traffickers behind bars for life. Our message is clear: our children are not for sale, and we will not tolerate heinous crimes against them. Join us in this fight to protect our most precious resource – our children. Perpetrators, not here, not now, not never.”
According to the Arizona Independent Redistricting Commission, Legislative District 23 has a competitive vote spread of 16.9% between Democrats and Republicans over the past nine state elections. Out of those elections, Democrats have won all nine contests.
Sandoval will run in November’s General Election alongside Matias Rosales, who emerged from the July 30 Primary Election for the Democrat Party. She obtained 9,194 votes, and Rosales acquired 6,811 votes. James Holmes finished third in the primary, garnering 2,919 votes.
Both Sandoval and Rosales will face off against Peña. In November 2022, Peña had more votes than either of her Democrat opponents with 12,850, compared to 10,101 for Sandoval and 8,030 for Jesus Lugo Jr.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Matthew Holloway | Aug 28, 2024 | Economy, Education, News
By Matthew Holloway |
The 2024 report from the Joint Legislative Budget Committee could potentially silence opponents of Arizona’s Empowerment Scholarship Account (ESA) Program once and for all. This week, Superintendent of Public Instruction Tom Horne called the myth that the ESA program was ever a threat to the budget: “utterly demolished.”
In a press release from the Arizona Department of Education, Horne explained that for Fiscal Year 2024, which concluded on June 30th, the Basic State Aid payments for education programs at district and charter schools and the controversial ESA program all finished well under budget with a net savings to the state of $4.3 million. The news comes just days after the Goldwater Institute debunked the narrative that the ESA program harmed students and blew up the state budget as previously reported by AZ Free News.
Horne said in the press release, “Having a surplus of more than $4 million is proof positive that the critics who have claimed the ESA program will bust the not only the state’s education budget but the entire budget itself were always wrong. It was always a myth, and that myth is utterly demolished.”
The report revealed that out of $6,309,352,100 appropriated toward education funding, even with the ESA, the state only spent $6,305,050,851.55 leaving behind a $4,301,248.45 surplus.
Horne, who was previously State Superintendent of Schools from 2003 to 2011 before being elected State Attorney General, continued:
“Budget figures are stubborn facts and they do not stand up to the political posturing that ESA critics have consistently and wrongly thrown at the program. The universal ESA scholarships are a vital part of making sure that parents are able to choose the schools that best fit the needs of their children. For example, we have families with three children. Two are doing fine in the neighborhood public school, but the needs of the third are not being met. ESAs enable the parents to find a school that meets the needs of the third child. How can anyone be so immersed in ideology that they would deny the parents that ability?”
He concluded, “Having choices such as charter schools, open enrollment for district schools and ESAs are a valuable tool for Arizona parents. As today’s announcement shows, these choices do not result in any part of the budget deficit. It resulted from overly optimistic projections of state revenues. ESAs are enabling parents to find the best schools to meet their children’s needs. No rational person should oppose that.”
The revelation from the JLBC report could severely undermine the political arguments of Democrats running against the state’s ESA program in November such as Democrat John McLean who is seeking to gain a State Senate seat in Arizona Legislative District 17. McLean is challenging Republican Vince Leach.
In a statement to AZ Free News in early August, Leach warned, “John McLean is going to have to defend the actions of the Democrat party both at the state level and the national level. He owns the damage to the state of Arizona by Governor Katie Hobbs, and also the radical policies that President Joe Biden and Vice President Kamala Harris are inflicting on our country. If voters elect McLean to office, that will help the Democrats take over the state legislature, which means that taxes will increase, school choice will disappear, and commonsense election laws will be reversed.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Aug 26, 2024 | Economy, News
By Matthew Holloway |
The U.S. Department of Labor revealed, as part of its preliminary annual benchmark revisions to national nonfarm payroll figures, that the department’s initial job creation numbers were overestimated by as much as 30%. Approximately 818,000 fewer jobs than the figure of 2.9 million touted by the Biden administration were actually created.
As reported by Forbes, the metrics taken from March 2023 to March 2024 estimated by the Deptartment of Labor at 2.9 million for the year, or 242,000 per month on average, were reduced to 174,000 per month or approximately 2.08 million.
Joint Economic Committee Vice Chairman Rep. David Schweikert (R-AZ) said in a statement, “This significant downward revision from BLS confirms what we’ve known since January 2021: that the U.S. economy is much weaker than President Biden and Vice President Harris have been selling.”
“This administration’s excessive spending, outrageous tax hikes, and burdensome regulations added over the last 3.5 years have made life much more difficult for American families than before the pandemic. Yet Biden and Harris have continued to peddle the narrative that the economy is robust because of ‘record-breaking’ job growth. Now, we know that the job gain estimates last year were notably overstated by more than 800,000 in yet another example of how badly the Biden-Harris administration has failed the American people.”
According to the announcement, the preliminary estimate of the upcoming annual benchmark revision is part of usual practice within the department and revisions are common. Another such revision took the Biden administration by surprise in 2022 when the Federal Reserve Bank of Philadelphia corrected the estimate for the Second Quarter that year from an estimated one million down to just 10,500 jobs per The Post Millennial.
Despite past experience with the fickle nature of federal jobs estimates however, in an election year, President Joe Biden has repeatedly boasted his administration’s job creation.
Just a day before the announcement, he posted to X, “Since Vice President Harris and I took office, our economy has created nearly 16 million jobs,” adding, “Average unemployment under our administration has been lower than during any administration in 50 years.” On April 5th, he wrote that the erroneous job report marked “another chapter in America’s comeback. With the report of 303,000 new jobs in March, we’ve passed the milestone of 15 million jobs created since I took office. That’s 15 million more people who have the dignity and respect that comes with a paycheck.”
Reporting from CNBC confirmed that the downward revision of -0.5 percent is the largest in fifteen years, the last occurring on the tail end of the 08’-09’ recession. Chief economist at LPL Financial Jeffrey Roach told the outlet, “The labor market appears weaker than originally reported. A deteriorating labor market will allow the Fed to highlight both sides of the dual mandate and investors should expect the Fed to prepare markets for a cut at the September meeting.”
The most heavily impacted sectors of the economy were professional and business services that saw a heavy revision down of 358,000 jobs followed by the badly struggling leisure and hospitality industry, which was revised down by 150,000 and has suffered severely under inflationary burdens and short-staffing. Manufacturing jobs took a heavy hit with a downward revision of 115,000 jobs along with trade, transportation, and utilities taking a hit to the tune of 104,000 jobs.
On April 4th, Biden specifically boasted about creating “Nearly 800,000 new manufacturing jobs.” The Bureau of Labor Statistics revision revealed this was overblown by at least an eighth.
Despite the massive, heavily, and repeatedly boasted overestimation, White House economist Jared Bernstein strained to maintain the Biden administration narrative in a statement writing, “This preliminary estimate doesn’t change the fact that the jobs recovery has been and remains historically strong, delivering solid job and wage gains, strong consumer spending, and record small business creation.”
Economists at Goldman Sachs told the outlet later that they theorize the Bureau of Labor Statistics, “may have overstated the revisions by as much as half a million,” CNBC wrote. The report added, “The firm said undocumented immigrants who now are not in the unemployment system but were listed initially as employed amounted for some of the discrepancy.”
Goldman Sachs economist Ronald Walker said that the revision is likely “erroneous” and “misleading,” according to Forbes.
Following the report Wednesday, President Donald Trump took to TruthSocial expressing outrage and suggesting the Biden-Harris administration inflated the job statistics for political benefit.
He wrote:
“MASSIVE SCANDAL! The Harris-Biden Administration has been caught fraudulently manipulating Job Statistics to hide the true extent of the Economic Ruin they have inflicted upon America. New Data from the Bureau of Labor Statistics shows that the Administration PADDED THE NUMBERS with an extra 818,000 Jobs that DO NOT EXIST, AND NEVER DID. The real Numbers are much worse than that and, if Comrade Kamala gets another four years, millions more Jobs will VANISH overnight, and Inflation will completely destroy our Country. YOUR LIFE SAVINGS WILL BE WIPED OUT. With a TRUMP VICTORY, we will once again have the Greatest Economy in History. MAGA2024!”
The final benchmark revision is set to be published by the Department of Labor in February 2025.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Staff Reporter | Aug 26, 2024 | Economy, News
By Staff Reporter |
One of the lawmakers responsible for the state’s historic income and small business tax reduction law is key to maintaining Republican control of the Arizona Senate.
State Senator J.D. Mesnard is running for re-election to Arizona Legislative District 13, which covers Chandler, Gilbert, and Sun Lakes in the East Valley of the Phoenix-metro area. Mesnard first entered the state legislature in January 2011 in the Arizona House of Representatives, and he served eight years in that chamber, including two years as the Speaker of the House. In November 2018, after being termed out of the House, Mesnard won his election to the state Senate.
Over his time in the Arizona Legislature, Mesnard has proven himself to be one of the top fiscal responsibility hawks in either chamber. On his campaign website, he addresses his thoughts on this issue, writing, “I support keeping taxes as low as possible, and we can’t have low taxes with reckless government spending. The fact is, the more government spends, the more we pay for it in higher taxes and/or saddle future generations with unsustainable debt. That doesn’t mean that all government spending is bad. For instance, funding public safety, a quality education system, and infrastructure are all necessary public goods. But I also believe that state government should follow the same financial guidelines that any responsible individual or family would follow: spend only what’s necessary, don’t rack up debt, invest in your learning, save for the future, and when times get tough, find responsible ways to trim.”
In 2021, Mesnard was responsible for a historic tax reform proposal that made its way through the Arizona Legislature and into law – SB 1828. This legislation ushered in a flat tax on individual incomes of Arizonans.
Mesnard was also the author of SB 1783, which lowered taxes on small businesses. The bill passed the state legislature and was signed by then-Republican Governor Doug Ducey.
After signing the bill into law in July 2021, Ducey recognized Mesnard for his efforts, when he said, “This tax cut will keep Arizona competitive for small businesses already operating here and new businesses flocking here every day. After a year as tough as the last, we should not be raising taxes on our small businesses — we should be cutting their taxes. That’s exactly what Senate Bill 1783 does. Arizona has now passed the largest tax cut in state history and will have the lowest flat tax in the country. My thanks go out to Senator J.D. Mesnard and Representative Ben Toma for their leadership on this issue.”
Mesnard added, “Small businesses are the backbone of our economy and integral to the future success of our state. Small businesses should be able to grow and reinvest in themselves without being forced to pay astronomical taxes. Rather, government should get out of the way so that they can thrive. That’s why I’m so grateful for the support of Governor Ducey and my colleagues in the Legislature.”
Two staunch free-market advocates Tim Phillips (President of Americans for Prosperity) and Grover Norquist (President of Americans for Tax Reform) wrote a piece in Newsweek, praising the accomplished feat of the Arizona Legislature, spearheaded by Mesnard, and Ducey. They stated, “Arizona, on the other hand, provides a good example: lower the tax rates to let people keep more of what they earn and invest in what they care about most. Limit government spending to grow no faster than the incomes of the citizens who pay the taxes. Create a magnet for job-creating investment and hardworking Americans who simply wish to be left alone to work hard, take care of their families and support their communities.”
Phillips and Norquist put the finishing flourish on their thoughts by saying, “The Arizona reform is a positive model and one that should be followed by other states and the federal government.”
When the Arizona Supreme Court gave the green light for these tax reforms to go into effect in a highly anticipated ruling, Arizona Free Enterprise President Scot Mussi said, “Today’s decision from the Arizona Supreme Court is a big win for taxpayers in our state. The legislature passed historic tax cuts last year that benefit all Arizona taxpayers. It’s time for Invest in Arizona and out-of-state special interest groups to accept this reality and stop making a farce of the referendum process.”
Mesnard touted the progress of his historic legislation in a campaign newsletter in January 2023, saying, “The historic tax reform that I championed in 2021 is now in effect for income earned this year – a full year ahead of schedule thanks to strong government revenues. Valued at more than $2 billion, this reform reduced individual tax rates to 2.5%, resulting in a tax cut for every single Arizona family and Arizona having the lowest flat tax in the nation.”
The east valley lawmaker added, “Depending on your tax decisions, if you choose to lower your withholding rates this year, you will be able to keep more of your own hard-earned dollars with each paycheck that hits your checking account. That will help take some of the edge off sticker shock at the grocery store.”
According to the Arizona Independent Redistricting Commission, Legislative District 13 is one of the most competitive in the state, with a 1.6% vote spread between Republicans and Democrats in the past nine statewide elections. In those contests, Republicans have won five times, compared to four for Democrats.
Mesnard will be facing off against Democrat nominee, Sharon Winters, in the November General Election. On his website, Mesnard asks voters to give him another term in the state senate, writing, “Now we face historic economic challenges that require someone with the right experience and a track record of success to navigate. That’s why I need your vote. Let me continue using my diverse background, which includes husband (to a registered nurse), father, professor and small business owner, with master’s degrees in business and public administration, to keep delivering results for you.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Staff Reporter | Aug 24, 2024 | Economy, News
By Staff Reporter |
Another one of Arizona’s middle-of-the-road legislative districts may be represented by a liberal after November’s General Election if enough Democrats and left-leaning independents have their say.
Judy Schwiebert, a Democrat, is running for the Arizona State Senate in Legislative District 2. Schwiebert currently serves as a State Representative for the district. She announced for the seat in June 2023, saying that “we need people who will work together to focus on the toughest challenges facing Arizonans including our teacher, affordable housing, and water shortage crises.”
Schwiebert posted more than 1,600 signatures at the Arizona Secretary of State’s Office earlier this spring to qualify for the ballot.
The Democrat legislator has been endorsed by several left-leaning organizations, including National Organization for Women Arizona PAC, Arizona Education Association, Moms Demand Action, Save Our Schools Arizona, Arizona List, Jane Fonda Climate PAC, the Grand Canyon Chapter of the Sierra Club, Emily’s List, Moms Fed Up, and Human Rights Campaign PAC.
Schwiebert has been a vote for her party’s efforts to stand against border security measures. In 2021, she voted against HCR 2029, which commended the courage of the United States Border Patrol and recognized the role they play in safeguarding Arizona and the U.S. She also co-sponsored HB 2604 in 2023, which would permit the Arizona Department of Transportation to issue a driver’s license or nonoperating ID to a person without legal status in the United States.
This year, she voted against SCR 1042, which proclaimed the legislature’s support for the people and government of Texas in its effort to secure our nation’s southern border.” More recently, Schwiebert refused to support a legislative effort to refer a border security measure to the ballot in this November’s General Election – HCR 2060, voting against the bill when it was considered by her chamber. The proposal, if passed by voters in the fall, would empower local law enforcement to better secure their communities from the increasing calamities from the border crisis.
It’s not just border issues where Schwiebert is showing her true, liberal colors; it’s also the economy where she is demonstrating an inability to moderate to her district’s desires. In 2021, Schwiebert voted no on HB 2113, which would have increased the 25% of allowed charitable deductions in accordance with the average annual change in the metropolitan Phoenix CPI. In 2022, she voted against HCM 2004, which urged Congress to oppose the reporting requirements included in the Biden administration tax increase proposal.
Also in 2022, Schwiebert opposed HB 2389 as one of nine members to vote against changing the time period from one year to six months for an agency that the legislature has granted a one-time rulemaking exemption to review a rule adopted by an agency to determine whether the rule should be amended or repealed. That same year, she voted against creating a TPT exemption for the sale of all machinery and equipment, including off-highway vehicles, utilized for commercial agricultural purposes.
This year, Schwiebert opposed SB 1370, which was coined “the lemonade stand bill.” This legislation exempted a minor or a person who has not graduated from high school from the requirement to obtain a TPT license and pay TPT, use tax, and local excise taxes, if the person’s business gross proceeds of sales or gross income is less than $10,000 per calendar year.
Schwiebert’s leftist leanings didn’t stop with the border and economy. She has a number of votes and bill sponsorships that show her being in lockstep with the Democrats on some of their most radical ideas. In 2023, she co-sponsored HB 2653, which would have established that “restaurants and other food service establishments in the state may only serve water and disposable straws to customers on request.” She also co-sponsored HB 2068, which would have repealed the designation of school sports by biological sex.
Additionally in 2023, Schwiebert voted no on SB 1028, which would have prohibited a person or business from engaging in an adult cabaret performance on public property or in a location where the performance could be viewed by a minor. In this most-recent legislative session (2024), she voted against HB 2591, which would have prohibited a public power entity or public service corporation from entering into contract with a person or company that uses forced labor or oppressive child labor.
Arizona Legislative District 2 is one of the most competitive in the state, with a 3.8% vote spread in the past nine statewide elections. It is very winnable for Republicans, however, as the party has emerged victorious in six out of those nine elections. The district covers a large portion of northcentral Phoenix.
Schwiebert ran unopposed in the July primary election for Democrats. She is facing off against the winner of the district’s Republican primary contest for state senator, incumbent Shawnna Bolick.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
