by Matthew Holloway | Sep 15, 2024 | News
By Matthew Holloway |
The Payson Town Council’s August decision to incur a $70 million debt via a bond measure approved without a public referendum has triggered a lawsuit from concerned residents with the assistance of the Goldwater Institute. Goldwater is assisting resident Deborah Rose to challenge the measure despite the Town’s claimed legal pretext of an “emergency” to counter efforts from the public to stop it.
John Thorpe, a Goldwater attorney representing Deborah explained, “Our leaders want our money, but not our vote. They’re trying to take advantage of legal loopholes to saddle their own constituents with tens of millions of dollars of debt, systematically stripping power from the people by ignoring laws and twisting their truths.”
As noted by the Payson Roundup, the lawsuit seeks to block the bond resolution by arguing that no legal emergency actually exists. However, the outlet reported Payson Town Attorney Jon Paladini scoffed at the lawsuit as “specious,” and claimed it would be dismissed quickly. He told the outlet, “Bottom line is that the courts are prohibited from second guessing a legislative body like the council — a slew of cases tell us that. It’s about as close to being frivolous as we’ve seen.”
The use of the city’s emergency clause with a 6-1 vote forced the bond sale into immediate effect and brushed aside the typical 30-day period voters would have to gather signatures to force a vote.
The alleged justification for the “emergency” comes from speculation that at an upcoming meeting of the Federal Reserve, the Fed is expected to reduce interest rates by a quarter or half-point which would lower the interest rates the town would pay.
Thorpe argued that, “Government officials’ efforts to time the market, based on pure speculation about financial trends, is not an ‘emergency,’” and added that this use of the “emergency clause” violates the Arizona constitutional right to organize a referendum and vote on it.
“The so-called ‘emergency’ here is nothing more than town officials’ apparent belief that interest rates might rise in coming months, and that they’ll secure slightly better municipal bond terms now than they could in 30 days if they gave residents the opportunity to organize a referendum,”
He wrote, “When the council approved the bond measure, it slipped in an ’emergency clause,’ stating that the measure would go into effect immediately, without letting residents who might oppose the measure organize a referendum and put the issue to a vote. But the Arizona Constitution guarantees the right of referendum: the right of Arizonans to circulate petitions and refer bills, ordinances, and resolutions for a popular vote. It’s a cornerstone of democratic accountability in Arizona, and it means that the people—not politicians—have the last word in state and local government.
The Payson Town Council is trying to bypass that safeguard and short-circuit the democratic process using a legal loophole: a narrow exception allowing cities and towns to enact emergency measures without waiting for a referendum when such measures are ‘necessary for the immediate preservation of the peace, health or safety of the city or town.’ The so-called ’emergency’ here is nothing more than town officials’ apparent belief that interest rates might rise in coming months, and that they’ll secure slightly better municipal bond terms now than they could in 30 days if they gave residents the opportunity to organize a referendum.”
Paladini maintains that the bond sale measure meets the emergency clause designation and therefore the bonds for such general town projects as “a community and swim center, hiking trails and trailheads, covered event center to lure conventions,” and “upgrades to Main Street to create a business and entertainment district,” “improvements to streets and to public facilities like the police station and fire stations,” according to the Roundup, all constitute “emergency” spending. As noted in the Roundup, nearly all bond sales rely upon the “emergency clause” to sidestep the possibility of blocking them through referendum.
Should the Goldwater lawsuit succeed, it would enforce the standard that voters can in fact challenge bond measures as intended under the Arizona Constitution.
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 14, 2024 | News
By Staff Reporter |
Attorney General Kris Mayes has been asked to investigate the city of Surprise over its alleged violation of one citizen’s free speech rights.
Republican State Senator John Kavanagh sent a letter to Mayes on Tuesday requesting an investigation into the arrest of a Surprise citizen after criticizing the city attorney during a city council meeting last month. The arrested citizen, Rebekah Massie, sued the city of Surprise last week with the aid of Foundation for Individual Rights and Expression (FIRE).
Mayor Skip Hall, who ordered Massie’s removal, cited city policy prohibiting public comment from lodging any “charges or complaints” against city employees or elected officials.
State law requires the attorney general to investigate local governmental ordinances, regulations, orders, or other official actions alleged to be in violation of the state law or Arizona Constitution. Under this law, Mayes’ office would have to issue a written report of their findings within 30 days of receiving the investigation request.
In a press release, Kavanagh claimed that the city of Surprise had violated both state law and the Constitution with Massie’s arrest.
“In Arizona statutes, we have a provision that specifically says, ‘[a] public body may make an open call to the public during a public meeting, subject to reasonable time, place and manner restrictions, to allow individuals to address the public body on any issue within the jurisdiction of the public body,’” said Kavanagh. “Protecting freedom of speech, especially in public government settings, is incredibly important to our democracy. Regardless of where they stand, members of the public deserve the opportunity to voice their opinions and concerns to city leaders.”
Kavanagh’s letter to Mayes asked the attorney general’s office to investigate whether the city of Surprise’s policy restricting public speech by prohibiting complaints against city employees and elected officials violates the Arizona Constitution and state law governing public comment within public meetings.
Were Mayes to determine that the city of Surprise’s public comment policy violates state law or the Arizona Constitution, her office would provide notice to the city by mail of its violation and give the city a 30-day deadline to resolve the violation. Should the city fail to resolve the violation, Mayes would notify the state treasurer to withhold and redistribute state shared funds.
Or, were Mayes to determine that the city’s public comment policy may violate certain state law or the Arizona Constitution, the attorney general would file a special action in the state Supreme Court to seek a resolution. The court would then require the city to post a bond equal to the amount of state shared revenues paid to the city in the last six months.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
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 Daniel Stefanski | Sep 13, 2024 | Education, News
By Daniel Stefanski |
Arizona’s Republican Superintendent of Public Instruction is sounding the alarm about the state’s dwindling pool of teachers.
Earlier this month, Arizona’s school’s chief, Tom Horne, announced the results of a teacher retention survey “that shows alarming numbers pointing to a crisis in the teaching profession.”
According to the release from the Arizona Department of Education, “A survey of nearly 1,000 teachers who left the profession after 2023 shows large numbers of educators left because of lack of administrative support for classroom discipline and a desire for better pay. Teachers are leaving the profession within the first few years of teaching at an alarming rate, and there are more teachers leaving than are coming into the classroom. If this were to continue, we would ultimately end up with no teachers.”
Horne said, “This is a crisis, and it needs to be addressed immediately. In the most recent legislative session, I urged the passage of a bill that would require school leaders to support classroom teachers in discipline matters. Sadly, it did not get passed by the legislature and the crisis will not only persist but will just get worse.”
He added, “I have also consistently advocated for higher teacher pay, and yet legislative efforts have been rebuffed because of political disputes that do nothing to help improve the salaries of teachers. In short, just about any classroom teacher can tell you what they need to thrive as educators and lead students to academic excellence. Better pay and robust support from administrators on discipline are vital.”
The survey from the department collected responses from 945 Arizona teachers. Per the press release, “about 67 percent cited low pay. Nearly 64 percent agreed or strongly agreed that they left teaching because of student behavior and discipline problems. Almost 47 percent said they were dissatisfied with their administration and just over 45 percent were unhappy with working conditions.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Staff Reporter | Sep 13, 2024 | News
By Staff Reporter |
With the election drawing near, Democratic congressional candidate Kirsten Engel is admitting more often that the situation at the border constitutes a crisis.
Engel initially denied the existence of any crisis at the border for several years after leaving the State Senate to launch her first congressional run in 2021. In a NOTUS article published on Monday, reporters took away from their interview with Engel that she maintained that same perspective until her campaign asked for a correction.
“She has refrained from calling the situation on the border a ‘crisis,’” read the initial reporting. “Engel told NOTUS she didn’t feel her own campaign was shifting much from her last run.”
The correction simply deleted that first statement and quoted to readers the opening line of an opinion piece she wrote for the Arizona Republic in February. However, the Engel campaign also maintained that she wasn’t shifting policy positions much from her first run.
“Arizona Democrat Kirsten Engel has referred to the situation at the border as a ‘crisis’ during her 2024 campaign,” read the correction. “This run, she’s emphasized how important issues at the border are repeatedly, penning an op-ed that said ‘for far too long, southern Arizona has shouldered the brunt of our nation’s border crisis.’”
As part of her last run, Engel signaled support for bringing an end to Title 42, which expelled illegal immigrants back to the country from which they entered the United States. These expulsions lasted from March 2020 and ended in May 2023 according to the Customs and Border Protection.
Engel said in 2022 that the massive uptick of illegal immigrants didn’t constitute a crisis.
Engel’s platform this go around mentions increasing manpower, technology, and security measures at the border. This part of her platform doesn’t mention building the last of the wall along the border, a security measure she criticized as outdated during her last campaign.
The bulk of that opinion piece criticized her opponent, incumbent Republican Juan Ciscomani, for refusing to back the $118 billion foreign aid bill which, in part, provided funding for the border ($20 billion). The main purpose of the bill was to provide additional funding for Ukraine — $60 billion — with the remainder allocated to other humanitarian aid and conflicts overseas.
Leading authorities on the border, such as the National Border Patrol Council, gave reluctant support for the foreign aid bill. That authority’s president, Brandon Judd, said that the Biden administration’s border policy had forced them to accept anything in the way of promising border security.
The $118 billion foreign aid bill was styled as a bipartisan bill because of its formation by independent Senator Kirsten Sinema, along with Republican Senators James Lankford of Oklahoma and Chris Murphy of Connecticut.
Ciscomani has made use of Engel’s repeated past denials of the border crisis in campaign material. The border is a top issue of concern for voters. A poll released last week by Noble Predictive Insights found that over half of voters (63 percent) supported increased border security measures, namely Proposition 314 — the “Immigration and Border Law Enforcement Measure” that would allow state and local law enforcement to arrest those who violate migration laws as well as allow state judges to issue deportation orders.
Unlike Engel, Ciscomani’s policy platform does advocate for building the remainder of the border wall. Ciscomani also supports ending the catch and release practice of illegal immigrants, ending the exploitation of parole authority, reinstating former President Donald Trump’s “Remain in Mexico” program, and expanding expedited removal authority.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Daniel Stefanski | Sep 13, 2024 | News
By Daniel Stefanski |
A Republican lawmaker is responding to a glaring report about an alleged misuse of Arizona taxpayer funds of historic proportions in Santa Cruz County.
Late last month, Arizona State Representative Matt Gress, the House Chairman of the Joint Legislative Audit Committee (JLAC), issued a response to an investigatory report by the Arizona Auditor General’s Office over “alleged significant financial misconduct by the former Santa Cruz County Treasurer.” The potential misappropriation of funds may have come close to $40 million.
Earlier this year, former Santa Cruz County Treasurer Elizabeth “Liz” Gutfahr resigned her office, just days after Chase Bank flagged the financial irregularities. Multiple law enforcement jurisdictions are investigating the actions from the office over the past decade.
In a statement, Gress said, “The actions detailed in the Arizona Auditor General’s report are deeply disturbing and represent a significant betrayal of public trust. This case would stand as one of the worst instances of county financial misconduct in Arizona’s history, underscoring the need for more stringent oversight and accountability in the management of public resources. It is particularly concerning that, despite the County’s authorization, one of the County’s financial institutions may not have fully cooperated with the Auditor General’s investigation. Any refusal to provide additional information only heightens the severity of the situation and underscores the need for greater transparency.”
On August 26, Arizona Auditor General Lindsey Perry sent the report to Governor Katie Hobbs, Attorney General Kris Mayes, Members of the Arizona Legislature, the Santa Cruz Board of Supervisors, and the Assistant U.S. Attorney at the U.S. Department of Justice. Perry’s report stated that “Our investigation revealed that from March 2014 through March 2024, the Treasurer allegedly took $39,472,100 when she made at least 182 unauthorized wire transfers from 2 County Treasurer’s Office bank accounts to business bank accounts connected to her. To help conceal her actions, the Treasurer allegedly failed to record her unauthorized wire transfers in the County Treasurer’s accounting system and lied to and/or provided numerous false investment statements, cash reconciliations, and Treasurer’s Reports to County entities, officials, and employees; a County financial consultant; and/or the Arizona Auditor General (Office).”
The report made nine recommendations to county officials and two to the Arizona Legislature.
Gress showed his willingness to work on legislation in the next session to help prevent this kind of situation from ever happening again in Arizona. He said, “I intend to introduce legislation in the next session that will expand the authority of the Arizona Auditor General, giving the office independent access to financial institution records directly from the institutions themselves. This will ensure that auditors have more tools necessary to uncover and address financial misconduct, even when internal controls fail. Additionally, I am considering introducing legislation to require newly elected or appointed county treasurers and their deputies to meet specific training requirements, better equipping them to manage public funds responsibly.”
The first-term legislator concluded his statement, writing, “I commend the diligence of the Auditor General’s Office and the law enforcement agencies involved in bringing these issues to light. Moving forward, it is imperative that the County implements the nine recommendations made by the Arizona Auditor General to establish stronger safeguards to prevent such abuses and ensure that public officials are held to the highest standards of integrity. We owe it to the citizens of Arizona to protect their hard-earned tax dollars from fraud and corruption by arming the Arizona Auditor General with additional tools to uncover financial misconduct.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
