Arizona’s Republican legislative leaders continue to come to the unwavering aid of the state’s Empowerment Scholarship Account (ESA) Program.
After the ESA program sustained another political attack from Democrat Governor Katie Hobbs, House Speaker Ben Toma released a statement in support of the landmark school choice expansion for the state. Toma said, “Governor Hobbs continues to blast the ESA program as unsustainable and exceeding estimates. Neither are true. We remind the Governor that she leads the entire state of Arizona, and if she seeks changes to the ESA program, she ought to propose serious policies, not tweet vague threats. The State Legislature has yet to see any policy proposals from her office. Arizona will continue to responsibly fund students, not systems.”
Arizona’s K-12 Budget Is Right on Track: "Governor Hobbs continues to blast the ESA program as unsustainable and exceeding estimates. Neither are true," said Speaker Ben Toma. "We remind the Governor that she… pic.twitter.com/eNlnXwz2db
According to the Speaker’s press release, “the Department of Education reported on October 4 that the budget is currently on pace to have a year-end surplus of roughly $77 million,” adding that “the budget estimate of 68,000 total users (in the ESA program) is within 1% of the current program enrollment.”
The Speaker’s defense of ESAs came soon after Hobbs unleashed another attack against it, claiming that the program “threatens to decimate our state’s budget.” In a post on the platform “X,” Governor Hobbs stated, “The school voucher program is unaccountable and unsustainable. It does not save taxpayers money, and it does not provide a better education for Arizona students…I call on Superintendent Horne, Speaker Toma, and President Petersen to join with bipartisan leaders to pass accountability and transparency measures, and bring an end to this wasteful, runaway spending.”
The school voucher program threatens to decimate our state’s budget.
I call on Superintendent Horne, Speaker Toma, and President Petersen to join with bipartisan leaders to bring accountability to the school voucher program and end the wasteful, runaway spending. pic.twitter.com/6pvsovlWBO
Horne and Petersen also took time to respond to the governor’s assertions, pushing back against her allegations and supporting the integrity of the program. Horne said, “The Governor’s calculation is in error. She is counting the $7,200 paid for each ESA student without offsetting the $13,000 paid per student that would otherwise be spent for that student to attend a public school. The overall numbers bear this out as the expenditures for all public-school spending, including the ESA program are $72 million below budget.”
Petersen added, “Arizona families want choices for their children’s education. ESAs are one of many choices the Legislature is prioritizing. The fact is, we budgeted for the 68,000 kids currently enrolled and have responsibly planned for incremental spending increases for this program in the years to come, as we do with a variety of other programs in our overall budget. We’re always open to improving our state’s programs, but for the sake of Arizona families who want to choose the best educational settings to meet their children’s needs, ESAs are here to stay.”
Since failing to address ESA changes in the state’s budget, which was passed earlier this year, Governor Hobbs has increased her political volleys against the program, joining allies who were enraged at her perceived capitulation to Republican lawmakers. As a new legislative session nears, Hobbs and her staff will likely be more focused on exacting some concessions when the next round of budget negotiations resume in 2024. Ultimately, Arizona voters will have a significant role in determining the direction of the state’s ESA program, whether by changes to the political party make-up of the legislature or through a yet-to-be-filed ballot initiative.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
The Arizona Corporation Commission (ACC) is refusing to ban the implementation of Environmental, Social, and Governance (ESG) policies in monopoly utilities operating in the state, claiming that they lack the authority to do so.
The ACC issued its declaration in response to several letters petitioning a prohibition against ESG implementation by utilities under its purview. Two of those letters came from the Arizona Free Enterprise Club (AFEC), and one came from former ACC commissioner Justin Olson.
In AFEC’s first letter, issued in late August, AFEC President Scot Mussi made the case that ESG goals and initiatives would result in unreliable services and increased costs for ratepayers. The Arizona Constitution requires the ACC to ensure utilities have “just and reasonable rates” as well as practices that result in the “convenience, comfort, and safety, and the preservation of the health” of users.
“The truth is that a forced ‘transition’ to these resources, as required by ESG, would cost ratepayers $6 billion,” stated Mussi. “This fact alone should require the Commission to prohibit it, as this body is constitutionally obligated to ensure just and reasonable rates.”
In 2021, the ACC rejected a proposed mandate for utilities to generate their resources entirely from renewables such as wind and solar following an independent study estimating the cost to ratepayers at $6 billion. Even without the ACC mandate, the state’s utilities have committed to realizing Net Zero by 2050: a goal to eliminate all carbon emissions by 2050 by transitioning entirely to renewables.
In addition to the Environmental aspect of ESG, Mussi contended that the Social and Governance policies enacted by the monopoly utilities would impact the affordability and reliability of their services. Specifically, Mussi expressed concerns with the unforetold consequences of utilities’ deprioritization of merit and cost in decision-making and prioritization of diversity, equity, and inclusion (DEI) in contracts, corporate structure, board leadership, and hiring.
“Just as corporations have a fiduciary duty to their investors and stakeholders, so too do utilities have a duty to ratepayers to provide cost effective and reliable energy. That is the lens through which RFPs should be evaluated, not ideological commitments such as DEI,” stated Mussi. “[T]his potentially unconstitutional discrimination in the workforce could subject them to litigation, the costs for which utilities will try to recover from ratepayers in subsequent rate cases.”
With no response given to the first letter, AFEC issued a follow-up letter earlier this month. Mussi reiterated that utility resource portfolios based primarily on ESG goals rather than affordability and reliability triggered ACC’s regulatory authority. Mussi claimed that ESG bans wouldn’t impair utilities’ ability to obtain investments, arguing that lenders prefer the reliability of grids based on gas and oil rather than renewables. He cited famed venture capitalist Kevin O’Leary, best known for his role on the “Shark Tank” reality show.
“The Commission should not allow foreign banks and investors to hold Arizona’s ratepayers hostage, undermining our energy independence which threatens our state’s security,” said Mussi. “[W]ell-known investors are willing to spend $14 billion to open a new oil refinery, despite the growing ‘green’ political agenda […] because ultimately it makes good policy sense and it makes good financial sense.”
Former commissioner Olson’s letter echoed those sentiments, and noted that the ACC had set a regulatory precedent by prohibiting COVID-19 vaccine mandates for utility employees.
“The Commission’s constitutional obligation is to protect ratepayers by ensuring just and reasonable rates, but the adoption of ESG is incompatible with this requirement,” said Olson. “If the Commission does not proactively prohibit the utilities from pursuing these initiatives, utilities will continue to come back to recover the costs associated with them. It will impact resource planning, every future rate case, and the reliability of our power grid.”
Yet, in the ACC response letter issued Tuesday, Commissioner Nick Myers said that the ACC couldn’t regulate the internal affairs of parent companies from which the public service corporations receive their ESG goals and initiatives. Myers agreed that clean energy mandates resulting in higher rates and unreliability of services were problematic.
“Generally, the Commission has the authority to control rates but not the authority to control the utility itself, particularly its internal affairs,” said Myers. “This is especially the case when regulated utilities implement goals and initiatives handed down from parent companies, which are not public service corporations and which the Commission does not regulate. That being said, I agree that clean energy mandates or self-imposed clean energy goals that unreasonably drive up rates for customers or jeopardize reliability are problematic.”
Myers noted in his letter that the ACC could only address ESG policy impact on rates and reliability through the Integrated Resource Plan (IRP) process. The IRP process allows parties to intervene and introduce evidence proposing the implementation or discontinuation of utility programs, especially those impacting rates and reliability. Myers encouraged AFEC to intervene in future rate cases by engaging in the IRP process.
“The IRP process and rate cases are therefore the best venues to address utility goals and initiatives that may be driving up costs for ratepayers and jeopardizing safe and reliable service,” said Myers.
Myers declined to address the social and governance issues presented by AFEC, declaring that these were outside of ACC purview.
AFEC President Scott Mussi replied to Myers in a response letter on Thursday. He noted that AFEC has been involved in the IRP process, which he contended was “controlled by the utilities” and lacking the ability to counter ESG impact.
“[U]nless ESG is prohibited by the Commission upstream, every downstream policy and ratemaking decision at the Commission will be shaped by it,” said Mussi. “The failure with [Myers’] approach is that it guarantees that all future resource plans will be ESG resource plans and all future rate hikes will be ESG rate hikes.”
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
One Arizona leader is using her statewide office to support Israel at a time when that nation faces tremendous threats to its security.
Arizona State Treasurer Kimberly Yee recently announced that her office “plans to increase Israel bond holdings to support Israel during this time of crisis.” Yee’s press release shared that the State Treasurer’s Office “has been investing in Israel bonds since 2013 and currently has $15 million in holdings.”
Today I announced my commitment to increasing Arizona Treasury @IsraelBonds holdings in support of Israel. Arizona is a friend and ally of Israel, and it is imperative that we support them through our actions, not just our words.
— Arizona Treasurer Kimberly Yee (@AZTreasurerYee) October 16, 2023
Treasurer Yee issued a statement in conjunction with her announcement, saying, “In the wake of the distressing news of the horrific terrorist attacks in Israel, I promptly directed my investment team to contact our esteemed partners in Israel to increase our Israel bond holdings as we continue to stand firmly with Israel. The state of Arizona is a friend and ally of Israel, and it is imperative that we support them through our actions, and not just our words.”
Yee also took an opportunity to highlight the importance of her action and encourage her colleagues around the country to follow suit. She said, “Israel bonds are a secure and reliable investment option that not only contributes to the Arizona Treasury’s diversified investment portfolio, but also strengthens our support and partnership with the State of Israel. Investing in Israel bonds is something that I not only support, but also urge my fellow state financial officers to do as well, especially in this time of crisis. In this time of adversity, it is our duty to stand resolute and support Israel as a nation.”
The Treasurer’s Office noted that “Israel bonds serve as an investment option for individuals, institutions and nations worldwide to support the economic growth and stability of the State of Israel,” adding that “investments in Israeli bonds offer both reliable financial returns and contribute to Israel’s economic and strategic well-being.”
According to Yee’s office, “the Israeli government will be issuing new bonds and Arizona has been placed at the forefront of the list of institutional buyers.”
The second-term Republican Treasurer has been a staunch supporter of Israel throughout her time in public service, using her platform and her office to stand with the American ally to the full extent of her authority. During her first term, Yee led the efforts to become “the first state in the country to enforce Anti-BDS laws (Boycotts of Israel) by divesting $143 million from Unilever, the parent company of Ben & Jerry’s, in response to the company ending distribution of its products in parts of Israel.”
In 2022, Treasurer Yee also notified Morningstar Inc. that they were at risk of being placed on the Arizona Treasury’s prohibited investment list for violating Arizona law by actively boycotting the State of Israel. Yee said, “It is my duty to defend Arizona’s anti-BDS law and I will ensure that Arizona does not do business with companies that are attempting to undermine Israel’s economy.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
As Arizonans continue to pay high prices at the gas pumps, a recent revelation exposes a possible contributing factor from the state’s chief executive.
On Monday, the Joint Legislative Ad Hoc Study Committee on Air Quality and Energy issued a press release after a hearing with Michelle Wilson, the Regulatory Compliance Administrator for the Arizona Department of Weights and Measures, publicizing that Wilson “admitted the Hobbs Administration was passive when oil companies in March warned of refinery shutdowns.” The Committee added that “according to Wilson, for the first time in five years, the Governor’s office received a request from refineries to ask the EPA for a waiver, allowing for an alternative fuel type to provide an adequate supply for drivers and preventing a hike in gas prices” – yet after the Governor’s Office “had conversations with the EPA about submitting a request for a waiver,…the EPA convinced Hobbs to not submit one.”
According to Senate Republicans, “this catastrophe reduced the supply of the type of gasoline drivers in Maricopa County are required to fill their tanks with, known as ‘Cleaner Burn Gas’ (CBG), in order for Arizona to comply with the U.S. Environmental Protection Agency’s Clean Air Act requirements.”
“Rather than making a case on behalf of Arizonans struggling to fill their tanks with prices hitting $5 per gallon, Governor Hobbs chose to not push back against the EPA and was complicit with the Biden Administration’s pro-inflation, radical environmentalist agenda,” said Senator Sine Kerr, the Committee’s co-chair. “As a result of Hobbs’ inaction, Maricopa County drivers were forced to shell out an extra several hundred million dollars just to get to their destinations during this supply disruption.”
“It’s clear Governor Hobbs is taking her marching orders from the federal government, instead of serving the best interests of our citizens,” said Senator Frank Carroll, a member of the committee. “While Republicans were securing a tax rebate to give $260 million dollars back to Arizona families hurting from historic price hikes, the Governor sat on her hands and cost families at least half that amount at the pump. We plan to analyze potential changes to policy to protect Arizonans from these irresponsible actions by the Executive Branch and reckless big government overreach.”
In the leadup to the hearing, legislative Republicans signaled they sought to investigate “the driving force behind (Arizonans’) pain at the pump and how to provide relief to motorists.” They promised to “analyze one of the contributing factors pushing Arizona’s gas prices to level higher than the national average, which is the unique blend of gasoline required by state law since 1997 called ‘Cleaner Burning Gasoline.’”
This isn’t the first time Hobbs has taken political heat for her actions (or lack thereof) on this issue. Earlier this year, Senator Jake Hoffman unleashed a blistering rebuke of Hobbs’ reported failure “to do the right thing by requesting this waiver to allow prices at the pump to drop.” Hoffman’s statement followed accounts of a letter that had been sent to Hobbs in March by independent petroleum refiner HF Sinclair, warning the state’s chief executive “of a critical supply shortage in Arizona due to an unexpected equipment failure stopping the production of ‘Cleaner Burning Gasoline’ (CBG) required by the Biden Administration in Maricopa County, as well as parts of Pinal and Yavapai Counties.”
Per Senator Hoffman’s release, HF Sinclair had argued that Hobbs would be within her right to seek the waiver from the EPA, writing, “Pursuant to 42 U.S.C. § 7545(c)(4)(C)(ii), EPA may temporarily waive a control or prohibition respecting the use of a fuel when extreme and unusual fuel supply circumstances prevent the distribution of an adequate supply to consumers. EPA may grant such a waiver where such circumstances are the result of a natural disaster, Act of God, refinery equipment failure, or another event that could not reasonably have been foreseen or prevented, and where doing so would be in the public interest (e.g., when a waiver is necessary to meet projected temporary shortfalls in fuel supply in a state or region). Such circumstances presently exist in Arizona.”
In his June release, Hoffman said, “Katie Hobbs’ incompetence as Arizona’s Governor continues to take center stage, and hardworking Arizonans are paying the price for it. The average price for a gallon of gas right now in Maricopa County is a full $1 higher than the national average. This is extra money that could help with groceries, medications and other necessities many of our taxpayers are having a difficult time affording because of the Biden Administration’s reckless policies leading to historic inflation.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
On Wednesday, the Arizona Department of Education (ADE) unveiled a new program using off-duty cops to supplement the shortage of safety officers on campus.
Under this new program, ADE filled its school resource officer (SRO) force from 190 to 301 positions — despite the statewide officer shortage. Superintendent Horne said in Wednesday’s press conference announcing the new program that an increase to SROs was one of his main priorities.
Horne said that the state’s police officer shortage initially posed a problem to the SRO increase. That meant that the fully-funded SRO positions had no officers to fill them. To work around this issue, Horne explained that the ADE contracted with Off Duty Management (ODM), which enables law enforcement to pick up off-duty shifts.
Horne credited Mike Kurtenbach, head of ADE’s school safety division and former Phoenix Police Department assistant chief, for the idea. Horne noted that their arrangement with ODM ensures full coverage at schools.
“We don’t involve partial coverage. The nightmare is that some maniac walks into a school and kills 20 kids — this has happened in other states and could happen here — and there’s no one there to protect the kids,” said Horne.
ODM President Bryan Manley thanked ADE for engaging in an “innovative” approach, the first of its kind in the state. ODM traditionally works security for businesses or venues, such as movie theaters.
Traditionally, SROs are fully-dedicated officers to a school that receive a minimum of 40 hours of training to work in schools. These ODM-deployed officers will be armed off-duty officers that receive a foundational 8 hours of specialized training from ADE for working in schools, on top of the 650 hours minimum of basic training to work in a police department, as well as field and on-the-job training.
Horne noted that the city of Phoenix has declined to participate in the SRO arrangement. Phoenix police force shrank last week to 2,561, according to Kurtenbach. As such, law enforcement from surrounding areas like Peoria will have ODM-deployed officers for Phoenix-area schools.
In response to reporter queries about parental concerns of increased arrests or intimidation of students, Horne said that the officers would provide order and a feeling of security — not fear. The superintendent said that those upset that some students may be arrested on campus were perpetuating the idea that “it’s okay to break the law without consequence.”
“This will allow us to provide a safe environment for more of our schools,” said Horne. “People should not be afraid of the police officers. The police officers are there to protect us. Without the police officers, we would have no civilization.”
Horne paraphrased 17th-century English philosopher Thomas Hobbes to supplement his claim, noting that civilized societies have a healthy and appreciative relationship with their law enforcement.
“Life becomes ‘solitary, nasty, brutish, and short’ if we don’t have police officers to protect civilization. It’s a very bad attitude to have a negative attitude toward police officers,” said Horne.
Recent student shooting threats have concerned students who have brought guns to campuses at Bostrom High School, Linda Abril Educational Academy, Maryvale High School, and North High School (Phoenix Union High School District); Kyrene de la Estrella Elementary School (Kyrene School District); and Desert Ridge High School (Gilbert Public Schools).
John Croteau, Dysart Unified School District superintendent, expressed gratitude for the ADE’s “creative” expansion of SROs.
“Safety is one of the most important things, if not the most important thing we can provide in education,” said Croteau. “We know that our students won’t learn if our students don’t feel safe, and that goes for the employees and staff [as well].”
Troy Bales, Paradise Valley Unified School District superintendent, added that he looked forward to the further expansion of the SRO presence on campus through the new program.
Watch the full press conference here:
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Rep. Debbie Lesko (R-AZ-08) announced Tuesday that she won’t be seeking re-election in 2024.
In a press release, Lesko cited family as her main reason for retiring from the job.
“I want to spend more time with my husband, my 94-year-old mother, my three children, and my five grandchildren,” said Lesko. “Spending, on average, three weeks out of every month away from my family and traveling back and forth to Washington, D.C. almost every weekend is difficult.”
Lesko also cited the increased difficulty of passing legislation, declaring the nation’s capital to be broken.
Lesko assumed office in 2018, succeeding the retired former Rep. Trent Franks in a special election. Of the 102 bills she introduced, two became law.
One was HR 6400, which directed U.S. Customs and Border Protection (CBP) to submit to the congressional homeland security and tax committees a threat and operational analysis of U.S. air, land, and sea ports of entry.
The other law was HR 6016, naming a U.S. Postal Service facility in Surprise as the “Marc Lee Memorial Post Office Building.”
The Heritage Foundation, one of the biggest conservative activist organizations, rates Lesko at a 100 percent conservative voting record. Lesko is a member of the House Freedom Caucus.
Lesko will serve through the end of her term in 2025.
As one of her recent major acts in Congress, Lesko has backed Rep. Jim Jordan (R-OH-04) in the contentious House Speaker race. Jordan failed a second time to receive enough votes for the speakership on Wednesday.
22 voted against Jordan: Reps. Don Bacon (NE), Vern Buchanan (FL), Ken Buck (CO), Lori Chavez-Ramer (OR), Anthony D’Esposito (NY), Mario Diaz-Balart (FL), Jake Ellzy (FL), Drew Ferguson (GA), Andrew Garbarino (NY), Carlos Gimenez (FL), Tony Gonzales (TX), Kay Granger (TX), John James (MI), Mike Kelly (PA), Jennifer Kiggans (VA), Nick LaLota (NY), Michael Lawler (NY), Mariannette Miller-Meeks (IA), John Rutherford (FL), Michael Simpson (ID), Pete Stauber (MN), and Steve Womack (AR).
All Democrats voted for their minority leader, New York Rep. Hakeem Jeffries.
I voted for @Jim_jordan yesterday in the GOP conference and plan to vote for him next week if Jim decides to take the vote to the House floor. https://t.co/xazOa9pSnY
Several hours after Lesko issued her announcement, Republican attorney general candidate Abe Hamadeh announced his candidacy to replace Lesko. Hamadeh cited former President and 2024 presidential candidate Donald Trump as his main reason for running.
“President Trump is under attack,” said Hamadeh. “He needs back up — and I’m ready to help him Make America Great Again.”
Our country is in desperate need of courageous fighters, and that’s why I’m proud to announce I’m running for Congress in Arizona’s 8th District.
