There continues to be a level of optimistic caution from small businesses across the United States as owners weather the current economic environment. On Tuesday, the National Federation of Independent Business (NFIB) released its monthly Small Business Optimism Index, showing an increase of 0.9 of a point in July 2023. That index now sits at 91.9, which, according to NFIB, is the “19th consecutive month below the 49-year average of 98.”
NEW TODAY: @NFIBResearch released its July #SmallBusiness Economic Trends report. Inflation has eased slightly on Main Street, but difficulty hiring remains a top business concern.
NFIB Chief Economist Bill Dunkelberg issued the following statement in conjunction with the report, saying, “With small business owners’ views about future sales growth and business conditions dismal, owners want to hire and make money now from solid consumer spending. Inflation has eased slightly on Main Street, but difficulty hiring remains a top business concern.”
Additionally, the NFIB State Director for Arizona, Chad Heinrich, shared his own thoughts on the new data, writing, “With the state legislature finally adjourned from its regular session, small business owners can continue focusing on operating their businesses without worry of new costly mandates or higher taxes coming from our state government. We are thankful for the pro-small-business legislators willing to stand against job-killing tax increases and regulatory mandates on our small businesses in Arizona.”
The national business organization highlighted some of the findings uncovered by its newly revealed report, including that “owners expecting better business conditions over the next six months improved 10 points from June to a net negative 30%, 31 percentage points better than last June’s reading of a net negative 61% – which is the highest reading since August 2021 but historically very negative;” that “forty-two percent of owners reported job openings that were hard to fill, unchanged from June, but remaining historically very high;” that “the net percent of owners raising average selling prices decreased four points to a net 25% seasonally adjusted, still a very inflationary level but trending down – which is the lowest reading since January 2021;” and that “the net percent of owners who expect real sales to be higher improved two points from June to a net negative 12%, a very pessimistic perspective.”
This NFIB Small Business Optimism Index has only climbed above 100 two times since President Joe Biden walked into the White House in January 2021. During the Trump administration, the Index sat over 100 for most months during the four years of his presidency – with declines during 2020 when COVID-19 decimated the health and structure of businesses around the nation. Earlier this month, President Biden touted his economic record, tweeting, “13.4 million jobs have been added to our economy on my watch. More than any other president in a full 4-year term, and heartening that our economic agenda is creating opportunity for working for families.”
13.4 million jobs have been added to our economy on my watch.
More than any other president in a full 4-year term, and heartening that our economic agenda is creating opportunity for working for families. pic.twitter.com/o3VrhKuySq
The president also boasted of his policies giving a much-needed boost to the American economy, writing, “We have the lowest rate of inflation among the G7, down two thirds from its peak. That’s Bidenomics: growing the economy by creating jobs, lowering costs for hardworking families, and making smart investments in America.”
We have the lowest rate of inflation among the G7, down two thirds from its peak.
That’s Bidenomics: growing the economy by creating jobs, lowering costs for hardworking families, and making smart investments in America. pic.twitter.com/f9AjFm9ZaU
Twitter added a note from readers on this tweet from Biden, providing context to the information shared by the president. The note read: “According to a report released on July 4, 2023, Japan had the lowest inflation rate among the G7 countries in May of that year. The year-on-year inflation for the G7 as a whole fell to 4.6%, with Japan’s rate specifically registering below 3.5%.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Another week brings another school choice battle between Arizona’s Governor and Superintendent of Public Instruction.
On Monday, the state’s schools chief, Tom Horne, issued a statement to continue to push back against Governor Katie Hobbs political assaults over the historic Empowerment Scholarship Account (ESA) program, calling her recent attacks “unfounded.”
The release touted an “independent analysis by education analyst, Dr. Matthew Ladner, of how much the ESA program will cost, showing the dire predictions made by Governor Hobbs and other opponents of the program are incorrect.”
@katiehobbs memo on AZESA conflates the interests of the spending lobby with those of taxpayers (taxpayers pay all the taxes and they are all green) and ignores $218,000,000 in tax credits in making fiscal estimates https://t.co/jc15ayJWkF
Last month, Governor Hobbs’ Office issued a memo, highlighting that the ESA program “would cost the state over $943 million, with over 53% of all new K-12 education spending going towards only 8% of Arizona students.” Hobbs stated, “The universal school voucher program is unsustainable. Unaccountable school vouchers do not save taxpayer money, and they do not provide a better education for Arizona students. We must bring transparency and accountability to this program to ensure school vouchers don’t bankrupt our state. I’m committed to reforming universal vouchers to protect taxpayer money and give all Arizona students the education they deserve.”
Horne has been extremely proactive in responding to all of Hobbs’ attacks on the ESA program, and the fight over the veracity of the Governor’s memo has been no exception. Horne wrote that the author of the analysis, Dr. Ladner, “has studied the issue thoroughly and without political bias. His analysis should be read to reassure taxpayers the ESA program saves tax dollars and is sustainable.”
The Republican schools chief concurred with Dr. Ladner “that the costs of the ESA program will never be $943 million.” However, he pointed out that “even if it were, that would be only about one percent of the fiscal 2022 state budget of $80.5 billion.”
He then took two routes to defend his argument that the cost of the state’s ESA program would not reach the controversial $943 million mark. First, Horne reasoned that “taxpayers pay both state and local taxes. Combined they contribute about $13,000 per student for every student in public school. If a student leaves a public school for a private school, and obtains a payment from ESA of $7200, that is a savings of about $6000 per student to the taxpayers.”
Second, Horne argued that “if the student was never in a public school but was already in a private school when the ESA program was adopted, there is still a benefit to the state for the following reasons: many students in private schools are beneficiaries of the tax credit available for contributors to the student’s tuition. If they choose to take the $7200 from the ESA program, they have to give up that tax credit. This increases revenues to the state, because the tax liability that previously was erased by the tax credit now has to be paid to the state.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Gov. Katie Hobbs says that her decision to not veto more bills represented her biggest missed opportunity this past legislative session.
In an interview with 12 News, Hobbs shared that her 143 vetoes weren’t enough in her eyes — a record-breaking total that far surpassed the 58 vetoes of the last female Democratic governor for the state, Janet Napolitano. Hobbs laughed, then clarified that vetoing for the sake of vetoing wasn’t her goal.
“I didn’t come here to veto bills,” said Hobbs.
In April, Hobbs celebrated breaking Napolitano’s veto record after killing a bipartisan bill to legalize more homemade food sales.
With June came a slew of vetoes on Republican-led and bipartisan bills addressing hot-topic issues.
Hobbs vetoed a bill requiring all child sex offenders to register within the state’s online database. A loophole in state law only requires child sex offenders to register if they’re not considered a high risk of reoffending. Hobbs justified that those child sex offenders didn’t need to be registered because they weren’t the “most dangerous.” Lawmakers denounced Hobbs’ veto, arguing that it allowed predators to remain undetected in communities built on trust, such as schools and sports teams.
Similarly, Hobbs vetoed a bill banning sexually explicit materials from classrooms. The governor derided the legislation as an attempt to ban books.
The governor also vetoed a revision of Proposition 400, which would’ve allowed voters to vote separately for roads and transportation funding. Last week, a bipartisan majority passed a version of Proposition 400 that reunited the two funding questions.
Hobbs then vetoed bills barring state contracts and investments with organizations implementing social credit scoring, often called Environmental, Social, Governance (ESG) systems.
The governor also vetoed an election integrity measure prohibiting election officers, employees, or individuals overseeing elections operations from serving in the leadership of a political action committee. Hobbs claimed in the veto letter that there were too few of these cases to justify codification.
Hobbs also vetoed a bill requiring public schools to provide single-access restrooms and changing facilities for transgender individuals. The governor said the protective measure was discriminatory against LGBTQ+ individuals.
The governor also vetoed a bill requiring municipalities to require vagrants to remove their encampments. Hobbs said that the bill shouldn’t be allowed to take effect since it doesn’t address why the homeless decide to install unlawful encampments and offers the homeless no alternative to establishing the encampments.
In the preceding months, Hobbs vetoed several other key bills banning photo radar, prohibiting schools from using the incorrect pronouns to satisfy transgender perspectives, increasing punishments for those who make or distribute fentanyl to minors, increasing punishments for those who commit domestic violence against pregnant women, requiring employers to honor religious exemptions for vaccinations, prohibiting schools from teaching critical race theory, and prohibiting municipal taxes on rental or leased properties.
In the Sunday interview, Hobbs said that, despite the many vetoes and heightened political divisions, she has managed to push through significant legislation, citing the budget. Apart from the vetoes, the divisions are most evident in the fact that only a handful of her nominations have been approved.
Additionally, Hobbs took a jab at the state’s universalized school choice program. The governor said the Empowerment Scholarship Account (ESA) program was “unaccountable” and rife with “runaway spending.” Hobbs said that she would continue to look for ways to undermine the program, if not roll it back entirely.
The governor also advocated for greater action to counter alleged climate change. Local and federal Democratic leaders have appeared to have been moving in lockstep when it comes to characterizing the desert heat as a federal emergency, a classification that would come with increased funding for climate and social projects.
Hobbs also expressed confidence that a ballot measure expanding abortion access would come before voters next year.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
On Monday, Republican lawmakers held an emergency meeting on President Joe Biden’s plan to take 1.1 million acres of federal public land for Native Americans.
The meeting occurred in the Joint Natural Resources, Energy & Water Committee a day before Biden’s anticipated arrival in Arizona. The president will announce the transition of the land into a national monument during a visit to the Grand Canyon. The lawmakers argued on Monday that the designation would render the land ineligible for vital economic uses such as uranium mining and cattle grazing, as well as limiting recreational opportunities like hunting and fishing.
The 1.1 million acres span the northern and southern borders of the Grand Canyon.
Lawmakers complained that the Department of the Interior (DOI) held a public comment session last month in Coconino County, where reportedly great support for the new monument exists, but not in Mohave County, where reportedly great opposition exists.
In a press release, House Majority Leader Leo Biasucci (R-LD30) pointed out that Mohave County’s opposition should’ve given the federal government more pause.
“Mohave County doesn’t want this monument,” said Biasiucci. “We must give the members of the local community an opportunity to be heard.”
The lawmakers arranged for the emergency meeting in a 72-hour timespan. The three-hour meeting afforded more opportunity for public comment than offered by the federal government.
Stakeholders, like cattlemen, shared during the meeting that they were left out of the conversation on converting the land.
District director for Rep. Paul Gosar (R-AZ-09), Penny Pew, shared that the congressman opposes the monument designation, calling it a “federal land grab.” In his statement, Gosar lamented that 57 percent of Arizona land already exists under federal authority. Gosar revealed that he would work with Reps. Andy Biggs (R-AZ-05) and Eli Crane (R-AZ-02) to review possible actions to curtail the Biden administration’s encroachment, like repealing the Antiquities Act of 1906.
Pew shared that their review of the actions by the Biden administration had already revealed some red flags with the monument declaration, referencing China’s interest in American reliance for critical minerals used in defense systems. The lands proposed for monument declaration contain one such critical mineral: uranium. Pew cited corruption in relation to the Hunter Biden foreign business dealings without expanding further.
The lands would be designated “Baaj Nwaavjo I’tah Kukveni Grand Canyon National Monument.” The name combines two phrases from two different tribal languages native to the region: “Baaj Nwaavjo” means “where tribes roam” in Havasupai, and “I’tah Kukveni” means “our ancestral footprints” in Hopi.
Conservationists and tribal member advocates for the monument designation cited the land as “sacred” to Native Americans, and their opposition to the potential damage that uranium mining could have on the land.
As has become increasingly common practice with the Biden administration, Tuesday’s monument designation comes via an executive order circumventing congressional authority. Traditionally, a congressman representing the area would introduce legislation to designate a monument. In this case, that would be Gosar.
Republican leadership warned that such a unilateral decision by Biden would violate the state’s autonomy under the Statehood Enabling Act. In a press release, State Senate Majority Leader Sonny Borrelli (R-LD30) said that Biden shouldn’t take state land without the legislature’s consent.
“The federal government already controls too much of our land,” said Borrelli. “The President should not be allowed to take away our land and economic opportunities without the consent of the legislature.”
The idea behind the 1.1 million-acre monument came from the Grand Canyon Tribal Coalition in conjunction with the nonprofit conservationist organization Grand Canyon Trust. During a press gaggle on Monday, Press Secretary Karine Jean-Pierre alluded that it was the coalition that prompted the Biden administration to unilaterally declare this monument.
Among members of the Grand Canyon Trust’s board are key Democratic players at the state and federal level.
Board member Libby Washburn was Biden’s special assistant for White House Council on Native American Affairs until last May, and previously in Obama’s DOI.
The vice chair of the board, Pam Eaton, also serves as the founder and owner of Green West Energies, a conservation and renewable energy consulting firm, and formerly a longtime leader with the Wilderness Society. Eaton attended the first meetings for the inaugural Environmental Protection Agency (EPA) White House Environmental Justice Advisory Council (WHEJAC) in May 2021. The goal of the council is to address environmental injustice and racial inequity.
There’s Terry Goddard, the longtime Democratic politician behind the controversial dark money ballot proposition and formerly the attorney general for the state, Arizona director of the Department of Housing and Urban Development, Phoenix mayor, and president of the National League of Cities. Goddard’s partner in the dark money proposition, David Tedesco, also sits on the board.
There’s also David Bonderman: billionaire founding partner of TGP Capital, minority owner of the NBA’s Boston Celtics, co-founder and co-owner of the NHL’s Seattle Kraken, and special assistant to the U.S. Attorney General during the Kennedy administration. Bonderman also sits on the board of the Wilderness Society and World Wide Fund for Nature (WWF). In 2014, Bonderman managed to remain on the board of a Russian state-owned investment firm despite economic sanctions placed by the Obama administration.
Bonderman served as an early and hefty donor to the president: he ultimately gave $73,800 to Biden’s campaign. Bonderman also chipped in $5,000 for Biden’s transition team — two months before the election occurred. Bonderman was one of over 3,200 donations totaling over $22.1 million made to Biden’s transition team as early as May 2020.
Board member Rhea Suh, president and CEO of Marin Community Foundation, formerly served as the president of the Natural Resources Defense Council and, during the Obama administration, assistant secretary for policy, management, and budget in the DOI.
Another board member, Trudy Vincent, served on the Obama-Biden presidential transition team as the energy and environment lead in 2008. Vincent is now the senior vice president of federal relations in the Office of Civic Engagement at the University of Chicago.
Former President Barack Obama entertained the idea of designating the Grand Canyon-adjacent lands as a monument, but ultimately relented.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
One of Arizona’s most-influential organizations is bringing facts to the conversation surrounding the state’s historic school choice expansion program.
Last month, the Director of Education Policy for the Goldwater Institute, Matt Beienburg, responded to the latest political attacks against Arizona’s Empowerment Scholarship Accounts (ESA) program, releasing a comprehensive fact-check to promote the truth.
Beienburg’s fact-check came after the Governor’s Office issued a memo, which targeted the ESA program, showing that it “could cost the state over $943 million, with over 53% of all new K-12 education spending going towards only 8% of Arizona students.” In conjunction with the release of that memo, Democrat Governor Katie Hobbs said, “The universal school voucher program is unsustainable. Unaccountable school vouchers do not save taxpayer money, and they do not provide a better education for Arizona students. We must bring transparency and accountability to this program to ensure school vouchers don’t bankrupt our state. I’m committed to reforming universal vouchers to protect taxpayer money and give all Arizona students the education they deserve.”
The fact-check from the Goldwater Institute refuted three claims made against the ESA program. First, that “spending on ESA vouchers could account for 53.25% of all new K-12 education spending in the FY2024 budget going towards only 8% of Arizona students.” Beienburg put forward three facts in opposition to the claim: that “total spending on universal ESA students makes up just 2% of total Arizona K-12 spending,” that “Arizona public school districts are projected to receive over 60% (more than $570 million) of all new K-12 funding in FY 2024, despite making up 0% of the growth in students served this upcoming year,” and that “even under the Arizona Department of Education’s (ADE) highest projections, the ESA program would be funding the education of roughly 8% of Arizona’s students (including a disproportionately high percentage of students with severe disabilities) for less than 6% of the total taxpayer cost of educating Arizona’s students.”
The second claim refuted by Goldwater was that “there is an increased cost to the State when a student leaves a public district school and enrolls in the ESA voucher program. This occurs because the ESA award amount is based on the state funding provided to charter school students, which is higher than the state funding provided to district school students.” Goldwater issued one fact in opposition to this claim – that “the average savings per ESA student is even higher when including other (non-formula) spending on public school students. In total, JLBC reports over $3 billion (roughly $3,000 per student on average) of additional spending by state and local taxpayers per public school student outside the basic funding formula. ESA students receive none of this funding.”
The third – and final – claim refuted by Goldwater was that “new estimates indicate the ESA voucher program may cost taxpayers up to $943,795,600 annually, resulting in a potential $319,795,600 General Fund shortfall in FY 2024.” Goldwater issued four facts in opposition to this claim, including that “Gov. Hobbs’ office itself does not believe the report that it is using as the basis for these figures;” that “Gov. Hobbs’ office mistakes the cost ESA awards by thousands of dollars per student;” that “the nonpartisan JLBC continues to project ESA costs in line with the state budget; “ and that “even if the higher enrollments and total ESA award amounts estimated by ADE do materialize, they would not represent the net cost to taxpayers of the program.”
Beienburg closed his fact-check, writing, “Arizona’s ESA program now offers tens of thousands of families an opportunity to pursue the best education possible for their children at a lower cost than traditional public schooling. The governor and her budget office owe it to parents and the public to provide the facts about ESAs free of manipulation.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Arizona Republican Legislators continue to share their concerns about the progression of the latest Election Procedure Manual (EPM).
On Friday, Arizona State Representatives Michael Carbone and Steve Montenegro issued a press release, “criticizing an extremely short public comment period set by Secretary of State Adrian Fontes for his 2023 EPM.” They demanded that Fontes “extend the deadline for public comment” after the state’s election chief set the deadline for August 15.
✅FOR IMMEDIATE RELEASE✅ State Representatives @SteveMontenegro & @MichaelCarbone Urge Secretary Fontes to Extend Public Comment Period for 2023 Elections Procedures Manual.
— Arizona House Republicans (@AZHouseGOP) August 4, 2023
In a statement, Carbone said, “Requiring public comments to be submitted by August 15th is simply too restrictive and does not provide adequate time for interested stakeholders to review the draft 2023 EPM for compliance with state law. It is our understanding that several provisions have already been identified that appear to run afoul of state law. We urge Secretary Fontes to extend the public comment deadline to at least September 1, 2023, to give the public an adequate opportunity to review and provide input on the most important elections manual that will guide county officials in administering their duties in the 2024 elections.”
Montenegro added, “The Elections Procedures Manual is of paramount importance to ensuring the integrity and security of election administration in Arizona. Secretary Fontes should have given the public more than 15 days to review his extensive 259-page draft of the EPM and submit comments. A longer comment period is particularly necessary and reasonable this year because Arizona has not had a legally compliant EPM since 2019.”
Carbone and Montenegro encouraged “Arizona voters to participate in the process to keep both elected and unelected election officers transparent and accountable” by submitting public comments to the draft EPM.
On Tuesday, August 1, Secretary Fontes commenced the 15-day public comment period for the 2023 EPM. Fontes wrote, “As a former County Recorder, I understand how important this manual is for the dedicated Arizonans who are entrusted with one of the toughest and most important jobs in our democracy. In an atmosphere of heightened scrutiny of our elections, local and county officials need clear guidance based on law. Now that we are at the start of our public comment period, I look forward to continuing this important conversation about a document that is essential to the running of safe, secure, and accurate elections in every corner of our state.”
For public comment, please use the web form at the same link before Aug 15. Happy reading!https://t.co/Td57qaHjD3
Fontes emphasized the input that had already gone into the drafting of the EPM, assuring readers “It is important that the people who administer Arizona’s elections – the statutorily required stakeholders – be given the first opportunity to suggest changes. He revealed that his office had initiated “a series of monthly meetings with local and county election officials to suggest changes and garner feedback.”
The warning from Carbone and Montenegro follows a recent letter that was transmitted to Secretary Fontes by Representatives Jacqueline Parker and Alexander Kolodin, who highlighted certain issues with the initial copy of the EPM that they had seen from his office. That letter from the two legislators, written just days before Fontes allowed the public to view the document, identified eight possible violations of Arizona statutes in four chapters of the draft EPM. The legislators commented that they “are looking forward to seeing these provisions addressed prior to the EPM’s submittal to the Governor and the Attorney General on October 1, 2023.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
