Business Executive Warns Federal Budget Bill Will Stunt Arizona’s Economic Growth

Business Executive Warns Federal Budget Bill Will Stunt Arizona’s Economic Growth

By Terri Jo Neff |

On Monday, the CEO of Phoenix-based Ritoch-Powell and Associates warned of the impacts of the corporate tax increase and cuts to deductions currently included in the Biden Administration’s federal budget bill.

“These tax increases mean business owners will hire fewer workers – and pay them less for their labor,” Karl Obergh wrote in an op-ed published by the Arizona Republic. “Similarly, the bill contains a variety of other measures, including ones that will limit which interest expenses businesses can deduct from their taxable income.”

Obergh is principal and CEO at Ritoch-Powell and Associates, an award-winning civil engineering and surveying firm which specializes in transportation, public works, renewable energy, and private development projects. He noted that Arizona companies could pay a combined state and federal income tax rate of more than 30 percent under the Biden Administration’s proposed budget.

Only 4.69 percent of that goes to Arizona’s treasury.

But it is not only increased federal corporate tax rates which should have Arizonans concerned, Obergh wrote. He pointed out that increased utility costs triggered by other provisions of the federal budget bill would hit residents in the wallet as well.

And then there is the impact of tax changes proposed by the White House for companies that do business outside the United States.  

According to Obergh, Arizona State University’s Seidman Research Institute recently collaborated with Ernst & Young to study the likely effect of some of the international tax changes included in Biden’s budget bill.  

The study found that 266 firms based in Arizona with 100 or more employees would be impacted, putting up to 27,000 jobs at risk. Particularly vulnerable would be the state’s booming manufacturing industry which would be placed at an economic disadvantage in competing with companies outside the U.S. with far lower tax rates.

Obergh’s concerns are shared by the National Republican Senatorial Committee (NRSC) chaired by Sen. Rick Scott of Florida.  

“Joe Biden, Mark Kelly, and Senate Democrats are pushing a radical economic agenda that includes 40 tax hikes on Arizona families and job creators to pay for a reckless spending spree that will send our nation on the path towards socialism,” according to a statement released by NRSC on Monday.

Senator Kelly Silent On Biden Avoiding Border Visit

Senator Kelly Silent On Biden Avoiding Border Visit

By Corinne Murdock |

Senator Mark Kelly (D-AZ) hasn’t pressed President Joe Biden lately on the border, let alone a visit there, despite the number of illegal border crossings reaching an all-time historic high: 1.7 million. It was revealed that Biden hadn’t ever visited the border after Fox News White House correspondent Peter Doocy brought the topic up to Press Secretary Jen Psaki last month.

Psaki circled back to the topic in last Friday’s White House press briefing, in response to a follow-up by Doocy after Biden claimed he’d visited the border during a CNN town hall the day before. Psaki appeared to allude to a report by The Washington Post, which stated that the last time Biden visited the border was a “drive-by” in 2008. According to that report, he drove by the border while on the campaign trail for previous President Barack Obama.

AZ Free News inquired with Kelly’s office for comment. They didn’t respond by press time.

The most recent action from Kelly on the border concerns hearings for Biden’s nomination for Customs and Border Patrol (CBP) commissioner. Last week, Tucson Police Chief Chris Magnus sat before the Senate Finance Committee for a confirmation hearing.

Both Kelly and Senator Kyrsten Sinema (D-AZ) vowed to the committee that Magnus would be an optimal choice for CBP commissioner. Sinema emphasized Magnus’ capabilities to protect the border; Kelly remarked that Magnus would be a “committed public servant,” not pointing fingers at the Biden Administration but rather stressing that “decades” of broken immigration laws and politician failures were to blame for the border.

In comparison to Kelly, Sinema has been more vocal in her discontent with Biden’s handling of the border. Sinema demanded that the Biden Administration “do more” to address the illegal immigrants.

“The reality is that this is a crisis and we all know it, and the federal government must do more to address this surge of migrants who are coming to the border in increasing numbers each year,” said Sinema.

Though Kelly hasn’t asked Biden to visit the border, both he and Sinema requested in April that Biden reimburse Arizona for their National Guard deployment expenses. Then in August, they petitioned Biden again to reimburse the state’s expenditures following a show of support for Governor Doug Ducey’s announcement that he would be extending the deployment of the 150 guardsmen for another year.

Biden hasn’t footed the bill.

In July, however, Biden did approve legislation to reimburse the National Guard $521 million for their deployment of 26,000 troops following the January 6 riot at the Capitol.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

ACC’s Olson Seeks To Avoid Litigation While Giving APS Customers More Options

ACC’s Olson Seeks To Avoid Litigation While Giving APS Customers More Options

By Terri Jo Neff  |

On Tuesday, Justin Olson will call on his fellow members of the Arizona Corporation Commission (ACC) to move forward with providing Arizona Public Service Company customers with alternatives for procuring electricity, and in turn avoid possible litigation stemming from the agency’s failure to comply with state law.

Olson told AZ Free News there is a mandate in Arizona law, specifically ARS 40-202(B), which clearly states that “a competitive market shall exist in the sale of electric generation service.” In fact, about a dozen applications have been filed with the ACC over the years by companies interested in providing such service.

However, those applications have not been acted on, Olson said. 

“It’s time that the Corporation Commission complies with state law and authorizes competitive power companies to provide energy services to Arizona residents,” he said. “Customers deserve an alternative to the government granted monopoly.” 

The monopoly Olson is currently focused on is held by Arizona Public Service Company (APS), whose October 2019 rate increase request is slated to be discussed at the commission’s Oct. 26 meeting.  

APS, a for-profit owned by S&P 500 company Pinnacle West Capital, currently serves 2.7 million customers in 11 of Arizona’s 15 counties, from Coconino County in the north, Yuma County in the southwest, and Douglas in the southwest corner of Cochise County.  The majority of its customers, however, are in the Phoenix metropolitan area.

During Tuesday’s meeting, Olson will introduce an amendment to APS’ current ratemaking case to call attention to the lack of competition enjoyed by the company. The amendment would move the ACC toward compliance with the statutory competitive market for electric generation mandate while bringing hope to APS customers who told commissioners about being dissatisfied with the company’s rates and customer service.  

“My amendment frees captive APS customers and empowers them to choose what company will provide energy to their homes,” Olson explained. “This amendment will unleash the powerful forces of the marketplace to benefit all Arizonans.”

Even if his fellow commissioners vote down the amendment to the current APS rate case, Olson said he is committed to bringing the ACC into compliance with state law. Doing so is the right thing, he says, to bring more options and better service to Arizona’s electricity customers.

It will also ensure taxpayers won’t end up footing the bill if any of the stalled applicants initiate legal action.

“I will continue to advocate for the Arizona Corporation Commission to come into compliance with ARS 40-202(B) while doing what I can to improve options for all customers,” Olson said.

Olson has been on the ACC since 2017. He announced earlier this month that he has entered the race for the Republican nomination for U.S. Senate.

Mark Brnovich’s Campaign Event Hosted By Accused Domestic Abuser Jailed For Nonpayment Of Child Support

Mark Brnovich’s Campaign Event Hosted By Accused Domestic Abuser Jailed For Nonpayment Of Child Support

By Corinne Murdock |

For his latest campaign event, Arizona Attorney General and Senate-hopeful Mark Brnovich enlisted the help of Steve Gill: a right-leaning radio host and former news site owner accused of domestic abuse and jailed over a week for neglecting to pay $170,000 in child support.

Brnovich’s campaign event occurred Monday in Gill’s hometown of Nashville, Tennessee. Guests could pay $100 for entry, or $300 for a host committee at the luncheon, which took place at a local restaurant called Jasper’s.

As reported by The Tennessean, the domestic abuse allegations came from Gill’s most recent ex-wife, Kathryn, while the delinquent $170,000 in child support came from a previous marriage. Gill was jailed 9 days for his failure to pay child support. No further reports on the domestic abuse allegations have occurred.

Kathryn accused Gill of both physical and emotional abuse: name-calling, pushing, grabbing, and threats. In response, the court issued an order of protection. Gill was prohibited from going near Kathryn, ordered to undergo a batterers’ intervention program, and prohibited from owning any firearms.

According to donation forms posted for the event by Gill, Brnovich is also receiving help from Lindsey Seitchik (nee Schauer): an Arizona-based political fundraising strategist. Some of the highlights from the Brnovich campaign flyers associated with the event emphasized his past election wins in 2014 and 2018. They also emphasized his background as the Arizona-born son of Yugoslavian refugees who fled communism, and his recent battles against the Biden Administration for election integrity, border security, and medical freedom concerning COVID-19.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

Healthcare Staff Shortages In Arizona Further Impacted By Dearth Of Recruiters

Healthcare Staff Shortages In Arizona Further Impacted By Dearth Of Recruiters

By Terri Jo Neff |

There has been much media coverage in recent months about Arizona’s nursing shortage. This summer, Phoenix-based Banner Health confirmed it was down nearly 1,400 nursing professionals at its 30 hospitals and associated medical offices across the country.

But even the prestigious Mayo Clinic—recognized as the top hospital in the United States for 2020-2021 by U.S. News & World Report—has learned that staffing issues extend far beyond the nursing ranks and into nearly every department.

As of Sunday, more than 375 jobs were advertised on the Mayo Clinic’s website. And those are only the company’s open positions in Arizona.

The reality of employment challenges facing Arizona’s medical community is forcing changes in how to attract medical professionals who may be looking to change jobs. And one hospital in Cochise County has found a creative way to garner the attention of prospective employees.

Canyon Vista Medica Center in Sierra Vista opened in 2015 as Cochise County’s only Level 3 trauma medical facility. Last week it released a recruitment video touting the wonderful work environment, although much of the video is spent showcasing Sierra Vista and Cochise County.

The video available on Facebook and LinkedIn draws attention to “the wonderful sceneries and opportunities” the region has to offer, according to CVMC spokeswoman Alexis Ramanjulu.

“Like all industries we have to be creative in how we attract new employees,” Ramanjulu explained to AZ Free News. “We hope by showcasing the place our business and healthcare heroes call home will attract medical professionals to our hospital and our part of the country.”

Such efforts are necessary despite the fact Gov. Doug Ducey announced $25 million to bolster hospital frontline staffing in November 2020, followed a few weeks later by another $60 million to address nursing shortages. The December funding pledge was matched by Ducey last month, but it could take weeks, if not months, to get that money into the hands of hospital administrators.

In the meantime, some smaller healthcare providers and medical offices have begun targeting workers at those larger companies in Arizona that are threatening to suspend or even fire medical professional for noncompliance of stringent COVID-19 vaccination mandates.

Yet hiring efforts across the state are not coming close to addressing the widespread staffing shortage. Part of the problem, according to one hospital administrator, is that such outreach efforts are often conducted by trained recruiters, which are also in short supply in Arizona.

Among those recently advertising for experienced recruiters in Arizona, are St. Luke’s Hospital (Tempe), Northwest Healthcare (Tucson), and Banner Health, which is Arizona’s largest employer.

Other companies with recruiter openings are Yavapai Regional Medical Center (Prescott), Envita Medical Center (Scottsdale), Mountain Vista Medical Center (Mesa), Northern Arizona Healthcare Corp. (Flagstaff), SpringBoard Healthcare (Phoenix), Havasu Regional Medical Center (Sacate), Tenet Healthcare (Phoenix), LifePoint Health (Lake Havasu City), Steward Health Care (Arizona City), and IASIS Healthcare (Mesa).

WATCH THE CVMC RECRUITING VIDEO:

Public To Have Opportunity To Attend Legislative Budget Roadshow

Public To Have Opportunity To Attend Legislative Budget Roadshow

By Terri Jo Neff |

Three of the people most involved in negotiating Arizona’s landmark Fiscal Year 2022 budget will take part in a Budget Roadshow next week across the state.   

Sen. David Gowan (R-LD14), Rep. Regina Cobb (R-LD5), and Matt Gress of the Governor’s Office are headlining the free events in Casa Grande, Sierra Vista, and Tucson to help citizens better understand the budget process, budget history, and look ahead to the next session which starts in January 2022.

They will also discuss notable -and some not so notable- budget accomplishments from the recent legislative session and take part in a Q&A session.

The Thursday, Oct. 28 event at Casa Grande City Hall begins at 10 a.m. with a meet and greet, followed by the presentation at 10:30.  It will be followed that afternoon at the Cochise College – Sierra Vista Campus at 3:30 p.m.

Then on Friday, Oct. 29, the trio will take their presentation to the Pima Community College – Downtown Campus Auto Center at 10:30 a.m. followed by a meet and greet at 11:30.

The three participants are well-suited for the event, as Gowan is the Senate Appropriations Chairman, Cobb is the House Appropriations Chairwoman, and Gress heads up Gov. Doug Ducey’s Office of Strategic Planning and Budgeting.

The meet and greets are being hosted by several Chambers of Commerce, including Benson / San Pedro, Greater Casa Grande, Green Valley / Sahuarita, Greater Vail Area, Marana, Oro Valley, and Sierra Vista Area.

More information about the Budget Roadshow, including how to request a presentation in a specific community, is available by calling Cobb’s office at (602) 926-3126 or Gowan’s office at (602) 926-5154.