by Matthew Holloway | Apr 14, 2025 | News
By Matthew Holloway |
The Goldwater Institute has issued a report praising Arizona for pioneering “a freedom-based environment” for the development, testing, and deployment of autonomous vehicles or AVs.
Goldwater pointed to Executive Order 2015-09, signed by then-Governor Doug Ducey in 2015, which established a framework for development and testing requirements as the starting point for the free-market model.
The report highlighted the benefits of AVs, which for one manufacturer operated with 81% fewer airbag deployments, 78% fewer injury-causing crashes, and 62% fewer police-reported crashes than human-driven vehicles with over 20 million miles of rider-only service as of September 2024.
In a statement to AZ Free News Goldwater explained, “It’s not just about safer roads. AVs are revolutionizing mobility for elderly and disabled riders while unlocking massive economic potential. Unlike human drivers, AVs don’t get tired, distracted, or impaired—meaning fewer crashes and a more reliable transportation network.
“Yet while Arizona embraces the future, other states are slamming the brakes. Burdensome ‘driver in’ laws and city-level red tape threaten to stifle innovation and send AV companies packing. The question for policymakers is simple: regulate for yesterday, or innovate for tomorrow?”
According to the report, the 2015 EO, along with a 2018 follow-up to modernize the existing order to adapt to new technologies, were later enshrined into Arizona law by the legislature in 2021. Since the policy’s inception, 13 AV manufacturers have gained permission from state authorities to test and operate AVs in the state.
In its policy report, Goldwater argues that other states should adopt a policy similar to Arizona’s, referred to as “permissionless innovation” to “avoid erecting unnecessary regulatory barriers to AV innovation in order to reap the full benefits of this game-changing technology.” In particular, Goldwater criticized the innovation stifling single-party system in California where AV makers can wait over two years from proposal to deployment and a bill has advanced that would permit cities to create permitting requirements and restrict AVs’ hours of operations on city roads.
However, they add that other states are skewing in the opposite direction, instead applying regressive “Driver In” bills as well as municipal-level permitting regimes that lead to a Byzantine system of fragmented, inconsistent regulation.
Goldwater noted, “These efforts, driven by special interests and speculative fears, ignore the clear benefits and real-world data accumulated from years of studying AV safety.”
The think-tank observed that the experience gained in Arizona “offers a counterpoint—and a roadmap. States that follow the Arizona Model will not only attract investment and jobs, but also position themselves at the forefront of transportation’s next revolution. The choice facing lawmakers is simple: regulate for yesterday, or innovate for tomorrow. The roads of the future will see autonomous vehicles. And Arizona is already miles ahead.“
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 | Apr 8, 2025 | Education, News
By Matthew Holloway |
In October 2023, the U.S. Department of Education (DOE), under the Biden-Harris Administration, imposed a staggering $37 million fine against Grand Canyon University (GCU) in Phoenix, the largest privately owned Christian University in the nation. The fine came without revealing any serious complaint against the school. In February 2024, the Goldwater Institute announced that it advanced a lawsuit to determine why such a massive fine was levied. Now, a hearing has been scheduled in the case for April 18th.
Acoording to the Goldwater Institute, the DOE claimed that GCU “violated federal disclosure rules regarding continuing education courses for PhD students.” GCU leaders deny this outright. Further, in a press release regarding the fine, the DOE declined to include any complaints from students or members of the public to support its regulatory action.
When a federal judge in the U.S. District Court hears arguments in Goldwater Institute v. U.S. Department of Education, Goldwater hopes to compel the federal agency to disclose the alleged violation(s), which it believes are particularly suspicious. According to Goldwater, a public statement from Biden’s Secretary of Education Miguel Cardona vowed to “shut down” GCU.
Adding doubt to the DOE’s allegations, as Goldwater notes, GCU reportedly hasn’t raised tuition in over 15 years. The manner in which the fine was announced was also suspect with Goldwater noting, “The Department also announced its unprecedented fine with a widely reported press release that was heavy on rhetoric and bereft of any serious complaints from students or the public. It also appears that the fine was assessed in conjunction with suspicious coordination among various federal agencies.”
According to Goldwater, efforts through a Freedom of Information Act (FOIA) request to determine the motivation behind the fine have gone unanswered, leading up to the complaint.
“The request seeks emails between key individuals of the Department and other federal agencies that discuss the Department’s fine against GCU. The records may help inform the public about this extraordinary fine, as well as coordination between various federal agencies in what appears to be the intentionally targeting of a successful university based on extraordinarily thin allegations. However, the Department has refused to produce the records requested and has failed to otherwise comply with the FOIA.”
As reported by AZ Free News in February 2024, Goldwater staff attorney Stacy Skankey explained, “With its motto of ‘private, Christian, affordable’ and its track record of graduating students into high-demand and high-paying jobs, GCU is a success story by any metric. And it stands apart from universities across the country that are facing declining enrollment, that are indoctrinating students with radical politics, and that are under attack for failing to defend the First Amendment.”
In an op-ed for the Washington Times in December, Jon Riches, Goldwater Institute Vice President for Litigation, wrote, “As the Trump administration prepares to tackle an ambitious education agenda, ending the shameful attack on GCU should be a top priority. This would not only correct the injustice done to GCU but also make clear the broader principle that higher education should be a domain of innovation and student achievement — not a fiefdom for ideological conformity and bureaucratic rule.”
The initial action was brought by the Goldwater Institute during the Biden Administration and saw little to no response from former Secretary of Education Miguel Cardona. Though confirmed by neither party, the hearing had initially been delay and could be reflective of the whirlwind of changes at the DOE under Trump Administration.
The upcoming hearing could present a departure from the DOE’s previous position on the GCU fine, or at minimum provide transparency that was lacking under the previous administration.
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 | Mar 21, 2025 | News
By Staff Reporter |
Phoenix Mayor Kate Gallego attacked Arizona’s school choice programming in an attempt to sway Governor Katie Hobbs against an Arizona Diamondbacks funding bill.
In a letter submitted to Hobbs on Tuesday, Gallego expressed opposition over the bill to fund the Arizona Diamondbacks facility renovation, HB2704. The legislation dedicates Chase Field sales and employee income taxes to the renovation.
HB2704 has passed the House with bipartisan support and awaits Senate approval.
Gallego argued the legislation was a “boondoggle” for failing to accurately capture the fiscal impact. Gallego said the Joint Legislative Budget Committee (JLBC) model underestimated the predicted cost to taxpayers derived from the city’s actual tax collection data by nearly half, equating the underestimation to the Empowerment Scholarship Account (ESA) Program.
“Just like the state’s Empowerment Scholarship Account Program or the infamous Alt-Fuels bill, there is not a high-end cap on this bill to act as a safeguard for taxpayers,” said Gallego. “I urge that you work with the Legislature to demand responsible and enforceable parameters for the amount of taxpayer dollars spent on an annual and aggregate basis.”
The JLBC model estimated a $471 million cost over 30 years, sans fiscal impact data input from the Department of Revenue. Per Gallego, the city of Phoenix estimated an $825 million cost over 30 years.
“After accounting for lost construction sales tax revenue, additional revenues that can follow a significant renovation to a major league sports facility, and inflation over 30 years, the bill in its current form will certainly cost more than $1 billion in public funds,” said Gallego.
Last month, Gallego also spoke out against HB2704 publicly. Gallego expressed opposition to the diversion of millions of funds that would have gone to the city otherwise.
“Two-thirds of Phoenix’s general fund supports public safety. Phoenix’s tax dollars are best spent supporting our firefighters who respond to emergencies, helping police fight crime, and combating homelessness — not used to pay for subsidies for those at the very top,” said Gallego.
Recently ousted Arizona State Board of Education (ASBE) member and ESA Program advocate Jenny Clark advised Gallego to dedicate her efforts to improving the city’s budget rather than criticizing the budgeting of another program.
“Maybe Mayor Gallego should focus on her own MASSIVE failures with the city of Phoenix budget, instead of taking cheap shots at Arizona families using the widely popular ESA program,” said Clark.
Clark questioned why Gallego’s critique of increased funding for school choice, given the mayor attended an out-of-state private school in her youth.
The city of Phoenix narrowly avoided a reported $39 million budget deficit by the 2026 fiscal year by passing on the cost to taxpayers. The city previously announced an $85 million annual loss following the state legislature’s elimination of the residential rental tax and the implementation of the flat income tax.
On Tuesday, Gallego and the Phoenix City Council voted to increase the sales tax rate from 2.3 percent to 2.8 percent to avoid making cuts to city programs and services. The increase takes effect on July 1. Only Councilman Jim Waring voted against the sales tax increase.
The Goldwater Institute sued the city over the proposed tax increase earlier this month.
In a letter submitted to Gallego and the council, the public policy institute alleged this latest tax increase to be unconstitutional.
The Goldwater Institute also sued the city last year over allegedly illegal tax breaks for developers.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Jonathan Eberle | Mar 14, 2025 | News
By Jonathan Eberle |
Arizona lawmakers are advancing a series of bills aimed at increasing transparency, accountability, and taxpayer protection. These measures tackle issues ranging from government spending on elections to school board meetings and travel, with a focus on ensuring that public funds are used responsibly and efficiently. With strong support from various groups, these bills reflect ongoing concerns about how taxpayer money is spent and how local government actions are conducted.
One of the most significant pieces of proposed legislation, HB2722, is backed by the Arizona Free Enterprise Club and sponored by Rep. Neal Carter (R-LD15). The bill seeks to prevent taxpayers from indirectly subsidizing private businesses through government gifts. Specifically, it targets “gift clauses” in state and local government contracts, which some argue allow for inappropriate use of taxpayer funds to benefit private entities.
The Arizona Free Enterprise Club has been vocal about the need for stronger protections against such expenditures. The organization has stated that this bill is necessary to curb the growing trend of government spending on private corporations without clear public benefit.
“Taxpayers should not be used as a backdoor financing mechanism for private companies,” said Arizona Free Enterprise Club officials. “This bill is about ensuring that public dollars are spent in a way that directly benefits the public, not private interests.” If passed, this bill would create stricter guidelines on how public funds can be spent and would allow taxpayers to hold officials accountable when misused funds are discovered.
Another bill making its way through the Arizona legislature is SB1036, supported by the Goldwater Institute and sponosred by Sen. John Kavanagh (R-LD3). This bill targets government spending on influencing elections, a topic that has sparked considerable debate in recent years. SB1036 would create a private right of action for taxpayers, allowing individuals to sue if they believe government funds are being spent on efforts that influence an election. This would make it easier for citizens to challenge the use of taxpayer money in elections, particularly when the spending appears to be partisan or otherwise improper.
The Goldwater Institute has argued that taxpayers have a right to ensure their money isn’t used to sway political outcomes. According to a recent report by the organization, there have been multiple instances of local governments spending taxpayer funds to advocate for policies that align with political interests, which has raised concerns about government overreach.
“Governments should not be using taxpayer money to influence the political process,” said Goldwater Institute officials. “This bill provides taxpayers with the ability to stand up for their rights and ensure public resources are not misused.”
Another bill, HB2169, which was introduced by Representative Matthew Gress (R-LD4), seeks to address transparency within Arizona’s public school districts. The bill would require school board meetings to be held in public facilities within the district, ensuring that they are easily accessible to the communities they serve. Additionally, the bill mandates that school boards must receive public approval before engaging in out-of-state travel, making it more difficult for administrators to make costly decisions without community oversight.
This legislation gained near-unanimous support, with proponents arguing that it ensures greater accountability for how public schools operate and how funds are spent. Critics of the current system have pointed to examples of school board members using taxpayer money for luxury travel without clear, public approval or benefit. A notable incident involved a local school district that faced backlash after spending taxpayer funds on extravagant trips while simultaneously requesting additional funding from voters for educational needs.
“Public education is about serving the community,” said Representative Gress in a statement. “We need to make sure that the actions of school boards are always in the public interest. This bill strengthens public trust in our school systems.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Mar 12, 2025 | News
By Matthew Holloway |
The City of Phoenix has drawn the attention of the Goldwater Institute, earning a stern response from the conservative think tank to “Stop violating taxpayers’ rights.” The rebuke comes over a proposed tax increase on businesses that provide services that are precluded by the Arizona Constitution. A final city council vote on this proposal is set for March 18, 2025.
If the hike on Transaction Privilege (“TPT”) and Use Tax rates is approved, the rates go into effect July 1, 2025.
According to Goldwater, “The city of Phoenix has proposed a tax increase on businesses that provide services, claiming it needs the money because of a revenue shortfall. But the burden of the new tax increase will ultimately fall hardest on Phoenix businesses and consumers, raising the prices of services like construction contracting and lodging.” As Goldwater observes, the Arizona Constitution (Art. IX § 25) outright forbids “any county, city, town, municipal corporation, or other political subdivision of the state, or any district created by law” from creating any new or increasing any existing transaction-based taxes on the “privilege to engage in, or the gross receipts of sales or gross income derived from, any service performed in this state.”
Notably though, the prohibition on Section 25 “does not repeal or nullify any tax, fee, stamp requirement, or other assessment in effect on December 31, 2017,” and therefore allowed the pre-2017 taxes already in place. However, as Goldwater Attorney Stacy Skankey explains, the new rates would constitute a new tax under the law.
Skankey wrote succinctly, “New or increased taxation on services violates the Arizona Constitution.”
“The Arizona Constitution has a broad understanding of the term ‘service,’ and it includes a range of covered enterprises on anything that does not produce ‘goods.'”
“Service generally includes activities involving human effort like labor, skill, or advice. The term also covers businesses in the hospitality industry such as hotels, restaurants, and bars. Many of the business classifications subject to the proposed TPT tax increase are services as that term is used in the Constitution.
“The proposal by the Phoenix City Council is a tax increase on services, and therefore, is unconstitutional. Consequently, we urge the City to disapprove of the proposed TPT tax increase and any future proposed tax that may violate the Arizona Constitution.”
As reported by AZ Free News in January, the Goldwater Institute has already launched a lawsuit against the Town of Gilbert after municipal leaders unleashed a similar service tax on Town businesses including homebuilding and short-term rental properties.
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.
