by Staff Reporter | Mar 29, 2024 | News
By Staff Reporter |
Governor Katie Hobbs stands to enjoy a major public relations benefit from her newly-announced $30 million medical debt relief program.
Under the contract, the nonprofit behind the program which began earlier this month, RIP Medical Debt (RMD), must give credit to Hobbs whenever describing projects or programs within the program. That credit includes the inclusion of logos or insignia approved by the governor on all communications, like: flyers, advertisements, and press releases.
The contract also requires RMD to have all other communications, including the letter template notifying recipients of medical debt absolution, to not only be approved by Hobbs’ office, but to double as a vessel for the governor to conduct desired content and data harvesting.
Under the contract, RMD’s notification letters must ask recipients to share their medical debt stories and any other pertinent information. Those stories — along with “related insights” gleaned from recipients by RMD’s resident anthropologist — would then be passed on to the governor’s office.
“The letters transmitted by Contractor also include a request for Program recipients to share their stories,” stated the contract. “Patient stories and related insights shall be shared with the Governor’s Office on a regular basis.”
It is unclear as to what the governor intends on using those stories and related insights, especially whether they will play a role down the road in encouraging voter turnout or ginning up support for the governor’s reelection in 2026.
The contract also enables the governor to obtain certain information from the program: the names of medical providers who have and haven’t agreed to participate; data analysis of program impacts on factors like ZIP code, race/ethnicity, patient/guarantor insurance type, income levels; and other, unspecified data reports on a regular basis.
Lack of specificity doesn’t just occur in the contract’s provision on all required data reports from RMD. The nonprofit must also submit an annual report containing “qualitative data” and “any other reporting reasonably requested” by Hobbs.
The contract does limit data-gathering to comply with HIPAA requirements.
Arizona Department of Homeland Security (AZDOHS) noted in its conclusion of a security questionnaire on RMD’s qualifications as a vendor — a pre-contract protocol — that RMD didn’t offer their department proof of certain requested information security controls. Rather, RMD offered a generic response unrelated to questions posed by AZDOHS.
“Responses appear to be copy-pasted from their information security policies, and some do not actually address the controls,” stated AZDOHS.
Ultimately, AZDOHS passed RMD as a qualified vendor, noting that every control had a policy reference and eight information security policies were provided.
In addition to monitoring and compliance, the contract requires RMD to develop a number of distinct plans detailing program administration, budgeting and financial management, marketing and outreach to recruit medical provider participation, and performance measurement.
The program received an initial $20 million using federal COVID-19 relief funds, with the contract allowing for another $10 million in federal relief funds at Hobbs’ discretion. The millions are estimated to cover up to $2 billion in medical debt.
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by Corinne Murdock | Mar 27, 2024 | Economy, News
By Corinne Murdock |
Home builders are warning that Gov. Katie Hobbs’ moratorium on home building will hurt the state’s economy severely.
The Home Builders Association of Central Arizona (HBACA) cited a recent study by Elliott Pollack, a Scottsdale-based real estate and economic consulting firm.
“From an economic perspective, the sudden and drastic measures announcing no new certifications of assured water supply from groundwater created uncertainty and risk, an effective deterrent to potential investors in our state’s economy,” read the study. “The prevailing sentiment that Arizona is out of water is now a significant hurdle that requires educating all future potential investment in our State.”
The study projected that the governor’s moratorium on new builds, imposed last June by ceasing certifications of assured water supply, could cost the Phoenix area over 26,000 jobs over the next decade. That, along with a projection that the moratorium would exacerbate the state’s affordable housing crisis.
Hobbs issued the moratorium in response to an Arizona Department of Water Resources (ADWR) report projecting a 100-year deficit of four percent in groundwater for the greater Phoenix area.
Assured water supply requires demonstration that developers have a plan to use groundwater in compliance with water management rules set by the ADWR and facilitated by the Central Arizona Groundwater Replenishment District (CAGRD).
After ADWR allowed CAGRD membership to meet the renewable water management obligations in 1995, an estimated 460,000 homes were built, bringing in over 1.2 million residents. CAGRD’s existence ensured that water providers and landowners wouldn’t be on the hook for assuring the 100-year renewable water supply up front.
After the ADWR rule change concerning CAGRD, Elliott Pollack reported that the state brought in $50.4 billion in wages and $135.7 billion in economic impact. CAGRD region residents also spent over $180 billion in the local economy, and contributed over $35 billion in tax revenues.
According to a long-term forecast by the Maricopa Association of Governments (MAG), one out of seven newly built homes would be in Buckeye by 2030, with an estimated 14 percent of new builds cropping up in the city through 2060. That’s up to 3,700 new builds annually on average. However, Elliott Pollack said that this long-term forecast wouldn’t come to fruition under Hobbs’ moratorium — meaning, the expectation of the economy-boosting annual influx of around 10,000 new residents wouldn’t occur.
The study further projected the moratorium could cause mass out-of-state migration by escalating home prices in formerly affordable housing regions, with the supply of homes under $400,000 dwindling or ceasing to exist altogether. The median home price in Arizona sits at around $434,000.
Mortgage rates would demand a minimal income of about $100,000 to afford a $400,000 home. Census data estimated that around 40 percent of the greater Phoenix area’s population made $100,000 or more as of 2022, and further estimated median household income to be about $72,000.
That means about 60 percent of the area wouldn’t be able to afford a home in the area.
The study also found that most out-of-state migration from Arizona was to cities with more affordable homes. Out of nearly 30 cities analyzed, 25 had median home prices more affordable than Arizona’s.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Daniel Stefanski | Mar 22, 2024 | News
By Daniel Stefanski |
Arizona’s Democrat Governor and Republican legislators are engaged in an escalating political battle over the future of the state’s groundwater.
Last week, Arizona Governor Katie Hobbs took aim at a Republican-led solution to the state’s groundwater supply. Speaking at a conference in Tucson, Hobbs said, “I’m willing to work with any sponsors to pass legislation that’s real, effective and protects water supplies in rural areas. But should the bill remain unchanged it will not get my signature. The bill will silence rural communities and create a convoluted process that will make it nearly impossible for our communities to manage groundwater. It leaves us with the status quo where out of state corporate farmers come from around the world to take advantage of our aquifers, and small communities have their water pumped from beneath them. This is beyond unacceptable.”
The bill Hobbs attacked was SB 1221, which is sponsored by Senator Sine Kerr. The proposal would “establish a process for the designation of a basin management area (BMA) and an active BMA in any location not included in an active management area (AMA), to be initiated by petition to the Director of the Arizona Department of Water Resources, [and] outlines the goals of an active BMA, active BMA council makeup, rights to water, reporting requirements, and requirements for the continuation or termination of an active BMA” – according to the purpose provided by the Senate.
Senator Kerr responded to the Governor’s remarks, writing, “From the start, I’ve been proactive in spearheading meetings for collaboration from the Governor and her office on SB 1221, which would safeguard Arizona’s groundwater resources for generations to come. My goal has and will continue to be to reach a compromise on a solution that won’t hurt rural Arizonans’ livelihoods, their local economies, or their groundwater supply. Yet this week, Hobbs said she would veto the bill and recklessly called it a convoluted process that won’t protect our groundwater. That comment is merely a red herring meant to justify her proposal of big government overreach to regulate groundwater.”
At the conference, Governor Hobbs expressed an interest in working across the aisle to reach a compromise on the vital issue for her state. She said, “We in the state have many shared values: the desire to protect rural Arizona, protect rural water users and slow unmitigated depletion of our rural aquifers. We can and must find common ground to find a solution that works and puts politics aside.”
Kerr, who is the Senate’s Majority Whip and the Chair of the Committee on Natural Resources, clearly did not think that a Hobbs-endorsed proposal would meet the expectations or needs of her constituents and other stakeholders around the state. She added, “Energy and Water Rural Arizonans know what will and won’t benefit their local economies. I wholeheartedly support this proposal because I’ve listened and met with farmers, ranchers, and every other person, industry and organization across AZ who felt they were being alienated from the conversation. I believe in true collaboration, and will continue to work to reach a solution.”
This week, the Arizona House Committee on Natural Resources, Energy & Water considered the legislation and gave the bill its stamp of approval with a 6-4 party-line vote. Republican State Representative Austin Smith said, “The government picking winners and losers is bad policy. Rural Arizona in my district and across the state are facing the brunt of Hobbs draconian water restrictions. SB 1221 provides the tools necessary for everyone to be treated fairly. Thank you Senator Sine Kerr.”
House Democrats on the committee echoed the governor’s thinking on the featured bill before their panel, calling for another bipartisan piece of legislation to address their collective concerns.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Carlos Martinez | Mar 19, 2024 | Opinion
By Carlos Martinez |
Whether born in Arizona or immigrants, Hispanics play a critical role in enriching our state. We not only strive for the American dream, but we take pride in the contributions we make to Arizona and the rest of the nation. That’s especially true when it comes to our businesses and our families.
But too often, Hispanic business owners—like so many others—find themselves frustrated with regulations and red tape. And on top of that, we now have a governor in our state who is actively trying to remove educational opportunities for our children. That’s why I was excited to find the Hispanic Liberty Alliance (HLA)—an organization right here in Arizona that is dedicated to empowering the Hispanic community and fostering a sense of knowledge, freedom, and unity.
Since September 2023, HLA has been engaging with business owners, local leaders, and families throughout our state. And their promotion of educational opportunities has especially resonated with parents. Take for example, the existence of Empowerment Scholarship Accounts (ESA), which are available to K-12 students in Arizona. This pivotal program supports a child’s education by covering expenses such as school tuition, unforms, books, therapies, transportation, computers, and more. But unfortunately, many Hispanic families are unaware that this program is available for their children. And even worse, now Governor Hobbs is trying to dismantle it.
Thankfully, organizations like HLA are working to inform Hispanic families about ESAs, so they can make the best decisions for their children’s academic path. Furthermore, this group encourages civic participation by offering insights into how the government works and highlighting the importance of everyone’s vote. They recognize that an informed and engaged community is a powerful one. They certainly helped me realize the significance of contributing to my community in addition to teaching me about resources and information related to governmental processes. This is so important, especially considering that many of us in the Hispanic community are unaware of the services that our elected officials provide.
For Hispanic families that are looking for better educational opportunities for their children and for Hispanic business owners who are tired of regulations and red tape, I suggest that you engage with groups like Hispanic Liberty Alliance. This organization brilliantly addresses concerns and fosters dialogue, and its advocacy for the Hispanic business community ensures our voices are heard. At a time when government overreach continues to rise, it’s refreshing to know that groups like HLA are telling our elected leaders that the Hispanic community values family and freedom first.
Carlos Martinez is a proud immigrant who has been married for 27 years with three children. He owns a construction business, has a podcast that discusses current issues using a biblical angle, and is co-pastor of a Christian church in Phoenix.
by Daniel Stefanski | Mar 19, 2024 | Economy, News
By Daniel Stefanski |
A bipartisan housing bill from the Arizona State Legislature has met its demise.
On Monday, Democrat Governor Katie Hobbs vetoed HB 2570, which would have “create[ed] municipal prohibitions relating to home designs and single-family home lot sizes” – according to the overview provided by the state House.
In a letter explaining her veto to House Speaker Ben Toma, Hobbs said, “I was elected on a promise to bring thoughtful leadership to the Governor’s Office and always do the right thing for the people of this state, even when it’s hard. Unfortunately, this expansive bill is a step too far and I know we can strike a better balance. This is unprecedented legislation that would put Arizonans at the center of a housing reform experiment with unclear outcomes. It lacks the nuance necessary for statewide reform, and I do not believe it is in the best interest of the people in this state.”
Senate President Warren Petersen blasted the governor’s decision on the bill, writing, “Our kids can’t afford a home. Today, the Governor sided with bureaucrats, instead of our kids. Thanks to her, affordable starter homes remain illegal in Arizona. But it’s not just our kids. Every day, we hear from active-duty military, veterans, young families, young professionals, firefighters, teachers, police officers, service workers, and seniors on fixed incomes that they are either facing the grim reality of becoming homeless or are being prevented from participating in the American dream of homeownership because of outrageous prices, partly due to reckless big government regulations imposed by cities and towns.”
The Senate Republican Caucus’ press release highlighted that Hobbs became the “first Governor in the nation to block a bill removing zoning restrictions to bring housing prices down for hardworking citizens.” The release asserted that “the status quo currently limits options, which can tack on tens of thousands of dollars to the sale price of a home.”
Hobbs pointed to push back from the Department of Defense and Professional Fire Fighters of Arizona over the bill, which she claimed to take under advisement in the lead-up to her veto. She added, “The bill has unexplored, unintended consequences that are of great concern. For instance, the Department of Defense contacted my office while this bill was on my desk to state their opposition. They expressed very serious concerns that the increased density near military installations would put military operations and homeowners at risk, putting dense development within Accident Potential Zones. Firefighters shared significant public safety concerns highlighting that increased density without corresponding improvements to roads and public infrastructure could lead to traffic congestion during evacuations or delays in emergency response times. These are the examples that demonstrate the potential risks that come with the kind of sweeping reforms in this proposal.”
Petersen countered these concerns from Hobbs as part of his statement in response to the veto. He said, “The Governor has a track record of pushing red herrings to justify her vetoes against commonsense legislation, and her statement today is no different. No, this bill does not harm military operations, nor create safety issues for cities. Instead of listening to the citizens, she’s listening to the people who created the problem. This legislation had strong bipartisan support, and this veto will certainly go down as one of her biggest failures.”
Other legislative Democrats expressed their disappointment over the veto. Representative Analise Ortiz stated, “I am deeply saddened and disappointed in the Governor’s decision to veto the Arizona Starter Homes Act. HB 2570 was a historic bipartisan solution to our state’s housing crisis and it would have created a pathway to the American dream of homeownership. While other states are proactively addressing housing in an urgent, deliberate manner, AZ continues to kick the can down the road. Status quo is clearly not working and believing that things will change without policies like the Starter Homes Act is, at best, wishful thinking. I hope Governor Hobbs will support future plans to expand the state’s inventory of modest, starter homes and homes on small lots – homes that our parents & grandparents purchased years ago that allowed them to build wealth, lay roots in communities, and break cycles of poverty.”
Democrat State Senator Anna Hernandez also weighed in about the governor’s veto. She said, “I hope the Governor takes this moment to reaffirm her commitment to solving the housing crisis rather than stand as another obstacle in the way of solutions. My hope is that Governor Hobbs and her staff, learn from their mistake today, and ensure that decisions on policy are made for the betterment of all Arizonans. We must prioritize the people over the politics. The work we have begun will continue – I promise.”
HB 2570 is likely completely dead for the legislative session, with no hope for a veto override, as only 33 State Representatives and 16 State Senators supported its passage in their chambers.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
