Common Sense Institute Releases Report On Proposition 312

Common Sense Institute Releases Report On Proposition 312

by | Oct 5, 2024 | News

By Daniel Stefanksi |

Arizonans looking for more information about a ballot measure that addresses the state’s growing homelessness issues can access vital research from a local think tank organization.

Late last month, the Common Sense Institute Arizona (CSI) released a report “on the economic and fiscal impact of Proposition 312, finding that there is indeed a link between the increase in homelessness and declining property values.”

According to CSI, “Proposition 312 is aimed at tackling Arizona’s growing homelessness crisis, offering property owners the opportunity to receive tax relief for costs incurred due to unmitigated public nuisances, such as homelessness, vandalism, property crime, and drug use.”

The report from CSI found “that under the status quo, property owners in areas with unmitigated public nuisances are seeing their values decrease in real value [while] homelessness is on the rise.”

“The rising rates of crime, homelessness, and drug activity in key areas of Phoenix appear to have taken a toll on property values and overall economic activity,” said Glenn Farley, Director of Policy & Research for CSI. “In this kind of environment of declining relative property values and higher crime rates, there are ongoing problems requiring mitigation – like security and cleanup costs. In practice, though, the real impact is likely to be preventive: local governments may ultimately be more proactive about mitigating these nuisances if this proposal is enacted than they are today.”

The Arizona-based Goldwater Institute took a position in support of Proposition 312 ahead of the November General Election. On its website, the influential organization wrote, “We saw it in Phoenix’s homeless Zone when the city allowed lawlessness to run wild. We saw it in Tucson, too. Amid rampant homelessness, hardworking Arizona taxpayers are being forced to bear the burden of a city’s refusal to do its duty to protect public health and safety, paying out of pocket to install fences, hire security, clean up garbage, human waste, and other hazardous materials themselves. Prop 312 ensures that when government fails to enforce existing laws regarding illegal camping, loitering, pollution, and other nuisances, taxpayers will no longer be forced to foot the bill.”

Proposition 312 was made possible by the Arizona State Legislature earlier this year, when Republicans led the way to pass HCR 2023, which, if eventually passed by state voters in November, would “allow a property owner to apply for a primary property tax refund if the owner documents expenses caused by a city, town or county adopting a policy, pattern or practice which declines to enforce existing laws or the maintaining of a public nuisance” – according to the overview provided by the state House.

In a statement after the successful passage of the bill out of his chamber, Senate President Warren Petersen said, “There are instances where local governments routinely and repeatedly fail their citizens by not enforcing laws. An example of this would be the City of Phoenix’s handling of the former homeless encampment known as ‘The Zone.’ This area was not only a public safety and public health disaster for those who camped there, but it was also a detriment to the livelihoods of small business owners who set up their shops in the area.”

Petersen added, “Money talks, and as a way to encourage municipalities to enforce the law, Speaker Toma and I teamed up to sponsor HCR 2023/SCR 1006. This measure is a ballot referral that would protect law-abiding citizens. If approved by voters, property owners would be allowed to request a refund for expenses incurred to mitigate the problem, up to the amount of their property tax liability. The funds would be deducted from the local government’s state shared revenue.”

The chamber’s president also noted that “all Senate Democrats voted ‘no’” on the referral.

The key findings from CSI about Proposition 312 are as follows:

  • “Problem increasing: Crime, drug overdoses, unsheltered homelessness, and other public nuisances have risen dramatically in Arizona and the greater Phoenix area since 2019. But the impacts are disproportionate: the problem has become more visible in certain parts of the city. This creates a negative economic impact for those parts of the city where local officials have failed to enforce existing laws
  • “Property Value Loss: Commercial properties in Phoenix affected by unmitigated public nuisances have seen market rent appreciation fall to just 15.7% between 2019 and 2023, compared to the citywide rate of 30.2%. This represents up to $2.1 billion in lost property value due to slower appreciation in areas with high levels of homelessness, crime, and public nuisances.
  • “Increased Crime: In areas with high public nuisance activity, the average crime rates for drug offenses, burglaries, robberies, and arson were between 3 to 5 times higher than the Phoenix average, driving up costs for property owners due to increased security measures and property damage.
  • “Impact on Businesses: Businesses located in areas with elevated public nuisance levels experience significantly lower property appreciation and higher vacancy rates. The economic toll of unmitigated public nuisances has made it harder for businesses to thrive in these areas.”

During the legislative process this year, representatives from Barry Goldwater Institute for Public Policy Research, QuikTrip, Arizona Free Enterprise Club, Arizona Chamber of Commerce, Arizona Food Marketing Alliance, and the National Federation of Independent Business, indicated their support for the proposal on the Arizona Legislature’s Request to Speak system. Representatives from the League of Arizona Cities & Towns, Living United for Change in Arizona, Arizona Coalition to End Sexual and Domestic Violence, Professional Fire Fighters of Arizona, Arizona Association of Counties, County Supervisors Association of Arizona, Arizona Housing Coalition, and several state cities and towns, signed in to oppose the measure.

Interested voters can read the full CSI report regarding Prop 312 here.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Common Sense Institute Issues Ballot Guide For Arizona Voters

Common Sense Institute Issues Ballot Guide For Arizona Voters

by | Sep 30, 2024 | News

By Daniel Stefanski |

An Arizona thinktank has released its ballot guide for local and statewide propositions facing voters in the November General Election.

Last week, the Common Sense Institute Arizona issued a ballot guide for a number of local and statewide propositions. The report analyzes Scottsdale Proposition 490, Glendale Proposition 499, Proposition 138, and Proposition 312.

“In a year where many Arizonans will face the longest ballot in recent history, CSI is pleased to provide this resource on some of the statewide and local ballot questions that have economic implications,” said Katie Ratlief, Executive Director of the Common Sense Institute. “CSI strives to be a go-to resource for voters looking for just the facts, data, and impact on jobs. We hope this resource will be helpful to voters in making informed decisions in 2024.”

The summary of Scottsdale Proposition 490, according to CSI, is that it “would enact a new transaction privilege and use tax at a rate of 0.15% to fund city parks and preserves.” CSI’s bottom line for Prop 490 is as follows: “Given the local nature, small size, and offsetting public spending of the proposed tax, its economic impacts are difficult to model and probably small. Given clarification that this is a new tax, city voters must decide whether a new $30 million annual sales tax is needed to maintain and protect its popular parks and preserves within the larger context of the total city budget.”

The summary of Glendale Proposition 499, according to CSI, is that it “would enact a $20 minimum wage for certain hotel and event center workers, set limitations on the amount of square feet a room attendant can clean before earning twice the hourly wage rate, require service charges to be distributed directly to the person performing the service, and establish a new City Department of Labor Standards.”

CSI’s bottom line for Prop 499 is as follows: “Ultimately, if enacted, the Act would have dramatic implications for the city of Glendale and its economy. Though the implications would play out over time, rather than immediately, the results would be stark. Glendale is long, thin, and surrounded by the state’s urban core. The assets it has invested in — like State Farm Stadium — may be fixed, but other event and accommodation facilities could easily relocate outside of Glendale and still be within a mile or two of major landmarks.”

The summary of Proposition 138, according to CSI, is that it “will modify the minimum wage credit for tipped workers in the state through a constitutional amendment from $3/hr to 25% of the current state-wide minimum wage amount so long as the individual makes at least $2 above the state-wide minimum in wages and tips combined. CSI estimates the 25% offset in Prop 138 would be $3.69/hr in 2025.”

CSI’s bottom line for Prop 138 is as follows: “By lowering labor costs for certain tipped workers in the Arizona economy, the state’s minimum wage tipped worker credit supports a higher overall level of employment in these industries than would happen otherwise. The current fixed dollar credit both declines in relative value over time (when the minimum wage is increased) and is vulnerable to changes when the minimum wage itself is changed (since it is a part of state law).”

The summary of Proposition 312, according to CSI, is that it “would allow property owners in the state to apply for a property tax refund if the city or locality in which the property is located does not enforce laws or ordinances regarding illegal camping, loitering, obstructing public thoroughfares, panhandling, public urination or defecation, public consumption of alcoholic beverages, and possession or use of illegal substances.”

CSI’s bottom line for Prop 312 is as follows: “Property crime, illegal camping, the public use of drugs and alcohol, and other public nuisances are on the rise in Arizona. The impact of this is disproportionate, however — the problem is often isolated to specific areas. While this can limit the exposure of the city as a whole to the issue, for property owners in these areas, the impacts can be significant if the issue isn’t mitigated.”

The ballot guide also includes a number of key facts for each proposition that allows voters to obtain more information and context as they research the reasons and importance of the measures.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.