Rep. David Schweikert (R-AZ-01) gave a brief rundown on the state of his constituents’ financial well-being under Biden before Congress on Tuesday.
Schweikert said that his district consists of some of the more well-off, educated, and entrepreneurial constituents in Arizona and the country. Yet, Schweikert says his more “prosperous” district has become poorer even when accounting for factors like wage growth.
“In my district, we’ve had the highest inflation in the continental United States. If you do not make 23.6 percent more money today than you did the day President Biden took office, you are poorer,” said Schweikert.
Want to understand why the public isn’t so bubbly about the economy?
If you live in the Phoenix-Scottsdale area and haven’t received a 23.6% pay increase since President Biden took office, you are poorer today.
Schweikert’s district spans a northeast section of Phoenix that encompasses Scottsdale, Paradise Valley Fountain Hills, Cave Creek, the Salt River and Fort McDowell Yavapai Nation reservations, and part of the Tonto National Forest.
The congressman went on to say that his fellow congressmen, dubbed “the clown show,” needed to have “an honest conversation” with constituents to acknowledge that they’ve grown poorer in recent years.
Arizona experienced the highest inflation rates since February 2021, only returning to a lower rate of 2.7 percent earlier this year, last seen March 2021.
Both Arizona State University business professor and Carey School director Mark Stapp and University of Arizona economics center director George Hammond toldCronkite News last year that the reason for Arizona having the highest inflation — mainly Phoenix — has to do with shelter costs.
Arizona’s high growth rate, coupled with the lack of supply, prompted a rapid rise in housing and rent prices.
In 2022, the state boasted the highest inflation rate in the nation. At the time, the Phoenix area had a 13 percent inflation, much higher than the nationwide inflation rate at the time of 8 percent.
Schweikert has repeatedly urged his colleagues to curb inflation, last month pointing out the effects of the record levels of spending under the Biden administration. Schweikert projected that the total deficit spending for the 2024 fiscal year will be higher than both the Congressional Budget Office (CBO) and Office of Management and Budget (OMB) have projected.
Over the past three years, Arizona’s food banks have reported an unprecedented increase in the number of clientele they’re serving. The Arizona Food Bank Network reported earlier this year that it and its member food banks have served 14 percent more individuals in 2023 than in 2022 (a total of nearly 570,000 people a month), and 20 percent more than before the pandemic.
Conversely, the census reported that 12.5 percent of Arizonans were living in poverty in 2023 — the lowest rate in the past decade.
Schweikert hasn’t been the only one of Arizona’s congressmen to criticize federal leaders’ approach to handling inflation. Congressman Andy Biggs (R-AZ-05) remarked during President Joe Biden’s State of the Union last month that the overall inflation rate had hit nearly 20 percent since 2021, costing Arizonans nearly $13,000 in 2023 according to the Joint Economic Committee.
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Scottsdale Mayor David Ortega said he opposes an Arizona ice hockey team’s efforts to buy state land for a new rink in North Phoenix.
In an open letter, Ortega said the Arizona Coyotes’ plans for a new entertainment complex and arena “was presented without mention of market demand for a new entertainment venue disguised as a hockey arena, or congested highway access, or questionable arena zoning entitlement.”
“The glitzy proposal was portrayed as the last gasp to keep hockey in Arizona,” Ortega said.
The team has previously said the proposed complex would generate more than 10,000 jobs and $15.5 billion in spending over 30 years without costing taxpayers. The Coyotes currently play their home games at Arizona State University’s Mullett Arena. A proposal for a new arena in Tempe was voted down last year.
Ortega said the hundred acres that would be used for the complex near Loop 101 and Scottsdale Road would jeopardize industry in the city. He argued that water and sewer infrastructure does not exist for such a venue, saying Scottsdale’s “water assets are absolutely not available.”
He called the proposal a “fantasy” due to the team’s lagging attendance.
“I admire the hockey sport, Arizona Coyotes community involvement and phenomenal youth clubs at the Scottsdale Ice Den,” Ortega wrote. “But I along with City of Scottsdale staff will continue to monitor any actions that occur, and negative repercussions for Scottsdale. As it stands today, the fantasy hockey project must move west, away from Scottsdale.”
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
Four Arizona cities made it onto a list of America’s least financially distressed cities.
Last month, WalletHub released the results of their comparison of the 100 largest cities without data limitations across nine key metrics. The personal-finance website determined cities are the most and least financially distressed in light of inflation making it more difficult for Americans to keep up with payments on their loans and lines of credit.
Glendale was 92nd on the list, followed by Chandler at 97, Gilbert at 98, and Scottsdale at 99.
“Getting out of the downward spiral of financial distress is no easy feat,” WalletHub Analyst Cassandra Happe said in a news release. “You may get temporary relief from your lenders by not having to make payments, but all the while interest will keep building up, making the debt even harder to pay off.”
“People who find themselves in financial distress should budget carefully, cut non-essential expenses, and pursue strategies like debt consolidation or debt management to get their situation under control,” she continued.
Chicago, Illinois was the city with the most financial stress.
“It seems that in the Windy City, people’s financial security is also blowing away,” Happe said. “The share of Chicago residents who are allowed to skip debt payments due to financial difficulties went up by nearly 30% between Q4 2022 and Q4 2023.”
Additionally, Chicago residents had the third-most accounts in distress per person, according to Happe.
“Financial distress may increase further, too, as Chicago has some of the highest Google search interest in the country for terms like ‘debt’ and ‘loans,’ which indicates that people need to borrow even more,” she said.
After Chicago, Houston, Texas had the second most financial stress, followed by New York City, Los Angeles, Dallas, Las Vegas, San Antonio, Atlanta, Riverside, and Jacksonville.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
State Rep. Alex Kolodin (R-LD03) is urging the Arizona Senate to do away with a bill allowing the export of the Valley’s emergency water reserve.
The bill, HB2201 sponsored by State Rep. Tim Dunn (R-LD25), passed the House with bipartisan support, 33-23, on Monday. Kolodin said that such a measure would inevitably raise utility bills.
“HB2201 allows part of Scottsdale’s emergency water supply to be transferred to out-of-county users, raising our utility bills,” said Kolodin. “I voted no. Needs to die in the Senate!”
HB2201 allows part of Scottsdale's emergency water supply to be transfered to out of county users, raising our utility bills. I voted no. Needs to die in the Senate! pic.twitter.com/29I46oHCsA
Kolodin told AZ Free News that HB2201 will serve as a detriment to suburban ratepayers and force cities to compete for the dwindling supply.
HB2201 enables the interbasin transport of cities’ emergency groundwater supply from within the Harquahala Irrigation Non-expansion Area (INA) to any location within La Paz County. Dunn explained during last month’s hearing on the matter in the Natural Resources, Energy, & Water Committee that the bill would allow La Paz County to grow their existing water resources.
The Harquahala INA covers approximately 766 square miles within La Paz and Maricopa counties in the west-central portion of the state. Currently, Harquahala INA water supply may only be withdrawn and transported by the state and political subdivisions to the following initial Active Management Areas (AMAs): Phoenix, Tucson, Santa Cruz, Pinal, and Prescott.
AMAs rely heavily on mined groundwater and therefore come with higher levels of management than INAs. INAs regulate wells in rural farming areas where groundwater overdraft — the removal of too much water — is less severe. There are two other INAs in the state: Hualapai Valley and Joseph City.
These distinctions are outlined by Arizona’s Groundwater Management Act (GMA), passed over 40 years ago, which restricts interbasin water transportation for the state’s 51 groundwater basins in order to ensure AMAs maintain a 100-year water supply, also known as an assured water supply.
Healthy interbasin water transport hinges on a concept known as safe-yield: ensuring a safe balance between groundwater withdrawals and the natural and artificial recharging of water to AMA aquifers. Overdrafting can damage aquifer structure and limit future water storing capacity, increase the costs of drilling and pumping, and reduce the water quality.
Harquahala INA is considered an emergency savings account of sorts for water, saved in the event of prolonged drought: no groundwater has been transported out of the basin since 1990, according to the latest report from the Arizona Department of Water Resources (ADWR), the authority on water management. Yet, ADWR also reported that in almost all years from 2004-2022, the Harquahala INA had more water leaving the basin than entering mainly due to agriculture, which have made up 98 percent of the INA’s demand.
ADWR projected that annual supply would be insufficient for annual demand under any projected scenario over the next 50 years.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Transnational organized crime is on the rise in the Valley; South American Theft Groups (SATGs) are the suspected culprits behind a string of burglaries in Scottsdale, Phoenix, Paradise Valley, Chandler, Gilbert, Peoria, and unincorporated areas of Maricopa County.
SATGs, also known as “crime tourists,” are nationals from Chile and other South American countries that exploit tourist visas in order to obtain and transport stolen goods internationally. Up until recent years, SATGs were known to operate mainly in Los Angeles and New York City.
Federal agents have offered different estimates on the emergence of SATGs. An FBI special agent toldVanity Fair in 2022 that California’s troubles with SATGs began in 2016; in that same spate of interviews, another special agent claimed that the SATG plague began in 2014 after Chile joined the Electronic System for Travel Authorization (ESTA) program. Chile is the only South American country in the program.
The ESTA program automatically grants 90-day visas to South American countries’ citizens with clean background checks. These program authorizations are valid for multiple trips over a period of two years.
As agents told Vanity Fair, these SATG criminals likely have “clean” background checks because they use “fictitious documents, IDs, residency cards” to claim legal presence. As a result, SATG members generally register no criminal record.
Scottsdale Councilwoman Tammy Caputi advised in a press release last week that law enforcement agencies across the cities and towns are running surveillance operations to apprehend the SATGs including cameras, fixed and moving positions, aircraft, and K9 units.
The agencies also plan to convene for further coordination efforts on Wednesday, with the possibility of a multi-agency burglary task force.
Further, the FBI assigned an agent to coordinate response efforts to the crime trend.
In December, the FBI testified on SATGs at a congressional hearing regarding the uptick in organized retail crime. In order to address SATGs, the FBI leads task forces through its Major Theft Program (MTP).
In last week’s press release, Scottsdale Police estimated that this recent string of robberies began around last October. Police estimated at least 22 burglaries were the result of SATGs, with the latest occurring last week.
Scottsdale Police reported that it had conducted seven surveillance operations to apprehend the burglars, with an eighth planned for Tuesday night. Law enforcement also disclosed that they obtained physical evidence as well as camera footage from several of the burglaries.
Law enforcement noted that the burglaries were usually occurring Thursdays through Saturdays from 5-10 p.m. The burglars have primarily targeted homes adjacent to a wash.
One of the earliest to speak out on the burglary spree was Scottsdale City Council candidate Jan Dubauskas. On Monday, Dubauskas issued a press release warning of the import of the sudden uptick in crime.
“This is a crime spree and it’s not happening in a far-off blue city like San Francisco. It’s in our own backyard,” said Dubauskas. “Scottsdale is being targeted. We chose to live here because of the sense of safety and protection and that has been shattered.”
Dubauskas further urged the community to engage in neighborhood watches, and expressed confidence in local police’s ability to apprehend the perpetrators.
“We need to come together to protect our homes and ensure these thieves are caught and brought to justice,” said Dubauskas. “Thankfully, we have an all-star Police Department here in Scottsdale that is bringing the community in and making this a top priority. They’re some of the best in the country.”
Valley law enforcement are becoming more familiar with recognizing and catching SATGs. Around this time last year, 12 News reported on Scottsdale investigators prosecuting a crime syndicate that reportedly hit homes in Arizona, California, Texas, Nevada, and Utah in 2022.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
