by AZ Free Enterprise Club | Oct 6, 2025 | Opinion
By the Arizona Free Enterprise Club |
The idea to extend light rail to the State Capitol has occupied the dusty shelves of bureaucratic transit plans for ages. Phoenix first floated it in their 2000 “Transit 2000” plan, their 2015 Transportation 2050 initiative, and the concept has taken up space in every MAG and regional planning cycle since 2004. The idea’s longevity is not a testament to how good ideas endure; rather how bureaucrats remain unaffected regardless of light rail’s failure; unwilling to change course despite low ridership, high costs, high crime, or changing travel patterns. The world changes but a transit plan apparently never dies.
In fact, it turns out it can’t be stopped from destroying the Capitol corridor even when lawmakers pass a law to stop it.
In 2023, Republican legislators negotiated Proposition 479, Maricopa County’s half cent sales tax for transportation, which included a clause prohibiting the use of any public resources for light rail coming within 150 feet of the State Capitol. The goal of the provision was to insulate lawmakers from the disruption and destruction caused by light rail. This neat trick of making the “Capitol Line” someone else’s problem would likely backfire.
Well, it turns out we were right, and what Phoenix has in store for the Capitol corridor is worse than anyone could have imagined.
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by Matthew Holloway | Jul 18, 2025 | News
By Mathew Holloway |
Municipal Affairs Liaison at the Goldwater Institute William Beard sat for an interview with AZ Free News to expand on an op-ed published Saturday, “Regional Transit In Tucson: Bigger Tax Bill, Worse Results?”
Beard warned in his column that as we approach 20 years of the 2006 vintage Regional Transportation Authority (RTA), only 18 of the 35 projects promised to the taxpayers of Pima County have been completed.
He wrote, “The mismanagement is staggering. Tucson’s unfinished Regional Transportation Authority (RTA) projects are estimated to be $400–$600 million short. At the current pace—roughly $50 million in spending per year—completing the work would take at least eight more years. There’s one big problem, however: the sales tax that funds the RTA is set to expire in 2026, and time is running out. Tucson officials have responded by throwing up their hands and admitting defeat, postponing four projects for inclusion in a future ‘RTA Next’ plan.”
Beard directly attributes the RTA’s financial woes and lack of productivity to a series of economic factors, exacerbated by the City of Tucson’s project mismanagement, delays, and unwillingness to shoulder the added cost burden. He explained, “Every infrastructure plan faces risks, and Pima County’s strategy was no exception. The 2008 recession slowed tax collections, and inflation has since driven construction costs well beyond the 10% buffer allowed by law. Tucson, however, made matters worse by repeatedly altering project scopes to appease neighborhood groups, further delaying timelines and driving up costs. Each time, Tucson failed to take responsibility by allocating more supplemental resources. Instead, city leaders appeared to hope the problem would simply go away.”
He added, “Tucson’s leaders clearly misunderstand the purpose of the RTA, viewing it more as a construction manager responsible for overruns than a basic funding mechanism distributing tax dollars. Each city was responsible for designing and building its own projects. Any change in scope—additional lanes, neighborhood preferences, unforeseen costs—was theirs to fund, not the RTA’s.“
Speaking with AZ Free News, Beard elaborated:
“I’m from Tucson. I grew up there, so this is a little personal for me. But there’s a history of kicking the can down the road by the community writ large, leadership, etc. A ‘Why deal with it today when we can postpone to tomorrow’ attitude. And it’s only when things truly reach a critical point that something happens politically.
“The powers that be down there would prefer to kind of maintain the status quo. They don’t want their boat rocked. They don’t want anybody coming in and potentially undermining their political power, so let’s maintain things as they are.
“To the point of the article, the problem fundamentally is two things. One, was it a failure to plan or a plan to fail? And number two, remember when voters vote on these long-term things, you always end up with a situation where the compromises politically that were made in order to get the thing past the voters that were approved in the beginning, political leadership that are elected further on into the cycle, they don’t believe that they are obligated to follow the wishes of whatever compromises were made in the first place.”
As for the political fallout, Beard predicted that an attempt from Tucson Mayor Regina Romero to extricate the city from the RTA, as she threatened in 2022, might not “end well for her politically speaking.”
He noted, “The problem is she is basically telling all of the voters across Pima County, not just the other communities, but the voters throughout Pima County, including her own voters, ‘eff you’. And I don’t think, given what happened with (Proposition) 414 a few months ago in the city of Tucson, I don’t think that will end well for her politically speaking.”
City voters soundly rejected Prop 414 or the “Safe & Vibrant City” proposition, which would have enacted a half-cent sales tax increase for the next 10 years to fund various city projects. City Manager Tim Thomure told AZCentral that the Proposition’s rejections sent city planners “back to the drawing board [to] sharpen our pencils and work it out so that we live within the budget that will be available to us.”
Beard continued saying that Romero, “is, of the opinion, and there are other people, including Supervisor Hines on the Board of Supervisors, of the opinion that the City can basically go its own way and make its own sales tax. They’re forgetting, of course, that if that happens, roughly… a third of the total revenue that would come to the region would disappear because it would revert back to the state legislature to determine whether or not those funds get distributed based on the regional planning that southern Arizona currently enjoys.”
He added that Tucson’s deviation from the RTA planning adopted in 2006 could leave the city open to legal consequences. He observed, “I’m not an attorney, so I don’t give legal advice, but I spent 30 years in the contracting world and I’ve read enough of the documents, the intergovernmental agreements, the procedures, policy procedures of the RTA that was adopted in 2006, all of them keep referring to voter language, you know, the amount of money that was set aside by the voters that could go to these projects.
“Under state law, you can vary that up to 10 % overrun, because it’s the vagaries of construction, that happens. But anything above and beyond that, you’ve got to go back to the voters in order to get their approval to make that kind of scope change. Again, I’m not an attorney, but I can read what’s in the language and it’s pretty clear.”
According to Beard, the RTA board did send its new legal counsel a question with the hope of getting an answer by the end of July at their next formal board meeting, asking: “What is the legal obligation of the RTA board to complete all of the projects if the revenue has not come in to satisfy all of the needs that the voters … determined 20 years ago?”
He concluded: “To be blunt, the city of Tucson’s got nobody to blame but themselves. You can point fingers at the RTA all you want to. You can point fingers to the leadership. The reality is in the numbers; the math is the math. And for all of these projects the City of Tucson kept postponing, it only dramatically increased the amount of money they would have to bring to the table, even assuming the RTA never had a revenue shortfall.
“Because the City of Tucson kept postponing these projects, the costs were going through the roof and there was no way legally for the RTA to step forward and say, oh yeah, we’ll cover those extra costs. That’s not possible.”
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 William Beard | Jul 12, 2025 | Opinion
By William Beard |
Reprinted with permission from the Goldwater Institute.
In 2006, voters in Pima County made a deal: an increase in the sales tax for better roads and infrastructure. But now, after nearly two decades of taxpayers holding up their end of the bargain, the results are underwhelming. Of the 35 projects originally promised, only 18 have been completed—and much of the unfinished work lies within Tucson’s jurisdiction. The question is no longer whether the plan was fulfilled, but why one city fell so far short.
The mismanagement is staggering. Tucson’s unfinished Regional Transportation Authority (RTA) projects are estimated to be $400–$600 million short. At the current pace—roughly $50 million in spending per year—completing the work would take at least eight more years. There’s one big problem, however: the sales tax that funds the RTA is set to expire in 2026, and time is running out. Tucson officials have responded by throwing up their hands and admitting defeat, postponing four projects for inclusion in a future “RTA Next” plan.
Every infrastructure plan faces risks, and Pima County’s strategy was no exception. The 2008 recession slowed tax collections, and inflation has since driven construction costs well beyond the 10% buffer allowed by law. Tucson, however, made matters worse by repeatedly altering project scopes to appease neighborhood groups, further delaying timelines and driving up costs. Each time, Tucson failed to take responsibility by allocating more supplemental resources. Instead, city leaders appeared to hope the problem would simply go away.
Tucson’s leaders clearly misunderstand the purpose of the RTA, viewing it more as a construction manager responsible for overruns than a basic funding mechanism distributing tax dollars. Each city was responsible for designing and building its own projects. Any change in scope—additional lanes, neighborhood preferences, unforeseen costs—was theirs to fund, not the RTA’s. State auditors reinforced this responsibility repeatedly over multiple years, including in 2017, 2022, and 2024. While overruns in other areas were previously paid for by partner municipalities under the RTA, Tucson now appears ready to go hat in hand to the rest of the county asking for a bailout.
Why should voters trust them this time around?
Taxpayers deserve clarity. Tucson’s chronic delays mean taxpayers will be asked to pay more. Approval of any extension or revision to the existing projects should depend on city leaders being transparent with the public. Why should all of Pima County be asked to pay for Tucson’s poor planning and execution? Kicking the can down the road is not a transportation strategy—it’s a sign of dysfunction. If Pima County taxpayers are expected to foot the bill yet again, they deserve full accountability before a single dollar is spent.
William Beard is the Municipal Affairs Liaison at the Goldwater Institute.
by Jonathan Eberle | Jun 26, 2025 | News
By Jonathan Eberle |
A former longtime public servant in Santa Cruz County has been sentenced to a decade in federal prison after pleading guilty to stealing tens of millions in taxpayer funds. On Monday, U.S. District Judge Rosemary C. Márquez sentenced 63-year-old Elizabeth Gutfahr of Rio Rico to 120 months in prison, followed by three years of supervised release. In addition, she was ordered to pay roughly $51.8 million in restitution to Santa Cruz County and the United States Treasury.
Gutfahr, who served as county treasurer from 2012 to 2024, admitted to orchestrating a wide-ranging fraud scheme that funneled approximately $38.7 million in county funds into fake companies she created. According to court documents, the companies conducted no legitimate business and were used to conceal the embezzlement.
“This sentence shows that abuse of public trust will be punished,” said U.S. Attorney Timothy Courchaine. “Ms. Gutfahr stole more than money from the people of her county — she betrayed the confidence of the voters who elected her.”
Over the course of ten years, Gutfahr executed nearly 200 fraudulent wire transfers. She circumvented internal financial safeguards by using the digital authentication token of a subordinate employee, allowing her to both initiate and approve transfers without oversight. She then falsified county records and investment reports to cover her tracks.
Federal investigators say Gutfahr used the stolen money to fund a lavish lifestyle, purchasing at least 20 vehicles, making real estate investments, and financing improvements to her family’s ranch and cattle business. None of the stolen funds were reported on her federal tax returns.
“Each act of greed and dishonor negatively affected fundamental aspects of the county’s operations,” said FBI Phoenix Special Agent in Charge Heith Janke. “The FBI continues to investigate public corruption cases, and we remain committed to identifying and pursuing those who violate the public’s trust.”
IRS Criminal Investigation Special Agent in Charge Carissa Messick echoed the sentiment. “Taxpayers deserve to know that their elected leaders are working in the community’s best interest — not just their own.”
The case was investigated by the FBI and IRS Criminal Investigation. Prosecutors included Assistant U.S. Attorney Jane L. Westby and Senior Litigation Counsel Nicholas W. Cannon of the Justice Department’s Public Integrity Section.
Gutfahr’s scheme unraveled after discrepancies were discovered during an internal audit, leading to a joint federal investigation and her eventual arrest and guilty plea to charges of embezzlement by a public official, money laundering, and tax evasion.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by AZ Free Enterprise Club | Jun 4, 2025 | Opinion
By the Arizona Free Enterprise Club |
In November 2022, Arizona voters narrowly approved Prop. 308, making Arizona the 24th state in the nation giving taxpayer-subsidized, in-state tuition rates to illegals. Its narrow passage on the ballot was preceded by its razor-thin passage at the state legislature, slipping out because two former Republican legislators, who since lost their seats to primary challengers, rolled their caucus and voted in lock step with Democrats to force it for a vote.
After making the ballot, the measure was bankrolled by a small but well-financed cohort within the political class, business community, and immigration activist organizations funded by George Soros. Even a handful of Republican elected officials and candidates jumped on board, including a few city council members and current candidate for the Republican nomination for Arizona Governor, Karrin Taylor Robson.
It was in part billed by proponents as only applying to “Dreamers,” or recipients of the Deferred Action for Childhood Arrivals (DACA) program established under the Obama administration. In reality, it allowed for anyone here illegally to get in-state tuition rates as long as they spent at least two years in an Arizona high school—signaling to the rest of the world that if you enter here illegally in time to go to an Arizona high school, American taxpayers will subsidize your tuition at our universities.
But they hid from the public one important fact. It unequivocally violates federal law…
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