County Supervisors approve $20 million subsidy for First Solar Inc.


A m e r i c a n  P o s t – G a z e t t e

Distributed by C O M M O N  S E N S E , in Arizona

Friday, April 1, 2011

 

Subsidy will pay for First Solar employees to make 150% the salary of the average county resident
Maricopa County providing the largest payout to First Solar of any level of government  

This is no April Fool’s joke, unfortunately. Here in the Valley of the Sun, in the DESERT, our big-spending County Supervisors have just voted to give a $20 million subsidy to a solar company. Why are we PAYING solar companies, Arizona has more sun than any other state in the nation. We are coming out of a recession and the county is so broke the Supervisors are threatening to raise property taxes, due to them spending millions of dollars fighting Sheriff Joe Arpaio and other county officials and building a $347 million Taj Mahal court tower in the middle of the recession. 

The subsidy will pay First Solar, Inc. to create jobs, jobs that will pay an average annual salary of $48,575, 150% of the average salary of a regular county resident. Up to $20 million will go to subsidize 4800 new jobs.

We’re not making any money by giving away this subsidy. First Solar will never pay enough taxes to make up for it, we will be lucky if we recoup one-third in taxes. Who are the Supervisors going to have to lay off in order to pay for the subsidy? This probably violates the gift clause of the Arizona Constitution, which prohibits giving away money to the private sector. Didn’t the legislature ban these kinds of subsidies?

As usual, the Supervisors have no accountability to anyone but themselves and their friends who they funnel pet deals to. Wonder who they know at First Solar? They act with impunity and have unlimited use of our funds.

Contact the Supervisors now and express your opposition to this enormous government giveaway to the private sector. Tell them you want them to stop spending our money! Contact information is here, and phone calls have more of an effect than email.

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Comments

  1. Don Stapley belongs in jail says:

    This has Don Stapley’s fingerprints all over it. I hope the Goldwater Institute gets to the bottom of this. I guarantee you Stapley has cronies that run First Solar.

    • Credibilility says:

      Ok so first, how does this have Don Stapley’s fingerprints on it?
      And second, if you “guarantee” it, then show it. Quit making wild accusations. It just makes you look uneducated.

      Goldwater will start looking into it when they are done investigating all of the taxpayer money wasted and lost in Tucson and then spent by Scottsdale and the Tribe here for the DBacks. Oh ya, that’s right-the Kendricks are big donors. I’d love to see how much First Solar stock Ken and the rest of the board is holding.

  2. Steve Calabrese says:

    The court tower did not impact operating revenue as the County has been putting aside reserves for its construction for over a decade.

    However, this “subsidy” to “create jobs” is extremely odd. Are we not receiving anything of value in return? Are we getting solar panels on county buildings or something? Is this a contract that has gone through the bidding process?

    If not, then it is pretty clear that this deal most likely violates the gift clause. It is way past time for a change in leadership at the county.

    • Credibilility says:

      It’s not a violation since there is a direct public benefit in new high paying jobs being created. the incentives don’t get paid unless people get hired.

      • Steve Calabrese says:

        “Direct public benefit in new high paying jobs”? Uh, don’t most businesses hire people? It’s a gift, so that they “create jobs”.

  3. Credibilility says:

    Besides grammatical errors and other things that make this look like a high schooler wrote it, there are a few blatant inaccuracies here.

    First, it makes NO difference whatsoever that it’s sunny here. Anyone that says the sun makes a difference on deals like these is smoking something. This is an assembly plant with near clean room technology.

    Apart for $2 million upfront for job training and infrasructure, the subsidy isn’t to create jobs, it’s when jobs are created. There is a huge difference there-this being based on performance, not hopes.

    We are making money giving the subsidy. We are gaining nearly 5,000 high paying job that otherwise would have gone to Texas or New Mexico. These workers will spend their money here and be a huge economic engine. First Solar doesn’t have to pay the taxes to make this deal reasonable. Although they will pay million in property taxes along with all of their suppliers. If the workers don’t come, the subsidy isn’t paid.

    This doesn’t violate the Gift Clause since there is a public benefit that far outweighs the cost. Again, this is performance based.

    The illusive, “they’re getting their friends rich” claim with no facts or otherwise to back it up.

    The more American Post-Gazette prints stuff like this, the more laughable they become.

  4. Steve Calabrese says:

    Maybe you’re right. Instead of states falling all over each other to give taxpayer dollars to well-connected companies to locate in one state or another, perhaps it’s time for a Federal anti-gift-clause so that business can suceed or fail on their own merits instead of playing states off one another.

  5. wanumba says:

    What’s it called when governments give money to inefficient producers for expensive products that out of work potential customers can’t afford?

    Oh. Subsidy. Loss leader… debacle… waste … SNAFU …

  6. AZJack says:

    We have get these people out of office.

  7. Carlist says:

    Business as usual for B.O.S.

    Probably feathering as many nests as possible for post elective “careers”!

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