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NFIB Poll: Small Business Strongly Opposes Expanding Medicaid

May 14, 2013 by Leave a Comment

NFIBforwebSurvey reveals Arizona entrepreneurs’ deep skepticism of federal funding promises

PHOENIX, Ariz., May 14, 2013 — In a poll released today by their leading association, small-business owners overwhelmingly oppose the high-stakes effort at the Arizona State Capitol to expand Medicaid coverage to all Arizonans at or below 133 percent of the federal poverty level as envisioned by the federal healthcare law.

The recent survey conducted by the National Federation of Independent Business (NFIB/Arizona) found 79 percent of Arizona small-business owners opposed to the proposed eligibility expansion for the state’s Medicaid program, also known as the Arizona Health Care Cost Containment System or AHCCCS.

Eighteen percent support the Medicaid expansion proposal with less than 3 percent saying they are undecided.

NFIB Medicaid Poll ResultsThe controversial Medicaid proposal, a centerpiece of Gov. Jan Brewer’s legislative agenda, is principally backed by hospital systems and opposed by key legislative leaders like Senate President Andy Biggs and conservative activists.

The political impasse over Medicaid expansion has stalled the Legislature’s work on the state budget for the next fiscal year, which begins on July 1, 2013.

“Small businesses in Arizona clearly feel they are under siege by the Obamacare law, with its harsh employer mandates, new taxes and pervasive uncertainty,” said Farrell Quinlan, the Arizona state director for the National Federation of Independent Business. “Our survey found that Arizona’s small-business owners continue to strongly oppose expanding AHCCCS eligibility, because they have no faith in the federal government’s promises to pay for adding hundreds-of-thousands of Arizonans to our Medicaid rolls. Our small-business owners know Washington is more than $16 trillion in debt and Congress will be under increasing pressure to cut the biggest drivers of federal spending – entitlements like Medicaid.”

NFIB/Arizona’s May survey on Medicaid expansion reaffirms small business’ sentiments against expanding Medicaid found in a prior survey conducted before Governor Brewer announced her support for the policy change during her State of the State Address in January.

NFIB Medicaid Poll Results 1/13 and 5/13

In that poll, 77 percent opposed the expansion with 13 percent favoring it and 10 undecided.

“It’s instructive that after months of intense promotion and expensive radio and television advertising campaigns, pro-expansion forces have utterly failed to move the support needle with Arizona small business owners,” said Quinlan. “The public’s attitudes have clearly hardened on Obamacare and the fundamental transformation of health care occurring in the United States.”

Respondents to NFIB/Arizona’s survey were also given the opportunity to provide an open-ended answer on the Medicaid expansion issue and implementation of Obamacare in general. The majority viewpoint is best summarized by one respondent’s declaration: “Arizona won’t be able to afford AHCCCS expansion when Washington realizes America can’t afford Obamacare.” Another opponent expressed his profound ambivalence over the decision before Arizona lawmakers: “Either choice is going to be tough and expensive, but to trust the federal government is a mistake. I do not feel that they will make good on their promise to cover the expenses.”

A Medicaid-expansion supporter wrote: “As I understand it, the expansion goes away if/when the federal money goes away. That is the only reason I am supporting it now. When Obama doesn’t want to pay for it anymore, neither should Arizonans.” Another supporter exclaimed: “Believe we are trapped. If O C [Obamacare] stays this seems like the only way to go. But we must have the 90 percent funding from the Feds.”

The latest poll was conducted May 6 to May 13, 2013, as an online and fax-returned survey with 375 Arizona small-business owners responding. The prior poll mentioned above was conducted November 9, 2012 to January 4, 2013 consisting of 449 Arizona small business owners responding. Both polls tested the same question though the set-up explanations of what proponents and opponents say about the policy proposal were updated and expanded in the latest survey. The online version of the May survey can be viewed here.

NFIB routinely surveys its members to determine the organization’s public policy position on issues at the federal and state levels. Due to the overwhelming and consistent results of the two surveys, the upcoming votes by the Arizona Senate and Arizona House of Representatives on Medicaid expansion have been identified as ‘key votes’ eligible to be used on NFIB/Arizona’s legislative score card for the 2013 session.

Commemorating its 70th anniversary, the National Federation of Independent Business is the nation’s leading small-business association with 350,000 members nationwide and 7,500 in Arizona. NFIB has offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small- and independent-business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists sends its views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information about NFIB is available at www.NFIB.com/newsroom.

Filed Under: Arizona Politics, Debt, Entitlements, Federal Budget, Health Care, Legislation, Polls, Small Business, Spending, State Budget Tagged With: , , , , , ,

Congressman David Schweikert discusses upcoming debt ceiling fight on CNBC

January 2, 2013 by 1 Comment

There is no one better able to discuss and debate our pending economic crisis than Congressman David Schweikert. Watch as he schools two CNBC business reporters on what’s really happening with the debt ceiling debate.

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Filed Under: Conservatives, Debt, Economics, Elected Officials, Federal Budget, Federal Government, Political Science, Spending Tagged With: , , , , ,

The First BBA That Will Check and Balance Washington without Brinkmanship

November 14, 2012 by 1 Comment

By Nick Dranias, Goldwater Institute

According to the Financial Times, at least one U.S. Senator has declared the nation should jump off the fiscal cliff rather than compromise on a budget that brings the national debt under control.

No wonder why Thomas Jefferson said over two hundred years ago, “I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for their reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.”

With unbridled fiscal brinkmanship in Washington, no doubt the federal government deserves to have its credit cards cut up. But we shouldn’t forget that there is a legitimate role for a reasonable level of debt in responsible hands. That’s why the Balanced Budget Amendment advanced by the Compact for America Initiative would do the next best thing: It would require a majority of state legislatures to approve any increase in federal borrowing above an initial debt limit. In other words, 26 state legislatures would be required to cosign on the federal government’s credit card. In addition, to ensure the initial debt limit is respected, the President would be empowered and required to designate spending cuts when 98% of the debt limit is reached. Congress would then be required to override those designations within 30 days with alternative cuts.

Unlike the current national debt brinksmanship, the Compact for America Initiative is designed to force Washington to agree upon a budget that can command a wide national consensus long before the midnight hour arrives. The Compact for America would keep the nation’s credit rating from being held hostage to a game of chicken between the President and Congress. With the states serving as Congress’ fiscal control board, and the buck stopping at the President’s desk, the Compact for America Balanced Budget Amendment Initiative would powerfully check and balance Washington.

This initiative is just the sort of powerful, yet pragmatic reform that could only be originated outside of Washington, D.C. It’s time for the states and the people, led by their Governors, to seize the day.

Nick Dranias holds the Clarence J. and Katherine P. Duncan Chair for Constitutional Government and is director of the Joseph and Dorothy Donnelly Moller Center for Constitutional Government at the Goldwater Institute.

Learn more:

Financial Times: Don’t Fear the Fiscal Cliff

Compact for America: Home page

U.S. Debt Clock: Home page

Filed Under: Constitutional Law, Debt, Government Reform, States Rights

Ann Kirkpatrick: A reckless and irresponsible record that cannot be repeated

November 1, 2012 by Leave a Comment

Jonathan Paton

Kirkpatrick broke the public’s trust, bankrupted our country 

Jonathan Paton warned Thursday that Ann Kirkpatrick’s record in Congress was reckless and irresponsible, and said that if she’s elected again, Kirkpatrick will continue to add to our deficit and destroy American jobs.

One of Kirkpatrick’s first votes as a member of Congress was for Nancy Pelosi’s budget, which would have added $1.2 trillion to our national debt. The budget was called “the most fiscally irresponsible budget in the history of the federal government.” (The Union Leader, April 5, 2009)

That’s in addition to her voting for the failed stimulus and ObamaCare – two massive spending packages the country cannot afford.

And who can forget how Kirkpatrick wasted more than $100,000 on bonuses for her staff and campaign aides after she lost her election.

“Ann Kirkpatrick was reckless and irresponsible with taxpayer dollars, voting for policies and spending packages that further bankrupted our country. As if that wasn’t enough, Kirkpatrick went on a personal spending binge after losing her race, burning through more than $100,000 to reward her staff and political aides,” Paton said. “Ann Kirkpatrick has broken the public trust. She simply cannot be trusted ever again.”

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Filed Under: Arizona Politics, Campaigns & Elections, Debt, Federal Government, Press Release Tagged With: , , ,

Four More Years?

October 25, 2012 by 1 Comment
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Sometimes, we must see the future clearly to act boldly in the present.
Take a glimpse into the darkness of Obama’s America in 2016.
High unemployment. Record high gas prices. The Middle East in chaos.
Religion on the run. Record debt levels. America downsized.
America downgraded.

Filed Under: Campaigns & Elections, Crime and Punishment, Culture, Debt, Ethics, Federal Budget, Federal Government, Foreign Policy, Liberals, Marriage, National Security, Political Ad, Predictions, Religion, Spending, Taxation, Unions, Welfare

Legislative Analysis of Prop 117

October 11, 2012 by 7 Comments

Vote No on Prop 117!

This is from JLBC’s own fiscal note.   It’s clear this will hurt the State General fund and shift more property tax to homeowners.

 

http://www.azleg.gov//FormatDocument.asp?inDoc=/legtext/50leg/2r/fiscal/scr1025.doc.htm&Session_ID=107

 

BILL #   SCR 1025 TITLE:   property tax assessed valuation; limitation
SPONSOR:   Yarbrough STATUS:   As Introduced
PREPARED BY:     Hans Olofsson

Description

 

SCR 1025 would amend the Arizona Constitution, upon voter approval, by limiting the annual growth of locally assessed real property to 5%, beginning in Tax Year (TY) 2014.  By way of comparison, current law limits the annual valuation growth of such property to the greater of:  (1) 10% or (2) 25% of the difference between the parcel’s full cash value in the current year and the parcel’s limited value in the prior year.  In addition, under current law, as well as under the resolution, a parcel’s limited value can never exceed its full cash value.

Under current law, primary taxes are levied on a parcel’s limited value, whereas secondary taxes are levied on its full cash value.  Primary taxes are levied to pay for the maintenance and operation of local governments and secondary taxes are levied to pay for debt service, budget overrides, and special taxing districts.  SCR 1025 would provide that all property taxes be levied on the limited value.

If approved by voters in the 2012 General Election, SCR 1025 would become effective in TY 2014.  Under the state’s valuation calendar, the 5% cap would first apply to 2013 property valuations, which are not subject to taxes until FY 2015. For this reason, the fiscal impact of the valuation growth cap would not occur until earliest FY 2015.

Estimated Impact

When future property values grow by more than 5%, there could be a relatively small increase in the state’s General Fund cost for the constitutional 1% Cap provision (see discussion below).  The timing of this fiscal impact is uncertain, however, since it depends on when residential and commercial property values will begin growing again, which cannot be determined in advance.  Additionally, it is also difficult to predict the exact rate at which future values will grow.

Analysis

According to historical county levy limit worksheets, the statewide annual growth in locally assessed real property values has varied over time.  For example, primary assessed real property appreciated at an average annual rate of 4.8% between TY 2000 and TY 2006.  This was followed by average annual growth of 9.7% between TY 2007 and TY 2009, and average annual decline of (11.5)% between TY 2010 and TY 2012.

Preliminary notice of value data indicates that real property values will decline in TY 2013.  It is still uncertain, however, whether real property values will increase or decrease in TY 2014.  It is also difficult to predict exactly when statewide locally assessed valuation growth will first exceed 5%.  When this occurs, however,  the resolution’s growth cap would result in a higher truth-in-taxation (TNT) rate for the K-12 qualifying tax rate (QTR) and state equalization tax rate (SETR) than under current law.  Under TNT, the QTR and SETR are adjusted each year to offset the change in statewide existing property values.  For example, if property values grow by 7% under the current law, the QTR declines by 7% to hold the tax levy on existing property constant.  Under SCR 1025, the growth will be limited to 5% and the QTR will only decline by 5%.

Unless the Legislature decided to override the automatic rate adjustments under TNT, SCR 1025 would have essentially no impact on Basic State Aid to schools since the higher K-12 tax rates would be offset by commensurately lower property values.

(Continued)

The 5% growth cap would also result in higher maximum allowable tax rates for local governments than under current law.  The Arizona Constitution allows counties, community colleges, cities and towns to increase their primary property tax levies on existing property by 2% each year.  While levy limits would not change under SCR 1025, the lower tax base under the resolution could result in higher local property tax rates than under current law.  These higher local tax rates could potentially raise the cost of the “1% Cap.”  Under the Arizona Constitution, the total combined primary tax levied on owner-occupied residential property is limited to 1% of the parcel’s value.  When the combined tax rate exceeds 1% of residential property values, the state holds school districts harmless by paying them the amount in excess of 1% that otherwise would have been paid by homeowners.  The estimated statewide cost of the 1% Cap was $6.8 million in FY 2012.  The increased cost of the 1% Cap under SCR 1025, if any, cannot be determined in advance.

Local Government Impact

Since all property taxes under SCR 1025, including taxes to pay for bonds, overrides, and special districts, would be based on limited value rather than full cash value, the resolution would limit future bonding capacity for local governments in years when full cash value would grow faster than 5%.

 

2/17/12

Filed Under: Arizona Politics, Ballot Measures, Debt, Taxation, Uncategorized, Voters Guide

Sewers vs. Sports Arenas

September 19, 2012 by 1 Comment

By Stephen Slivinski, Goldwater Institute

When government issues debt, you probably think it’s paying for the construction of a highway or water and sewer improvements – the sort of things that we usually expect government to provide.

For almost a quarter of state and local government debt in Arizona, however, the bonds pay for projects that directly benefit private interests instead of the public at large. And none of this debt is subject to the constitutional debt limits, nor did voters approve much of it.

The city of Glendale, Ariz. is a prime example of what can happen when government is not bound by constitutional debt limits. Over 40 percent of Glendale’s current long-term debt load ($475 million out of just over $1.12 billion in debt) goes to finance the hockey arena, the Cardinals stadium, hotel and retail centers, and subsidies to retail giant Cabelas. Glendale has used financing methods that keep its debt outside of the debt limits in the state constitution.

Repayment of the bonds is premised on the revenue that these projects are expected to generate from, say, well-attended hockey games or highly popular retail centers. But if that revenue never materializes, as has happened often, someone else will have to pay the bonds. Taxpayers are the likely target.

One way to protect the public’s money from special debt-financed subsidies to private interests is to put an overall cap on all government debt and to subject all local debt issuance to voter approval. These steps would require elected officials to make the case to voters that a bond to give subsidies to a sports team or a big retail corporation is more important than keeping open some of their bonding capacity for things like sewer improvements or public safety. When the trade-offs are so explicit, it’s unlikely that voters will approve letting local governments abuse their power to issue debt.

Stephen Slivinski is a senior economist at the Goldwater Institute.

Learn More:

Goldwater Institute: Cutting up the Credit Cards: Seven Ideas to Reform the Culture of Debt in State and Local Government

Goldwater Institute: Debt and Taxes: Arizona Taxpayers on Hook for $66 Billion Tab Run Up by State, Local Governments

City of Glendale: Debt Management Plan

Filed Under: City Government, Debt, Economic Development, Economics Tagged With:

Obama’s Failing Agenda Tour in Tempe this Monday!

September 16, 2012 by 3 Comments

Americans for Prosperity - Arizona

Dear Freedom Fighter,

 

AFP-Arizona will be traveling the state this week educating citizens about President Obama’s failing agenda and putting grassroots pressure on him.

Join us this Monday in Tempe to get the tools you need to educate your neighbors and family about Obama’s failing agenda!

WHAT: Obama’s Failing Agenda Bus Tour Stop in Tempe

WHEN: Monday, September 17th – Bus Stop Rally, Noon to 1:00 pm and Freedom PhoneBank Training, 1:00 to 2:00 pm

WHERE: 12 PM at Monti’s La Casa Vieja, 1 W. Rio Salado Pkwy, Tempe, AZ

REGISTER TODAY!

We’ve faced a government health care takeover, burdening Americans with over $500 billion in new taxes, four straight years of spending trillions of dollars we don’t have, billions wasted on green energy companies like Solyndra which then went bankrupt, and over 42 straight months of unemployment above 8 percent.

It’s time for President Obama to change his failing agenda and support policies that will help families and not drive America deeper into debt.

Hope to see you this week; it’s time to make your voice heard!

Yours in Liberty,

Tom Jenney
State Director
AFP-Arizona

Filed Under: Arizona Politics, Campaigns & Elections, Conservatives, Debt, Government Reform, Special Event Tagged With:

Every Arizonan Owes More than $7,500 in State Debt

August 30, 2012 by Leave a Comment

Contact: Lucy Caldwell, (602) 633-8986

FOR IMMEDIATE RELEASE: 

Phoenix, AZ—Every Arizona household’s debt is getting bigger—but most people don’t even know they owe. In Arizona, every man, woman and child owes state and local governments more than $7,500 for bills ranging from sports stadiums to parking garages.

State and local per-person long-term debt grew from $4,568 per Arizonan in 2000 to $7,587 in 2009, an increase of 66 percent in less than a decade. Arizona’s per-person debt load is almost $1,000 more than the national median of around $6,800 in per-person debt.

The $7,587 owed by every Arizonan to pay off state and local debts is in addition to the $51,000 per-American share of the mounting federal debt.

In a new report, Cutting up the Credit Cards: Seven Ideas to Reform the Culture of Debt in State and Local Government, Goldwater Institute Senior Economist Stephen Slivinski examines the vastness of the state’s debt and recommends seven key reforms to rein in Arizona’s debt culture.

“In economic times like these, most people have their hands full trying to balance their own checkbooks,” said Slivinski. “Yet our policymakers can’t restrain themselves from committing to more and more new debt that Arizona families ultimately will have to pay off.”

Although Arizona’s framers established a constitutional debt limit to cap state debt to $350,000—roughly $8 million in today’s dollars—the limit is not effective at actually limiting debt. This is because the courts have interpreted the debt limit to apply only to a specific type of debt: the “full, faith, and credit,” or general obligation debt. Politicians are able to commit current and future taxpayers to paying off a variety of debt instruments—usually called “non-guaranteed debt”—that are not subject to the constitutional limit and often do not require voter approval.

Debt-service payments were the fastest growing category in Arizona’s noncapital budget for state general expenditures in the last decade, growing 170 percent from 2002 and 2009. Almost one quarter of all state and local debts in Arizona are for projects primarily benefitting private interests, such as shopping centers or sports arenas.

For many local governments, debt payments have caused cities to cut essential services.

For example, Glendale, Arizona recently fired 49 employees, including a handful of policemen, to help cover its $35 million spending gap. The city has paid the National Hockey League $50 million over the past two years to keep the Coyotes hockey team in the city’s taxpayer-financed Jobing.com Arena, fearing that if the Coyotes move, the city will be unable to pay off the debts it owes from constructing the arena in 2002. Meanwhile, the city has had to table plans to complete the remodel of the city’s courthouse and to build a new library.

“When our elected officials commit funds to private-interest projects like sports stadiums, it doesn’t just drive up our families’ tax bills—it often means cutting the services we rely on, like law enforcement in our neighborhoods and libraries for our children,” said Slivinski.

In his paper, Slivinski recommends seven reforms to rein in Arizona’s debt, including a strict cap on debt for state and local governments, voter approval of all debt at the local level, and transparency requirements for all state and local debt.

To read the entire report, click here.

For a bio and high definition photo of Goldwater Institute Senior Economist Stephen Slivinski, click here.

The Goldwater Institute protects America’s greatest inheritance – the liberty and economic freedom of the individual – by holding government accountable and standing up for regular taxpayers just like you.

Filed Under: Arizona Politics, Debt, Economic Development, Economics, Press Release, State Budget, State Economy, State Government

NEW REPORT: “Uncertainty” Dominates the Top Five Small-Business Concerns

August 22, 2012 by Leave a Comment

Only the cost of health insurance is greater

WASHINGTON, D.C., August 22, 2012 — Small-business owners prominently rank “Uncertainty Over Economic Conditions” and “Uncertainty Over Government Actions” as their second and fourth most serious problems in the quadrennial National Federation of Independent Business (NFIB) report, Problems and Priorities. The top problem remains “Cost of Health Insurance,” which has historically been the No. 1 problem for small employers; 52 percent labeled it as “critical”. Nearly 40 percent of those surveyed said that economic uncertainty is the most critical problem, followed by 35 percent who identified “Energy Costs, Except Electricity” as critical for their firms; another 35 percent of owners named  “Uncertainty Over Government Actions” as their most critical issue.

“This year’s survey was conducted on the heels of the worst U.S. recession since the 1930s; historically high levels of unemployment and housing foreclosures, and historically low levels of consumer confidence and hiring still plague the small-business community,” said Holly Wade, senior policy analyst and survey author. “The high level of uncertainty cited by small employers helps to explain the sector’s inability to recover and expand. Fears over increasing health insurance costs continue to dominate the list of concerns for small businesses, very much in spite of the president’s health insurance reform law—certainly not an endorsement of the policy, nor a good sign for the future of the sector.”

The “Cost of Health Insurance” has been the top problem for small employers for the 25 years of the survey history. The percent of small-business owners who cite this problem as critical overshadowed the runner-up by 14 percentage points. Health-insurance costs for small firms have risen 103 percent in the last decade, an increase outpacing wages and inflation, and rendering insurance unaffordable for many small-business owners. The contention around the Patient Protection and Affordable Care Act (PPACA), commonly called “Obamacare,” has proven valid, as it has failed to address the fundamental causes of rising health-care cost while opting to focus on coverage. NFIB challenged the law in the Supreme Court of the United States, after the overwhelming majority of its membership expressed a desire to have it repealed. Without a major refocus of current thinking, the cost of health insurance will almost certainly be the most critical business problem facing small-business owners again in four years.

Uncertainty has emerged as a major hurdle to small-business recovery and growth, prompting the addition of two new problems, “Uncertainty over Economic Conditions” and “Uncertainty over Government Actions” to this year’s survey. Small-business owners ranked these two problems as the second and fourth (respectively) most severe problems facing their businesses. In the last four years, the federal government has enacted significant policy changes of an immense nature; their impact will continue as the regulatory system works to implement new policy directives. Uncertainty also surrounds pending government action on the expiring 2001 and 2003 tax cuts, the debt ceiling and the federal budget. All of these policy changes create a huge “question mark” for small-business owners, impeding their ability to make short and long-term business decisions.

Other notable survey findings include:

  • As a category, “Taxes” takes the top position as the most severe problem cluster in the 2012 survey, followed by the category “Regulations.” Five of the top 10 most severe problems are tax-related, including “Tax Complexity,” “Frequent Changes to Tax Rules and Regulations,” and “Federal and State Taxes on Business Income.” Comparatively, the most severe problem cluster in 2008 was “Costs.”
  • Regulations and financing lead the problems of increasing importance to small-business owners. “Environmental Regulations” topped the list, rising 20 positions from a rank of 47th in 2008 to 27th in 2012. “Finding Out about Regulatory Requirements” increased 13 positions from a ranking of 38th in 2008 to its current 25th position. “Obtaining Long-Term (five years or more) Business Loans” moved up 17 positions from 73rd to 56th. “Obtaining Short-Term (less than 12 months or revolving) Business Loans” follows moving 14 positions from 72nd to 58th.
  • The least severe problems identified by small-business owners include: “Exporting My Products/Services,” “Undocumented Workers,” “Access to High-Speed Internet.” Exporting, the least severe problem proves critical for three percent of small business owners, virtually unchanged from 2008. “Undocumented Workers” and “Access to High-Speed Internet” are both a critical problem for seven percent of respondents.
  • While the critical nature of some problems increased, for others, it declined, perhaps as a sign of the times. The largest decline in the ranking was “Interest Rates”, falling 30 positions from 32nd to 62nd. Also declining in importance and severity were “Finding and Keeping Skilled Employees” and “Employee Turnover”. Both fell 21 positions from 17th to 38th for the former and 51st to 72nd for the latter.

While small-business owners tended to evaluate most problems in the 2012 survey as they did in 2008, the major changes that did occur are largely related to the recession and increased regulations. The magnitude and duration of the recession significantly altered the small-business landscape along with the problems owners now face in operating their businesses. The four years between the last edition published in 2008 and the current edition saw a near collapse of the financial system and housing market, unprecedented government bailouts of the banking and automotive industries, and the enactment of massive economic stimulus programs. While the economy is over two years into its recovery, progress is painfully slow as economic headwinds and uncertainty remain. The effects of the recession and fragile economic recovery are reflected in owners’ assessment of business problems.

The findings of this publication are based on the responses of 3,856 NFIB small-business owner/members to a mail survey conducted from mid-January through April 2012. A sample of 23,000 members was drawn for a response rate of 17 percent. Owners evaluated 75 potential business problems individually and assessed their severity on a scale of “1” for a “Critical Problem” to “7” for “Not a Problem.” A mean (average) was calculated from the responses for each problem. Problems are ranked by mean score. A copy of the report is available at http://nfib.com/priorities. More information about the NFIB Small Business Research Foundation is available at http://nfib.com/research.

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NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Filed Under: Debt, Economics, Federal Budget, Government, Health Care, Polls, Press Release, Regulations, Small Business, Spending, Taxation Tagged With: ,

Congressman Paul Gosar Votes to End Business as Usual and “Audit the Fed”

July 25, 2012 by Leave a Comment

WASHINGTON, D.C. – Today, Congressman Paul Gosar (R-AZ) voted for the Federal Reserve Transparency Act, H.R. 459. This bill, which was introduced by Congressman Ron Paul (R-TX) and co-sponsored by Congressman Gosar, passed the U.S. House of Representatives by a bipartisan vote of 327 to 98.

Congressman Gosar played an active role in advancing the “audit the fed” legislation to the House floor. In addition to being an early cosponsor of the legislation, he was instrumental in passing the legislation through the House Oversight and Government Reform Committee.

“The decisions made and executed by the Federal Reserve’s Board of Governors affect the monetary policy of the entire nation, yet for too long these activities have been carried out in secret,” said Congressman Gosar. “Though the Federal Reserve is only a quasi-government entity, quasi-transparency is unacceptable to the American people. The continued secrecy surrounding the actions of the Federal Reserve is exactly the type of ‘business as usual’ my freshman class was sent to Washington to end, which is what makes today’s vote so important.”

The Federal Reserve Transparency Act would provide the congressional oversight, through the Government Accountability Office, to audit the monetary actions of the quasi-private Federal Reserve. Current law prohibits full congressional access and review of the Federal Reserve’s lending practices.

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Click Above to Watch My Opening Statement from Oversight and Government Reform

Current restrictions on GAO audits include the examination of any transactions made under the Federal Reserve’s open market operations and Federal Open Market Committee directives, any deliberations and discussions on monetary policy, or any agreements made with foreign governments and central banks. Since the 2008 financial crisis, the Federal Reserve’s balance sheet has tripled to $3 trillion dollars. The Federal Reserve Transparency Act, H.R. 459 will remove restrictions and require a one-time audit within 12 months of enactment.

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Filed Under: Constitutional Law, Debt, Elected Officials, Federal Government, Government Reform, Legislation, Press Release Tagged With: , , ,

Arizona Deposits $450 Million in State Savings Account

July 24, 2012 by Leave a Comment

Marks the first time the Budget Stabilization Fund has been replenished since 2009

PHOENIX – State Treasurer Doug Ducey today announced that for the first time since June, 2009 the State of Arizona has set reserve money aside in a savings account to cushion future General Fund budget shortfalls. $450 million has been deposited in the Budget Stabilization Fund as prescribed by the Arizona Legislature and Governor.

Arizona’s Budget Stabilization Fund was enacted by the Arizona Legislature in 1990 to set aside revenue during times of strong economic growth to be spent during periods of weak growth or recession. In 2008 the fund had a balance of more than $700 million before it was drained in fiscal years 2008 and 2009.

“Arizona has worked hard to get its financial house in order,” said State Treasurer Doug Ducey. “In 2011 our state budget was described as being the most structurally broken of any other state on a per capita basis. Our 2012 and 2013 budgets have been balanced, and we’re setting money aside for 2014 and 2015. We simply can’t allow Arizona to dig itself into a hole again. I applaud the Governor and Legislature for the tough decisions they made to get us back on track.”

The National Conference of State Legislatures recently reported that 21 of 29 states projecting positive cash flow planned to put portions of it into reserves. As the economy has slowly picked up, Arizona revenues outpaced projections in FY 2012 resulting in an estimated $231 million General Fund ending balance. The state’s monthly average operating cash balance also increased 58 percent to $1.3 billion, which translates to $483 million more on average each day over FY 2011.

“This is the responsible way every family and small business has to budget,” added Ducey. “You cannot spend more than you generate, and it’s always nice to have a little bit socked away for an emergency. This fiscally responsible strategy will help us avoid the same dramatic reductions that were the result of poor long-term planning in the past the next time we find ourselves in a recession.”

The $450 million Budget Stabilization Fund has been invested in fixed income securities along with more than $4 billion of state agency funds managed by the Office of the Arizona State Treasurer. As a free transparency service to Arizona taxpayers you can access detailed information on all revenue and expenditures at www.AZCheckbook.com.

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Filed Under: Debt, Elected Officials, Press Release, State Budget, State Economy, State Government Tagged With: ,

Risky Business: Understanding the Business Side of Government Bonds

July 17, 2012 by Leave a Comment

By Mark Flatten, Goldwater Institute

Three law firms dominate the legal work that goes into issuing state and local government debt in Arizona, according to a review of bond documents done by the Goldwater Institute. That finding is consistent with what bond lawyers and government officials have said in interviews about the industry.

Near the end of the lengthy documents that describe government bond offerings to investors is a section called “relationships among the parties.” This is where potential conflicts of interest among the law firms and bond houses involved in the deal are disclosed. The number of names that appear is small but the relationships are extensive.

The Goldwater Institute analyzed the official statements in 75 recent bond sales with a total value of almost $6.8 billion, issued by a variety of state and local governments, to determine who profits from putting the deals together. All but one of those issues involved at least one of the three law firms: Greenberg Traurig, Gust Rosenfeld or Squire Sanders. Two-thirds of the transactions involved more than one of the three firms in different roles.

Two other firms were involved in far fewer transactions, but did work for agencies such as the City of Tucson and state universities that issue large amounts of debt. Those firms are Ballard Spahr and Kutak Rock.

There is nothing illegal or unethical about the close relationships among the law firms, the bond houses they work for and the governments that issue the debt, as long as those relationships are disclosed and conflict-of-interest waivers are obtained.

To read the entire Watchdog Report, click here.

Filed Under: City Government, Debt, Economic Development, Economics, Journalism, Spending

Rep. David Schweikert on Supreme Court Ruling on ‘Obamacare’

June 28, 2012 by 1 Comment

Washington, D.C. – Congressman David Schweikert (R-AZ) made the following statement Thursday after the Supreme Court announced its decision on the constitutionality of President Obama’s government takeover of healthcare:

“When the Democrat controlled Congress passed ObamaCare over two years ago, it was the single most economically devastating government mandate our country has ever seen.

“Today, after the Supreme Court ruled ObamaCare’s individual mandate a tax, it still remains the most economically devastating government mandate our country has ever seen.

“If the Supreme Court will not repeal this job-killing, tax-hiking mandate, then I will fight until every ounce of ObamaCare is repealed and replaced.”

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Filed Under: Arizona Politics, Constitutional Law, Debt, Family, Federal Budget, Federal Government, Legislation, Press Release Tagged With: , ,

EU Video Going Viral: Nigel Farage Speaks Out on the Euro Debt Crisis

June 14, 2012 by Leave a Comment

Like Daniel Hannan, Member of European Parliament Nigel Farage is a plain-spoken Brit who sees what is happening across Europe and cannot remain silent.  The video below, uploaded June 13, is titled “The Genius of Mutual Indebtedness.”  It is fast going viral.

How will the EU countries respond to Farage?  Will they finally begin pulling back on their socialist welfare state?  Or will they perhaps re-lower the retirement age as the socialist president of France, François Hollande, just did? Or perhaps they will look for some convenient scapegoats?

Given our own debt and over-spending problems in the US, how much sympathy should we have for our EU friends who, protected for 60 years by an American-taxpayer-funded military umbrella, have fully embraced the socialist welfare state as their preferred political model?

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For more on the EU debt crisis, see the video below in which Farage engages in dialog with Ken Livingstone, former Mayor of London.  The discussion is primarily about EU debt. Livingstone is known to Americans largely for his open policies on immigration that have led some to call London “Londonistan”.

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Put “Nigel Farage” into a YouTube search box, and you will find many more occasions where Mr. Farage speaks out against the EU both in its concept and its execution.

Why should we in America care about all this? As I wrote in a post last October, “Europe is living in our future and we don’t want to go there.”  Consider where Agenda 21 advocates are trying to take America and picture a global version of the EU enveloping and smothering our country.

If well-intentioned, kind-hearted Americans really want to help Europe in this looming debacle, the best thing we can do is (1) send the Obama entourage back to Chicago and the faculty lounges of the Leftist universities from whence they came, and (2) restore free markets, Constitutionally limited government, and fiscal/personal responsibility.  The resulting boom in America will be the example European and other countries need to set things right.

Filed Under: Debt, Economics, Government Tagged With: , , , , , , , , , , , , , , , , ,

Glendale Busts Its Budget and Plans to Raise Taxes

April 23, 2012 by 5 Comments

By Carrie Ann Sitren

How do you close a $35 million budget gap? Perhaps the better question is why that hole was dug in the first place. One answer for the City of Glendale is hockey. In fiscal year 2012, the city added $20 million (up from only $1.2 million the year before) to its operating budget for the Jobing.com Arena, where the Phoenix Coyotes hockey team plays. The NHL has been demanding financial support from the city since 2009, when the team filed for bankruptcy.

Instead of looking for ways to cut arena operating costs, city officials are considering a 0.8% increase in the sales tax. This would make Glendale the city with the highest sales tax rate in the nation. It would also be enough to cover the $20 million city payment for Coyotes hockey next year.

In other cities, like Oakland, taxpayers don’t pay high dollars for someone else to manage their arena. Instead, professional management groups compete for that right. Arena management can be a profitable business, with groups maximizing concert and other entertainment events and keeping the revenues from concessions and ticket sales. Meanwhile, cities benefit because they don’t have to pay the operating costs. In some arena contracts, like the Sprint Center in Kansas City, the city also gets a cut of the profits. Last year, arena management added $1.8 million to Kansas City’s budget.

A few million dollars in the door would be a well-needed substitute for $20 million going out of Glendale for its arena. We have yet to see city officials open bidding for management. Given the heavy competition for it in other cities, Glendale should consider that option before asking taxpayers to cough up more sales taxes and for another year of hockey.

Carrie Ann Sitren is an attorney with the Goldwater Institute.

Learn more:

Goldwater Institute: Goldwater Institute v. City of Glendale

Arizona Republic: Glendale Budget Looking Bleak

Associated Press: No Team, No Problem for Kansas City’s Sprint Center

Filed Under: Arizona Politics, City Government, Debt, Spending

When Debt Is Not Debt and a Government Isn’t a Government

April 5, 2012 by 3 Comments

By Mark Flatten

Click image to enlarge
Unpaid Balances

Open your wallets even wider, Arizona taxpayers.

You may already know that every American is on the hook for just under $50,000, each person’s piece of the $15.6 trillion in debt run up by the federal government.

But what you may not know is that so much more is owed in your name; about $10,258 for every Arizonan’s share of the $66.5 billion in debt and unfunded obligations borrowed by state and local governments.

In a new report, Debt and Taxes, the Goldwater Institute breaks down that debt. It also enters the strange world of public finance where debt is not debt, governments are not governments and billions of dollars in obligations are supposedly traded without risk.

Most of the debt racked up by state and local governments – about $44 billion – is in bonds issued by the state, counties, cities, school districts and hundreds of other taxing authorities created as stand-alone governments under Arizona law. Billions more comes from shortfalls in pension plans for government workers. There is even $1.3 billion in payments the Legislature simply chose not to make to balance the state’s budget that is just floating around on the books.

The Arizona Constitution is supposed to limit the state’s total debt to $350,000. The tabs that can be run up by local governments have their own caps as well. But the courts have determined those limits only apply to certain types of debt. So governments in Arizona rely far more heavily on borrowing that is not confined by constitutional restrictions or requirements for voter approval.

The Goldwater Institute has developed a series of policy recommendations to curb the ability of state and local governments to bypass voters and avoid constitutional restrictions on issuing debt.

Why should you care? State Treasurer Doug Ducey said it best:

“Taxpayers should care about it because it’s an obligation that they or their children are going to have,” Ducey said. “People should be concerned about the amount of debt, the type of debt, and the fact that there is no overall plan to pay down the state debt.”

Mark Flatten is an investigative reporter with the Goldwater Institute.

Learn more:

Goldwater Institute: Debt and Taxes: Arizona Taxpayers on Hook for $66 Billion Tab Run Up by State, Local Governments

Goldwater Institute: Recommendations for Reform

Filed Under: Arizona Politics, City Government, Debt, Economic Development, Economics, State Budget, State Economy, State Government
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