American Revolution II

It would shock the founders of America to see that “taxation without representation” happens a lot in modern America.

When you have “taxation with representation” and the government tyrants tax the krap out of the people, the people can always turn around and vote the tyrants out of office.

Elected officials and government bureaucrats love “taxation without representation” because they can tax the krap out of the people with out worry of being booted out of office! [the blurb says the state taxes the krap out of us for cities] [add blurb on how appointed bureaucrats tax the krap out of us] [add blurb feds give free money to states, counties and cities] Source

Local officials watching legislators on budget battle

by Edythe Jensen - Jan. 9, 2010 08:00 AM

The Arizona Republic

Fears of state revenue raids that could cripple cash-strapped cities and hopes for economic development help have Southeast Valley municipal leaders keeping a vigilant eye on the Legislature when the session starts next week.

At stake are state-shared revenues on which municipalities depend to pay police officers and keep libraries open.

"They tend to believe they are giving cities a gift in state-shared revenues when actually they are collecting (taxes) on behalf of cities money that is defined in statutes and not theirs to take," said Scott Butler, Mesa's intergovernmental affairs director.

The funds bring $60 to $80 million a year to Mesa and a state sweep of that money "could create chaos" for his and other municipalities, he said.

Tempe Mayor Hugh Hallman and Chandler Mayor Boyd Dunn have vowed to pressure state lawmakers not to raid cities' state-shared revenues.

They have a sympathetic ear in Sen. Jay Tibshraeny R-Chandler. "The cities are hurting right now, just like the state is. They need every dollar," Tibshraeny said.

Rep. Rae Waters D-Phoenix said she wouldn't be surprised if some lawmakers try to snag state-shared revenues from cities again, as they have unsuccessfully in the past.

"But that is short-sighted . . . we need to stop stealing money from other funds and work together to solve the budget problems," said Waters, of Ahwatukee Foothills.

The Southeast Valley also needs jobs, said House Speaker Kirk Adams, R-Mesa. He wants to jump-start the state's economic recovery with a bill that would give tax relief to businesses and encourage creation of quality jobs.

Adams said the region stands to benefit from the bill's provisions because of its potential to turn Phoenix-Mesa Gateway Airport into a "significant economic driver for the state."

And he is angling for bi-partisan support: "Job creation is a nonpartisan issue. I hope when they (Democrats) understand the details of this legislation, they will see how important it is - not just from an economic standpoint but from a people standpoint. We are approaching 300,000 lost jobs in Arizona."

Rep. Laurin Hendrix R-Gilbert said the need for jobs in the Southeast Valley is so great that he is likely to support tax incentives.

"In general I'm not an advocate for government involvement and incentives, but these are difficult times," he said.

However, House Democratic Leader David Lujan of Phoenix and others in the party have spoken out against Republican plans like Adams', saying they will give big tax breaks to large corporations and the rich, put more of a property tax burden on homeowners and negatively affect education funding.

A different kind of economic development is high on Mesa's list: baseball.

Civic leaders, including Mayor Scott Smith, say they need the Chicago Cubs spring training revenues and are backing legislation that would create additional taxes or fees on tourism-related spending to finance a new ballpark if the team stays in the city.

Adams said he is going to bat for his home city and has met with team officials in Chicago.

"It's important to keep the Cubs in Mesa," he said. The team drives Cactus League attendance Valley-wide, and "we simply cannot afford to lose them, especially during these recessionary times."

Baseball isn't a top priority for Rep. David Shapira D-Tempe, however. He would like to reverse some of last year's cuts to education funding.

"There are a lot bigger fish to fry than spring baseball, although I think it is important to keep it in Arizona," he said. "Tempe has a lot of young families who are affected by the cuts we have been making and continue to make in education."

Shapira said his city's "crown jewel" -- Arizona State University - is suffering from disproportionately high cuts to education funds.

Education also is a focus for Waters - a former school board member - and Sen. John Huppenthal, R-Chandler, who is considering a run for the Superintendent of Public Instruction.

Waters said she fears continuing education cuts will hamper economic development efforts. Huppenthal says Arizona needs a better plan to track academic achievement.

As for the budget, lawmakers will have to work as a team if they are to overcome the deficit problem and not repeat last year's stalemates, Huppenthal said. "That is was the worst breakdown of teamwork in the 17 years I've been here," he said of last year's budget discussions.

Schapira and Waters agree and said if Republicans don't bring Democrats into early budget discussions, there will likely be another year of disagreements with no resolution. "As Einstein said, the definition of insanity is doing the same thing over and over again and expecting different results," Schapira said.

More on this topic

The mayors say . . .

The Republic asked four Southeast Valley mayors what they would like to hear from Gov. Jan Brewer when she delivers her State of the State address on Monday. Here are their replies:

John Lewis, Gilbert: "I am interested in hearing about the economy. Specific questions: How will the governor work with the Legislature to strengthen and grow our Arizona economy? How can we attract new business to Arizona? How can we help businesses begin hiring again?"

Boyd Dunn, Chandler: "My hope is that governor's message will include a long-term vision for Arizona's economic future. Cities have historically been the economic engines of the state and there are valuable lessons to be learned from their experience. Cities, including Chandler, have worked diligently to diversify their employment base. Even as we work through these difficult economic times, we must be planning a better future for Arizona."

Scott Smith, Mesa: "It is no secret that our state government is in a world of hurt financially. From the debate and discussion about the budget, however, it appears that many are either in denial about the problems, do not understand the severity of the problems, or simply refuse to talk about the reality of our situation.

"I would love to hear the governor talk about that reality and how it will affect ordinary citizens. The reality is that the state will not collect enough tax revenues to meet its basic legal funding obligations. The reality is that basic government services to which we have grown accustomed will be reduced significantly, and we should all prepare for it.

"I hope she also reminds us that Arizonans have overcome much greater challenges as we built this state, and we will get through this too. Our challenges are real, and we will have to sacrifice; but, with resolve, we will emerge stronger and better. I really hope she reminds us of this reality, too."

Hugh Hallman, Tempe: "I would like her to articulate a real vision for Arizona's sustainability, meaning not just environmental sustainability, which in particular requires water-conservation policy, but also economic sustainability and preservation of the unique Arizona culture and lifestyle."

Source

Southeast Valley's big challenges in 2010

Jan. 2, 2010 07:30 AM

The Arizona Republic | azcentral.com

The Republic asked six of its reporters in the Southeast Valley to lay out some of the big challenges and opportunities facing the region that transcend some of the big issues that may only affect individual municipalities and school districts in the area. Here is the report prepared by staff writers Cathryn Creno, Emily Gersema, Edythe Jensen, Gary Nelson, Parker Leavitt, and Art Thomason.

Shrinking revenue besets officials

As far as Southeast Valley municipalities are concerned, any obituaries for the Great Recession are premature. Not only are they still suffering from lagging sales-tax revenues, they're looking down the road at sharp reductions in money they get via state revenue-sharing. Blame the latter on the two-year lag between when the state collects taxes and when it cuts checks to the cities.

So even if the economy bounced back today, the recession is poised to deliver one wallop of a hangover that cities must deal with this year and beyond.

And that, by the way, assumes the Legislature won't mess with the revenue-sharing formulas already in place. If that happens, cities could be in even worse shape. Consider:

• Mesa, the largest Southeast Valley city, dodged a budget bullet this fiscal year by drastically reorganizing and trimming operations in early 2009. But this spring, the council has been warned, it probably will have to slice spending again for the fiscal year that begins July 1.

• Gilbert is facing a $14 million shortfall for the fiscal year that starts July 1. Part of the solution for balancing the budget may include taking a proposed sales tax hike to the voters in May. Other proposals include furloughs, pay cuts and possibly even layoffs.

• Tempe City Manager Charlie Meyer has warned of "very, very significant cuts." The city faces an estimated $22.4 million budget gap. Tempe also is home to two unfinished high-rise condo towers that overshadow its downtown and starkly symbolize the ferocity of the real-estate crash.

• Chandler also faces budget issues, but is looking on the bright side with several high-profile city projects to be completed this year. Most notable: A new $74 million city hall that will replace rented quarters and end Chandler's status as the only Southeast Valley city without its own city hall. A major reconstruction project on Arizona Avenue will add to the downtown makeover.

• Ahwatukee, like the rest of Phoenix, also can be expected to feel the continuing fiscal misery dogging the nation's fifth largest city.

Teacher jobs saved - for now

The budget ax has stopped swinging for Arizona schools for now, but finances will remain a chief concern for Southeast Valley districts in 2010, particularly as the federal stimulus funds run out.

Organizations such as the Arizona School Boards Association and Arizona Association of School Business Officials had warned districts against spending stimulus dollars on hiring because the money would run out by 2011.

But some districts ignored the advice and hired teachers with stimulus dollars for special programs, such as extra help for kids struggling with math or reading.

Mesa, Chandler, Gilbert and Higley school districts together saved about 775 jobs with their share of stabilization monies - representing about $42 million of the state's full $250 million in stabilization funds meant to ease state cuts. Districts also had received another portion of stimulus funding for programs that help students who are homeless, low-income or who have special needs. The four Southeast Valley districts received about $50 million for those programs.

Federal officials have stipulated that states cannot cut education budgets below 2006 funding levels or they will lose their stimulus dollars. If Arizona's K-12 spending, currently just short of $4 billion annually, drops any lower, the state will have to seek a waiver from the funding restrictions outlined by the federal stimulus regulations. Federal officials have yet to clarify whether the restrictions on stimulus funds will be in effect then, or if they'll expire, leaving districts vulnerable to the budget ax again.

Dizzying array of elections

Term limits and voluntary departures are setting the stage for shakeups in many of the southeast Valley's six legislative district seats just as the state faces serious money problems.

Some civic leaders worry that the looming loss of five of the region's six state senators could hinder city-state relationships at a time when budget shortfalls have different levels of government fighting over shrinking tax revenues. Others see it as a chance for innovation and positive changes.

On top of that, Mesa, Chandler and Tempe have municipal elections in 2010 which could bring turnovers on city councils that are also struggling with budget shortfalls.

In the senate, term limits are forcing out Jay Tibshraeny (District 21) and John Huppehthal (District 20) of Chandler and Thayer Verschoor (District 22) of Gilbert. Tempe's Meg Burton Cahill (District 17) and Mesa's Chuck Gray (District 19) have opted out of seeking re-election.

Three Southeast Valley representatives say they will run for the Senate: Andy Biggs of Gilbert, Steve Yarborough of Chandler and Rich Crandall of Mesa.

Budget issues will challenge state lawmakers at least until 2012 and newcomers won't have an easy time, said Tibshraeny, who has formed an exploratory committee to run for mayor in Chandler, a post he held from 1994 to 2002.

Last stand in freeway fight?

By the end of the new decade, the Southeast Valley should have a faster, more direct route to the West Valley. Supporters say the Loop 202 extension around South Mountain is needed to relieve traffic bottlenecks along Interstate 10 through central Phoenix.

But the exact route of the South Mountain Freeway - hotly debated in the last decade - is still in question, and a resolution could finally come this year.

Ostensibly, the controversy was already resolved last October, when the Maricopa County of Governments approved a $1.9 billion extension of Loop 202, which presently stops at the end of the San Tan Freeway in west Chandler. But the Gila River Indian Community, in a surprise move, offered to begin negotiations on relocating the freeway through tribal land, south of the approved route.

The offer thrilled opponents of the eight-lane, 22-mile freeway, which would take out neighborhoods in Ahwatukee and Laveen and require blasting three South Mountain Preserve ridges.

"When you look at it from above, you see the route they have planned is just not logical," said Chad Blostone, a pilot for U.S. Airways and longtime member of the Arizona Department of Transportation South Mountain Citizens Advisory Team on the planned freeway.

Blostone asserts "it seems like it would be much less expensive to build the freeway" on the Gilas' flat land. But the tribe's proposal includes a land swap that would give the tribe a parcel of federal wilderness in the Sierra Estrella. That could involve complicated negotiations with the federal government.

Meanwhile, state officials will continue their environmental impact study for the current route in the hopes of starting construction in 2013.

Three Cs for business survival

Creativity, collaboration and consumer confidence are the three C's that could brighten the year for Southeast Valley businesses as the recession forces owners to experiment with non-traditional practices in order to survive, said Lisa Rigler, president of the Gilbert Small Business Alliance.

"We're going to see a lot of creativity, a lot of businesses coming out of the box and thinking differently," Rigler said.

More companies may turn to cross-marketing strategies and collaboration to cut expenses and increase efficiency. As many national retail chains struggle, small businesses and local startups are becoming increasingly important. The global recession has influenced consumers to shop more locally, saving some mom-and-pop stores from closing in their neighborhoods.

The new year may also bring continued development for the technology sector, particularly in Chandler. Capital Commercial Investments of Austin bought the 152-acre Motorola site on Price Road and wants it rezoned for a science and technology park.

While some Southeast Valley businesses expect this year to be better than 2009, the sour economy continues to delay some of the region's big-ticket economic development projects, such as Mesa's Waveyard, Heritage Marketplace in Gilbert and the Watermark development in Chandler.

However, medical research and health care projects - such as the new MD Anderson Cancer Center at Banner Gateway and burgeoning stem cell and other research porjects at Mercy Gilbert Medical Center will gain momentum this year.

Gateway Airport a bright spot

Lofty expectations are Phoenix-Mesa Gateway Airport'sstandard for 2010 as the former Air Force base sets new passenger records and spurs economic development that will directly impact Mesa, Gilbert and Queen Creek.

"During the year we will handle another 600,000 passengers and almost double the size the passenger terminal in time for the Thanksgiving rush," said Lynn Kusy, Gateway's executive director.

"But some of the exciting things for us to see is what's going to happen around the airport," he added. "We're seeing Mesa build Ray and Hawes roads north of the airport and that's going to open up a lot of property adjacent to the airport for commercial and industrial development. Every business and every home near the airport is a customer for the airport."

Kusy also predicts leases will be signed for empty buildings on Gateway's south side.

Source

4 East Valley mayors: Revamp state tax system

by Gary Nelson - Nov. 18, 2009 12:00 AM

The Arizona Republic

Four southeast Valley mayors challenged the Legislature on Tuesday to overhaul Arizona's tax system and think more creatively about how to solve the state's monumental budget problems.

In the process, they warned lawmakers not to pass down those problems to cities and towns, which have been largely successful in coping with their own fiscal issues.

The four mayors collectively represent more than a million people, about one-sixth of Arizona's population. They met Tuesday in Mesa for the inaugural Arizona Republic Southeast Valley Mayoral Forum.

Michael Ryan, general manager for The Republic's community newspapers, moderated the discussion.

Chandler, Gilbert, Mesa and Tempe have coped with drops in sales taxes and development revenue. The mayors said local budget tweaks won't solve the underlying problem of an unstable state tax system.

"Most of us . . . are funded by sales tax to a large degree," said Tempe Mayor Hugh Hallman. "And that is a very volatile sector. . . . It's not going to get better, because the cities don't have the opportunity to change that model. It's going to have to be done at the state level."

Hallman said Arizona should rely less on sales taxes and more on property taxes.

Mesa Mayor Scott Smith said that when his city faced a $61 million budget gap last fall, officials decided it wouldn't work just to cut jobs without overhauling operations.

"Cutting is a temporary solution, and what we're looking for is more of a long-term solution, which means you have to change the way you do business," he said.

Chandler Mayor Boyd Dunn, president of the Arizona League of Cities and Towns, said the Legislature has failed to address the revenue shortfall that is strangling the state.

His group has called for the Legislature to at least allow a public vote on the governor's proposal for a temporary half-cent-per-dollar sales-tax hike.

John Lewis, who has been Gilbert's mayor for less than six months, said he was thrust into the budget wars June 30, when he wielded the gavel at his first City Council meeting. By the end of that meeting, Gilbert had raised taxes and cut services to keep the books in balance.