The phone rings. The executive director of one of our prestigious economic development organizations is on the line.  “Would you like to serve on our board?”

Your heart’s all aflutter and you feel honored. And you should be.

“Yes,” you say. At that moment you have entered a whole new world of responsibility and accountability. Print this story
Being asked to serve on a nonprofit or association board is a rite of passage for many local professionals. Board service builds your résumé, is a great way to network your business, and you can spend an hour a week giving back to the community. Agencies, bureaus, chambers and nonprofits rely on the business community’s leadership and dollars to steward them into the future.

We don’t want to throw the baby out with the bathwater but it’s important to draw some lines and point out that serving on a board is a big responsibility. The members of that association — or if they receive tax dollars, the taxpayers and elected officials — are counting on you to make sure the director and staff are operating in an effective and legal manner. That’s an important job.

Believe it or not there are boards in Tucson that really don’t want or care about outspoken opinions. Shocking but true, some boards might select you because you can’t spend that much time, or you won’t rock the boat. Besides, lighting the world on fire isn’t your cup of tea. In these instances you’ve been invited to be on the board to maintain the status quo. A board made of status quo keepers and poker buddies of the director are sure to lead that organization into the swamp of indifference.

Here are some tipoffs that you are serving on a board that isn’t really looking to have your voice heard:

• If the paid executive director identifies and invites you to the board there may be a problem.

• If you look around at other board members and see mid-level managers from unrelated industries it means the movers and shakers aren’t involved.

• If there are more than 20 board members there may be a problem.

• If the executive director withholds financial data or ignores your request for information, there might be a problem.

• If you’re wined and dined more than you’re asked to roll up your sleeves, there might be a problem.

• If the organization’s revenues are shrinking, customer base is evaporating and effectiveness is diminishing all the while the staff is getting raises, there might be a problem.

• If your board meetings revolve around golf, travel or lavish meals, there might be a problem.

• If your board meets once a quarter, once a year or regularly misses its quorum, there might be a problem.

• If the ability to bring in fresh blood on the board isn’t there, there may be a problem. Some boards recycle the director’s old friends again and again.

• If you look around and see the same 10 or so people on every other board you’re on, there might be a problem.

• If your board comes with free parking for life and there are over 70 members there might be a problem.

A note of wisdom from two self-proclaimed wise guys, think long and hard before you say yes to joining the swanky new board of the week. Be prepared to learn the market of the organization you are volunteering for. Take the time visit with staff and customers. Do your homework. Look to competitive organizations to see what the management is doing right and what they are doing wrong. Speak up, ask the tough questions and hold the staff of the chamber, bureau or nonprofit accountable for decisions.

There are people within the organization or in the community that depend on you doing your part to ensure things are on the up-and-up. Ask yourself: Are my actions on this board serving the least of the my members? If they are, then you’re on the right track.

If you take your role for granted we all lose. Do the right thing, we are all depending on you.

Contact Joe Higgins at joe@joehigginsinc.com or Chris DeSimone at provenpartners@comcast.net. They’re the hosts of “Wake Up Tucson,” which airs 6 – 8 a.m. weekdays on The Voice KVOI 1030-AM. Check out their blog at www.TucsonChoices.com.

Copyright © 2010 Inside Tucson Business

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From Rhonda Bodfield, Arizona Daily Star. Tucson v Business

George Will weighs in on California liberalism. We’ve covered in this blog many many times. Arizona is faced with similar choices. Which way will be go?

It took years for liberalism’s redistributive itch to create an income tax so steeply progressive that it prompts the flight from the state of wealth-creators: “Between 1990 and 2007,” Voegeli writes, “some 3.4 million more Americans moved from California to one of the other 49 states than moved to California from another state.”

And the state’s income tax — liberalism codified — intensifies the effects of business cycles on the state’s revenue stream: During booms, the stream surges and stimulates government spending; during contractions, revenues dwindle but the new government spending continues. Voegeli says that if California’s spending had grown no faster than population growth and inflation from 1992 to 2006, it would have been $65 billion less in 2006, and per capita government outlays then would have equaled not those of Somalia or Mississippi but of Oregon, which is hardly “a hellish paradigm of Social Darwinism.”

It took years for liberalism’s mania for micromanaging life with entangling regulations to make California’s once creative economy resemble Gulliver immobilized by the Lilliputians’ many threads. The state, which between 1990 and 2007 lost 26 percent of its factory jobs and 35 percent of its high-tech manufacturing jobs, ranks behind only New York, another of liberalism’s laboratories, in the number of outward-bound moving vans.

It took years for compassionate liberalism to make California’s welfare menu contribute to the state becoming an importer of Mexico’s poverty. It took years for servile liberalism to turn the state into what Voegeli calls a “unionocracy,” run by and for unionized public employees, such as public safety employees who can retire at 50 and receive 90 percent of the final year’s pay for life.

Friend reports that when the seven-hour meeting ended, the protest moved to the UC president’s house. Two buses carried “some hundred Berkeley students and members of AFSCME.” Perfect.

The American Federation of State, County and Municipal Employees is one reason why California’s government employees — their numbers grew 24 percent between 1997 and 2007 — are the nation’s most highly compensated. And why California’s economy is being suffocated by the weight of government. And why the state’s budget has little left over for Berkeley.

Times are tough, revenues are down, cuts have to happen, taxes are going up.  What we need to start focusing on at the national, state and local level is increasing revenues by attracting more businesses.

I know we sound like a broken record but unless and until we start paying attention to the supply side of our economy we arent’ going to recover and we are doomed to experience future economic roller coaster rides in our state and city.

From an economic perspective people fit in to the following categories:

- Retired – living off their retirement investments, savings and social security.

Government Sector
- Students – living off their parents, loans and grants and transitional employment.
- Military – employed by taxpayers.
- City, County, State and Federal Employees – employed by taxpayers.
- Educators – elementary school through college – for the most part paid for by taxpayers.

Private Sector
- Employees - earn their living because someone started a private venture to offer a good or service.
- Entrepreneurs – embarked on a venture by risking capital and time with the goal of turning a profit.

When you look at the above the groups it’s the employees and entrepreneurs that create the economic engine that support the entire system.

Looking at southern Arizona’s core issues you’ll find a big of a government sector, our largest employment group at 21%. You’ll see a large retiree population fueled by great weather and great amenities. We have a large student population with a major state university and a vibrant community college system. The sector that seems to be missing is the business community. We lack major manufacturers (Raytheon employs 11k out of a total of 1 million people or 1% +/_), finance or tech industries.  The service sector makes up our second largest employment sector at 17%. Service based tourism and retail jobs keep our average annual wages at or near the federal poverty levels.

What are we to do? It’s going to take action from the federal government in the form of loosing credit markets and funding for small business in particular. It’s going to take a refocus from our local leaders on the basiscs. It’s also going to take some taxing and regulatory changes at the state level that makes our state a more attractive place for businesses to relocate.

We’ve done a number of comparisons between Texas and California in this blog over the past year and the further our economy drops the clearer it becomes that we MUST start looking at the core policies that keep business from coming to Arizona. (More on Texas v California – HERE – HERE - HERE – HERE - HERE – HERE - HERE – HERE - HERE – HERE - you get the point).

Arizona is at a tipping point. We can follow our old boom bust cycles based on real estate and growth or we can set the table for future economic prosperity and turn our state into one of the top states to do business in the country. Once the economic engine is in place our educational spending will go up, our social service programs will have more options and the sun will start shinging brighter.

Arizona House Republican have a plan but they need our help. It looks like the House has the votes but they’ll need at least 2 out of the following 4 Republican State Senators to vote for the plan:

Sen. Carolyn Allen
R-Scottsdale
Personal: 71, legislator
Committees: Healthcare and Medical Liability Reform; Commerce and Economic Development; Veterans and Military Affairs
Contact: 602-926-4480; callen@azleg.gov

Sen. Barbara Leff
R-Paradise Valley
Personal: 61, volunteer, former medical social worker
Committees: Commerce and Economic Development; Finance; Healthcare and Medical Liability Reform
Contact: 602-926-4486; bleff@azleg.gov
Web site: barbaraleff.com

 Here’s a full list of our Arizona Legistlators – HERE

House GOP plan would slash taxes for AZ businesses

 
MESA — House Republicans want a package of tax cuts for business they say will stimulate job growth, including one that would increase property taxes of homeowners.
The plan unveiled Tuesday would:
• Slash the corporate income tax rate paid by the state’s largest companies from its current level of slightly less than 7 percent to 4.5 percent — a 35 percent reduction.
• Cut income tax rates for individuals and most small- and medium-sized businesses by 10 percent.
• Permanently repeal the statewide property tax.
• Reduce assessment ratio used to determine how much businesses pay in property taxes to cities, counties and schools — a move that would shift more of the tax burden to homeowners.
At one time businesses paid property tax on 25 percent of the value of their land, buildings and equipment. The rate has already dropped to 22 percent, and lawmakers have approved cutting it to 20 percent in two years.
The new proposal would take the ratio down to 15 percent by 2016.
Local governments would have to raise rates for homeowners, whose assessment would remain at 10 percent of their property value, to make up what businesses would no longer pay.
House Speaker Kirk Adams, R-Mesa, acknowledged the state’s current $1.5 billion deficit when he unveiled the plan, saying that is why the tax cuts would be phased in over four years beginning in 2012.
He offered no specifics for how House Republicans plan to address the deficit in the meantime.
Senate President Bob Burns, R-Peoria, however, was less than enthusiastic. He said there is merit in the goal of House Republicans to make Arizona “a more business-friendly place.” But he said the move may be premature.
“You’ve got to stop the bleeding of the state right now,” he said.
“That’s got to be the No. 1 priority,” Burns continued. “And these other things are OK, but we’ve got to focus on getting this budget squared away.”
Adams, however, said the deficit makes this the best time to reform and reduce business taxes: when people are focused on creating jobs.
Despite shifting more of the tax burden to homeowners, Adams thinks he can sell the plan to voters.
“The citizens of Arizona understand more now than ever the importance of jobs because there isn’t a person in the state who has not been affected by job loss or knows someone who’s lost their job or lost a significant portion of their income,” he said.
But House Minority Whip Chad Campbell, D-Phoenix, said that will never sell with homeowners who already are struggling to pay their current property tax bills. And the move comes even as two groups are gathering signatures to put measures on the November ballot to lower property taxes even more than they are now.
Campbell said Democrats might be more inclined to support another part of the package, which provides tax breaks to firms that produce new jobs if those jobs pay at least 25 percent more than the median wage and if the firms fund at least half of each worker’s health insurance.
  By Howard Fischer
Capitol Media Services
Tucson, Arizona | Published: 01.06.2010

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Radio duo to commuters – ‘Wake up!

OV’s DeSimone, businessman Higgins focus on local business, politics By Patrick McNamara, The Explorer

January-06-2010

Vindication arrived early Friday, Dec. 18 for the hosts of a local radio, “Wake Up Tucson.”

A story hit the papers that day which ranked Tucson one of the most business unfriendly communities in the nation — 95th on a list of 100 cities.

“That’s what we’ve been saying,” show host Joe Higgins said as his producer Ed Alexander brought the newspaper into a closet-sized studio.

Broadcasting out of a small, dark radio studio on Tucson’s South side, Higgins teams up with Chris DeSimone five days a week from 6 to 8 a.m. to host “Wake up Tucson,” on the AM frequencies of 1030 KVOI.

Almost since the start, the pair has railed against what they see as a fragmented and leaderless local business community.

Lackluster business performance, a perception of behind-the-scenes dealings, political favoritism and the general ineptness that both hosts say plague Tucson’s political and business communities have been the common themes of the show since its inception.

The radio duo places the blame for a lack of organization or a unified voice rising from the business community squarely at the feet of the Tucson Metropolitan Chamber of Commerce.

DeSimone minces few words when talking about the chamber.

“They’re the No. 1 reason the business community is as splintered as it is,” DeSimone said. Higgins and DeSimone have gotten behind a movement to force a change in leadership at the chamber.

Local government takes its lumps on the show, too, with the big target of vitriol: The floundering Rio Nuevo revitalization.

A recent guest to the radio studio related her problems with the City of Tucson and Rio Nuevo bureaucracy and the Tucson Metropolitan Chamber of Commerce. Jewelry maker Konstantina Mahlia, who owns Mahlia’s in the city-owned Train Depot building on Toole Avenue, told the hosts that her boutique shop has struggled during the sporadic downtown revitalization efforts.

Sparse parking and restricted access initially plagued her small storefront. But after the city council hatched a plan to give Depot-tenant Maynard’s free rent while providing her no such concessions, she felt particularly set upon.

“She’s fighting the hurricane winds of bureaucracy and bullcrap downtown,” DeSimone said, later adding, “For the elected, I know some of your staff listen, you should be pretty disgusted with yourselves.”

Mahlia also shared her troubles with the Chamber of Commerce, who she said offered to help her with her city problems only if she paid the $500 membership fee.

The story dovetails nicely into the hosts’ two preferred targets — regional governments and the chamber of commerce.

For all intents and purposes, the two fell into the radio world.

DeSimone was the co-host of a Saturday-afternoon business show that had run its course. He and Higgins began to kick around the idea of doing a local political talk show together just at the time KVOI was going through some changes.

When they pitched the show, the station’s morning star, John C. Scott, had just decided to leave for a job as head of programming at another station. And just like that, the two found themselves on the air.

“The whole idea of the show is that you’re at a Denny’s somewhere and you hear this awesome conversation in the booth next to you,” Higgins said.

Now that conversation has attracted quite a few eavesdroppers — enough that they’ve earned one of radio’s choicest slots, the morning commute.

Originally slated for a one-hour spot from 6 to 7 a.m., program directors at the station decided to give DeSimone and Higgins an extra hour, locking down the bulk of the morning rush hour.

Local leaders have taken notice too, with city council members and mayors of Tucson, Oro Valley and Marana, state legislators and Arizona Superintendent of Public Education Tom Horne all making stops at the show.

For the uninitiated, Higgins developed a chart, often referred to on the broadcast, which shows the centers of power and influence driving politics and slowing change in Southern Arizona. The biggest spheres of influence on the chart are two overlapping circles made up of Pima County and Tucson bureaucracies and elected officials. Pressing for influence are environmental and neighborhood interest groups along with a mishmash of business interests.

But with multiple chambers of commerce and groups representing the business community, Higgins said there’s no one unifying voice to speak for local business.

According to Higgins, it’s so bad that the region’s political leaders don’t have a clue who to go to in the local business community when they need input.

“I’ve talked to bureaucrats and political figures and asked who they call in the business community, they said they don’t know,” Higgins said.

With neither host residing within the city limits, why do they focus so intently on Tucson politics and business community machinations? DeSimone is blunt.

“That’s where all the problems are,” DeSimone said. “What goes down in the city and county affect all of us.” He lives in Oro Valley, while Higgins resides in unincorporated Pima County.

They both also have deep roots in the regional business communities, Higgins as the owner or partner in numerous businesses and DeSimone the owner of a business consulting company.

Higgins also has tried his hand at politics, narrowly losing a Republican primary bid in 2008 to take out Pima County Supervisor Ann Day. Since then, his profile in local politics and business has been on the rise.

A running joke on the show has DeSimone chiding Higgins for the number of boards of directors he sits on.

“If you want to effect change, you have to be at the table,” Higgins said.

Asked what’s next for the show and the hosts, Higgins and DeSimone are uncertain.

“Total domination,” Higgins said.

“Yeah,” DeSimone add, “Like ‘Pinky and the Brain.’”

‘Wake up Tucson’

Chris DeSimone and Joe Higgins take to the airwaves Monday through Friday from 6 to 8 a.m. on 1030 AM.

www.wakeuptucson.net

www.kvoi.com

OK folks, here’s how it’s supposed to work. From the East Valley Tribune in November, a story about the city, small businesses, restaurants and the Chandler Chamber of Commerce working in conjunction to increase awareness, collect more sales taxes and actually demonstrate a pro business climate instead of a bunch of hot air.

The reason that Chandler has government and business working towards a common goal is LEADERSHIP. The leader of the Chandler Chamber of Commerce is local Tucsonan with a track record in chambers, Jerry Bustamante. Jerry worked at the Tucson Chamber of Commerce, he ran the Hispanic Chamber of Commerce and grew the Northern Pima Chamber of Commerce as the Tucson Chamber decined. He took the reigns of the largest chamber in the state of Arizona, the Chandler Chamber, a couple years ago.  He’s on the board of directors of the Arizona Chamber Executives (the Chamber of Chambers). Jerry knows what he’s doing, he’s demonstrated an ability to lead and he would be a great person to consider for leadership of the Tucson Chamber of Commerce.  Jerry recently left his position at the Chandler Chamber and is living back in Tucson.

Hey Jerry, looking for something to do?

November 24, 2009

City programs appear to boost local economy

By Ari Cohn
Tribune

Shoppers browse the aisles of the Great Indoors store in Chandler. Nov. 24, 2009.Tribune

Chandler’s attempts at stimulating its local economy aren’t as grandiose as those by the federal government, but they appear to be working, says Mike Menner, operations manager of The Great Indoors home decor store on Chandler Boulevard.

Menner credits the city’s Shop Chandler program for the heavier-than-expected turnout at a recent promotional event called “Ladies’ Night Out.” Many of those who attended said they found out about The Great Indoors, 3460 W. Chandler Blvd., through a Shop Chandler city e-mail advertising the event, Menner said.

“We had a large number of people who came in carrying the Shop Chandler article. It was pretty evident that it reached a number of people that had never heard of our store,” Menner said. “We had an incredible sales performance that night.”

Shop Chandler is one of several measures city officials and business leaders are taking to jump-start the city’s economy during the ongoing recession. The program promotes local businesses and encourages residents to spend their money in Chandler. Shopping at Chandler businesses keeps sales tax revenue in the city to pay for services like police, fire service and parks, according to city officials.

Another measure involves city officials bringing together about 50 independently owned restaurants into a coalition called Local Bites. The coalition is meant to promote locally owned Chandler restaurants and small Valley chains with a presence in the city, and allow members to engage in collective advertising, take advantage of group health insurance rates, get group discounts with food suppliers and market to tourists.

This month, Chandler picked up the roughly $1,800 tab for a brochure featuring pictures and information about local restaurants. The brochure is being distributed to hotels and marketing groups, at city facilities and participating restaurants, and online.

James Smith, a city economic development specialist, said the brochures have been getting good circulation.

“That’s an encouraging sign. It does seem that people are paying attention,” he said.

The City Council has taken a hand in helping local businesses, as well. Last month, the council voted to ease city code governing the size and duration of temporary advertising signs and allow businesses much more variety in the use of “significant event” banners. The exemptions will expire next June, by which time city officials hope the economy will show signs of improvement.

City officials have said they hope the move will help boost sales during the holiday season this winter.

Smith said the decision to relax the sign laws is meant to address the increasing number of commercial vacancies by giving landlords and businesses more opportunity to advertise.

“We don’t want to have a lot of vacant shopping centers around the city,” he said. “We want to help these businesses get the word out and prosper in the midst of this downturn.”

Menner said businesses in the strip mall in which The Great Indoors sits have been failing right and left. The home decor store had been having trouble getting noticed, Menner said, so he began contacting city officials about getting featured in Shop Chandler.

“We initially just explored it to see if it might reach customers in our market area,” he said. “We’ve been trying to get the word out about us.”

Jerry Bustamante, president and CEO of the Chandler Chamber of Commerce, said the city’s efforts could help attract additional businesses to Chandler.

“It sends a strong message to the business community that the local government cares,” he said. (what an absolutely novel concept!)

Smith said it’s difficult to gauge exactly how much of an economic impact the local economic stimulus programs are having, but they do appear to be helping.

“It’s hard to tell right now because there are so many things happening in the economy,” Smith said.

Menner said he’s thankful for the city’s efforts.

“We need that kind of support,” he said. “It’s been working.”

For more information, go online to www.chandleraz.gov/shop.