Pima County
Why Tucson’s elected officials put business on the back burner
WAKE UP TUCSON: Time to restore balance
By Joe Higgins, Inside Tucson Business, or Chris DeSimone, Inside Tucson Business
Published on Saturday, February 13, 2010
We have many callers to our “Wake Up Tucson” radio show who ask the same question: Why are business owners treated like second-class citizens in Tucson and Pima County? One big reason is that the environmental lobby and the neighborhood associations have done an end-run around the business community.
It’s time for the business community to meet the competition for your local elected officals’ interest. They are kicking your butt.
Environmental lobby
The environmental lobby is extremely successful in our region. There are dozens of groups loosely assembled but they come together like a laser light focus to achieve their goal. Their mission is to stop humans from encroaching on habitat and slow or stop growth from coming to the Sonoran Desert.
Their techniques are multi-pronged and in most cases, very effective. Some of the tools of their trade include:
• The Endangered Species Act, which uses the federal court system to block growth.
• The Sonoran Desert Conservation Plan, adopted in the late 1990s that laid the path for future growth, land use planning and wildlife corridors.
• Political influence exerted on county elected officials and bureaucrats. Taxpayers have spent over $200 million buying ranches around the county. Uber-environmentalists sit on the Pima County Bond Committee, for gosh sake. With only 16 percent of the land in Pima County in private hands and 10 percent already built, the idea of affordable housing that matches our region’s wages will soon be gone.
• Federal rules regarding dust control, navigable water ways, 404 bridge crossing permits, and U.S. Army Corps of Engineer studies.
• The joint water–wastewater study, which has been in planning for 20 months, is the latest battleground. The blue ribbon panel (Blue Ribbon Panels: Where good ideas go to die…) is looking to merge Tucson Water and Pima County Wastewater Management. In the Phase II report, we see lots of talk about sustainability and stopping growth but little discussion on diversifying our industries. The county has been using its wastewater authority to control growth for years. Give those bureaucrats Tucson Water and things will look even worse.
NIMBY associations
If the goal of the environmental lobby is to stop sprawl and preserve the desert, then city folk need to allow for denser populations, vertical growth, tear down and rebuilds, and infill of vacant lots. When a business man or woman tries to venture into the Tucson city limits to open, develop or grow a business, they run into an entirely new set of problems:
• A land use code that has such restrictive parking, set backs, landscape requirements and now rainwater harvesting, that less and less of their property is actually usable.
• A system that allows one or two rogue neighbors to wield tremendous political influence. A small minority faction can delay your business opening until you’re out of money or completely discouraged to the point that you wonder why you chose Tucson in the first place.
• City council members and offices that realize taking care of neighborhoods above all else has been the path to getting re-elected. When elected officials’ actions are constantly in deference to what these vocal minorities want, the message to city staff is pretty clear: Take care of the neighbors and put the business owner on the back burner.
The business community is trapped between enviros in the county and neighborhood associations in the city. What are we to do as a group? As we’ve said before, the electeds need to fear us at election time — 97 percent of all electeds want one thing in life: to be re-elected. They know the dysfunctional business community does little to help them or their opponents get elected. They will continue to govern in favor of the groups that they perceive will get them votes.
Environmental groups and NIMBY neighborhood associations are united and passionate about their issues. Who speaks on behalf of the Tucson business community with passion and on a consistent basis?
Each month, we ask that question during our many presentations to business groups. We haven’t received an answer yet.
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
We live in the desert, water is a precious commodity. In the west, if you control the water you control EVERYTHING.
Water and Wastewater is the issue of the future for southern Arizona. The two biggest bureaucracies in our region, Tucson and Pima County control the water supply and wastewater processes for the entire region. For the past 20 months a group of citizens (primarily from the environmental side of our community) have been assembled to learn, talk and plan for the future of ALL of southern Arizona.
A note that breaks down the core concern of the report from Chris Sheafe:
The problem some of us see with the report is that the report resolution directed staff to proceed on the basis of the report which would codify the allocation of 25% (10,000 Acre Feet) of our Effluent into an Environmental Effluent Pool which would be limited to environmental projects only at no cost to the projects. The report makes this allocation absent any review of the long term economic sustainability impacts for such an allocation because no economic analysis of its impacts has been made. Staff was directed to proceed with implementation of the conclusions of the report. The idea is that economic analysis would be deferred until the next phase of the report is completed after the allocation decision has been set in stone.
It turns out the 10,000 acre feet is the result of a meeting between four individuals ten years ago without any basis for justification for that amount of water being taken off the table for other uses and without any form of economic impact analysis or any evidence confirming that amount of water is required to satisfy the goal of gaining a Section 10 permit for Pima County in order to satisfy the ESA (Endangered Species Act) requirements for only the listed species.
In the long run the economic health of the region is dependent upon a healthy environment and a healthy economy. Water is needed for both. To pre-allocate a large amount of water to one use is ill advised and sends the wrong message to the world about Tucson’s future water supply and or its ability to meet demands from future economic opportunities. This is the most serious and the latest threat to our ongoing battle to save the precious water available to the region and preserve while preserving as many options for the future that are possible. It removes the burden upon environmental uses to justify their need based upon their individual merit, removes any economic analysis for individual projects and removes many options for the greater Tucson metropolitan community.
A GUEST OPINIONfrom The Tucson Weekly about the Water/Wastewater study from member of the citizen advisory panel:
The Tucson City Council needs to support these recommendations to ensure our area’s water future
by Jim Barry, Chris Brooks and Bonnie Poulos
This past December, a volunteer citizens’ committee, in conjunction with a large, multi-disciplinary array of city and county staff members, wrapped up a 20-month study of the water and wastewater resources of the city and county; the goal was to “develop a common understanding of the basic facts and critical factors related to planning for a sustainable water future.”…….
…….This is an important study for the Tucson region because of what it proposes for growth policies. In the past, we have largely reacted to growth as it occurred. As proposed in the Phase II report, proper planning for growth can protect our existing water supplies, limit the need for costly new water supplies and protect the environment…………..We also must allocate water for the environment. Historically, the environment has been viewed more as a supplier of water than a user. But as we have seen nearly all riparian ecosystems in the Tucson basin altered or eliminated by our ever-increasing thirst, the environment has inevitably been sacrificed at the altar of growth. Viewing this as an either-or issue has caused us to miss opportunities to accommodate both the environment and the economy for the overall good of the community. The Phase II report outlines a series of policy changes that can promote allocation of water necessary for the environment without compromising our ability to support continued growth. Our overall quality of life depends on changes like this…..
Who are the CITIZENS in charge of our water future?
Chair Jim Barry- Barry is a retired Pima County director who once ran the transportation department under Huckelberry. Barry is the go to guy on major Pima County efforts and has a proven record of doing the bidding for current administrator, Chuck Huckelberry. Barry is the uncle of Board of Supervisors odd man out, Ray Carol. From the Tucson Weekly, 2004
Barry, a 20-year county executive who also has lobbied state and federal governments and served in the county transportation department, has about a half-year to kick around or get kicked around by his nephew and fellow Chicago native, Republican Supervisor Sugar Ray Carroll (Tucson Weekly)
Marcelino C. Flores served as the Pasqua Yaqui Tribe jurisdictional representative at the Pima Association of Governments (PAG) Governments, Environmetal Planning Advisory Committee for five years. He is quoted in a PAG report on the role of solar in our region. Flores is a transportation and land planning professional for the tribe.
Christopher Brooks - Hydrologist. Brooks is a arid desert water specialist. He blogs at Watering The Desert. He covers desert issues and the City of Tucson’s rain water harvesting effort.
Bruce Gungle, a 24 year Tucson resident with a professional background in atmospheric science including lightening strike analysis and rain fall. Gungle serves on the Pima County planning commission which worked recently to implement the SWIP which would implement put to a $30k per house impact fee for developments on the western edge of Tucson city limits.
Vince’s position as water resources coordinator for Diamond Ventures, Inc. includes working with the company’s development and wet utility divisions on water planning and policy issues. He was appointed to the Citizens Water Advisory Committee by Ward 4 Council Member Shirley Scott and sits on both Conservation & Education and Finance Subcommittees. Vince’s involvement as a member of the West University Neighborhood Association includes volunteer support of the Community Food Bank and assistance with neighborhood planning efforts. His professional affiliations include Urban Land Institute and American Planning Association. Vince is a native Tucsonan whose family has lived in the region for over 100 years.
Bob Cook - Author and contributor to Sustainable Tucson. Cook As a sustainability advocate, he served on the City of Tucson’s Cost of Growth Task Force; contributed to the early development of Civano-Tucson’s Solar Village as past-chair of the Tucson-Pima Metropolitan Energy Commission; promoted multi-modal transportation and transitoriented development as Treasurer of the 2003 Citizens Transportation
Initiative ballot measure; co-founded Sustainable Tucson in 2006, a community-building and advocacy
organization promoting regional sustainability; and currently serves on the Pima County Planning & Zoning Commission, Bob co- authored two books in 1975 on environmental planning and renewable energy development; graduated with distinction in economics from the University of Arizona.
He has been involved in neighborhood and environmental issues for the last 13 years. Rob helped found several local neighborhood and environmental organizations and served onthe boards of several local non-profit organizations. He remains active in the Sierra Club, Center for Environmental Connections, Environmental Justice Action Group and theGem and Jewelry Arts Academy.
Rob has also served on several policy-making committees dealing with neighborhood issues, open space and the environment. Some of these are the Tumamoc Area Plan Update Committee; Pima County Planning and Zoning Commission Subcommittee on Environmental Ordinances; Pima County Open Space Acquisition Review Committee; and Steering Committee for the Sonoran Desert Conservation Plan. He was also on the City of Tucson Board of Adjustment for eight years.
Tina Lee - Tina has been appointed to various commissions Water commissions in the City of Tucson from Ward 3 and Ward 2. As an environmental consultant, she specialized in resolving regulatory compliance issues under the Clean Water Act, National Environmental Policy Act, and National Pollutant Discharge Elimination System program for public and private sector clients.
Joseph Maher, Jr. holds a Bachelor of Architecture degree from the University of Arizona and established his own architectural business in 1983. His credentials reflect a comprehensive diversity of master planning, site and building analysis and feasibility studies along with the diverse and exciting concepts of creating user friendly, functionally cost as well as energy efficiently designed sustainable architecture of all types including Solar & Environmental Homes and additions.
Bonnie Poulos, a research scientist at the UofA studying shrimp farming. Paulos has weighed in on numerous Tucson and Pima County issues relating to planning, billboard lights and much more. Pima County Planning and Zoning Commission; 2002 to present
Neighborhood Infill Coalition; 2002 to present
Campus Farm Neighborhood Association; 1983 to present
Aravaipa Canyon Ecosystem Management Plan Citizen Advisory Committee, 2006
Cost of Growth Task Force for COT General Plan; Sept. 2000 to January 2001
City of Tucson (COT) Planning Commission; 1998-2001
Tucson Regional Transportation Coalition; 1993-1995
Pima County Comprehensive Plan Citizen Advisory Committee for the
Southeast-Rincon area; 1991-1992
COT Storm Water Management Study Citizen Advisory Committee; 1988-1994
COT Citizen Transportation Advisory Committee; 1986-1992
North side Area Plan Citizen Advisory Committee; 1986-1987
Pima County Deputy Registrar; 1984-1992
Mark R. Stratton the director or Metro Water which operates in the north west portion of Pima County as an independent water district. In digging in a bit looks like the regional water story started to take shape back in 2005. Councilwoman Scott stumbled across documents that showed that Tucson Water’s director Dave Modeer (now the head of the states CAP) was going from water department to water department to test the waters on a regional water supplier. Pima County waste water wasn’t mentioned in the original discussions.
Utah is hovering at just over 4% unemployment. It seems the economic crisis skipped over their state and landed in Nevada, Arizona and California. How did they do it? Here’s a hint; it took leadership and years of planning. Utah leaders embarked on a multi year project, Envision Utah. The Southern Arizona Leadership Council brought in organizers of the Envision Utah program about a year ago. A crowd of about 500 heard how Utah navigated through the wide variety of interests to come out with a comprehensive plan that would set their state on the path to prosperity for the next generations.
A project mirrored after “The Envision Utah” is well underway here in Tucson. The local effort, coined “Imagine Greater Tucson”, is lead by local land use attorney Keri Silvyan. I was in the audience and impressed with the concepts and the plan Utah embarked on. What Utah did, and what Silvyn is mirroring locally, is Utah leaders called together a large number of stake holders from varied backgrounds to build relationships and discuss their common future. T
The Envision Utah process put business, politicos and community activists together, discussed each groups particular needs and then used computer models to show what would happen over 20 years if certain paths were taken by the community. For example, if the community wants more open space then the land values would increase, dense population and infill would have to occur and mass public transportation would be required. If the community wanted more growth related industries (housing and sprawl) then the cost of supporting the infrastructure and finding water would have a cost to the entire community.
What’s important is that if Arizona as a state or Pima County as a region starts moving towards a Utah model, their must be voices from all sides being heard and respected. In southern Arizona the environmental voice is organized and focused and the business voice is unorganized and somewhat scattered.
What Happens If That Happens?
Environmentalists ability to influence our community is well documented. We are right in the middle of one of the largest movements in our history to combine water and waste water delivery. In the desert, the people that control water have the power. A large part of the comprehensive water plan included riparian re-establishment of the Santa Cruz. The plan calls for a whopping 25% of reclaimed waste water being sent to the Santa Cruz for creating a river that hasn’t flowed in a generation. The committee that has worked on the process for the past 20 months isn’t exactly ‘fair and balanced’. The business community had one seat on the board and isn’t happy with the results. This debate is the classic growth, no growth debate Tucson has been waging for 60 years. The no growthers are winning and that might not be that bad.
From this weekends Arizona Republic:
Faced with high population growth in the 1990s, Utah civic leaders became concerned about how to accommodate so many new residents without disrupting the state’s high quality of life.
Traditionally, elected officials would have taken the lead to manage growth. But residents of the libertarian-leaning state resisted that kind of top-down control.
So reformers in Utah instead started from the bottom up, building a grass-roots movement that led to the voluntary adoption of measures that observers say improved the state’s economy and helped it weather the current recession.
Compare that approach to Arizona’s, where reform organizers have so far limited public involvement to surveys and a few public forums.
To align the visions of elected leaders with the people they serve, Arizona may have to become more like Utah.
The Utah model
Although managing growth, not government reform, was the Utah initiative’s goal, the process did lead to change in how elected leaders work. In fact, the approach has become a model for problem-solving throughout the U.S. and even in some foreign countries.
Envision Utah was created in 1997, and together with state government, it developed tools to help communities plan. It educated the public on how to accommodate growth through higher-density zoning, the expanded use of mass transit and other strategies.
That education led residents to support proposals they might have once rejected.
The key to reform efforts that work, organizers said, is a bottom-up approach that makes citizens champions of the process. The core of Envision Utah’s model is to ask residents to reflect on their values and hopes for the future and then translate their thinking into action through interactive workshops. In its early days, Envision Utah would hold 50 public meetings for each step of the process.
Large-scale public participation is a catalyst for action, participants say. Tom Jensen, an architect from Logan, Utah, says political candidates in his region now compete with one another over who better supports the vision developed by residents for the Cache Valley.
“This has a greater chance to be implemented because it’s a grass-roots vision,” said Jensen, who also has an office in Tempe. “It gives political leaders cover.”
One example: Grass-roots support led elected officials in nine different communities around the Great Salt Lake to adopt a plan limiting development on the lakeshore.
While focused on growth issues, Envision Utah also has used its model of public engagement to create disaster-preparedness plans for the state and address issues related to higher education.
“We think that this is a process that can be used to address a number of issues in a community,” said Alan Matheson, a Tempe native and attorney who now serves as Envision Utah’s executive director.
Jeff Edwards, president and CEO of the Economic Development Corporation of Utah, said the state’s reputation for collaboration has helped officials lure businesses.
“Envision Utah has been a great tool for us in communicating to companies that this is a community that works together,” Edwards said. “We kind of take it for granted. They say, ‘Trust us, this is not the way it happens in other states.’ ”
While no group can take sole credit for a state’s economy, lately Utah has had plenty for Arizonans to envy. The state’s unemployment rate is 6.7 percent, compared with 9.1 percent in Arizona.
The key to success, Matheson said, is not only involving the public from the beginning but also keeping it involved until the end. Persistence, he said, also is critical.
“We’ve all seen examples of good plans that sit on the shelf,” Matheson said. “But nothing happens in the public realm without public support. The way you get public support is by giving people ownership in that plan.”
Arizona’s effort
In Arizona, would-be reformers have made some efforts to involve the public.
The Arizona We Want, an initiative of the Center for the Future of Arizona, aims to take the results of the October Gallup poll and translate Arizonans’ goals into concrete steps to achieve them. The extensive poll of 3,606 Arizonans was designed to produce “actionable insights” into residents’ thinking. Using questions tested in dozens of other communities, Gallup found Arizonans are highly engaged in civic life compared with residents in other states.
Despite that engagement, polls regularly find dissatisfaction with elected leaders.
“The endgame is still the endgame: to get citizens and leaders working on the same things, to start pulling together on the things that we need to do,” said Pat Beaty, director of the initiative and a senior fellow at the Center for the Future of Arizona, the group led by former ASU President Coor.
Beaty said the institute needs to move beyond abstract goals to engage citizens about issues affecting their communities.
“You can talk about the Arizona we want,” Beaty said. “But it has to become embedded in the Flagstaff we want, the Yuma we want, the school we want.”
Coor has toured the state for the past three months, meeting with elected officials and civic leaders and soliciting their ideas and support. And the center plans to send questionnaires to candidates for elected office so citizens can see where they stand on those topics.
O’Connor House Project participants have taken their ideas for reform straight to the Legislature. A spinoff group, Government for Arizona’s 2nd Century, is working with lawmakers to support bills that will ask voters to create a lieutenant governor’s position, eliminate term limits and end taxpayer funding of candidates.
To date, the group’s efforts at public involvement have been limited to an invitation-only town-hall meeting for business and civic leaders. The approach has raised questions about how the group will develop the support necessary to succeed.
The bills cleared the Senate Judiciary Committee and are scheduled to be heard in the Rules Committee this week.
Michael Bidwill, president of the Arizona Cardinals and chairman of the government-reform effort, said the time is ripe for change. “We have a unique chance to improve the way our government works,” he said. “When you look at any public-opinion poll, a lot of people are looking for government to work better.”
Organizers acknowledge reform in Arizona has had a spotty history. Many efforts lose steam before any real change is accomplished. Still, the state’s current crisis has brought a rare opportunity for real change.
“I see this groundswell starting to build,” said Sue Clark-Johnson, executive director of the Morrison Institute of Public Policy at Arizona State University and the former chairman and CEO of The Arizona Republic. “In the decades I’ve lived here, I have seldom seen such a compassion and a caring and a concern for the future of this state.”
But concern alone won’t be enough to reform state government.
“You can’t just do a vision and walk away,” said Brenda Scheer, dean of the University of Utah’s College of Architecture and Planning and an Envision Utah board member. “People have to own it, and they have to be champions of it.”
The names have been changed (sort of) to protect the innocent - or in this case guilty. Read the soap opera story we all know too well, by x4mr - HERE. Bravo!
Top 10 Reasons To Come to Tucson
Ten – You can feel the sun on your toes in February! Sandals, shorts and sunglasses - pick up free sunscreen at the Visitor’s Center!
Nine – Golf! There are ____ golf courses in the Tucson valley – play them all! – get a free Mulligan from me!
Eight – The Arizona Sonora Desert Museum! The views, the animals, the gift shop and the incredibly good restaurants. The javalinas are waiting to greet you!
Seven – Hiking! All grades of trails for every level of walker. Hike through a saguaro cactus forest and stop once in a while to look at our gorgeous mountains!
Six – Margaritas and Mariachis! Countless Tucson restaurants have live music and a wide variety of margaritas (the lime counts as a fruit for a balanced diet!).
Five - Resorts and spas! You deserve to be pampered, while enjoying the warm sun and stunning desert and mountain views. Oh, don’t gawk at the celebrities – down deep inside they ARE shy! A winter tan and a white strapless dress – priceless!!!
Four – Gardens, humming birds, food and gifts! Tohono Chul Park, Tucson Botanical Gardens, the Arizona Inn and the Desert Museum give a wide overview of nature and attracts humming birds galore – their restaurants serve delicious food and the gift shops sell gorgeous jewelry and other gifts.
Three – The smell of tamales, creosote after a rain and flour tortillas being made next to your table while you eat (take a dozen home with you!). There are people who weep when they remember the smell of creosote bushes after a rain – you never forget it! It is as unique as the smell of green corn tamales cooking at Lerua’s or the smell of flour tortillas cooking at Teresita’s Mosaic restaurant.
Two – History! Tucson is the only city in America that has been continuously inhabited and cultivated for over 4,000 years. Wander through history museums, the Pima Air Museum or take a historic walk downtown. Walk in the footsteps of the past, bask in the beauty of the present.
One – The people! The Native people are still here, it was then New Spain, then Mexico, then a Territory and finally a state on February 14, 1912. We come from every state in the nation and almost every country on earth and chose to live here. We cannot wait to share our city with others.
Pima County is being run by, controlled and directed by a very strong environmental lobby that has the singular focus of keeping the environment priority one and jobs, affordable housing and strong families a distant second.
PIMA COUNTY:
• Covers 9,184 square miles
o 42.1% is owned by the San Xavier, Pascua Yaqui and Tohono O’odham
reservations.
o 14.9% is owned by state of Arizona
o 14.9% is Forest and BLM Land
o 12.1% other public lands
o 17.1% is individually or corporately owned
o Current indebtedness $757 million, if include bonds passed but not sold it goes over $1.07 billion
BOND FUNDS: Approved by 66% of voters – no budget crisis in 2004.
• All $174.3 million of the 2004 Open Space Bond funds have now been spent.
o $164.3 million for open space and habitat protection and another
o $10 million to protect Davis-Monthan Air Force Base from urban encroachment.
o Purchased over 51,000 acres of private land
o 127,000 acres of leased State Trust Lands
• PAY BACK: with interest that is $226.59 million dollars ($1.30 payback per $1 spent according to letter Ray Carroll to Chuck Huckelberry, December 29, 2009)
NEW BOND REQUEST FOR NOVEMBER 2010: $285 million
• The Conservation Acquisition Commission (CAC) Recommending a new bond for $285 million for more open space
• PAYBACK: with interest that is $370.5 million.
• County Administrator Chuck Huckelberry is recommendation $120 million.
• PAYBACK: $156 million
Take a look at Boulder Colorado, the first municipality in the US to embarked on an aggresive no growth policy in the 1960’s.
In the decade of the 1950s, Boulder’s population grew from 25,000 to 37,000 and during the 1960s it grew by a whopping 29,000 to reach 66,000. Some initial efforts to manage this growth included the “Blue Line,” a citizen-initiated amendment to Boulder’s charter in 1959 that restricted the extension of city water service above an elevation of 5,750 feet. It was later extended by ordinance to sewer service. While a few exceptions have been granted at the ballot box, the effect of this measure was to limit the city from extending water service to properties along the mountain backdrop. Property owners can still develop in the county, but at much lower densities than is typical in the city and only with individual water and septic systems.
Another important growth management program began in 1967, when Boulder became the first city in the United States to pass a tax specifically dedicated to preserve open space. This open space system forms the outer extent of the Boulder Valley, a joint planning area between the city and county.
What are the results after 50 years of restricting land use?
What Are the Pitfalls?
· Boulder’s region encompasses the whole county. Therefore, the city’s surging job growth and limitations on residential growth have had a significant impact on housing demand in adjoining communities. The most striking example is the nearby town of Superior. In 1990 the population of Superior was 255; in 1996 it was 3,377. It has practically no jobs and no sales tax base. This regional imbalance between jobs and housing has created tremendous problems with traffic congestion, lack of affordable housing and school facility needs.
· Getting a hold on sprawl is only half the equation. What happens within the urban service area is the other. In Boulder’s initial planning efforts, there was a clear expression of a preference for infill and redevelopment over sprawl. Since there is no requirement that a certain amount of land be contained within its service area (such as the 20-year required land supply within Oregon’s urban growth boundaries), Boulder does not have to make a trade-off between expansion versus infill and redevelopment. However, it is increasingly difficult to convince specific neighborhoods and the community as a whole that additional density is in their best interests. not grow.
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
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.
Our goals and convictions that drive us to see change in Tucson
By Joe Higgins and Chris DeSimone, special for Inside Tucson Business
Published on Saturday, January 02, 2010
It’s resolution time and we are throwing ours into the ring. Save this article and check back on us when 2011 comes.
A new decade is kicking off with a down economy, our local governments are scrambling to hold on and if you are a business owner like us, you are waiting to see the light at the end of the tunnel.
During difficult times, setting goals and resolutions are more important than ever. When it comes to 2010 resolutions, we are committed to seeing them through.
Each morning the clock buzzer goes off at the crack of too early and coffee starts brewing. We cruise down the road to start our morning radio show at 6 a.m. Day in and day out for two hours we bring it, we serve it up; we do our best to wake this place up.
If you haven’t tuned in yet, what you’ll hear is a cross section of business owners and leaders, authors, politicians and educators sprinkled with local sports, and the best places to eat in town, (in our humble opinion.) Our job is to paint a picture for the listeners of how we think this community really runs. Our job is to Wake Up Tucson and get our community to start paying attention to the basics before it’s too late.
The radio program is just the beginning of our efforts to help change the poor business climate of the greater Tucson area. We are supply-side guys. We believe if business is allowed to thrive, the entire community benefits. All our board service, hundreds of one-on-one meetings, dozens of business events, blogs, and even this column take time away from our business and personal lives. So why the heck do we do what we do?
Below are our 2010 New Year’s resolutions and few of our motivations. Maybe just maybe, they’ll motivate you too.
• With young kids in elementary school, we hope to create opportunities for our children to stay in Tucson after graduating from the U of A. Losing more than 4,000 college graduates each year because of a lack of suitable jobs is unacceptable. The U of A is a brain factory and their end products are fleeing town and not looking back.
• We see an ever-growing pool of people seeking charitable assistance. We realize that what these struggling families need most is a good job that pays all the bills. Creating jobs and industries is not Tucson Regional Economic Opportunities’ job, it’s not the politician’s job, it’s everyone’s job. Ask yourself how much you have personally benefited from this community.
• We realize that the Tucson City Council, Board of Supervisors and legislators constantly make decisions that benefit special interest groups’ voter blocks. We will work tirelessly to end turf wars and bring the fractured business community together to finally have a seat at the table. Unless and until we get our act together, the business sector will continue to be marginalized, minimized and exploited. Check out www.ChangeTucsonChamber.com for details.
• We will be the voice for the merchants downtown. These brave souls have had their patience and loyalty repaid with insider deals, overpaid bureaucrats, too much government interference and very little progress.
• We promise to tell the community, elected officials and anyone who will listen that every day in Tucson should be “Appreciate Small Business Day.” A weak proclamation right before a city election isn’t going to cut it anymore.
• Our goal is to expose and educate the community about funding and accountability measures at the MTCVB, TREO, Downtown Partnership, Fox Theater/Tucson Convention Center and anyone else that takes our tax dollars in an effort to make our community better. If these groups are doing their job we’ll tell you, and if not, let’s just say we aren’t lacking for material.
These are some of the reasons why we do what we do and these are our resolutions for 2010. Now ask yourself, “Why do YOU do what YOU do?”
Let 2010 be the year that you got off the sidelines and into the game, before the game is over and we’ve all lost. Learn more at ChangeTucsonChamber.com, TakeBackTucson.com, ArizonaPolicyInstitute.com and our daily blog at TucsonChoices.com.
Log on, tune in, educate yourself on the issues and get off the couch!
Contact Joe Higgins at joe@joehigginsinc.com or Chris DeSimone at provenpartner@comcast.net. They’re the hosts of “Wake Up Tucson,” which airs 6-8 a.m, weekdays on The Voice KVOI 1030-AM.
Copyright © 2010 Inside Tucson Business
