ARIZONA FEDERATION OF TAXPAYERS

Expanding economic growth and prosperity for all Arizonans

July 16th, 2005

Another Great Meeting.  Our guest speaker informed and entertained a crowd of 70 people Wednesday night.  John Andrews, former President of the Colorado State Senate, 2003 Legislator of the Year, Chairman of Backbone America and champion of the Taxpayer Bill of Rights and the Colorado Defense of Marriage Act spoke on the importance of limited government and grassroots activism to combat the spending lobby that makes its living off of your hard-earned tax dollars.

If you missed out on the meeting, send us an email to get invited to future events.

Special thanks to the AZ PAChyderm Coalition for their hard work.

Arizona Budget Facts.  Did you know:

At the current tax collections rate, the state government will collect $251 million MORE than was budgeted -- this money will get spent on new programs if it is not returned to the people who earned it;

From 1990 to 2005, government spending has grown 168% while the workforce (people paying the taxes) has grown only 58%.  The size of the state government has almost tripled to $8.2 BILLION;

The state government spends an average of $742 per second;

Since 1990, the state government has grown 3 times faster than Arizona's population growth;

The state has run a budget deficit in every year since Janet Napolitano became Governor.  Until 2002, the state had a budget surplus every year since 1993.  This is debt passed on to you, your children and their children.

Glory to Seizer!  The commoners of Phoenix may keep their property...for now.  The Arizona Republic reports that Phoenix will not "condemn" some private property and give it ASU.  The proprietor of Downtown Laundry & Dry Cleaning rejoiced "This is my day to be happy."  

Don't too excited.  The "people's Mayor" Phil Gordon decrees "those properties aren't critical to opening the campus."  For now, glorious Seizer is only taking property they need immediately.  He'll be back for the others by then end of summer.

Update: we received a couple of emails on our use of "Seizer."  It is a homonym for Caesar!

Mesa Tax Update Part IV.  Kirk Adams gives us the inside scoop.  Charlie Powell of the Conservative Press forwards us an article in the East Valley Tribune by Kirk Adams (link not available).  Mr. Adams was a member of the city committee that was asked to make suggestions about how to solve the city's deficit problem.  He notes that the problem is not that taxes are not high enough, rather spending is poorly managed. 

Mr. Powell opines: 

The budget problem was created over the past few years by the questionable spending practices of Mayor Hawker, and council members Walters, Whalan, Jones, Griswold and prior council members. If you recall, the Tribune printed articles about some of the money that was spent such as $94 million for an Arts Center, $1.5 million for a study of light rail, $600,000 for the purchase of two houses that were sold for $1.00 (each), the purchase of property across Main Street from Brown Chevrolet and was sold to Brown for $1.00, $300,000 in legal fees in the unconstitutional attempt to take Bailey's Brake Shop, just to mention a few).

The Governor: a track record of competence, fiscal responsibility and attention to the needs of Arizonans.  Let's check the record on that one: budget deficits every year that she has been Governor, massive forest fires destroy the Heber-Overgaard region, Phoenix has a gasoline crisis, Phoenix has a water crisis, rolling blackouts, her office threatens volunteers on the Board of Geographic Names and Standards, she lies to Legislators on a budget deal, the Constitution does not apply to her when traveling, and she vetoes a bill to let local law enforcement work with immigration agents, then after reading the polls calls a secret summit to announce local law enforcement can work with immigration agents.  Yep.  That's the track record. 

Voting: Dangerous to Democracy.  In a hilarious letter to the editor, a Mesa resident is concerned that since Republicans "control" the Executive and Legislative branches, they will appoint judges consistent with their philosophy.  

Well, that's what happens when you win democratic elections.  Note to tax and spend, moral relativists: the tribe has spoken, conservative ideas have won and you have been voted off the island.

July 9th, 2005

Tax-cut time.  With an anticipated revenue windfall $252 million more than was expected, its time for a tax cut.  After all, this money is additional tax collections taken from the working Arizonan's who earned it.  Giving the money back does two important things: stimulate the economy and keep government from growing further.

State legislators have told the AZ Federation of Taxpayers they are working on a tax cut package.  We'll let you know as their plan progresses.  In the meantime, Steve Voeller of the Arizona Free Enterprise Club writes in the Capitol Times:

[W]hat do we do with all this money?

I have an idea. Give it back.

Given the Arizona economic and political climate, the time is ripe for substantial tax relief. First of all, we haven't had such a tax cut since the Symington administration. The 5 percent business property tax cut recently passed by the Legislature is a decent step, but it should have been larger and phased in faster...

Which brings us to another good reason to push for tax cuts next year: if we don't cut taxes, the state will spend the money. Just check the history books. State spending has grown 81 percent since 1996, while population plus inflation have only grown 53 percent. A large portion of the increase is formula driven, which the Legislature needs to get control of, but clearly, government programs are not starved for cash.

Couple the rate at which Arizona spends money with a slowdown in the housing market, and all of a sudden, Arizona has created a host of new programs without the money to pay for them. Budget deficits follow, and then pressure builds from liberals (both Democrat and Republican) to hike taxes.

July 5th, 2005

Good news...but it could be better.

Buoyed by increased individual income tax payments, state revenue collections in May surged for a second consecutive month.

...the state is on track for annual revenue a total of $252.1 million above the forecast set in the recently enacted state budget, the JLBC staff said.

Its good news because the surging revenues are caused by very strong personal income growth, which is caused by a booming Arizona economy.  All of which makes the nattering-nabobs look like fools.

It would be better if the excess tax revenue were returned to the hard-working Arizonans who earned it, rather than spending it on government programs.  If we had a Taxpayer Bill of Rights for Arizona, it would go directly back into the working person's pocket.

July 4th, 2005

It's our nation's birthday.  Read this with your children.

July 2, 2005

Phoenix Tax Hike Update.  To clarify our earlier post, the City Council was voting to increase primary property taxes and lower secondary taxes.  A reader who attended the meeting sent us this update:

Three objection cards were submitted & one person spoke out against the transfer of secondary tax revenue to primary.  His point was well taken in that secondary tax revenue was initiated to handle debt service.  [Councilman] Fairbanks said the City has made such transfers in the past, so the legality does not seem to be an issue.  However, using debt-related money for general operating purposes violates good fiduciary management.  Perhaps that should be emphasized and publicized, as the City is going to have a bond issue next year & we have to make sure funds are kept for the purpose intended.

On the issue of City expenses, I would like to see the City produce some reports showing the some comparisons of city staff and budget growth, compared to the City population, sales tax and economic growth.

AFTA Vice Chairman Tom Jenney, AZPolitickin.com editor S.A. Everly and Roy Miller attended Friday's meeting and had concerns about the city's financial shell game.  Phoenix citizens voted for the secondary property tax specifically to pay down debt, not to be shifted to operating expenses.  

Another concern is the proposed March 2006 Bond initiative is to paid for with the secondary tax.  By lowering the secondary tax now, the bond referendum can call for a larger tax increase in March.

More Government, more taxes, same service.  Scottsdale Fire Department is no longer run by the cost-conscious, efficient private sector company Rural/Metro, but is now a city service.  The only change to Scottsdale taxpayers will be higher costs.  Roughly 200 of the 258 firefighters are former Rural/Metro employees, firemen now work 56 hour shifts vs. 60 hour shifts, and each truck crew will now have one additional person. 

We are not sure what the Scottsdale taxpayers got out of this deal, but the City Council got 258 people willing to put up signs for their reelection.

Hail Seizer!  Phoenix takes private property.  The city government is seizing private land to give it to ASU.  This is all part of Mayor Phil Gordon and his wealthy developer supporter's plan to turn Phoenix into a "cool city", with a "vibrant" downtown and the massive amounts of government money required to build it. 

While the owners are willing to sell the land (they have no choice with the Supreme Court Kelo ruling), the city is offering less than full market vale.  The owner of one parcel of land paid $490,000 for it in 2003, but the city is only offering $440,000.  In fact, the city is offering a maximum of $115 per square foot in areas where property is selling for $120 to $144 per square foot. 

City Attorney Gary Verburg is unapologetic about the seizures: "We can take possession as soon as the judge says we can take possession. We can fight about value later."

Historically, the takings clause in the 5th Amendment has limited the seizure of private property only to instances where there was a compelling public interest, such as a highway or school, and provided the owner with just compensation.  However, private property has been under assault from local governments wanting to cash-in on redevelopment.  The recent Supreme Court decision in the Kelo case now holds that the government's right to higher tax revenue trumps citizens constitutional rights as property holders.

Supreme Court Justice Sandra Day O'Connor wrote: "Any property may now be taken for the benefit of another private party, but the fallout from this decision will not be random.  The beneficiaries are likely to be those citizens with disproportionate influence and power in the political process, including large corporations and development firms."  

While the proponents of urban planning call this "smart growth," Becky Finger, Executive Director of the Palm Canyon Alliance correctly calls it "snob growth," because its main supporters tend to be latte drinking, upper middle class yuppies.

Headline from Jacob Sullivan.