Jobs Bill Takes Top Priority
March 16, 2010Glenn Hamer
The Legislature last week closed the remaining fiscal year 2010 budget deficit and on Tuesday wrapped up business on a fiscal year 2011 budget. With a budget package now on its way to the governor, the Legislature has proven many naysayers wrong by completing a budget before temperatures hit the triple digits.
Staring down the barrel of a projected $2.6 billion shortfall, lawmakers made tough decisions to address the state budget deficit. Rather than waste time on less important issues, legislators wisely chose to act now on a budget accord. There was also a conscious effort to protect our university system, which is vitally important to businesses, particularly those in the technology sector.
But it's not time for a victory lap yet. There is still work left to be done.
Pro-business groups like the Arizona Chamber of Commerce and Industry were encouraged in January when the House passed a sweeping jobs bill, HB 2250. The bill contains reforms to Arizona's tax system designed to retain and attract good jobs to Arizona such as cuts in the corporate income and property tax rate. The bill would also add more tools to Arizona's economic development toolbox.
It is easily the most aggressive effort to improve Arizona's economic climate offered this decade.
When it comes to a business property tax, Arizona ranks as the worst or nearly the worst across all categories in a nine-state western region. A high business property tax creates a disincentive for companies to expand their operations in the state and it hamstrings additional hiring.
Among states with a corporate income tax, Arizona ranks somewhere in the middle. The House-passed legislation, however, would put the state in a far more competitive position to attract employers and corporate headquarters.
Cleary, this is the type of legislation Arizona needs if we're going to create an environment where business can thrive. The legislation would not create additional short term challenges for our cash-strapped state, but rather would provide future, phased-in relief designed to encourage job creation.
The plan was carefully prepared, with respected economist Elliot Pollack providing a report that provided the basis for many of the items in the proposal.
The Legislature has sent to voters a referendum for a May 18 special election to raise the state sales tax by one cent per dollar, a move which the Arizona Chamber supports.
But as we made clear in our statement of support for Proposition 100 that we filed with the Secretary of State's Office, our support comes with a call to the Legislature and governor to address Arizona's fiscal crisis comprehensively. That means that sending a tax hike to voters is not enough to call this legislative session a success. We need long term tax reforms, sustained spending reductions and the establishment of a statewide debt policy.
If we're serious about getting Arizona back to work, we can't just wish and hope for better days. We've lost nearly 300,000 jobs in Arizona since the beginning of the Great Recession, or a full 10 percent of our workforce. Real action is needed. Other states are moving aggressively to become more competitive, particularly for manufacturing jobs. If we do nothing, we will lose ground and put our highest paying jobs at risk for moving out-of-state. If that occurs, the financial health of our state would be permanently harmed.
Now that work on the budget is done, it is time for the Legislature and governor to focus on addressing the jobs deficit.
Staring down the barrel of a projected $2.6 billion shortfall, lawmakers made tough decisions to address the state budget deficit. Rather than waste time on less important issues, legislators wisely chose to act now on a budget accord. There was also a conscious effort to protect our university system, which is vitally important to businesses, particularly those in the technology sector.
But it's not time for a victory lap yet. There is still work left to be done.
Pro-business groups like the Arizona Chamber of Commerce and Industry were encouraged in January when the House passed a sweeping jobs bill, HB 2250. The bill contains reforms to Arizona's tax system designed to retain and attract good jobs to Arizona such as cuts in the corporate income and property tax rate. The bill would also add more tools to Arizona's economic development toolbox.
It is easily the most aggressive effort to improve Arizona's economic climate offered this decade.
When it comes to a business property tax, Arizona ranks as the worst or nearly the worst across all categories in a nine-state western region. A high business property tax creates a disincentive for companies to expand their operations in the state and it hamstrings additional hiring.
Among states with a corporate income tax, Arizona ranks somewhere in the middle. The House-passed legislation, however, would put the state in a far more competitive position to attract employers and corporate headquarters.
Cleary, this is the type of legislation Arizona needs if we're going to create an environment where business can thrive. The legislation would not create additional short term challenges for our cash-strapped state, but rather would provide future, phased-in relief designed to encourage job creation.
The plan was carefully prepared, with respected economist Elliot Pollack providing a report that provided the basis for many of the items in the proposal.
The Legislature has sent to voters a referendum for a May 18 special election to raise the state sales tax by one cent per dollar, a move which the Arizona Chamber supports.
But as we made clear in our statement of support for Proposition 100 that we filed with the Secretary of State's Office, our support comes with a call to the Legislature and governor to address Arizona's fiscal crisis comprehensively. That means that sending a tax hike to voters is not enough to call this legislative session a success. We need long term tax reforms, sustained spending reductions and the establishment of a statewide debt policy.
If we're serious about getting Arizona back to work, we can't just wish and hope for better days. We've lost nearly 300,000 jobs in Arizona since the beginning of the Great Recession, or a full 10 percent of our workforce. Real action is needed. Other states are moving aggressively to become more competitive, particularly for manufacturing jobs. If we do nothing, we will lose ground and put our highest paying jobs at risk for moving out-of-state. If that occurs, the financial health of our state would be permanently harmed.
Now that work on the budget is done, it is time for the Legislature and governor to focus on addressing the jobs deficit.
The Arizona Chamber of Commerce and Industry is committed to advancing Arizona's competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans. http://www.azchamber.com/.
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