You’ve likely seen the new television ad from the pro-Proposition 208 campaign. In case you’ve forgotten, Proposition 208 is from 4.5% to 8%–a 77.7% increase.

If you haven’t been following the back and forth over this initiative, you’re forgiven if you didn’t know its central provision amounts to the largest tax increase in Arizona history. The TV ad doesn’t mention it at all.

Instead, viewers are told that the initiative would restore education funding. Left out of the script is that Proposition 208’s tax increase on small business would deliver such a shock to state revenues that future education funding would be put at tremendous risk. Also left out is that early childhood, community colleges, and universities are left with peanuts.

Proponents also fail to inform viewers that they are relying on the section of tax code with the greatest volatility, leaving no guarantee for funding from year to year and no way for school districts to budget with any predictability. If voters want to deliver a boost in teachers’ contractual pay, they won’t get it from Proposition 208.

The ad touts Proposition 208’s accountability requirements, saying that funds would be “voter-protected.” That has nothing to do with accountability. It’s a statement of Arizona’s existing law that makes it virtually impossible to change a voter-passed initiative. There’s a reason for this obfuscation. There’s absolutely no accountability in this initiative. None. Nada. Zip. Zilch.

The ad promises a lot. Political ads often do. What the ad doesn’t do is answer how it will deliver.

A political ad urging passage of an initiative that proposes the largest income tax increase in state history that doesn’t mention the tax increase at all? Unlike the script, that says a lot.

Glenn Hamer is president and CEO of the Arizona �鶹��ýӳ�� of Commerce and Industry

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Arizona Gov. Doug Ducey released plans Thursday to distribute $98 million in grants to be used to provide small businesses with financial relief and support the child care sector. 

“This pandemic has forced Arizonans to make many sacrifices over recent months. These dollars are going where they can have an immediate impact — to help our families and businesses in need of support,” said.

Eighty eight  million dollars of the grants comes courtesy of the , a sweeping federal relief package passed in March, while the other $10 million is derived from Arizona’s Crisis Contingency and Safety Net Fund.

Legislative backing

Arizona Senate President Karen Fann (R-Prescott) and House Speaker Rusty Bowers (R-Mesa) expressed support for the initiative, saying, “Today’s announcement that $10 million in new grants will be distributed is a great step forward in providing much-needed relief, and it is exactly why the Legislature acted to establish the fund earlier this year.”

The state’s House and Senate Republican Caucuses’ endorsement of the Governor’s announcement can be found .

Small business relief, partnership with Local First

The Governor’s Office announced the creation of the $10 million Arizona Small Business Rent and Mortgage Relief grant fund, from which the state government “to help the most vulnerable businesses meet their financial obligations” during the COVID-19 pandemic and ensuing economic recession. 

“…we want to continue to be there for all the small businesses that have given so much to our communities,” Ducey . “Many businesses who received Paycheck Protection Program loans quickly expended their funds on payroll and utilities as the emergency extended beyond the funding window for the forgivable loans. The new Grant program will be available to grantees who may continue to face hardship despite leveraging other programs.”

With a maximum grant size of $25,000, the state government is prepared to process applications and dole out much-needed financial assistance to small businesses in need. Furthermore, cities and municipalities may choose to expand the program at their convenience.

Partnering with Local First Arizona , “Arizona’s Voice for Small Businesses”, the state is confident that the organization’s “grant making… and small business expertise” will make it easier for small businesses to successfully apply for the grant program.

Beginning today, grant applications will become available to the public. For more information on the program and how to apply, visit Local First Arizona’s small business relief hub .

Small businesses employ half of American workers, and 56% of the jobs at risk due to the coronavirus outbreak are small businesses. 

In Arizona there are more than 550,000 small businesses. According to the Arizona Commerce Authority, these 550,000 businesses employ over 1 million Arizonans.

Distribution of funds, child care support

The Governor’s Office says that additional funds would be distributed as follows:

• Childcare COVID-19 Grant Program ($47m) — This grant is targeted towards “salaries and benefits for employees, Arizona Department of Health Services (ADHS) licensing fees, liability insurance, tuition and registration relief for families, lease or mortgage payments, utilities, cleaning supplies, classroom materials and supplies, and additional needs required by the Centers for Disease Control and Prevention and ADHS guidelines” that further the provision of “high-quality childcare”.

• Arizona Enrichment Centers Program ($24m) — Investing $24 million in Arizona’s essential workers, the additional dollars being directed towards the Arizona Enrichment Centers Program will provide “priority childcare services and scholarships for first responders, health care workers, and other essential personnel”.

• Increase Paid Absences ($7m) — By further funding the program, the state government will “increase the allowance of keeping a student home from child care by three days, totaling five absences a month per child”. Through extending the number of allowed absences, state officials hope to give parents and families the flexibility to keep children isolated in case of potential illness.

• Childcare Reserve ($10m) — A safety net, the Childcare Reserve program has been apportioned $10 million in order to address a potential “childcare subsidy waitlist that might develop in the fall due to the current economic climate and address other unforeseen child care providers’ needs that might arise”.

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Click here to read the letter to President Fann referenced below.

The Arizona state Senate on Friday is expected to adjourn sine die, bringing the second regular session of the 54^th Legislature to a close.

But that’s not the end of legislators’ work for 2020. Not by a long shot.

The move to sine die is the right one by Senate President Fann. With no clear time horizon on when or whether the Legislature could begin work in regular order on pending legislation, she and legislative colleagues are winding down the regular session.

Now legislators can shift their attention to what the Legislature ought to address in a future special session focused on responses to the fallout from the Covid-19 pandemic.

The business community, including the Arizona �鶹��ýӳ�� of Commerce & Industry, is ready to get to work with legislators in crafting the policies the Legislature should address in a special session, not the least of which are liability protections for employers.

No one wants our economic recovery to be unnecessarily slowed by fears of creating a fertile field for dubious lawsuits targeting businesses. We can find the right balance. We can adopt policies that instill confidence in employers to reopen, while protecting their employees and customers, without giving a free pass to anyone who irresponsibly disregards commonsense efforts to stop the spread of the virus.

At the outset of the pandemic, when it became clear that the business of the Legislature would be interrupted, legislators acted quickly and in a bipartisan fashion to pass a fiscal year 2021 budget, authorizing $55 million for the Arizona Department of Health Services to address the coronavirus public health emergency, and $50 million in flexible and targeted COVID relief for Arizona.

When the Legislature reconvenes in a special session later this year, we’ll need that same spirit of cooperation and collaboration to address some very real challenges. The business community is here to help.

Several of Arizona’s leading business organizations today are sending the letter below to President Fann and her colleagues stating our support for sine die and reiterating our desire to partner with the Legislature in accelerating Arizona’s economic recovery and efforts to return stronger.

Courtney Coolidge is vice president of government affairs for the Arizona �鶹��ýӳ�� of Commerce & Industry

Attached below is a letter sent by the Arizona business community to President Karen Fann and all state Senators.

Dear President Fann,

On behalf of the Arizona business community, we thank you, Senator Bradley and the entire Arizona Senate for your service and commitment to the state and its residents during this difficult time. The COVID19 pandemic has created unprecedented challenges and uncertainty for all Arizonans, and as the leader of the State Senate, you have been faced with many difficult decisions.

We applaud your swift action as the public health emergency was declared during the middle of our legislative session. The Legislature acted quickly and in a bipartisan fashion to pass a fiscal year 2021 budget, authorizing $55 million for the Arizona Department of Health Services to address the coronavirus public health emergency, and $50 million in flexible and targeted COVID relief for Arizona.

We understand that many other legislative priorities were left unfinished as you face the difficult decision to sine die. However, we believe adjourning sine die is the right decision so that the Legislature’s focus can turn to those issues pertinent to the COVID19 pandemic and Arizona’s economic recovery.

As the regular legislative session comes to a close, we know your work is far from complete and we stand ready to help. Like you, the business community is evaluating policy proposals important to Arizona’s economic recovery, most importantly addressing liability concerns stemming from COVID19 and taking swift measures to address budgetary shortfalls at the appropriate time, we are confident these can be addressed during a special session.

We thank you for your continued leadership during this challenging time and willingness to take action in the best interests of Arizona. We appreciate your partnership and communication with the business community and look forward to working with you to address future policy needs.

We are confident that Arizona can return stronger and we support you and your colleagues in the Legislature and the Governor’s office to maintain the critical balance of prioritizing public health, while ensuring maximum economic activity continues safely. We know there is a lot of work ahead and we stand ready to assist in any capacity you may find helpful.

Thank you again for your leadership and service.

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In order to get their product or service off the ground, most small companies turn to startup funds in the private sector, where they can sell securities to “.”

To obtain accreditation, a person or business entity must meet a certain threshold of income, net worth or asset size. Consequently, the number of Americans who are able to invest privately is severely limited.

, R-Ariz., and , R-Ark., introduced the Fair Investment Opportunities for Professional Experts Act (H.R. 4672) to try to alleviate the exclusivity of private-sector investing.

If passed, the bill would expand the definition of “accredited investor” to include Americans with qualifying educational or professional experience.

“Simply put, this legislation would rightfully expand the definition of ‘accredited investor’ to include professional experts, allowing the opportunity for more Americans to invest in ideas early on based on their knowledge and suitability rather than their wealth,” Schweikert said in a statement. “The current financial parameters on investors we have are based solely on wealth, excluding individuals who have the experiences necessary to be provided access to suitable investments. I thank my colleague, Representative French Hill, for his continued support and I hope this common-sense legislation can swiftly pass the House.”

Currently, an accredited investor includes anyone who has earned income exceeding $200,000 (or $300,000 in a household) in each of the two prior years and anticipates making a similar income in the current year; or anyone with a net worth over $1 million. 

The Fair Investment Opportunities for Professional Experts Act would expand the definition of an accredited investor to include those who hold a recognized federal or state securities-related license, as well as those who have demonstrable professional knowledge in a security administered by the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC) or a state-level equivalent.

“Expanding the definition of accredited investor is great for both businesses and investors,” Schweikert said. “Many private security offerings are restricted to accredited investors because of the high risk nature of these offerings. Expanding the definition allows more hard-working Americans with sophisticated professional experience to be included in otherwise restricted investment opportunities, and that is a key economic growth driver.”

Versions of the Fair Investment Opportunities for Professional Experts Act passed the House of Representatives with extensive bipartisan support in the past two Congresses. The bill passed the House in 2016 with a vote of 347 to 8. It passed the House by voice vote under suspension in 2017.

Schweikert and Hill said they hope the bill will receive widespread support again this Congress.

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