Arizona Gov. Doug Ducey joined Glenn Hamer, Arizona Â鶹´«Ă˝Ół»­ of Commerce and Industry president and CEO, on stage for a Fireside Chat at the Â鶹´«Ă˝Ół»­’s Legislative Forecast Luncheon last Friday. Ducey gave an exclusive preview of Monday’s State of the State address, confirming his commitment to keep taxes and regulations low in Arizona and make it easier for people to open, operate and expand their businesses in the state.

The post Ham(m)er Time! Episode 44: Fireside Chat with Gov. Doug Ducey appeared first on Â鶹´«Ă˝Ół»­.

The Arizona Â鶹´«Ă˝Ół»­ of Commerce and Industry hosted its annual Legislative Forecast Luncheon on Friday, offering members of the business community the chance to meet with and hear from the governor and state legislators about the most pressing issues for the state.

Susan Anable, chair of the Arizona Â鶹´«Ă˝Ół»­ executive board of directors and vice president of public affairs for Cox Communications, welcomed 1,200 guests during the event at the Arizona Biltmore hotel in Phoenix.

“As I stand here reflecting today on the year ahead, as we kick off 2020 as a state, it strikes me that there’s some irony — the irony of the frustrations that we as a business community face today — and they are truly indicators of how successful our economy is, and how strong our growth is right now,” Anable said.

“As businesses, we have an ever-tightening labor market, low unemployment, more-than-ever jobs to be filled to keep up with a booming economy; it’s harder than ever,” she said.

New businesses and new residents — including employees, students and retirees — are entering the state at a rapid pace, tightening the labor market and making it more challenging to get building and construction permits, she said.

“And there’s money to fight over: I don’t envy the job of the governor and the legislators who have to figure out how to spend those surplus revenues that we haven’t seen in a very long time,” Anable said. “But don’t get me wrong; these are good problems to have, and I’m grateful for them.”

The highlight of the luncheon was a fireside chat with Gov. Doug Ducey hosted by Glenn Hamer, president and CEO of the Arizona Â鶹´«Ă˝Ół»­.

“How’s the economy?” Hamer asked to start off the discussion.

“It’s pretty good; it’s pretty good,” Ducey said. “It’s booming, and in addition to the growth that we’re seeing, I would say the biggest difference is our economy is diversified.

“We’ve got more manufacturing jobs in the state of Arizona today than construction jobs, so this is all very positive,” he said. “And I think the future is bright — blue skies ahead.”

Ducey said he’s not losing any sleep about a possible recession, because the Arizona state government is prepared for it.

“The first time [I spoke at the Legislative Forecast Luncheon] we had a $1 billion deficit, and our state was still coming through the Great Recession,” he said. “Today, we’re in a completely different position. We’ve planned ahead.”

Ducey said an eventual economic downturn is inevitable and often unexpected.

“We’ve been able to repeal a lot of regulations; we have not been able to repeal the law of economics,” he said.

But $1 billion in the state’s Rainy Day Fund, lower debt and a balanced budget will make any future recession easier to navigate, he said.

Ducey said the state’s reputation has also improved since the Great Recession, turning Arizona State University from “the No. 1 party school in the country” into “the No. 1 most innovative university in the nation.”

The state economy has contributed to that as well, he said.

“If you look at Arizona when the Recession did come, and we were so dependent on homebuilding and construction, it was seen as an economic basket case,” Ducey said. “Today, we’re seen as a jobs juggernaut, and we’re locking down companies and cutting ribbons and making announcements like never before. So, that reputation and brand of the state really matters.”

The governor said he is looking forward to a productive legislative session in 2020 that is “brisker” than normal.

“We want to give the appropriate time to conduct the people’s business, but I don’t think we have to spend more time than is necessary,” he said.

Public education for kindergarten through 12^th grade is another major topic for the upcoming session.

“We’re always going to talk K-12 education, and of course we’re going to complete the teacher pay raise — the 20×2020 teacher pay raise will be completed in this next budget,” Ducey said. “I think we can also talk about how we have some targeted spending where it’s needed most. We have such great examples in the state of Arizona of public schools — both district and charter — that are excelling, and we’re doing this in all parts of our state — not just Maricopa and Pima, but our rural areas and lower-income areas — and taking those best practices and finding the right way to structure the funds so that we can replicate that.”

Ducey said he made a promise when he was first elected that he would lower or simplify taxes every year he is in office, and he said he remains committed to that pledge.

When asked about his legacy after office, the governor said he has too much to do in his remaining days — 1,085 as of the State of the State address — to have “the legacy discussion.”

“If you think these first five years have been transformative to our state, you should have the same expectation for what happens in these next three years, and that’s what we’re going to kick off on Monday afternoon,” he said.

The luncheon ended with a panel discussion between four Arizona legislators, hosted by Arizona 360’s Lorraine Rivera. All four panelists noted education as a pivotal issue for 2020.

House Minority Leader Charlene Fernandez, D-Yuma, said House Democrats would like to see a raise in pay for public school teachers and support staff.

“This is an issue that, when we’re knocking on doors throughout Arizona, the people that we talk to, no matter who they are — whether it be a mom with a child in a play pen right behind her or a 75-year-old man that comes to the door — they tell us that they want to see significant investments in public education, and that is the message we’re taking back,” Fernandez said.

Speaker of the House Rusty Bowers, R-Mesa, said the state’s Career and Technical Education (CTE) programs across the state have provided a very important function by increasing graduation rates and helping kids focus on the important aspects of school, both academically and socially.

“But CTED is supposed to bring us something at the end, that these kids can be ready to plug into a working economy, which we all in the room have expressed interest in having, and more employees,” he said. “So, getting the jump on that is always important to us.”

Bowers said the way additional CTE funding is structured is “very critical” but that he will look at outcomes to determine how to proceed.

There are 14 CTE Districts, or CTEDs, across Arizona.

Senate Minority Leader David Bradley, D-Tucson, warned that any budget surplus could quickly be eaten up by paying off the capital needs of K-12 and higher education institutions. Instead, he proposed the Legislature stop making tax cuts that could damage long-term education goals.

“There are needs that are enormous, and we have to stop the cuts in order to start to attend to those needs,” Bradley said.

Senate President Karen Fann, R-Prescott, said her one-on-one conversations with members of the state Senate of all parties revealed that education is the No. 1 priority for 2020 — especially K-12 — and right behind that is infrastructure.

“We know that for goods to move, for us to have a good economy, that means we have to have a good infrastructure system with our highways. So, I think those two are going to be right at the top of the agenda,” Fann said.

In response to a question from Rivera about higher education funding, Fann said state legislators had met with the Arizona Board of Regents and lobbyists for higher education to learn more about their request for additional funding for state universities.

“I think the number was somewhere close to $200 million that they want, and we know that investing in education is huge; it’s very important,” Fann said.

One thing to watch out for, though, is separating ongoing funding with one-time funding in order to protect the state’s robust economy, she said.

“We cannot afford to be put in the position where we allow too much ongoing funding, and then that recession hits and we cannot sustain it,” Fann said. “We’re going to be very, very careful about figuring out how to spend that money.”

The post Annual Legislative Forecast Luncheon sets stage for 2020 state legislative session appeared first on Â鶹´«Ă˝Ół»­.

Nearly 70 organizations and businesses from across Arizona sent a letter this week to the state’s congressional delegation urging its members to vote to pass legislation that would implement the United States-Mexico-Canada Agreement trade deal.

The House of Representatives is expected to vote on the legislation later today.

“Trade with Mexico and Canada is a critical component of Arizona’s economic competitiveness,” the letter read. “Almost 50% of all Arizona exports go to Mexico and Canada, and more than 228,000 Arizona jobs rely on this trade.”

In addition to large business advocacy groups like the Arizona Â鶹´«Ă˝Ół»­ of Commerce and Industry, the Greater Phoenix Â鶹´«Ă˝Ół»­ and the Greater Phoenix Economic Council, the letter was signed by local chambers of commerce including those from Lake Havasu, Gilbert and Glendale — to name a few — as well as private businesses such as UPS, Tucson Electric Power and the Phoenix Suns.

The United States Â鶹´«Ă˝Ół»­ of Commerce this week also sent its own coalition letter to Congress, signed by more than 700 chambers of commerce and industry associations from all 50 states and the District of Columbia, urging legislators to swiftly pass USMCA.

“USMCA is critical to our economic future because it will preserve and strengthen U.S. trade ties to Canada and Mexico,” the read.

“More than 12 million American jobs depend on trade with Canada and Mexico. U.S. manufacturers export more made-in-America manufactured goods to our North American neighbors than they do to the next 11 largest export markets combined, and the two countries account for nearly one-third of U.S. agricultural exports.”

The U.S. Â鶹´«Ă˝Ół»­ sent an earlier version of the letter in July.

Thomas J. Donahue, CEO of the Â鶹´«Ă˝Ół»­, issued a statement earlier this month following news that the Trump administration and House Democrats reached a to move forward with USMCA.

“We thank U.S. Representative Robert Lighthizer, House Speaker Nancy Pelosi, House Ways and Means Chairman Richard Neal, and members of the House Democrats’ Working Group for their leadership and hard work,” Donahue said in the statement. “We are optimistic this development will open the door to final approval of USMCA on a bipartisan basis by the end of the year, which will especially benefit American farmers, manufacturers, and small businesses. We look forward to reviewing the details of the deal with our members and assessing their impact.”

The letter to Congress — sent Dec. 17 and addressed simply to “members of the United States Congress” — said approval of USMCA will ensure U.S. manufacturers, farmers and service providers can continue to access markets in Canada and Mexico.

“USMCA will also modernize North American trade rules,” the letter continued. “For example, when NAFTA [the North American Free Trade Agreement] was negotiated a quarter century ago, there was no e-commerce; consequently, the agreement did not address this sector. While no trade agreement is perfect, USMCA’s updated trade rules in areas such as digital trade, services, and non-tariff barriers promise substantial benefits.”

Arizona organizations that signed the letter include: the Arizona Â鶹´«Ă˝Ół»­, the Arizona Manufacturers Council, GPEC, the Latina Coalition of Ports and Borders, the Arizona Mining Association and chambers of commerce from cities across the state, both large and small.

To see the U.S. Â鶹´«Ă˝Ół»­’s full coalition letter and a list of its signatories, .

The post State and national business community makes final push for USMCA as vote nears appeared first on Â鶹´«Ă˝Ół»­.

The Arizona Manufacturers Council held its inaugural Made in Â鶹´«Ă˝Ół»­anufacturing tour last week.

The Arizona Manufacturers Council (AMC) invited a bipartisan delegation of state lawmakers and industry leaders to tour five manufacturing facilities and a community college as part of its Made in Arizona bus tour.

The two-day event kicked off Oct. 22 at Sub-Zero, where Gov. Doug Ducey gave opening remarks about how the state’s thriving business economy attracts both big and small manufacturing companies.

“From technology and food products to aerospace, defense and beyond, more of the finest products in the world are proudly being made in Arizona,” Ducey said. “I want to send the message to the world’s manufacturers who are searching for the best place to build their products: Arizona is the place for you.”

Next, the delegation visited PepsiCo in Tolleson; Boeing in Mesa; Benchmark Electronics in Phoenix; Raytheon in Tucson; and the Pima Community College Aviation Technology Center in Tucson.

“The Arizona Manufacturers Council thanks all of these innovative companies for opening their doors to show off how their products are improving lives and creating jobs,” AMC Executive Director Allison Gilbreath. “This Made in Arizona tour gave us a small glimpse into the exciting things that are happening in Arizona’s thriving manufacturing sector. From kitchen appliances to helicopters, Arizona is on the cutting-edge of manufacturing technology, creativity and quality.”

Among the state legislators was state Rep. Joanne Osborne, R-Goodyear, who served as the lead legislative coordinator for the tour.

“I am so pleased that there was such enthusiasm among my colleagues on both sides of the aisle to learn more about the pioneering manufacturing occurring in Arizona, and what we as lawmakers can do to help the sector grow,” Osborne said. “The more we can visit with job creators to learn about their challenges, their workforce, and their plans for the future, the more responsive we can be in crafting smart policies that encourage job growth in manufacturing and across the entire economy.”

State Senate President Karen Fann and House Speaker Rusty Bowers joined the bipartisan delegation of 18 lawmakers, which Gilbreath said was especially encouraging.

“Not only did we have an outstanding turnout of state legislators, but we were honored to welcome the leaders of the two legislative chambers,” Gilbreath said. “My hope is that this tour was educational for all of the lawmakers involved and that it will result in future policy reforms that will prove beneficial to the manufacturing sector and spur job growth.”

The trip was part of the AMC’s celebration of Manufacturing Month, which also included the group’s in early October.

The post Legislators visit manufacturing sites with Arizona Manufacturers Council appeared first on Â鶹´«Ă˝Ół»­.

Sen. Martha McSally (R-AZ) and other Republican senators sent a letter to Senate Majority Leader Mitch McConnell (R-KY) urging consideration of an act that would expand access to retirement plans.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act would address the nation’s retirement crisis by helping workers of all ages save for their futures, according to the senators.

“This bipartisan legislation would expand access to retirement plans for millions of Americans, allow older workers and retirees to contribute more to their retirement accounts, increase 401(k) coverage to part-time employees, prevent as many as 4 million people in private-sector pension plans from losing future benefits, protect 1,400 religiously affiliated organizations whose access to their defined contribution retirement plans is in jeopardy, and do the right thing for Gold Star families,” the letter from Sens. McSally, Thom Tillis (R-NC), Tim Scott (R-SC), Susan Collins (R-ME), Joni Ernst (R-IA), Cory Gardner (R-CO) and Rob Portman (R-OH) read.

Tom Dunn, president of the Arizona Builders Alliance, a group that advocates on behalf of the commercial and industrial construction industry, says his organization stands behind the SECURE Act.

“The SECURE Act would modernize retirement, allowing small business to compete in corporate America by leveling the playing field. It is also a strong step in the direction of financial literacy for the American workplace,” Dunn said.

The bill would amend the Internal Revenue Code to revise requirements for multiple employer pension plans and pooled employer plans. In addition, the bill would:

• increase the cap for automatic contributions to pension plans from 10 percent to 15 percent,
• increase the tax credit for small employer pension plan startup costs,
• create a new three-year tax credit to small employers for startup costs for new pension plans that include automatic enrollment, and
• eliminate the taxation of unearned income of children at rates applicable to trusts and estates.

The senators said the act will not only help workers save for retirement, it will also benefit Gold Star Families, apprenticeship program participants, low-income scholarship recipients and children of fallen first responders.

Gold Star Families are the immediate family members of fallen service members who have died while serving in a time of conflict.

“We encourage the Senate to take action on the SECURE Act as soon as possible,” the letter continued. “Doing so demonstrates to our constituents that the Senate can lead in a bipartisan way for workers saving for retirement, tax fairness, and family financial security.”

The SECURE Act received broad bipartisan support from the House of Representatives in May, receiving a vote of 417 to 3.

To read the full SECURE Act, .

The post McSally urges Senate to take up landmark retirement legislation appeared first on Â鶹´«Ă˝Ół»­.