“The state of manufacturing in America is resilient,” National Association of Manufacturers President and CEO Jay Timmons said last Thursday at his annual State of Manufacturing address, which he delivered at the Chandler-Gilbert Community College Williams Campus in Mesa.

Timmons’ speech touched on several key issues concerning the manufacturing industry, including the need to inspire the workforce of today and tomorrow as well as enacting sound public policy.

Each of the past nine months manufacturers across the country have had more than 800,000 open jobs, and manufacturers’ need to fill critical positions has only grown more acute according to Timmons. But, he said, manufacturers are not just looking for new employees.

“Manufacturers are saying more than ‘Help Wanted,’” he said. “We’re saying, ‘Creators Wanted.’”

In this search for creators, the National Association of Manufacturers has begun an ambitious mission to tackle the current workforce crisis through its Creators Wanted campaign. 

In the next few years, the campaign aims to reduce the skills gap by 600,000, increase the number of students enrolling in technical and vocational schools or reskilling programs by 25% and increase the positive perception of the industry among parents to 50% from 27%.

How do you protect and strengthen the workforce of a $2.6 trillion dollar industry? Timmons stressed the importance of enacting smart policy in areas like energy and taxation.

Timmons cited last year’s passage of the bipartisan infrastructure bill, which he called “the biggest deal for tour infrastructure since the Eisenhower presidency.” 

Timmons also spoke about the importance of passing immigration reforms that allow the U.S. to continue to bring in talent to meet the country’s economic needs and avoid losing talent to other countries.

With more than 11,000 job openings in Arizona’s manufacturing industry in the first 45 days of 2022, workforce development will be a major factor driving the state’s manufacturing growth. 

Manufacturing has reached record levels of growth as new companies relocate to Arizona, while existing companies expand and hire additional workers. Between 2016 and 2020, Arizona ranked No. 2 in the nation for the rate of manufacturing job growth (EMSI). 

Timmons also cited the importance of pro-growth tax policy to manufacturers.

“Pivot Manufacturing in Phoenix is a great example. CEO Steve Macias says that the business was stagnating in 2017, but after tax reform, everything changed,” Timmons said. “The company was able to invest in advanced manufacturing equipment, which meant they could recruit a math- and tech-focused workforce, establish a new apprenticeship and mentorship model and set themselves on a strong growth trajectory.”

Timmons also discussed the importance of the American system of government and the country’s values that allow manufacturing to thrive. 

“Manufacturers believe in—and the NAM works to advance—four core values that have made America exceptional and that keep our industry strong: Free enterprise, competitiveness, individual liberty and equal opportunity,” he said. “Underpinning those values, the foundation of it all, is our constitutional republic, our democratic system.”

NAM leadership, members and prominent guests are meeting this week in Scottsdale for the organization’s spring board meeting.

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34 percent of parents reported childcare issues significantly impacted job changes in their household

The U.S. С��ñֱ��app of Commerce Foundation this week released a new report examining the impact of childcare challenges on Arizona’s state economy. The report is part of a broader “Untapped Potential” study of five U.S. states that reveals the cost of childcare challenges and opportunities to unlock economic potential for states, employers, and working parents.

The study found that Arizona misses an estimated $1.77 billion annually for the state’s economy, including a $348 million annual loss in tax revenue, due to childcare issues. Additionally, 34% of respondents reported that they or someone in their household has left a job, not taken a job, or greatly changed jobs because of problems with childcare in the last 12 months.

The limited supply of childcare currently does not match high demand, an existing problem made worse by the COVID-19 pandemic. Throughout the pandemic, working parents have work with childcare needs, faced with childcare options that are too far, too expensive, or that do not fit their needs. Meanwhile, childcare providers have fought to stay operational, and employers have dealt with uncertainty about how and when employees could return to work. All of these contributed to the $1.77 billion in lost revenue for Arizona’s economy and an increasing number of employees being forced to leave the workforce.

“In the midst of an increasingly tight labor market, the U.S. С��ñֱ��app Foundation’s important research shines a light on another complicating factor for employers looking to recruit and retain talent,” Arizona С��ñֱ��app of Commerce & Industry President and CEO Danny Seiden said. “The pandemic has exacerbated childcare challenges that make it harder for parents to participate fully in the economy.” 

Key findings from the 2021 report include:

·         Childcare gaps result in massive economic losses for Arizona. Childcare issues result in a total estimated loss of $1.77 billion in Arizona, including an estimated $348 million lost annually in tax revenue.

·         Some Arizona parents are leaving their jobs due to childcare issues. Approximately 6 percent of parents surveyed voluntarily left a job due to childcare issues.

·         Childcare issues are significantly affecting parents’ job decisions. Of respondents surveyed, 34 percent reported that they or someone in their household has left a job, not taken a job, or greatly changed jobs because of problems with childcare in the last 12 months.

·         The greatest need is for infant and toddler care. Of parents who voluntarily leave their jobs, 55 percent do so when their child(ren) is two years old or younger. 

“While the impact is different in each of these states, these studies show the urgency needed in addressing childcare issues across the country,” said Cheryl Oldham, senior vice president of the U.S. С��ñֱ��app of Commerce Foundation Center for Education and Workforce. “The challenges in the childcare system are complex, but solvable — and addressing them comprehensively, in ways that consider the needs of parents, businesses, and providers, will be central for the nation’s long-term economic success.”

In 2021, the “Untapped Potential” series is examining these childcare challenges and issues in five U.S. states—Alaska, Arkansas, Arizona, Missouri, and Texas—building on reports released in 2020 on Iowa, Idaho, Mississippi, and Pennsylvania. To access the full reports and other resources, visit:

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More than 50 Arizona business groups are urging the state’s congressional delegation to reject several tax increases included in the budget bill being considered by the U.S. House. 

In a letter sent Tuesday to the delegation, the groups said, “The proposed tax increases that will pay for the massive $3.5 trillion reconciliation package will hurt Arizona businesses, employees, and consumers at a time when the state’s economy continues to grapple with the ongoing effects of the pandemic and acute workforce shortages.” 

Signers of the letter included the Arizona С��ñֱ��app of Commerce & Industry and local chambers of commerce from across the state, as well as groups representing various industries such as real estate, trucking, construction, tourism and agribusiness. 

The enormous multi-trillion-dollar budget bill is a priority of Congress’ most progressive members, who are demanding its passage as part of a deal also to pass an infrastructure bill already passed by the U.S. Senate with bipartisan support. 

A budget bill that is too large in size and scope, however, will face a difficult path in the Senate, where the Senate parliamentarian will determine how broad the bill’s policy provisions may be and where Sen. Kyrsten Sinema, D-Ariz., and Sen. Joe Manchin, D-W.V., have indicated their strong reticence to passing such a progressive bill. 

Sinema has already said she will not support a $3.5 trillion bill and on Monday Politico that she also opposes a Medicare prescription drug pricing scheme included in the bill. 

Arizona job creators are opposed to the bill’s many tax increases, including increases in the personal and corporate income tax rates, as well as tax increases on foreign earnings and on savings and investment and more. The bill also limits deductions taxpayers rely on to reduce their overall tax exposure. 

“This bill includes several policies that will harm small businesses,” said Chad Heinrich, Arizona state director for the National Federation of Independent Business. “Whether it’s through the elimination of stepped-up basis, limiting the Small Business Deduction, or increasing taxes on small corporations, this legislation will weaken and damage small businesses in Arizona and throughout the country. By hitting small businesses at this vulnerable time, this legislation will result in fewer jobs and less work hours for employees and reduced investment in small businesses which will lead to less economic growth.”

Buckeye Valley С��ñֱ��app of Commerce President and CEO Deanna Kupcik said the bill would result in higher costs to utility ratepayers. 

“As we said in our letter, because utility providers are regulated by the Arizona Corporation Commission, they must pass along the increased costs resulting from the corporate rate increase directly to consumers,” Kupcik said. “That means more dollars off the bottom line of Arizona businesses large and small.” 

If and when a bill passes the House, it will head to the Senate, where it will be considered under that chamber’s reconciliation rules, which means only a simple majority of 51 is needed for passage, rather than the usual 60 votes required to end a filibuster.

“That (Senate Majority Leader) Chuck Schumer is hoping to jam this through the Senate using reconciliation tells you all you need to know about what’s included in this bill,” Arizona С��ñֱ��app President and CEO Danny Seiden said. “A bill that affects so many aspects of the U.S. economy deserves bipartisan consideration and support, which this legislation is sorely lacking. We thank Sen. Sinema for making clear to the White House that this bill is seriously flawed.”  

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The board of directors of the Health System Alliance of Arizona on Thursday announced that Brittney Kaufmann would be the organization’s new chief executive officer.

The HSAA represents the largest health systems and employers across the state, including Abrazo/Tenet Health, Banner Health, Dignity Health, HonorHealth and Northern Arizona Healthcare. The systems together provide 80% of hospital-related care in Arizona.

“We are excited to welcome Brittney to the Health System Alliance of Arizona as the new CEO,” HonorHealth CEO and HSAA Chairman Todd LaPorte said. “Brittney’s public policy, government relations and management experience will be a significant benefit to the Alliance and Arizona’s health care community. Our health systems have been at the forefront of the global pandemic, and it is critical that as an Alliance we communicate with state and local leaders the importance of a robust heath care delivery system. We look forward to working with Brittney as we strengthen the state’s health care infrastructure and meet the healthcare needs of a growing Arizona.”

Kaufmann is a political affairs and public policy veteran. Currently the associate vice president for government affairs & community relations at the Arizona Board of Regents, she’s also held senior leadership roles at the Arizona С��ñֱ��app of Commerce & Industry and various campaigns.

“I am honored to be named the new chief executive officer of the Health System Alliance of Arizona,” Kaufmann said. “In addition to providing world-class care, Arizona’s health systems are key economic drivers in our state employing thousands of Arizonans with high-paying, quality jobs. Now more than ever, we must prioritize enhancing Arizona’s health care infrastructure and continue to innovate and build on the successes of our health care system.”

HSAA members throughout the pandemic have worked collaboratively on the statewide response to COVID-19, including the Arizona Surge Line to provide critical care consultation and load balance admissions of patients, and in distributing the lifesaving vaccines.

“The HSAA is fortunate to have someone of Brittney’s policy and political acumen as its new leader,” Arizona С��ñֱ��app President and CEO Danny Seiden said. “The past year has demonstrated how critically important our health systems are not only to our health and wellbeing, but to our economy and quality of life. The С��ñֱ��app looks forward to continuing to work with the HSAA with Brittney at the helm as together we promote public policy that ensures we have an environment that encourages the growth of this indispensable sector.”

HSAA members’ total economic impact is an estimated $29.8 billion. In 2018, Arizona hospitals provided $808.7 million in state and local tax revenues and generated 184,969 jobs, or approximately 6.5% of the state’s workforce.

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A bill is currently being discussed in the Senate that would not only impose dangerous alterations to over 85 years of labor law, but is also a series of reckless policies that would favor unions at the expense of employers and the economy. 

The proposal in question is the (S. 420/H.R. 842). Proponents of the PRO Act claim it would “,” but a closer look at the proposed legislation illustrates it only ensnares employers in unrelated labor disputes and would severely damage Arizona workplaces and competitiveness.

Right-to-Work Elimination

A bipartisan research firm, recently conducted , and the results reveal serious concerns Americans have about the PRO Act.

Among the litany of bad ideas within this proposed legislation would be the effective repeal of right-to-work protections that currently exist in 28 states, including Arizona.These right-to-work laws provide assurances to employees that they do not have to pay labor union dues in order to keep their job. According to the poll, this specific issue alone was a serious concern for. Moreover,, “these results did not vary much based on party either: 68 percent of Democrats, 65 percent of Independents, and 74 percent of Republicans said they had concerns over repealing right-to-work laws.”

Currently, employees can elect not to join a labor union at their workplace — it is entirely their choice. The PRO Act would change that and allow unions to disregard established state law and collect dues from employees who have decided to opt out of a union. Additionally, in a state without right-to-work laws, an employer would more than likely be required by the labor contract to terminate an employee who refuses to pay union dues. This is why more and more states have adopted right-to-work laws.

“If the PRO Act were to pass, it would do tremendous damage to Arizona’s workplaces and its overall competitiveness,” said David Martin, President of the Arizona chapter of the Associated General Contractors in a С��ñֱ��app article last month. “We’re so fortunate to have a right-to-work law in Arizona that ensures that the decision whether to join a labor union is left up to the employee. Our workplaces are largely free of hostility and intimidation. We want to keep it that way.”

Revival of the card check, eliminating secret ballots

The PRO Act will also undermine the use of secret ballot elections. Instead, allowing labor unions to use a “card check” where workers would sign a card to authorize a union rather than privately voting a ballot. These secret ballot elections, which are overseen by the National Labor Relations Board, provide protections to workers from coercion and/or intimidation by either the labor union or the employer.

According to the poll, this specific issue alone was a serious concern for. Moreover,, “these results did not vary much based on party either: 68 percent of Democrats, 65 percent of Independents, and 74 percent of Republicans said they had concerns over repealing right-to-work laws.”

The potential for union organizers to abuse this information in order to pressure workers is concerning. Workers could become subject to coercion and intimidation within their workplace, home, and out with their family. It’s not clear how this “levels the playing field and brings more fairness to working Americans”.

Economic Impact

Some might not oppose this proposed act at first glance, but many American workers would reconsider if they knew long term it would hurt their jobs and their wallet.

Unions’ demands for mandated wage packages and stringent staffing rules would effectively kneecap the competitiveness of American companies.

This fact is a large reason unionization rates in the country have., “The number of wage and salary workers belonging to unions, at 14.3 million in 2020, was down by 321,000, or 2.2 percent, from 2019.”

If the PRO Act really were pro-worker, more Americans might support it. But the recent polling data is revealing. American workers don’t want dollars from their paychecks diverted to labor unions, and they don’t want to stifle job growth, especially in a post-pandemic economy. Let’s hope Arizona Senators Kyrsten Sinema and Mark Kelly and the rest of the Senate are paying attention. For more information on the PRO Act click .

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have found wide support among Americans for raising the federal minimum wage to $15 an hour. A from national Democrats would gradually raise the minimum wage from $7.25 to $15 by 2025, with roughly a $1.50 increase every year. 

A from the nonpartisan Congressional Budget Office argues that increasing the minimum wage to $15 would reduce poverty and benefit millions of low wage workers. However, it also illustrates that it could add to the federal deficit and would result in the cutting of overall employment.

Supporters

Supporters of the minimum wage increase continue to highlight the Congressional Budget Office’s findings about poverty reduction. The CBO estimates that an increase in the federal minimum wage would lift , as well as increase incomes for 17 million Americans. 

32 million people would benefit from the proposed minimum wage increase. The majority of those affected would be substitute teachers, nursing assistants, food preparation workers, and grocery store employees. With the new minimum wage in place, the average worker affected by the increase would be earning an additional $3,000 a year.

Supporters of this increase maintain that this is beneficial for the economy as these low wage workers will on local business and services. Ben Zipperer, an economist and author at EPI, “This injection of wages will help stimulate the economy and spur greater business activity and job growth.”

Opposition

The opposition to increasing the federal minimum wage argues that such a policy would increase unemployment and damage the economy. 

While the CBO says increasing the minimum wage would lift 900,000 out of poverty, according to the same CBO report. The report also notes that by 2025 half of the 1.4 million jobs lost would have dropped out of the labor force entirely. Additionally, a study done by the found that higher minimum wages tend to disproportionately benefit skilled or more experienced workers. 

The CBO report also highlights that, taking into account the complete range of revenue and spending effects, the minimum wage increase would also increase federal deficits to $54 million over the course of 10 years. This runs contrary to that a higher minimum wage would actually save the government money, as this increase in wages would reduce the demand for other government support programs. 

Overall, the CBO showed that a $15 minimum wage would “reduce the nation’s output slightly through the reduction in employment and a corresponding decline in the nation’s stock of capital.”

Larry Kudlow, former director of the National Economic Council in the Trump administration, , “My view is a federal minimum wage is a terrible idea. Idaho is different than New York. Alabama is different than Nebraska. That is why the federal minimum wage doesn’t work for me.”

Small business

Raising the minimum wage brings about a vast amount of concerns for small businesses. 

In a city such as Seattle, evidence shows that the increase does not always bring about its intended outcomes. 

When that city moved to a, it resulted in workers being given fewer work hours and a $125-a-month pay decrease because of the hours lost. Additionally, it resulted in a in the amount of low-wage jobs available to workers. 

, “A higher minimum wage reduces the family income of business owners to the extent that firms’ profits are reduced. Those losses in business income are biggest in the first years after a higher minimum wage is introduced. Real income is also reduced for nearly all people because increases in the prices of goods and services weaken families’ purchasing power.” 

The CBO study also says that the reduction in business income would result in higher prices as higher labor costs were absorbed by business owners and passed on to the consumers. 

Unemployment concerns

Increasing the minimum wage will likely for low skilled workers. 

According to the , half of the working population in 20 states earned less than $18 per hour in 2019. Additionally, in 35 states the median hourly wage was less than $20. In 47 states, 25% of all workers earned less than $15 an hour. Setting a minimum wage so close to the median wage would effectively price many workers out of the labor market, , Director of Economic Policy Studies at the American Enterprise Institute. 

Inflation

Increasing the minimum wage could fuel an increase in prices on consumer goods, thus. Increased prices typically correspond to an increase in the cost of living, which can and will negatively impact workers. 

When raising minimum wage, there are often two schools of thought when it comes to whether and how to index the hourly wage: index the wage to price inflation to guarantee that minimum wage will always have the same amount of purchasing power, or index to the increase in the median wage. 

, the 2021 Democratic proposal initiated in the House, calls for the latter in an attempt to further distribute any wealth generated by the economy. However, by the time the nation would reach the $15 minimum wage in 2025, inflation would likely have knocked the actual purchasing power of that . This would mean that the minimum wage would have to be set at $18.87 to reflect the original request for $15 an hour, if it were to be the same value as $15 today.

The , rolled out by Republicans Sen. Mitt Romney and Sen. Tom Cotton, provides an alternate approach to raising the federal minimum wage. Their bill would increase the minimum wage to $10 an hour over four years and tighten enforcement on hiring undocumented workers. This plan would also delay increasing the minimum wage until after the pandemic is over.

While the stimulus package no longer includes the $15 minimum wage provision, the controversy is far from over. There are other means by which supporters are currently trying to achieve an increase in the mandated hourly wage. The Protecting the Rights to Organize Act has provisions in it that would raise the minimum wage to $15 as well as other aspects being championed as workers’ rights provisions. 

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Arizona Latinos account for nearly 30% of our state’s population according to the. Of that 30%, 24% are eligible voters. So, what does this mean for the Latino vote in Arizona, and how did that contribute to the state flipping blue on the presidential ballot for the first time since 1996? 

Latinos historically tend to vote Democrat, but in recent years we have seen an from the Latino community, specifically in Texas and Florida. So why is Arizona the exception?  

Comprehensive analyses of Arizona’s voter demographics will take months to surface, but based on polls from and other national news sources, Biden won the Arizona Latino vote. However, what is more important is that his margins in these communities seems to have narrowed. 

The most prominent election issue Latinos cited was immigration. Eduardo Sainz of Mi Familia Vota, a grassroots organization that promotes the Latino vote, immigration was his greatest motivation for this year’s election. However, an overlooked motivation was concern for family.  

Many Latino voters in Arizona cast their votes based on past experiences living in the state, and  as an example of why they voted blue this november. This election needs to serve as a lesson for those seeking the Latino vote; last-minute outreach efforts, pandering, and symbolic efforts do not work with most of the state’s Latino voters. 

, in 2020 the Latino population surpassed the Black population as the largest non-white voting group. Given this data, Latinos want more representation within and outreach from the major political parties.  

Arizona had a record turnout among Latinos, but more specifically Maricopa County’s largely Latino precincts. These precincts, however, were not made up of the consistent Democrat turnout one might expect. The Arizona Republic released an that illustrated the fact Donald Trump performed better this year in Maryvale and South Phoenix then he did previously. It is worth noting that he lost in these precincts by considerable margins, but nonetheless slimmed his margins among these communities. 

Leading up to the election, to Arizona in an attempt not only to rally his base but also to win over our state’s conservative Latinos who have helped elect Republicans in the past. 

Latino organizers within the state that Democrats do not realize the power in community-centric organizing. What politicians and the major political parties must realize is that in order to win the Latino vote there needs to be an understanding that Latinos in Florida, California, New Mexico, and Arizona are all different and have different experiences. 

An accurate understanding of Latino voters in Arizona has to be based on more than just the Latino communities in other states like Florida. As such, the same strategy employed in one area will not work in another. In this election both parties made the mistake of assuming that what appeals to Latino voters in California or Texas, will work here in Arizona.

Diego Píña is an undergraduate at Arizona State University and a Junior Fellow with the Arizona С��ñֱ��app Foundation.

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In 1996, the voters of Arizona passed an initiative measure legalizing the use of medical marijuana in the state. After receiving a 65% green light from voters, the state Legislature repealed the initiative. In a feat of democratic representation, the legislative action taken was rebuked at the polls in 1998 via a “veto referendum” (referred to as Proposition 300) which voided the Legislature’s amendments.

In response to what some viewed as legislative encroachment, Arizona voters carried Proposition 105 in 1998, also known as the Voter Protection Act. This proposition amended the state Constitution to put strict restrictions on the Legislature’s ability to amend or repeal voter-enacted measures. 

The Voter Protection Act also put restrictions on the governor’s ability to make changes to the ballot initiatives once enacted.

When looking at the upcoming election, it’s important to take this into consideration, especially when assessing Proposition 208, better known as the Invest in Education Act. 

Prop 208’s devastating consequences

As of 2020, the highest individual income tax used in Arizona was 4.5% on single filers reporting over $159,000 in income, and $318,000 for joint filers. Prop. 208 proposes an additional 3.5% on income tax filings above $250,000 for single filers and $500,000 for couples, resulting in a new 8% marginal tax rate. 

Proposition 208 affects Arizona small businesses that are organized as pass-through entities, such as sole-proprietorships, partnerships, LLCs, and S corporations. Taxes on these business’ profits are paid via the owner’s personal tax return. 

If Proposition 208 were to pass, it would disproportionately burden Arizona small businesses and deprive an economy in desperate need of oxygen. The Goldwater Institute, a leading Arizona public policy think tank, outlined some of the initiative’s disastrous consequences. Prop. 208 will cost Arizona:

• 124,000 jobs,
• $2.4 billion in local and state revenues,
• small business growth.

These policy worries aside, the utter lack of any possibility of recourse or amendment if Prop. 208 were to pass poses a larger risk yet. Voters and their elected representatives in government have little ability to change course should it pass, no matter its cost on Arizona workers, families, students, and teachers.

Voter Protection Act

Well intentioned, the Voter Protection Act now poses a threat of silencing voters, not protecting them.

Even more troubling, the language of Prop. 208 stipulates that any lost state revenue will result in cuts to other programs. Programs potentially on the chopping block include child protective services, public safety funding, and higher education spending.

Should Proposition 208 pass and negative unintended consequences result, voters won’t be able to work with their elected representatives to address those consequences. Arizonans will be stuck with a state budget that reflects the will of the out-of-state special interests bankrolling the proponents’ campaign, not the needs of the state.

While the Arizona initiative process had its shortcomings prior 1998, we must now look beyond 2020 to come together and stop approaching 21st-century governance with old tools.

Reforms should be considered to the Voter Protection Act. In the meantime, let’s come together and defend our state’s path to recovery. Let’s vote no on 208.

Diego Píña and Taylor Hersch are Junior Fellows at the Arizona С��ñֱ��app Foundation.

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Arizona voters are set to flock to the polls — or mail in their ballots — at this year. This surge in voter turnout comes amid a once-in-a-century pandemic that has taken the lives of more than 220,000 Americans and counting, and delivered tremendous economic turmoil.

It took years for the Great Depression to elevate domestic unemployment to near 20%. It took a month for the virus to bring unemployment from record lows hovering around 4% to just short of 20%.

Our economy is struggling, and not just in the abstract. Working- and middle-class folks are suffering as their wages are cut and the bills keep piling up. Students have been affected, too.

As a result of these socioeconomic conditions, students are cracking under the burden of mental, physical, and monetary pressures. USA Today, many students are simply choosing to drop out. This will have a sustained downward effect on future economic productivity and wage growth, something policymakers will have to contend with sooner rather than later.

At a time when Arizona’s economy needs an accelerant, some special interests are attempting to throw cold water on any chances of a recovery.

Here in the state of Arizona, teachers unions and out-of-state activist groups worked hard to get Proposition 208 on the ballot. Drafted in Portland, Oregon, Prop. 208 aims to dramatically increase income taxes and route the revenues to teachers and classrooms. Full of good intentions, 208 fails the test of good policy: results.

The initiative raises Arizona’s top income tax bracket by 77.7% — from 4.5% to 8% — to increase K-12 spending.Only 50% of revenues generated will even make it to classrooms and, even then, the exact allocation is specious since the definition of who’s eligible for funding is incredibly broad. Further, there is not a cent headed directly towards our state universities, save for 3% of revenues assigned to the Arizona Teachers Academy Fund. 

Worse yet, and critical to understanding the negative impacts of the proposition on Arizona students, the additional taxation applies to pass-through entities like LLCs, sole proprietorships, and more. This is primarily how small businesses, which employ 58% of Arizona private sector workers, are organized. Chances are, many of us will go to work for one of these job creators after we graduate.

It’s also not even clear if this tax would increase revenues at all. A published by the renowned Goldwater Institute concluded that Prop. 208 would cause Arizona to lose a “minimum of $2.4 billion in state and local tax revenues”.

In other words, Arizona voters are being asked to kneecap small businesses amid a public health crisis and economic disaster in order to deliver minimal results for students, families, and workers.

As college students, we’re all on board for increasing funding for education and ensuring that students, families, and teachers are fully accounted for. But this isn’t how we do it.

We are entering one of the worst job markets in decades. If Prop. 208 passes then small business will be crushed, wage growth will decline, and career opportunities will shrink. Don’t force us, the next generation of educated Arizonans, to move out of state after graduation. Now is the time to gas up and go, not slam on the brakes.

Sincerely, Arizona students

Joe Pitts is a sophomore at Arizona State University.

Jack Piekarz is a freshman at Northern Arizona University.

Alton Zhang is a sophomore at the University of Arizona.

Abhinav Kolli is a freshman at Duke University, registered to vote in his home state of Arizona.

Justin Groth-Roberts is a junior at Northern Arizona University.

Stephen Matter is a sophomore at Arizona State University.

Alyssa Kihoi is a senior at Arizona State University.

Matthew Martinez is a sophomore at Grand Canyon University.

Clay Robinson is a sophomore at Arizona State University.

Mackenzie Kirby is a senior at Northern Arizona University.

Allen El is a sophomore at the University of Arizona.

Cameron Decker is a sophomore at Arizona State University.

Taylor Hersch is a junior at Arizona State University.

John Touhey is a junior at Northern Arizona University.

Saular Rahimian is a freshman at Arizona State University.

Arjun Rondla is a sophomore at Arizona State University.

Jessica Carpenter is a senior at Arizona State University.

William Noll is a freshman at Arizona State University.

Cooper Ashton is a freshman at Arizona State University.

Ryne Bolick is a freshman at Arizona State University.

Frank Pauls is a freshman at Arizona State University.

Diego Píña is a junior at Arizona State University.

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