Arizona Gov. Doug Ducey joined Glenn Hamer, Arizona 番茄社区 of聽Commerce and Industry聽president and CEO, on stage for a Fireside Chat at the 番茄社区’s Legislative Forecast Luncheon last Friday. Ducey gave an exclusive preview of Monday’s State of the State address, confirming聽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.

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The Arizona 番茄社区 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 番茄社区 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.

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

鈥淎s 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鈥檚 harder than ever,鈥� she said.

New businesses and new residents 鈥� including employees, students and retirees 鈥� 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.

鈥淎nd there鈥檚 money to fight over: I don鈥檛 envy the job of the governor and the legislators who have to figure out how to spend those surplus revenues that we haven鈥檛 seen in a very long time,鈥� Anable said. 鈥淏ut don鈥檛 get me wrong; these are good problems to have, and I鈥檓 grateful for them.鈥�

The highlight of the luncheon was a fireside chat with Gov. Doug Ducey hosted by Glenn Hamer, president and CEO of the Arizona 番茄社区.

鈥淗ow鈥檚 the economy?鈥� Hamer asked to start off the discussion.

鈥淚t鈥檚 pretty good; it鈥檚 pretty good,鈥� Ducey said. 鈥淚t鈥檚 booming, and in addition to the growth that we鈥檙e seeing, I would say the biggest difference is our economy is diversified.

鈥淲e鈥檝e got more manufacturing jobs in the state of Arizona today than construction jobs, so this is all very positive,鈥� he said. 鈥淎nd I think the future is bright 鈥� blue skies ahead.鈥�

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

鈥淭he 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,鈥� he said. 鈥淭oday, we鈥檙e in a completely different position. We鈥檝e planned ahead.鈥�

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

鈥淲e鈥檝e been able to repeal a lot of regulations; we have not been able to repeal the law of economics,鈥� he said.

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

Ducey said the state鈥檚 reputation has also improved since the Great Recession, turning Arizona State University from 鈥渢he No. 1 party school in the country鈥� into 鈥渢he No. 1 most innovative university in the nation.鈥�

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

鈥淚f 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,鈥� Ducey said. 鈥淭oday, we鈥檙e seen as a jobs juggernaut, and we鈥檙e locking down companies and cutting ribbons and making announcements like never before. So, that reputation and brand of the state really matters.鈥�

The governor said he is looking forward to a productive legislative session in 2020 that is 鈥渂risker鈥� than normal.

鈥淲e want to give the appropriate time to conduct the people鈥檚 business, but I don鈥檛 think we have to spend more time than is necessary,鈥� he said.

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

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

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 鈥� 1,085 as of the State of the State address 鈥� to have 鈥渢he legacy discussion.鈥�

鈥淚f 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鈥檚 what we鈥檙e going to kick off on Monday afternoon,鈥� he said.

The luncheon ended with a panel discussion between four Arizona legislators, hosted by Arizona 360鈥檚 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.

鈥淭his is an issue that, when we鈥檙e knocking on doors throughout Arizona, the people that we talk to, no matter who they are 鈥斅爓hether 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 鈥斅爐hey tell us that they want to see significant investments in public education, and that is the message we鈥檙e taking back,鈥� Fernandez said.

Speaker of the House Rusty Bowers, R-Mesa, said the state鈥檚 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.

鈥淏ut 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,鈥� he said. 鈥淪o, getting the jump on that is always important to us.鈥�

Bowers said the way additional CTE funding is structured is 鈥渧ery critical鈥� 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.

鈥淭here are needs that are enormous, and we have to stop the cuts in order to start to attend to those needs,鈥� 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 鈥� especially K-12 鈥� and right behind that is infrastructure.

鈥淲e 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,鈥� 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.

鈥淚 think the number was somewhere close to $200 million that they want, and we know that investing in education is huge; it鈥檚 very important,鈥� Fann said.

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

鈥淲e 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,鈥� Fann said. 鈥淲e鈥檙e going to be very, very careful about figuring out how to spend that money.鈥�

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Nearly 70 organizations and businesses from across Arizona sent a letter this week to the state鈥檚 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.

鈥淭rade with Mexico and Canada is a critical component of Arizona鈥檚 economic competitiveness,鈥� the letter read. 鈥淎lmost 50% of all Arizona exports go to Mexico and Canada, and more than 228,000 Arizona jobs rely on this trade.鈥�

In addition to large business advocacy groups like the Arizona 番茄社区 of Commerce and Industry, the Greater Phoenix 番茄社区 and the Greater Phoenix Economic Council, the letter was signed by local chambers of commerce including those from Lake Havasu, Gilbert and Glendale 鈥� to name a few 鈥� as well as private businesses such as UPS, Tucson Electric Power and the Phoenix Suns.

The United States 番茄社区 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.

鈥淯SMCA is critical to our economic future because it will preserve and strengthen U.S. trade ties to Canada and Mexico,鈥� the read.

鈥淢ore 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.鈥�

The U.S. 番茄社区 sent an earlier version of the letter in July.

Thomas J. Donahue, CEO of the 番茄社区, issued a statement earlier this month following news that the Trump administration and House Democrats reached a to move forward with USMCA.

鈥淲e thank U.S. Representative Robert Lighthizer, House Speaker Nancy Pelosi, House Ways and Means Chairman Richard Neal, and members of the House Democrats鈥� Working Group for their leadership and hard work,鈥� Donahue said in the statement. 鈥淲e 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聽farmers, manufacturers, and small businesses. We look forward to reviewing the details of the deal with our members and assessing their impact.鈥�

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

鈥淯SMCA will also modernize North American trade rules,鈥� the letter continued. 鈥淔or 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鈥檚 updated trade rules in areas such as digital trade, services, and non-tariff barriers promise substantial benefits.鈥�

Arizona organizations that signed the letter include: the Arizona 番茄社区, 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. 番茄社区’s full coalition letter and a list of its signatories, .

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The Arizona Manufacturers Council held its inaugural Made in Arizona manufacturing 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鈥檚 thriving business economy attracts both big and small manufacturing companies.

鈥淔rom technology and food products to aerospace, defense and beyond, more of the finest products in the world are proudly being made in Arizona,鈥� Ducey said. 鈥淚 want to send the message to the world鈥檚 manufacturers who are searching for the best place to build their products: Arizona is the place for you.鈥�

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.

鈥淭he 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,鈥� AMC Executive Director Allison Gilbreath. 鈥淭his Made in Arizona tour gave us a small glimpse into the exciting things that are happening in Arizona鈥檚 thriving manufacturing sector. From kitchen appliances to helicopters, Arizona is on the cutting-edge of manufacturing technology, creativity and quality.鈥�

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

鈥淚 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,鈥� Osborne said. 鈥淭he 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.鈥�

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鈥檚 celebration of Manufacturing Month, which also included the group鈥檚 in early October.

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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鈥檚 retirement crisis by helping workers of all ages save for their futures, according to the senators.

鈥淭his 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,鈥� 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.

鈥淲e encourage the Senate to take action on the SECURE Act as soon as possible,鈥� the letter continued. 鈥淒oing 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.鈥�

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, .

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