Arizona Gov. Doug Ducey yesterday delivered the final State of the State address of his gubernatorial tenure. The speech hit on a number of issues he would like to take on in the 2022 legislative session.

The governor started with a reflection on the past seven years that he鈥檚 spent in office and the wins that he鈥檚 achieved. 

鈥淭he state of our State is strong and we are poised to do what everyone in public service strives for: to leave it stronger than we found it,鈥� he said. 

Tax cuts, border security, and water security were among the key points that the governor addressed on Monday. 

Regarding water security, Gov. Ducey said he wants to, 鈥渟ecure Arizona鈥檚 water future for the next 100 years.鈥� 

Ducey proposed a historic $1 billion investment in securing Arizona鈥檚 water future by focusing on water stewardship infrastructure and technology, as well as on the state鈥檚 relationship with Mexico. Ducey鈥檚 plan includes a desalination plant relying on water from the Sea of Cortez.

Referencing his executive budget that will be released on Friday, he said he wants to accelerate the widening of Interstate 10, a critical highway for freight mobility and the economic success of the state. 

The proposed investments come from the budget surplus that Arizona is experiencing that 鈥渉as been fueled by historic economic growth,鈥� he said.

Throughout the session, the governor said he aims again to  cut taxes to continue fueling the growth in the economy. In 2021, the Legislature passed and the governor signed a tax reform package that will result in the country鈥檚 lowest flat tax rate, at 2.5%.

Along with the tax reductions, the governor touted the $169 million that businesses have saved throughout the moratorium period on new regulations. His goal is to have his regulatory reforms made permanent through statute. 

On top of tax cuts, one of the biggest focuses of the speech was education and investing in the workers and jobs of the future. Gov. Ducey鈥檚 budget will call for a 鈥渉istoric investment in community colleges.鈥� Additionally, there will be proposals for a college tuition waiver for spouses of veterans and a catch-up program for students who have fallen behind academically due to Covid-19. 

Governor Ducey made it abundantly clear that while it might be his last session, he has no expectation of it being slow or easy. 

鈥淕overnor Doug Ducey today made clear that he has no plans to coast through his last legislative session,鈥� Arizona 番茄社区 of Commerce & Industry President and CEO Danny Seiden said. 鈥淔rom Day 1, this governor has been committed to reducing the size of government, stopping the creep of the regulatory state, and ensuring our tax code attracts job creators. In 2022, Gov. Ducey will only build on his outstanding record of accomplishment that has turned Arizona鈥檚 economy into one of the country鈥檚 strongest.鈥�

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Arizona Gov. Doug Ducey on Tuesday issued a positive report of Arizona鈥檚 progress in building its global brand during the 16th Annual International State of the State hosted by the .

鈥淲e鈥檙e following what turned out to be one of the most challenging years of our lifetime. Twenty-twenty was tough on kids, tough on our healthcare workers, our first responders, our businesses. I think it鈥檚 fair to say that Covid-19 spared no one,鈥� Gov. Ducey said during his address. 

But after taking a balanced approach to reopening the economy and moving aggressively to get citizens vaccinated, Arizona is roaring back to normalcy, he said. 

Jobs lost last year are now 鈥�100 percent鈥� recovered. Industries and people are pouring into the state, said Ducey, who was joined by former U.S. Senator Jon Kyl at the event, which was sponsored by Freeport McMoRan.

About 260 viewers tuned into this year鈥檚 address, part of PCFR鈥檚 mission to help grow Arizona鈥檚 influence on the world stage. 

Ducey ticked off a long list of the state鈥檚 accomplishments in making Arizona a top contender on the global stage including: 

Successful vaccine rollout 

While 2020 was a year of hardship and grief for many Arizonans, 2021 is 鈥渢he year of the vaccination,鈥� he said. 

As soon as vaccinations started to become available, mass vaccination and other sites were opened statewide. To date, 4.8 million doses have been administered. The biggest  site, , has given more than 7,000 doses a day. Last week, the stadium reached the 800,000 mark. Now, vaccination sites are moving indoors as the summer approaches. State Farm鈥檚 operation is moving down the street to the nearby . 

Supply is close to outstripping demand, said Ducey, who encouraged those who have not been vaccinated to get one now.  

鈥淲e are on the last lap of this marathon right now. I think it鈥檚 important that we stay vigilant. It鈥檚 important that we stay responsible.鈥�

Full recovery of jobs lost  

Before the pandemic and today, Arizona remains near the top of the nation for personal income and population growth. Arizona has now recovered 100 percent of the jobs lost over the past year. 

Much of that can be contributed to a 鈥渃onsiderable amount鈥� of companies relocating and expanding in the state. Companies like Amazon, Red Bull, NXP Semiconductors, Zoom, Electrica Mecanica, Align Technology, and on and on. 

New industries have created more than 22,000 new manufacturing jobs alone. The state projects another 300,000 jobs to arrive by next spring. 

Global hub for semiconductor industry 

Arizona is becoming a magnet for the semiconductor sector. In the past year, several companies have announced expansion or relocation projects. Two of the largest are:

– Intel announced a $20 billion expansion of its manufacturing operations in Chandler, the largest private sector investment in the state鈥檚 history. The investment is expected to create 3,000 new high-tech, high-paying jobs, and 3,000 construction jobs and support an estimated 15,000 indirect jobs.

– Taiwan Semiconductor Manufacturing Company selected Arizona for its new U.S. advanced semiconductor factory. The project will create more than 1,600 new high-tech jobs and generate thousands of additional jobs in the state for suppliers and other companies within the semiconductor industry. TSMC鈥檚 total spending on this project, including capital expenditure, will be approximately $12 billion from 2021 to 2029.

International partnerships expanding with new trade offices  

Arizona continues to strengthen its relationship with two of its top trading partners, Canada and Mexico. It also is building strong relationships with many other countries like China, Germany, Japan, Malaysia, and Taiwan. 

Over the past couple of years, it opened three new trade offices in Chihuahua and Guanajuato, Mexico, and Tel Aviv, Israel. These trade offices are helping business expansion in healthcare, aerospace, defense, auto and other sectors. 

Educational excellence 

Since 2015, the state has added an additional $6.4 billion to education and teacher raises. Of that, $400 million was added during the pandemic. Prior to the pandemic, math and reading scores were improving. 

Moving forward, Ducey is focused on helping Arizona students, particularly low-income students, catch up from the pandemic disruptions. The state is targeting funding for broadband for rural areas and extra services for students who need it most. 

鈥淪tep one is we鈥檝e got to get our kids caught up. It’s a very special kid who can learn via Zoom, especially in the younger grades.鈥�

Healthy water supply, reliable electricity, rainy day fund 

In conclusion, Ducey touched on other reasons Arizona is becoming a top competitor for economic development on the international front. Planning and investment for future water supplies, affordable and reliable electricity, and a state budget with a large rainy day fund.

鈥淲e鈥檝e made Arizona a better place and a place where anyone can build their life and career and chase down their definition of the American dream.鈥�

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Governor Doug Ducey鈥檚 seventh State of the State address was delivered under the most difficult circumstances the state and nation have faced during his tenure as governor.

The January 6 invasion of the United States Capitol, something that hasn鈥檛 happened since 1814 when the U.S. was at war with Britain, shocked all Americans.

The country is in the grips of a pandemic that has spared no state its wrath, including Arizona. More than 10,000 Arizonans have lost their lives to this terrible disease.

The task before the governor was to convey a message that all Arizonans, regardless of political affiliation, age, or zip code could unite around. He delivered. The governor used his speech to present a thoughtful, soberminded policy response to the pandemic that has affected every facet of life in Arizona.

Vaccines

Job 1 is to ensure the vaccines get into the arms of as many Arizonans as quickly as possible. The state is rolling out the vaccine to sites urban and rural, including a massive 24/7 site at State Farm Stadium in Glendale. Thanks to the healthcare professionals whose work over the past year has been nothing short of heroic, as many as 6,000 Arizonans each day will get a jab in the arm at that location alone (including my mom, who just got her first dose).

Liability protections

The governor and legislative leaders are rightly focused on restoring Arizona鈥檚 health. But there are some, unfortunately, who would choose to use this period as a chance to make a quick buck.

The 番茄社区 agrees strongly with Gov. Ducey that this statewide emergency shouldn鈥檛 be leveraged by trial lawyers to file frivolous Covid exposure lawsuits. Employers large and small, cities and town, schools and universities, hospitals and healthcare providers, and nonprofits that are responsibly adhering to all applicable public health protocols should be lauded, not punished. We鈥檒l be leading the coalition to ensure a smartly tailored liability protection bill gets to the governor鈥檚 desk, just as other states have done with bipartisan support.

Economic recovery

Not only is the governor focused on restoring Arizona鈥檚 health, but he also wants to ensure Arizona bounces back strongly from the pandemic-induced economic downturn.

We鈥檙e in better shape than much of the country, but there is still work to do. Our important hospitality sector, for example, is still struggling. Small businesses have been particularly hard hit. Not only are they grappling with the fallout of the pandemic, but many of them could be hit with one of the highest small business taxes in the country due to the narrow passage of Proposition 208 in November.

The new tax is facing a legal challenge due to its apparent violation of the revenue expenditure limit in the state constitution, something the nonpartisan Legislative Council identified before petition signatures were gathered. If the tax stands, though, it will only reinforce the need to 鈥渢hink big鈥� on tax reform this year, as the governor said.

Just as the governor and the Legislature have been able to count on the Arizona 番茄社区 to lead the business community in previous efforts to enhance Arizona鈥檚 competitiveness, we鈥檙e ready to roll up our sleeves on tax reform in 2021.

Education

The pandemic has also dramatically affected Arizona鈥檚 school-aged kids. From Kindergarten to higher education, too many students haven鈥檛 been inside a classroom since last March.

Some families have been able to adapt with online learning or have pivoted to charter schools, private schools, homeschool pods, or have taken advantage of other options on the state鈥檚 school choice menu. For many families, however, the pandemic鈥檚 effect on their child鈥檚 education has meant nothing but frustration and worry.

The governor wants to help, and so do we.

In 2021, we鈥檙e ready to partner with Gov. Ducey and the Legislature to bridge the digital divide exacerbated by the pandemic, as well as ensure there are resources to support kids who鈥檝e fallen behind academically. We look forward to building on our record of a relentless pursuit of increased funding for education as evidenced by our support for initiatives like the 20×2020 teacher pay raise plan, Proposition 123鈥檚 infusion of $3.5 billion from the state Land Trust into the K-12 system, the Results Based Funding plan to reward schools producing outstanding results, and more.

As a result of our efforts and the hard work of Gov. Ducey and the state Legislature, Arizona is now spending more on K-12 education on a per-pupil basis from all sources than at any time in the state鈥檚 history.

Like Gov. Ducey, what we cannot support, however, is an erosion of school choices. Due to the educational disruptions wrought by the pandemic, many parents are taking advantage of the choices Arizona affords for the very first time. These options have proven a lifesaver for some families. We should increase Arizona鈥檚 choices, not roll them back. For example, the governor has identified transportation an area ripe to help increase choice.

Similarly, we will continue to champion accountability for educational dollars. Employers have demonstrated a willingness and desire to back increased funding for education, but they expect results and wise stewardship.

The governor and Legislature begin their work in 2021 amid significant challenges. But thanks to the deployment of lifesaving vaccines and with more in the pipeline, each day is a little bit brighter. No matter what happens this legislative session from a policymaking perspective, let鈥檚 heed Gov. Ducey鈥檚 counsel to approach this year with a spirit of unity and compassion.

Glenn Hamer is president and CEO of the Arizona 番茄社区 of Commerce and Industry. 

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Getting Arizona vaccinated, bringing students back up to speed academically and keeping the economy open were key tenets of Arizona Governor Doug Ducey鈥檚 message during his 2021 State of the State address Monday.

The governor called on citizens to continue guarding against the spread of the virus and to work together with 鈥渦nity, integrity and compassion.鈥�

鈥淚n so many ways, 2020 was an extremely tough year that brought out the best in us, and yet, sometimes, despite all, our best wasn鈥檛 enough,鈥� the governor said on opening day of the state Legislature. 鈥淚t鈥檚 a vicious virus taking some 10,000 lives in our state alone and it鈥檚 left nothing but grief in its path.

鈥淲ith the vaccine, however, we aim to cut off that path as quickly as possible.鈥�

Ducey said that healthcare workers, teachers and police officers were being vaccinated as he spoke. He announced that State Farm Stadium in Glendale opened Monday as a vaccine site and will continue to be open 24/7 to administer vaccines as they are rolled out in phases according to patient risk. Above all, everyone must continue to take precautions to stop the spread of the deadly virus so the state can return to normal.

鈥淎s for our work here, all agree the pandemic remains the most significant threat we face, and it will require vigilant attention for months to come. The risk is still serious, and so is the pressure on our hospitals and medical personnel.鈥�

During the 22-minute speech, Ducey touched on several issues he is focused on for 2021. 

Keep economy open

Arizona already is doing better than the rest of the nation, in part because he didn鈥檛 enforce widespread lockdowns, Ducey said. 

鈥淔or Americans tired of living in states with high taxes, heavy regulation, low-growth, and fading opportunity, Arizona has become the destination,鈥� Ducey said. 鈥淎nd they鈥檙e still coming to Arizona in 2021 because during the pandemic, we never took our small businesses or their workers for granted. 

鈥淎s bad as things got, we鈥檙e recovering fast. New businesses and residents have been added by the thousands. At this time last year, we were ahead of 45 other states in job creation and personal income growth. Today, we鈥檙e still top-five. But some Arizonans are struggling. And it鈥檚 got to be our priority to help them with a growing economy and more jobs.鈥�

Proponents of severe lockdowns may be well intentioned but they fail to acknowledge other troubles that come into play with such drastic action, he said. 

鈥淧eople still have bills to pay. Children in need of schooling. Businesses to run and employees who depend on them. There are lots of men and women who don鈥檛 have the option of remote work and don鈥檛 receive uninterrupted direct deposits. To make a living they have to show up somewhere.

鈥淚f we鈥檙e really all in this together, then we have to appreciate that for many families, lockdown spells catastrophe. Zero income. Inability to make a payment. Eviction. Foreclosure. And real personal anguish.鈥�

More resources for education

Ducey emphasized the need to ensure students haven鈥檛 fallen behind academically, particularly those of lower socioeconomic means. 

The governor said he will advocate for more resources in the state budget for items like expanded broadband infrastructure and access, more educational choices for parents, longer school days, summer school, one-on-one targeted instruction and tutoring. 

He will bring students back into classrooms as teachers are vaccinated. 

鈥淲ith every public-health professional, from Dr. Fauci and the CDC (Centers for Disease Control and Prevention) on down, saying that the safest place for kids to be is in school, we will not be funding empty seats or allowing schools to remain in a perpetual state of closure. Children still need to learn, even in a pandemic.鈥�

Lower taxes for all 

Tax reform is needed to find ways to lower taxes on businesses and individuals, the governor said. 

鈥淓very year I鈥檝e been governor, we鈥檝e improved income taxes in the taxpayer鈥檚 favor. We鈥檝e simplified the code, lowered all rates, protected them against inflation, and eliminated an entire tax bracket. In all of this, we鈥檝e proven that our government can fulfill every obligation, and answer the unexpected needs of a growing state, without raising taxes.鈥�

Having come this far, Ducey said he has no interest in Arizona following the 鈥渄epressing example鈥� of other states losing opportunity because they have raised the tax burden

Other issues: Covid liability protection, gaming, smaller state government

In the coming weeks, the governor said he will work with legislators on a variety of goals: protections for businesses and organizations from frivolous lawsuits related to Covid-19, a modernized gaming compact to bring more revenues to tribes and the state, and greater access to telemedicine. 

Other goals mentioned were better roads and bridges, continued leadership on water innovation, better training for law enforcement, criminal justice reform, and wildfire prevention. 

Ducey said shrinking the 鈥渇ootprint of government鈥� also offers cost savings. 

鈥淲ith remote working by many state employees, we also have the chance to further limit the size, cost and footprint of government,鈥� he said. 鈥淟et鈥檚 truly shrink government, by eliminating unnecessary state buildings and saving taxpayer dollars, so we can prioritize areas of need, like educating our kids, taking care of our sick, and keeping our neighborhoods safe.鈥�

鈥淧lenty of reasons to cheer鈥�

Business community leaders hailed Ducey鈥檚 agenda.

鈥淭oday鈥檚 speech gave us plenty of reasons to cheer,鈥� Arizona 番茄社区 of Commerce & Industry President and CEO Glenn Hamer . 鈥淭he agenda laid out by Gov. Ducey was full of items the 番茄社区 and job creators look forward to working on with him and legislators from both parties. We share his desire to close academic achievement gaps, to protect parents鈥� right to choose the best educational environment for their kids, to continue the economic recovery by reforming our tax code to encourage job growth, to prevent plaintiffs attorneys from leveraging the pandemic for financial gain, and to expand broadband, which is essential for our continued economic development and our students and schools.鈥� 

Working together with compassion and integrity 

Moving forward in a bipartisan manner with unity, integrity and compassion is extremely important right now, the governor said. 

So many Arizonans have been true heroes this past year, he said. Everyone must follow their lead.  

鈥淒espite everything 2020 threw at us, in the face of a global pandemic, everyday Arizonans have demonstrated the true state of our state鈥� from our frontline medical workers; teachers, moms and dads; public safety and first responders; small business people; Election Day workers; grocery store employees, and National Guard 鈥� we鈥檝e seen heroism, sacrifice, service and acts of kindness, large and small. The state of our state is not only strong 鈥� it鈥檚 resilient.鈥�

In closing, the governor called on the public to do it鈥檚 part: wear a mask, practice personal responsibility.

鈥淲ith resilience and compassion, we move forward, allowing nothing to get in our way, and showing in the end the best kind of unity there is 鈥� the unity of caring about one another.鈥�
For information about how vaccinations are being administered, go to: .

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Arizona Gov. Doug Ducey laid out a multitude of goals for 2020 that revolve around issues important to business and industry during his sixth State of the State address Monday.

Among his priorities? No new taxes. Stronger ties with Mexico. Innovation in water conservation and management. Broadband for rural areas. Workforce training. Highway expansion. And much more.

Ducey, whose tenure has centered around spurring economic growth and boosting the state鈥檚 鈥渞ainy day鈥� reserves to a whopping $1 billion, stated that businesses and citizens can expect more of the same this year.

鈥淲e got here by doing things our way. The Arizona way. And I鈥檓 here to tell you, you ain鈥檛 seen nothin鈥� yet,鈥� Ducey said as he addressed a crowd of lawmakers, civic leaders and others at the state Capitol to coincide with the opening day of the legislative session.

Building on state鈥檚 economic boom

The governor spoke for over an hour, laying out plans to increase funding for academic achievement for low-income children, pay raises for many state workers, increased mental health services and reduced government fees and 鈥渞ed tape.鈥�

He also touted Arizona鈥檚 successes.

The state now outshines most of the country in almost every venue, he said: 鈥淭he prime rate is dropping, school test scores are rising, and our debt is way down. Household incomes have hit a record high and our poverty rate has dropped faster than any other state in the nation.鈥�

Arizona already outshines rest of nation

Arizona now is in the top ten when it comes to jobs in transportation, technology, science and healthcare, Ducey said.

He highlighted keystones of his administration: eliminating regulatory red tape, reducing government fees and making Arizona the first state to grant universal recognition of out-of-state occupational licenses.

It鈥檚 no surprise why 300 people are moving here every day, he said.

鈥淥ther states and Washington, D.C. politicians may be focused on growing government. Arizona grows opportunity,鈥� Ducey said. 鈥淥ur population is surging, but the size of our government is actually shrinking.鈥�

Here are eight business takeaways from Ducey鈥檚 speech:

No new taxes

鈥淟et me reiterate what I鈥檝e said in five prior State of the State speeches and two inaugural addresses, because apparently it bears repeating. No new taxes. Not this session. Not next session. Not here in this chamber. Not at the ballot box. Not on my watch.鈥�

Investment in teachers, students and schools

鈥淚n total, we鈥檝e pumped $4.5 billion in new investments into Arizona schools. With our latest budget, that figure will rise to $6.6 billion. And we鈥檝e done all of this without raising taxes.

鈥淚n addition, an even larger investment in school counselors, cops on campus and school safety. A stronger focus on CTE (Career and Technical Education) and the trades. More money for the Arizona Teachers Academy and Teach for America. And a full, complete and accelerated restoration of flexible funding two years ahead of schedule.鈥�

Rural jobs

鈥淭here鈥檚 no shortage of new jobs in Arizona, but many vital jobs remain unfilled in our rural communities. So, we鈥檝e got a plan 鈥� a Rural Jobs Initiative.

鈥淔irst, tourism and state parks. There鈥檚 no place more beautiful to vacation than scenic Arizona, and with an infusion of new dollars, we’re going to work with Tourism Director Debbie Johnson to ensure the whole world knows it.

鈥淣ext, workforce. Small business is the backbone of our economy. So, we鈥檙e launching a partnership with Local First Arizona to strengthen small businesses, get rural Arizonans back to work and bolster our local economies.鈥�

Long term water planning

鈥淲e will continue to protect Lake Mead, the Colorado River, groundwater and our [agriculture] jobs. But we shouldn鈥檛 be dealing with this issue one generation at a time. We need a strategic ongoing effort to turn Arizona into the international capital for water technology.

鈥淟ook at all that Israel has done. Why not Arizona? We鈥檝e been a leader on water, and with this approach, we will continue to be an even stronger leader far into the future.鈥�

Improving infrastructure with I-10鈥檚 widening

鈥淭he Phoenix-Tucson corridor is an economic artery for our state, and it needs expanding. It鈥檚 time to accelerate completion of I-10鈥檚 widening 鈥� in both directions 鈥� between our two largest cities.

鈥淥ur budget puts the pedal to the metal with the construction of a new six-lane bridge over the Gila River. This replaces a 56-year-old bridge. 62,000 people drive over it every day. That鈥檚 23 million a year. So, let鈥檚 break ground ASAP.鈥�

Connecting rural Arizona to high-speed internet

鈥淩ural areas still lack high-speed internet. Let鈥檚 triple our investment in Rural Broadband Grants and also invest $50 million in Smart Highway Corridors to install broadband along our rural interstates.

“This will make our highways safer and smarter than ever before and pave the way to get all of rural Arizona logged on.鈥�

Filling labor gaps

鈥淎SU, U of A and NAU have also stepped up to fuel our economy, and we鈥檙e about to pour on the gas. [Arizona Board of] Regents Chair Larry Penley has proposed what he calls 鈥楾he New Economy Initiative.鈥�

鈥淚t鈥檚 an innovative approach that enhances our capacity to graduate more students for the critical jobs of today and tomorrow. It鈥檚 just the latest effort by our universities to solve problems and do it the Arizona way.鈥�

Eliminating government red tape

鈥淚鈥檝e issued a new Executive Order, with a new reform: If the government ever deems a new regulation absolutely necessary, it must first identify three others to eliminate. The result: New regulations will naturally mean less regulations.鈥�

Business community cheers

The Arizona business community leaders cheered the governor鈥檚 message of continued economic momentum.

鈥淪mall-business owners are thrilled to hear that despite record state revenues, our governor will not be going on a spending spree with our taxpayer dollars,鈥� said Chad Heinrich, the Arizona state director for the National Federation of Independent Business. 鈥淲hile states like our neighbor California and others like Illinois and New York continue to lose residents, Arizona is the No. 1 inbound state for a reason: Low taxes, reasonable regulations and a government that is open to small-business entrepreneurs.鈥�

Arizona 番茄社区 of Commerce of Industry President and CEO Glenn Hamer was equally enthusiastic about the governor鈥檚 message and his pledge to hold the line on efforts to overspend.

鈥淭he governor made clear that he is going to work to improve our state鈥檚 tax climate, while removing regulatory barriers to growth. Competitive tax and regulatory environments have been central to our economic growth,鈥� Hamer said. 鈥淲e share his commitment to strongly resisting measures that will reverse our economic progress.鈥�

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