We are nearing Fed rate cuts

Posted on by Michael Hicks

MUNCIE, Ind. — The past three months of economic data offer an increasingly clear picture to Federal Reserve policymakers wrestling with the moment to begin cutting interest rates. The next meeting to consider rate cuts occurs July 30 and 31. It is possible the Fed will cut rates at that meeting. Instead, it might hold rates constant until the September 17-18 meeting.

I prefer a July rate cut, with a couple caveats.

The Federal Reserve is tasked with controlling the supply of money by setting borrowing rates for banks and buying or selling government debt. By lowering borrowing rates and purchasing government debt, the Fed increases the money supply. That causes a short-term increase in economic activity as businesses and consumers sense increased demand for goods.

The Fed slows short-term economic activity by raising rates and selling government bonds. That causes businesses to pay more for capital and consumers to pay more for borrowing to buy cars and homes. Those changes to the money supply really affect only the short run. You cannot make the economy grow over the long run by changing the money supply.

Getting all that right is devilishly hard, if not impossible.

The Fed has about 600 economists studying national and local economies. They read studies, convene conferences and solicit economic advice from various sources. They also collect comments from local business leaders, who might have a better handle on up-to-date changes on local conditions than economists looking at data that are weeks or months old.

The Fed also runs more than a dozen forecasting models and watches dozens of other models run by economists around the country. It creates and monitors new data sources, like the Atlanta Fed’s “GDP Now,” which is a constantly updated estimate of the nation’s gross domestic product. The Fed also monitors frequently updated data products, like the Sahm Rule for recessions and the University of Michigan’s Consumer Sentiment Survey.

All this work is done transparently, with formal public statements. Fed economists speak publicly about their models, publish them in journals and often move in and out of universities.

The Fed sees what the rest of us see but with 600-plus sets of eyes all over the country. So, what are they seeing?

First, Fed economists are looking at inflation. The whole of their efforts for more than two years has been to restrain inflation enough that we don’t plunge the economy into recession. What they’re now seeing is inflation slowing dramatically. As of the June release, the U.S. actually slipped slightly into the deflationary range with the Fed’s preferred measure of inflation.

Over the past three months, the average annual growth rate is at 2.4%, or just inside the targeted rate of 2% to 2.5%. There are several reasons for this target. First, if inflation is pushed too low, the economy will slow too much and we could slip into a recession. So, it is better to accommodate some modest inflation.

The Fed also knows that measuring inflation isn’t a perfect business. In particular, it is difficult to include quality improvements in products in the inflation measure. Deflation is far riskier than inflation, so it is important to remain safely above zero.

There will be one more measure of personal consumption expenditure data released before the July Fed meeting. If it is low, or even modestly negative like it was last month, that will at least trigger the Fed to say it expects to cut rates in September. If it is high, say above 2.5%, we should expect them to hold off on rate cuts past their September meeting.

The Fed also looks at economic growth, which has been sustained but slowing in recent months. Labor markets have remained strong, with American businesses creating between 160,000 and 310,000 jobs per month for the past year.

Gross domestic product growth also has been surprisingly strong over the past year. The U.S. is clearly outpacing other developed nations in the value of goods and services we produce. The Fed’s forecast is for us to end 2024 with 2.1% GDP growth in 2024 (inflation adjusted), dropping to 2% in 2025. By comparison, the economy in 2017-2020 grew at an average annual rate of 1.8%.

This strong economic growth allows the Fed to delay reducing interest rates until it is more certain about inflation. Remember, the senior Fed economists are mostly in their 50s and 60s and attended graduate school in the 1980s. At the time, inflation had plagued the U.S. economy for two decades. In 1990, the consumer price index had been under 2.5% only for a few months in 20 years. Throughout the 1980s, it averaged 6.4%, compared with 4.4% since the COVID-19 pandemic.

Fed economists are rightly concerned with inflation. With unemployment rates at more than 50-year lows, there’s little in the macroeconomic data to suggest risk of a recession. It is difficult to find real data that indicates economic or financial stress in the country.

Delinquency rates on credit card loans sit at 3.16%, well below the 30-year average of 3.73%. Mortgage delinquency rates are at 1.71%, a low point since the summer of 2006. Household debt payments, as a share of family disposable personal income, are lower now than at any time from 1980 to the pandemic. Wages are up more than 4.08% from this time last year, while inflation is up 3.25%.

In other words, all the talk of a crashing, risk-filled economy where people are struggling is unsupported by actual data. The adults at the Fed are worried about data.

However, the strong performance of the domestic economy is not an absolute brake on the Fed lowering interest rates. In fact, several prominent economists, including Claudia Sahm, have argued the risk to inflation by cutting rates is very modest. Rather, the risk to further weakening labor markets when inflation is now so modest should be the Fed’s focus.

I agree.

Absent a hot inflation report in late July, the Fed should cut interest rates a quarter point at its July 30-31 meeting. It should also make clear it is unlikely to cut rates in September. A modest reduction in interest rates would signal we have entered a period of declining borrowing costs. I haven’t seen a single study or heard a single economist suggest such a modest cut would endanger the fight against inflation.

Michael J. Hicks, Ph.D., is the director of the Center for Business and Economic Research and the George and Frances Ball distinguished professor of economics in the Miller College of Business at Ball State University. Contact him at Michael Hicks, [email protected].

Insider for July 17, 2024

Posted on by NC Insider

YOU DON’T SAY

“A political party is intended to be more than a transitory entity designed to be a vehicle for a single candidate.”

Siobhan Millen, a Democratic member of the State Board of Elections, on Robert F. Kennedy Jr. and Cornel West’s attempts to appear on the ballot. (The News & Observer, 7/16/24)

Third Parties

Kyle Ingram, The News & Observer, 7/16/24

Robert F. Kennedy Jr. will appear on North Carolina’s 2024 ballot as a presidential candidate, the State Board of Elections decided on Tuesday.

However, the board voted to deny ballot access to left-wing candidate Cornel West. In a 4-1 vote, the board voted to recognize Kennedy’s “We The People” party. As for West’s “Justice For All” party, the board voted 3-2 to deny certification, with the board’s Democratic majority carrying the vote.

Despite initially voting against Kennedy last month, two Democrats joined the board’s Republican minority to approve We The People.

Board Chair Alan Hirsch said he was reluctantly voting in favor of the party, though he believed there had been “subterfuge.” However, West’s campaign raised too many questions about where signatures came from and whether signers were adequately informed about the purpose of his new party, the board’s Democrats said. They also said an investigation into potentially fraudulent signatures is ongoing.

The board’s Republicans disagreed with that decision — with member Stacy “Four” Eggers noting that the party had passed the threshold of signatures required to form a new party.

“I do think this board is making a tragic error in not deferring to the verified signatures that have been determined through our county board process,” he said.

The board has faced a wave of criticism from Republicans and independents since it initially voted to deny ballot access to Kennedy and West last month.

State lawmakers, advocacy groups and even congressional leaders accused the board’s Democrats of trying to boost President Joe Biden’s reelection campaign by eliminating third-party challengers.

“The actions today from the Democrat-majority NC State Board of Elections confirms our belief they were explicitly acting out of political expediency for Democrats and Joe Biden,” NC GOP Chair Jason Simmons said in a statement on Tuesday.

When board members initially voted against certification last month, they expressed concerns about petition-gatherers misleading people into signing and about voters who asked for their signatures to be removed. They also stressed that their decision was not final and they would vote again after further investigation.

“I am going to reluctantly vote to recognize We The People even though I believe there has been subterfuge,” Hirsch said. “… I think that it is such a close call, that ultimately a court would have to decide it. And therefore, I’m not sure if the board should be the one that is standing in the way.”

Siobhan Millen, a Democrat, voted against recognizing the party, saying that Kennedy was circumventing state law by trying to create a new political party for the sole purpose of achieving ballot access for his presidential campaign. “A political party is intended to be more than a transitory entity designed to be a vehicle for a single candidate,” she said.

State law provides for a different process for unaffiliated candidates to appear on the ballot and requires a much higher signature threshold than the process for recognizing new parties. Millen also noted that Kennedy and West had achieved ballot access in other states under different third parties.

Board members last month noted concerns about the fact that Justice For All allowed outside groups to gather signatures for the party. One of those groups, called People Over Parties, drew particular attention from the board. Hirsch said the leader of that group refused to comply with a subpoena.

Staff for the board attempted to contact a randomized list of 250 Justice For All petition signers. They were only able to reach 49. Eighteen of those signers said they did not actually sign the petition and three said they didn’t remember if they signed it. Several more signers said in interviews with board staff that they were not told the purpose and intent of the party.

“Given that 50% and more of these signatures (in the sample) are highly questionable — if that were applied to the total, it would bring them well below the requirement of signatures,” Hirsch said.

Republicans on the board said these statements could not be used to make broader generalizations about the party’s petition process. “Not in the history of my knowledge of this board have we ever taken a random sample, then extrapolated that polling to try and undo a decision that we’ve had before us,” Eggers said. [Source]

 

Elections Board Ad

Kyle Ingram, The News & Observer, 7/16/24

A new group that says it wants election integrity is spending hundreds of thousands of dollars on ads in North Carolina targeting the State Board of Elections for blocking independent presidential candidates from ballot access.

The group, called The Fair Election Fund, will spend $200,000 on digital ads and billboards that accuse the board’s Democratic members of having “blocked your voting rights by blocking Biden’s competition from the ballot.” The board, through a spokesperson, declined to comment on the ad campaign.

The campaign comes as conservatives and independents have railed against the board’s Democratic majority for initially denying certification to Robert F. Kennedy Jr. and Cornel West’s new political parties. The group announced the campaign hours before the elections board voted Tuesday to approve ballot access for Kennedy’s party, while continuing to deny a ballot spot for West’s party.

“They will not get away with this blatant Biden bailout and we will not rest in the fight to stop this hypocritical attempt at election interference,” former U.S. Rep. Doug Collins, a Georgia Republican and a senior adviser to the Fair Election Fund, said in a statement.

The fund, which is referred to as a nonprofit in a press release, only launched a few months ago and does not currently appear in the IRS database for nonprofits. It also does not show up as a registered business entity in Pennsylvania, the state where the group is located, per a press release.

The group’s website does not include information on who works for it, and Collins is the only leader for the fund that has been quoted in statements.

When the Fair Election Fund first launched in May, it said it was seeking input from anyone who was an “election worker, organizer, or concerned citizen who has seen corruption in our elections firsthand.” Anyone who reported fraud could get paid from the group’s $5 million fund, it said. [Source]

 

Clemmons Resignation

Brian Murphy, WRAL News, 7/16/24

Rep. Ashton Wheeler Clemmons, a Democrat from Guilford County, resigned Tuesday from her seat in the North Carolina House of Representatives. She was the No. 2 Democrat in the House.

Clemmons’ resignation comes one day after Republican Rep. Jason Saine announced his resignation, effective Aug. 12. Clemmons is the third House member to resign from the legislature this year, following Rep. Jon Hardister and Saine.

Clemmons is taking a policy position in the University of North Carolina System. She will be the associate vice president of P-12 strategy and policy. She has been in the House since 2019. “It has truly been a great honor to serve the people of Guilford County,” she said.

Clemmons was an elementary school teacher, a principal and a central office administrator before being elected to the House in November 2018.

“Representative Clemmons came to the General Assembly for the right reasons — she wanted to help the people of our state,” said Rep. Robert Reives, the House’s Democratic leader. “She has authentically stayed true to that calling.” [Source]

 

Candy Expansion

Clifton Dowell, State Affairs Pro, 7/16/24

Officials ranging from county commissioners to members of Congress gathered in Hillsborough on Tuesday to celebrate the expansion of a Japanese confectionery company’s Orange County operations.

Commerce Secretary Machelle Baker Sanders said Morinaga America Foods, Inc., will expand its current operations in Mebane, investing $136 million and creating more than 200 jobs. Morinaga America’s parent company opened the Mebane facility — its first outside of Asia — in 2015 to produce its popular HI-CHEW candy, Sanders said. 

“More candy, more jobs. What better setup is that?”

The company received a performance-based grant of $100,000 from the One North Carolina Fund to facilitate the expansion, contingent on an investment of $115.4 million and the creation of 40 jobs. The average salary for those tracked jobs will be $67,075, according to a news release from the office of Gov. Roy Cooper.

“Over the past few years, we have had and seen unprecedented growth from our Japanese business partners,” Sanders said. More than 30,000 North Carolinians go to work every day at one of the 225 Japanese-owned companies operating in the state, she said.

U.S. Rep. Valerie Foushee said she remembers county staffers laying the groundwork for economic growth during her time on the Orange County Commission, and that during negotiations to open the Mebane plant Morinaga had promised to add more jobs later. 

“True to that promise, here we are today talking about an additional 204 jobs,” Foushee said.

The news release from Cooper’s office noted that since he and Sanders led a North Carolina delegation to an economic development conference in Tokyo in 2023, Japanese companies have announced 4,379 new jobs in the state. Those companies include Toyota, Fujifilm Diosynth, Dai Nippon Printing, Kyowa Kirin and Morinaga. 

“North Carolina continues to attract large investments from companies in Japan because we offer the advantages they look for,” Cooper said in the news release. “It was great to visit with Morinaga’s leadership when I was in Japan and it’s clear that the relationships we’ve made, along with our great workforce, infrastructure and quality of life, continue to bring good jobs to our state.”

In April, Cooper hosted Japanese Prime Minister Fumio Kishida. In October, the Southeast U.S./Japan Association economic conference will be held in Charlotte. 

Sen. Graig Meyer, D-Orange, said the Legislature seeks economic development opportunities large and small. “This is a great example of an international partnership that does play out in a small town, in a small area,” he said. “It’s a lot of jobs for a very small part of Orange County.”

Looking ahead, the hope is to see economic growth expand into all parts of the state. “The I-40 corridor between the Triangle and the Triad is going to fill up with amazing business opportunities,” he said. “We hope that will spur economic development along the Virginia border where we’ve got some relatively struggling counties. They can get the benefit of the roll off.”

Medical Devices

Jack Hagel, WRAL News, 7/16/24

Japanese medical device maker Nipro Corp. is poised to announce a roughly $400-million expansion that is expected to bring more than 230 jobs to Pitt County.

The Osaka, Japan-based company has been the subject of incentives discussions with state and local officials, people familiar with the company’s plans told WRAL on Tuesday. An announcement on the deal is expected as early as Wednesday.

The Pitt County Board of Commissioners met last month to consider economic development incentives related to the project, dubbed “Project Bluefin,” which would be on land currently owned by the county. The county approved tax breaks worth up to $9 million for the project, which would be built in phases over seven years, according to county records that don’t identify the company.

The company expects to create 232 jobs that would pay an average annual salary above Pitt’s current median average wage of $50,937, county records show.

Officials with the North Carolina Department of Commerce scheduled a special meeting for Wednesday. The department’s Economic Investment Committee is expected to discuss one or more economic development projects at the meeting. A commerce spokesman declined to disclose details about the agenda.

Economic development deals tend to be highly secretive; companies request anonymity as they weigh expansion plans, negotiate with state and local governments and work to line up real estate. Information about such deals are often exempt from open records laws.

Nipro’s expansion would be the latest in Pitt County, and another win for the BioPharma Crescent, the five-county region in Eastern North Carolina that is home to a large cluster of biotech and pharmaceutical manufacturers. [Source]

Fundraising Reports

Colin Campbell, WUNC Radio, 7/16/24

Attorney General Josh Stein has raised more than double the contributions made to his Republican opponent, Lt. Gov. Mark Robinson, in the latest campaign finance reports.

The reports — which cover the period from February to the end of June — show Stein raising a total of $13.8 million during that period. The Democrat’s campaign has raised a total of $32.9 million, well ahead of the $19.3 million that Gov. Roy Cooper had raised by this point in the 2020 election cycle.

Robinson reported raising $5.07 million in the latest campaign finance reports, for a total of $15.8 million in his campaign for governor. The total far exceeds the $6.9 million raised by 2020 Republican gubernatorial candidate Dan Forest at this stage of the election.

Outside groups are expected to spend even more, making it likely that this year’s race for governor will be the most expensive in North Carolina history. In addition to their campaign organizations, both Stein and Robinson will benefit from fundraising by what are known as Council of State affiliated committees, which can accept contributions of unlimited sizes.

Democrats are also raising more money than their Republican opponents so far in other key statewide races, including lieutenant governor and superintendent of public instruction. In the superintendent race where Michele Morrow upset incumbent Superintendent Catherine Truitt in the Republican primary, Democrat Mo Green has raised nearly four times as much money as Morrow.

Reports show relatively few major GOP donors have contributed to Morrow since her primary victory, while national attention for the candidate’s old social media posts about executing Democrats has resulted in a major fundraising haul for Green.

Businessman and private school operator Bob Luddy, Raleigh developer John Kane and their spouses — along with High Point doctor Lenny Peters — are the only donors who have given the maximum contribution to Morrow.

Green’s maximum contributions came from Ann Goodnight of SAS Institute, Raleigh businessman Dean Debnam, California philanthropist Elizabeth Simons and Replacements, Ltd., Chairman Bob Page.

The GOP, however, holds fundraising advantages in races for state treasurer, state auditor and agriculture commissioner. And in the state’s only toss-up congressional race, Democratic incumbent Congressman Don Davis raised $1.02 million in the second quarter, while Republican Laurie Buckhout raised $704,439.

Money isn’t always a sign of a successful campaign: Many of the top fundraisers in past elections have gone on to lose in November.

Here’s a look at fundraising numbers from the latest campaign finance reports for other statewide races.

Lieutenant Governor:

  • Democrat Rachel Hunt: Raised $963,985, for a total of $1.9 million
  • Republican Hal Weatherman: Raised $404,871, for a total of $929,847

Attorney General:

  • Democrat Jeff Jackson: Finance report not posted as of Tuesday
  • Republican Dan Bishop: Raised $1.4 million, for a total of $2.98 million

Superintendent of Public Instruction:

  • Democrat Mo Green: Raised $667,132, for a total of $975,545
  • Republican Michele Morrow: Raised $206,974, for a total of $255,293

State Treasurer:

  • Democrat Wesley Harris: Raised $418,411, for a total of $819,403
  • Republican Brad Briner: Raised $544,078, for total of $1.4 million

Insurance Commissioner:

  • Democrat Natasha Marcus: Raised $281,092, for a total of $427,346
  • Incumbent Republican Mike Causey: Raised $38,035, for a total of $228,662

State Auditor:

  • Incumbent Democrat Jessica Holmes: Raised $134,259, for a total of $177,490
  • Republican Dave Boliek: Raised $480,853, for a total of $1.01 million (of note: after a competitive May runoff, Boliek’s campaign only had $62,474 on hand by the end of June)

Secretary of State:

  • Incumbent Democrat Elaine Marshall: Raised $298,483, for a total of $480,428
  • Republican Chad Brown: Raised $36,425, for a total of $94,199

Agriculture Commissioner:

  • Democrat Sarah Taber: Raised $165,180, for a total of $233,233
  • Republican Incumbent Steve Troxler: Raised $140,970, for a total of $335,916

Labor Commissioner:

  • Democrat Braxton Winston: Finance report not posted as of Tuesday
  • Republican Luke Farley: Raised $121,370, for a total of $309,137

N.C. Supreme Court:

  • Democratic Incumbent Allison Riggs: Raised $650,109, for a total of $1.11 million
  • Republican Jefferson Griffin: Raised $463,887, for a total of $1.36 million [Source]

 

RNC Safety

Danielle Battaglia, McClatchy, 7/16/24

At the Republican National Convention, it’s nearly impossible for a North Carolina delegate or alternate to go anywhere without being reminded of the near-assassination of former President Donald Trump.

Republican National Committee Chairman Michael Whatley told the North Carolina delegates Monday morning that 50,000 people are attending the convention, making it the largest ever held. There are several layers of security perimeters around the convention site, a large police presence, and precautions for allowing cars anywhere near the facilities; it took anywhere from two to four hours to reach parking garages Monday afternoon.

“We were sickened,” said Jason Simmons, North Carolina’s Republican Party chairman. “You’re scared and you’re afraid to see what happened.” Simmons was gathered with several members of North Carolina’s delegation at their convention hotel when they learned Trump had been shot. They watched the television coverage together in horror. He said they were grateful to see Trump get up, but their hearts break for the family of 50-year-old Corey Comperatore, who was killed, and the two others who were seriously injured. “We’re grateful that President Trump is safe, and that he’ll be with us, and then we’ll be able to celebrate and to be able to put forward again, as we just did, on the floor our nomination for Donald J. Trump to be the next President of the United States,” Simmons said.

As the state’s party leader, Simmons not only attends dozens of rallies across the state and country, but he also takes part in putting them together. He said he’s always grateful for the local and federal law enforcement officials who work during these events. “And you’ve never given a thought about your own safety, because you’ve got such a (police) presence there,” Simmons said.

Simmons said he’s looking to find out what the investigation uncovers about weaknesses and failures, and to make sure safety and security is at the forefront of future events.

On Monday, Sen. Thom Tillis of North Carolina was one of nine senators requesting that the Senate Judiciary Committee hold a hearing on what led to the near-assassination. The committee oversees the Secret Service, Homeland Security and FBI.

State Rep. Jarrod Lowery of Lumberton is in Milwaukee for the convention this week. He initially joked that he isn’t worried about his own safety because he’s from Robeson County, but then he got serious. “I have thought about it,” Lowery said. “It’s one of those thoughts you have from time to time.”

“I think I’m fine,” Lowery said. “But you just never know.” [Source]

Harris Event

Beth Hutson, The Fayetteville Observer, 7/16/24

Vice President Kamala Harris will be in Fayetteville this week, the Biden-Harris Campaign said Monday. The vice president is scheduled to make remarks at a campaign appearance in Fayetteville on Thursday, the campaign said in an email to media Monday. No further details were available.

Last week, Harris was in Greensboro, speaking at James B. Dudley High School, the first Black high school in Guilford County.

The vice president was last in Fayetteville on the eve of the 2020 election, when she made a campaign stop at Fayetteville State University on Nov. 1, 2020. [Source]

 

Leadership Academies

Emmy Martin, The News & Observer, 7/16/24

Shaw University will replace St. Augustine’s University as the higher-education partner for Wake County’s two early college leadership academies, the school board voted unanimously Tuesday.

Students in the Wake Young Men’s Leadership Academy and Wake Young Women’s Leadership Academy previously took tuition-free college courses at St. Aug’s. But the Wake school board voted in March to end its partnership with St. Aug’s at the close of last school year because of the school’s financial and accreditation struggles.

“I cannot be more excited to have Shaw University as our partner,” school board member Sam Hershey said. “They are everything that our families, our students and our staff are looking for. They are incredibly enthusiastic about this partnership and presenting opportunities for us to grow with them, particularly on the leadership side.”

The school district is on track for the Shaw academies in the 2025-26 academic year, thanks to a bill passed by the legislature and signed into law by Gov. Roy Cooper that allows a new early college partner and the continuation of state funding under North Carolina’s Cooperative Innovative High Schools program.

For the upcoming school year, students will take early college courses at Wake Technical Community College while preparations continue for the 2025-26 year. The academies will follow the Wake Tech calendar for the 2024-25 school year, with students’ first day of class being Aug. 7.

Administrators narrowed the list of contenders for the next partner down to N.C. State University and Shaw last month after meeting with administrators from the two schools, along with N.C. Wesleyan University, Wake Tech and William Peace University.

Seydric Williams, Northwestern Area Superintendent for the school system, said key contributors in the decision to select Shaw included courses offered on campus, leadership development opportunities, university amenities the students will have access to, academic support and proximity to the academy main campuses. [Source]

Mission/HCA Suit

Joel Burgess, Asheville Citizen Times, 7/16/24

Buncombe County can’t join a suit against HCA-owned Mission Health in which the county hoped to recover $3 million in Emergency Medical Services it said it spent caring for patients not helped in the hospital.

The judge’s July 9 decision against the county is part of the high-stakes lawsuit over whether the massive for-profit HCA reneged on the deal it made when it bought the nonprofit Asheville-based Mission in 2019. North Carolina Attorney General Josh Stein brought the suit in 2023, saying HCA failed to maintain promised levels of care in cancer treatment and emergency services. HCA has said maintaining such levels of care was not part of the Asset Purchase Agreement.

In more recent action, Stein filed a July 12 motion against HCA’s attempt to depose him, saying state rules shield high-ranking government officials from having to give out-of-court sworn testimony except under “extraordinary” circumstances. Stein is the Democratic candidate for governor, running against Republican Lt. Gov. Mark Robinson.

The case, which was originally filed in Buncombe County, has moved to N.C. Business Court in Greensboro because of its complex nature.

Responding to the order against them by Judge Juliana Theall Earp, county officials said the decision was not a rebuke of their arguments. Rather, the problem was the county and Stein were seeking different things, they said: the county wants money, while Stein wants a court order changing how HCA operates.

“The business court denied our motion to intervene mainly because the AG’s complaint seeks injunctive relief to require HCA to comply with the Asset Purchase Agreement while the County sought the same plus monetary damages,” county spokesperson Lillian Govus told the Citizen Times on July 15.

Asked if there was a way for the county to recover the $3 million, Govus said, “We’re not certain one way or the other at this time.” [Source]

 

VinFast Investment

Ray Gronberg, Business NC, 7/16/24

The state has spent $95.7 million of the $450 million legislators set aside in 2022 to entice Vietnamese company VinFast to build an electric vehicle factory near Moncure in Chatham County.

The budget bill authorized the N.C. Department of Commerce to spend up to $125 million to reimburse VinFast for site work, road work and wetlands mitigation. Of that, the department’s paid out $51.7 million, spokesman David Rhodes said. He added that the company has until the end of 2026 to seek reimbursements under that part of the deal.

There was another $250 million set aside for Commerce and the N.C. Department of Transportation to upgrade the roads to the factory (much as DOT is doing for the Toyota battery factory near Liberty). Of that, DOT has spent $28.4 million as of Monday, department spokesman Aaron Moody said.

The remaining $75 million was to become a grant to the city of Sanford to pay for water and sewer upgrades. Of that, $15.6 million has been paid out, Rhodes said.

Those numbers are pertinent because VinFast officials have announced that they’re delaying the intended start of manufacturing at the Moncure facility until 2028. The postponement is the second VinFast has announced since state officials recruited it — and a potential 7,500 jobs — in 2022.

The company was originally supposed to start making battery-powered SUVs there later this year, but that got put back to 2025. But given that VinFast is a new entrant in the car-making game, founded in 2017, there’s been skepticism about its ability to deliver. And it’s fair to say that in some quarters — looking at you, Locke Foundation — there are people openly rooting for it to fail.

But in the halls of the Capitol, the general attitude seems to be nothing ventured, nothing gained.

Legacy automakers aren’t building assembly plants in North Carolina because they already have all they need elsewhere in the country, and then some. And if the VinFast project falls through, well, the upgraded Chatham megasite will remain, likely as a top prospect for recruiters. The state holds a 12-year option on the VinFast site good through 2034 that says it can acquire ownership if the company doesn’t meet its agreed-on schedule and benchmarks.

That wouldn’t come free, as the state would have to pay the lesser of $175 million or VinFast’s purchase and site-prep costs net of any incentives it’s received. There’s also a $316.1 million JDIG attached to the project, but none of that has been paid out yet as it’s tied to job creation and investment targets. [Source]

 

Smell Searches

Evan Donovan, WSOC News, 7/15/24

A new filing with the North Carolina Supreme Court argues police shouldn’t be able to search your car based on what they smell. If the argument is successful, it could have a big impact on future cases and current inmates.

It started with a man from Durham who says he wouldn’t have pled guilty to a gun crime if officers hadn’t searched his car. His attorneys argue that since hemp is also legal in North Carolina, it’s impossible for a human to smell the difference between legal and illegal cannabis.

In a court filing on Thursday, his attorney challenged an appeals court ruling that was made in April. They argue that police officers shouldn’t be able to establish probable cause to search a car based on the smell of marijuana and a “cover scent.”

One local attorney in the Charlotte area referred to that as an “odor-plus” policy. “For the Charlotte-Mecklenburg Police Department, they specifically have a policy that states you cannot arrest or search just for the smell of marijuana or what’s called the odor alone,” Lauren Newton told Channel 9′s Evan Donovan. “It has to be odor-plus. And this is kind of an internal policy, obviously not state law.”

Newton is the attorney who represents Christina Pierre, the woman who was punched more than a dozen times by police during her arrest in November. CMPD officers claimed to smell her and her fiancé smoking marijuana at a bus stop near a southwest Charlotte Bojangles. Newton agrees with the Durham man’s attorney.

“Every police department is different, and unfortunately the criminal laws have not caught up with the hemp laws. So it is impossible to distinguish the smell of illegal marijuana with legal hemp products such as THC-A, which is not the same as marijuana,” Newton said.

The Durham man claims police shouldn’t be able to search a vehicle based on those smells, saying in the filing, “The issues raised here cut straight to the heart of one of the most sacred of our constitutional protections: the right to be free from unwarranted government intrusion in one’s personal life.” [Source]

 

Educator Prep

Hannah Vinueza McClellan, Education NC, 7/15/24

The State Board of Education’s virtual meeting last week included multiple discussions related to educator preparation and licensure — including the approval of a portfolio assessment for principals.

The 2023 budget directed the Department of Public Instruction (DPI) to create a portfolio-based assessment for principal licensure. This change was recommended by DPI.

On Thursday, the Board approved the North Carolina Principal Portfolio Assessment (NCPPA), created by a task force on principal standards, licensure, and evaluation. The task force researched the portfolio-based assessment system and met from January 2024 to May 2024. Five states are currently implementing a portfolio assessment, the task force found.

“The most viable choice was to leverage an existing state-specific assessment (CalAPA) and work with Pearson to contextualize to North Carolina needs,” DPI’s presentation says.

According to state law, principal candidates who have “completed at least one course as part of a master’s degree program or a post-master’s certificate designed for school administrators that was offered by an educator preparation program approved by the State Board of Education” by Aug. 31, 2024, will not be required to take the new assessment.

In an 8-3 vote, the Board also recommended removing a preprofessional skills assessment as part of the criteria to enter an educator preparation program (EPP). The Board will include the recommendation in its legislative agenda for an upcoming legislative session. [Source]

Class Recordings

Emmy Martin, The News & Observer, 7/16/24

After a professor’s classes were recorded this spring without his consent, some members of the UNC-Chapel Hill faculty called on the university to create a policy regarding such recordings. Now, the university is taking steps to create one.

Provost Chris Clemens said he supported developing a formal policy governing the secret recording of professors’ classes in a May 20 Faculty Executive Committee meeting. He confirmed plans to create such a policy in a statement to The News & Observer on Monday.

The demand comes after the Kenan-Flagler Business School recorded several of economics professor Larry Chavis’ classes unbeknownst to him, a move that has generated conversation in the media and among the university community.

In an April 22 letter that Chavis posted on LinkedIn, Christian Lundblad, senior associate dean for faculty and research at the business school, informed him of the recording and that the school was reviewing his “class content and conduct” following reports of concern. Chavis’ teaching contract, which expired on June 30, was not renewed following the incident.

Faculty Chair Beth Moracco brought up Chavis’ situation to the Faculty Executive Committee on Thursday, saying the university needs to create an institutional policy on classroom surveillance “because there is no existing policy about these types of recordings.”

At the May 20 Faculty Executive Committee meeting, committee member and law professor Andy Hessick brought up North Carolina’s status as a one-party consent state, which means it is legal to record a conversation if one person within that conversation consents to it.

“I keep looking through North Carolina law, criminal and civil laws, on recording conversations and it’s just not obvious to me that it’s legal,” Hessick said. “It probably is, but it’s not obvious because it says you have to have one party to the conversation consent to the recording.”

While UNC does not have a formal policy, the university’s listed Best Practices for Recording Classes state that recordings of classes should only be available to students in the course. It also says that students cannot record a class unless they have an Accessibility Resources and Services accommodation or prior authorization from the university.

In a statement to The N&O, Clemens said he will work with faculty thoughtfully to develop a “transparent policy for the use of video cameras in classrooms.” [Source]

Discrimination Lawsuit

DJ Simmons, WFDD Radio, 7/16/24

A federal lawsuit alleges a contractor at the Greensboro-Randolph megasite committed safety violations, retaliated against whistleblowers and engaged in racial discrimination. In January 2022, Ames Construction was awarded nearly $18 million to build a Toyota battery plant at the site.

Lawyers for Vick Companies, a minority subcontractor, say their employees began reporting safety violations that year. The suit, filed in June, says they then faced racial discrimination and retaliation from Ames Construction.

An internal investigation by the North Carolina Department of Transportation, or NCDOT, concluded in 2023 that the construction company engaged in discriminatory acts. It recommended the case be turned over to the agency’s general counsel. But the suit alleges NCDOT failed to take adequate action after the review.

A spokesperson for the department said it doesn’t generally comment on active litigation.

In a statement, Ames Construction said it “does not tolerate racial harassment at any of its sites or offices and takes appropriate action upon receiving report of such misconduct.” [Source]

 

Harnett Jetport

Sharryse Piggott, WUNC Radio, 7/16/24

Harnett County now has a new $6 million jetport terminal aimed at attracting more growth to the area. The Harnett Regional Jetport Terminal has replaced the old one that was built in the 1980s.

“One of the things that we wanted to do was not only bring the airport, hopefully up to standards of the counties around us, but to also have our economic development office in the airport,” said Jerry Milton, the chairman of the Harnett Regional Jetport Advisory board. He said that means it’s not just for small planes. They’re also hoping the two-story facility — spanning over 7,000 sq. ft. — will accommodate business jets.

The building has a classroom and large conference room as well. The funding that the project received came from the state legislature. A ribbon-cutting ceremony was held on Tuesday to celebrate the opening. [Source]

 

Dog Sales

Joe Marusak, The Charlotte Observer, 7/16/24

People are selling caged puppies in the parking lot of a Lake Norman Walmart despite complaints from the public, repeated visits by police and orders from store managers to leave.

In sweltering heat, shoppers spotted sellers again in the parking lot of the Walmart off Interstate 77 exit 36 (N.C. 150) in Mooresville over the July Fourth weekend.

“We’re aware these sellers sometimes set up in our store parking lot,” Alicia Anger, director of global communications for Walmart corporate affairs, told The Charlotte Observer in an email. “When brought to our attention, we instruct them to leave the property.” She referred the Observer to the town of Mooresville regarding laws and ordinances governing the sale of puppies in parking lots.

Who the sellers are and where they’re getting the puppies wasn’t known last week.

Police told the Charlotte Observer that puppies for sale outside the Walmart appeared in good condition when officers responded to eight calls between Jan. 1 and Thursday. Officers spoke with the sellers each time and “verified that they are providing food, water, and shelter for the dogs,” according to a Mooresville Police Department statement to the Observer on Thursday.

Sales are legal if the puppies are at least eight weeks old, according to Iredell County Animal Control, which enforces animal control ordinances in the Mooresville town limits. The seller must provide food, water and shelter to the puppies, animal control officials said.

In its statement, the Mooresville Police Department said it “understands the concern expressed by members of the public about puppies being sold in the parking lot of Walmart.”

“Unfortunately,” police said, “selling puppies in local parking lots is not illegal under Mooresville Town Ordinances, Iredell County Animal Control Ordinances, or State Statutes.” [Source]

 

Crop Loss

WTVD News, 7/15/24

The drinking water for more than 2.5 million North Carolinians is affected by per- and polyfluoroalkyl substances (PFAS) — commonly known as forever chemicals. Those chemicals have been linked to health problems — including an increased risk of cancer. More of their effect is being seen in North Carolina.

A farmer in New Hanover County said his produce has been left to rot after his water source was linked to PFAS. The area is one of 47 drinking-water systems with concerning levels of PFAS. The source of the contamination can be traced to the chemical company Chemours.

“We had contamination, total PFAS level is between 50 and 60 parts per trillion, which is a little over, I think 10 to 12 times what the current EPA safe standard is,” said Ty Jacobus of Honeybird Organic Farm in Castle Hayne. “We can’t sell those. I mean, we could, there’s no law preventing us but we’re not selling them.”

In April, the EPA set new standards for PFAS levels. Last week, the state’s Environmental Management Commission failed to adopt new regulations on PFAS. The commission will meet again in November. [Source]

 

Truist Cuts

Chase Jordan, The Charlotte Observer, 7/16/24

Truist is cutting jobs from its technology department, the bank confirmed to The Charlotte Observer on Monday. Tech employees were notified about certain roles that will be impacted by the Charlotte-based bank’s strategic initiatives. Truist did not disclose how many jobs will be cut.

The news comes just a week before the company announces its second-quarter earnings, scheduled for July 22. The bank announced cuts to branches and ‘sizable layoffs’ last year as part of a $750 million cost-cutting plan.

Truist now has 40,000 employees, the company said. More than 3,000 workers are in the Charlotte area, the Observer previously reported.
The bank said it will help impacted workers by finding other opportunities internally and externally. Truist will make the cuts in the next three to four months but the impact to Charlotte is unknown, the Charlotte Business Journal reported.

In September, Truist CEO Bill Rogers said there would be “sizable” layoffs at the bank as part of the $750 million companywide cost-cutting plan, The Charlotte Observer previously reported. [Source]

Legislative Sessions, Studies and Meetings

LB: LEGISLATIVE BUILDING. LOB: LEGISLATIVE OFFICE BUILDING

HOUSE COMMITTEE MEETINGS

Tuesday, July 23

  • 9:00 A.M. | House Select Committee on Oversight and Reform, Auditorium.

HOUSE CALENDAR

Wednesday, July 29, 2024

  • House Convenes at 12:00 P.M.

SENATE CALENDAR

Wednesday, July 29, 2024

  • House Convenes at 12:00 P.M.

HOUSE & SENATE: Reconvening allowed under provisions of SB 916, if no sine die adjournment previously adopted.

  • Monday, July 29 to Thursday Aug. 1
  • Monday, Sept. 9 to Wednesday, Sept. 11
  • Wednesday, Oct. 9
  • Tuesday, Nov. 19 to Friday Nov. 22
  • Wednesday, Dec. 11 to Friday Dec. 13

N.C. Government Meetings and Hearings

BOLD ITEMS ARE NEW LISTINGS

Wednesday, July 17

  • 9 a.m. | The North Carolina Real Estate Commission Meeting, 1313 Navaho Drive, Raleigh.
  • 11 a.m. | The Economic Investment Committee (EIC) meets, 301 North Wilmington St, Raleigh. Teleconference Number: +1-415-655-0003 (toll charges might apply) Teleconference Access Code: 2422 672 3002.
  • 1 p.m. | N.C. Plant Conservation Board meets to discuss items related to land conservation, stewardship efforts of the N.C. Plant Conservation Program, and regulatory matters, Rankin Science South, Room 210B Appalachian State University, Boone; for information on joining remotely, visit: Joining Remotely. Contact: Julian Wilson, 919-707-3758 or [email protected].

Thursday, July 18

  • 8 a.m. | North Carolina Medical Board Meeting – July 2024 Meeting, 3127 Smoketree Court, Raleigh.
  • 9:30 a.m. | North Carolina Turnpike Authority meets, 1 S. Wilmington St, Raleigh.

Thursday, Aug. 1

  • 6 p.m. | The North Carolina Department of Environmental Quality’s Division of Air Quality Public Hearing on Moriah Energy Center Draft Air Quality Permit, Vance-Granville Community College, 200 Community College Road, Henderson.

Monday, Aug. 5

  • 9 a.m. | The Board Development Committee of The North Carolina Partnership for Children meets, The meeting will be held via Zoom. You may contact Yvonne Huntley at 984.221.1242 or email at [email protected] for additional information.

Tuesday, Aug. 6

  • 9 a.m. | The Council of State meets. 1 South Wilmington St, Raleigh.

Monday, Aug. 19

  • 2 p.m. | The Executive Committee of The North Carolina Partnership for Children meets, The meeting will be held via Zoom. You may contact Yvonne Huntley at 984.221.1242 or email at [email protected] for additional information.

UNC Board of Governors

23 S. WEST STREET, SUITE 1800, RALEIGH

Wednesday, July 24

  • T.B.A. | The UNC Board of Governors, UNC System Office.

Thursday, July 25

  • T.B.A. | The UNC Board of Governors, UNC System Office.

N.C. Utilities Commission Hearing Schedule

DOBBS BUILDING, 430 NORTH SALISBURY STREET, RALEIGH

Monday, July 22

  • 2 p.m. | Expert Witness Hearing – Duke Energy Carolinas, LLC and Duke Energy Progress, LLC 2023 Biennial CPIRP | E-100 Sub 190
  • 2 p.m. | Expert Public Witness Hearing – Joint Application of DEP and NCEMC for CPCN to Construct a 1360MW Electric Generating Facility in Person County, NC | E-2 Sub 1318, EC-67 Sub 55
  • 2 p.m. | Expert Witness Hearing – Application for CPCN for 850 MW Natural Gas-Fired Combustion Turbine Electric Generating Facility Located at 8320 NC Highway 150 E, Terrell, NC 28682 in Catawba County | E-7 Sub 1297

Other Meetings and Events of Interest

BOLD ITEMS ARE NEW LISTINGS

Wednesday, July 17

  • 10:45 a.m. | Gov. Roy Cooper to join Federal Highway Administrator Shailen Bhatt to make major transportation infrastructure funding announcement. Dram Tree Park, 602 Surry St, Wilmington.

Saturday, July 27

  • 9 a.m. | North Carolina Federation of Young Republicans Convention, The Farm at 95, Selma.

Attorney General Mayes Leads Coalition Advocating for FEMA to Address Extreme Heat and Wildfire Smoke

Posted on by Yellow Sheet Report Staff
PHOENIX – Attorney General Kris Mayes today led a coalition of 14 attorneys general in petitioning the Federal Emergency Management Agency (FEMA) to initiate rulemaking to update its regulations to recognize extreme heat and wildfire smoke events as eligible for major disaster declarations under the Stafford Act. The petition also seeks to clarify that wildfire smoke events are eligible for Fire Management Assistance Grant (FMAG) funding. In their letter addressed to FEMA Administrator Deanne Criswell and Chief Counsel Adrian Sevier, the attorneys general highlighted the increasing frequency and severity of extreme heat and wildfire smoke events due in part to climate change. The letter explains that such events pose significant public health risks and financial burdens on local communities, which may require federal assistance to effectively respond to these disasters. “Extreme heat and wildfire smoke events are devastating because of their severe impact on public health and the environment, yet they are not currently recognized as major disasters by FEMA,” said Attorney General Mayes. “Updating FEMA’s regulations to include these events will provide much-needed resources and help us better protect our residents.” The letter detailed the significant impacts of recent extreme heat and wildfire smoke events, citing examples such as the 2021 Pacific Northwest Heat Dome, which resulted in hundreds of deaths and widespread power outages, and the Canadian wildfires that blanketed parts of the Midwest and East Coast in smoke. The attorneys general underscored the importance of proactive measures and federal support in mitigating the effects of these disasters. “In 2022, Arizona recorded 1,030 deaths related to or caused by heat statewide, as well as over 4,000 hospital or emergency room visits for heat-related illness,” added Attorney General Mayes. “These preventable deaths are occurring both inside and outside, highlighting the need for things such as additional LIHEAP funding for low-income customers to receive assistance with their utility bills, more data-driven, 24-hour cooling centers, and better worker protections for extreme heat and wildfire smoke. Arizona is also in a long-term drought, which increases wildfire hazards exponentially.” The letter explains the urgent need for FEMA to amend its definition of “major disaster” to explicitly include extreme heat and wildfire smoke events. It also emphasizes the critical role of Fire Management Assistance Grant (FMAG) funding in addressing the health impacts of wildfire smoke, such as providing HEPA air filtration devices and other necessary supplies to vulnerable populations. Additionally, the letter highlights the projected increase in frequency and severity of these events, stressing the necessity for a more robust and adaptive federal response. In sending today’s letter, Attorney General Mayes was joined by the attorneys general of California, Colorado, Connecticut, the District of Columbia, Illinois, Massachusetts, Maryland, Michigan, New Jersey, New Mexico, New York, Oregon, and Vermont. A copy of the letter is available here.

Sinema Introduces Bipartisan Bill Protecting Personnel & Infrastructure from Extreme Heat and Weather Along the Southwest Border

Posted on by Yellow Sheet Report Staff
WASHINGTON – Arizona senior Senator Kyrsten Sinema and Republican Senator John Cornyn (Texas) introduced the Border Weather Resiliency Act – legislation requiring Customs and Border Protection (CBP) to create a strategy to protect personnel and agency infrastructure from extreme weather, such as record-breaking heat waves – enhancing morale, agency effectiveness, and saving taxpayer dollars by bolstering infrastructure resilience. U.S. Senators Gary Peters (D-Mich.) and Kevin Cramer (R-N.D.) are original cosponsors of the legislation. “We are identifying real solutions to address and mitigate the risks of extreme weather impacting our Customs and Border Protection personnel and the infrastructure that keeps our communities safe and fuels our economy,” said Sinema, Chair of the Senate Border Management Subcommittee and member of the Senate Homeland Security Committee. “Customs and Border Protection officers and Border Patrol agents put their lives on the line every day in weather conditions ranging from grueling heat waves, historic downpours, to freezing temperatures,” said Cornyn. “With a record number of crossings over the last few years stretching resources thin, they must identify ways to better protect officers and agents from harsh weather conditions at the border, and this bill would direct them to do just that.” “Severe weather events are becoming stronger and more frequent every year. This legislation will help us better understand how these events impact Customs and Border Protection personnel who are securing our northern and southern borders. This information will improve our infrastructure and technology, ensure our border security professionals are able to do their jobs more safely, and identify what resources will be needed in the future. I look forward to working with Senator Sinema toward its passage,” said Peters. “Northern border states like North Dakota know firsthand how severe snowstorms can hamstring local communities,” said Cramer. “But whether it is a blizzard up North or extreme heat in the South, the Customs and Border Patrol have a vital mission that cannot afford to fail. I joined my colleagues in introducing the Border Weather Resiliency Act, which takes a proactive approach to support Border Patrol agents as they prepare and respond to severe weather events.” “I want to thank Senators Sinema, Peters, Cornyn and Cramer for introducing this legislation. Border Patrol Agents work in some of the most challenging environments in this country as evidenced by the line of duty death of Border Patrol Agent Johan Mordan in 2020. Agent Mordan, who was only 26 at the time of his death, died of heat exhaustion while patrolling on foot in New Mexico. This legislation requires CBP, with input from the National Border Patrol Council, to develop a strategy for how we protect our border, our agents, and those we apprehend illegally entering our country given an ever-increasing threat from hazardous weather. I urge Congress to quickly pass this legislation,” said Paul Perez, National President of the National Border Patrol Council. “Exposure to the elements is a daily fact of life for CBP employees at the nation’s ports of entry, which is why NTEU strongly supports the Border Weather Resiliency Act to update the agency’s safety protocols and find new ways to mitigate the impact of hazardous weather. Senators Sinema, Peters, Cornyn, and Cramer are to be commended for channeling their concern for the well-being of our federal workforce into real action that can keep these public servants safe when the weather turns extreme along the Northern and Southern border, in particular. CBP’s Office of Field Operations personnel are professionally trained to keep our country safe from harm, and we should do the same for them,” said Doreen Greenwald, National President of the National Treasury Employees Union. The Border Weather Resiliency Act requires CBP to conduct an assessment and submit a strategy to mitigate the impacts of increasingly extreme and frequent weather on CBP personnel, infrastructure, technology, vehicles, and other assets.  Last year was the hottest on record, with Arizona seeing record temperatures during the summer months. Unlawful crossings have skyrocketed on both the northern and southern borders and CBP officers and U.S. Border Patrol (USBP) agents spend more time outside managing this influx in increasingly severe weather conditions – putting their health and safety at risk. Additionally, extreme weather impacts agency technology, infrastructure, and other assets. In 2023, the U.S. experienced a record 28 separate weather disasters , each resulting in at least $1 billion in damages. A 2021 Government Accountability Office (GAO) report found that during the prior five years, the federal government spent billions of dollars to repair federal property damage resulting from natural disasters. While CBP has taken steps to respond to extreme weather, the agency does not currently have a unified strategy to address and mitigate non-heat-related extreme weather risks nor has it updated its manuals and protocols accordingly.

Gallego Calls on Menendez to Resign

Posted on by Yellow Sheet Report Staff
PHOENIX – Rep. Ruben Gallego (AZ-03) released a statement following the guilty verdict of Senator Bob Menendez (D-NJ). Statement from Rep. Gallego: “Given today’s guilty verdict, it is clear that Senator Bob Menendez must do what is right and resign. His constituents and this country both deserve better.”

Game and Fish relocates mountain lion caught on campus of Tucson Medical Center

Posted on by Yellow Sheet Report Staff
TUCSON, Ariz. — Wildlife officers from the Arizona Game and Fish Department on Saturday released to the wild a mountain lion that had wandered onto the campus of the Tucson Medical Center on Friday and became entrapped in an enclosed courtyard. The department was alerted to the presence of the subadult male mountain lion around 10:30 a.m. Friday. With the assistance of officers from the Tucson Police Department, the wildlife officers were able to successfully dart and tranquilize the mountain lion without injury around 12:30 p.m. and moved it to the department’s Tucson regional office in a transport carrier. Game and Fish officials determined that because the mountain lion was healthy and had not exhibited any previous nuisance behavior, aggression toward humans, or other unacceptable behaviors, it was fitted with a GPS radio collar and released Saturday at a location in the wild away from the Tucson area.

HEARING ADVISORY: Scottsdale Deceives Voters About Tax Hike

Posted on by Yellow Sheet Report Staff
The city of Scottsdale is deceiving voters about a proposed sales tax hike—falsely claiming that the tax increase is actually a tax cut so that residents will approve it in November.  On Thursday, 7/18, at 9:00 am at the Northeast Regional Center, the Maricopa County Superior Court will hear the Goldwater Institute’s lawsuit on behalf of three Scottsdale taxpayers to stop the measure from being placed on the 2024 general election ballot. Please contact me at [email protected] or by phone at 917-685-4530 to arrange an interview.  Scottsdale has referred to the ballot a 0.15% sales tax that would start on July 1, 2025. Meanwhile, an old sales tax of 0.20% ends on June 30, 2025. Scottsdale is using the expiration of the old tax to pitch the new one to voters as a tax cut. But voters will actually pay a lower sales tax rate if they vote “no” on the new sales tax than if they vote “yes.” “Arizona law prohibits ballot measures from communicating objectively false or misleading information,” says Goldwater Institute Senior Attorney Scott Freeman. “A ballot measure may not engage in a ‘bait and switch,’ but that is what this referral does.” You can learn more here , read our complaint here , and check out our case page here .

Pima County earns national award for Housing First program

Posted on by Yellow Sheet Report Staff
PIMA COUNTY, July 15, 2024 – The Pima County Housing First program, administered by the Justice Services Department, has been recognized with a 2024 Best in Category award for Criminal Justice and Public Safety, from the National Association of Counties (NACo). The awards , presented July 14 at NACo’s Annual Conference and Exposition in Hillsborough County, Fla., honor innovative, effective county government programs that strengthen services for residents. Pima County began its Housing First program in 2019, designed to address chronic homelessness for individuals who are impacted by the justice system and living with co-occurring disorders. The goals of the program include providing safe and stable housing with wrap-around support for individuals (and their families) exiting the jail, integrating mental health and substance use treatment services, and ultimately breaking the cycle of incarceration for participants, which simultaneously improves community safety and reduces costs. “It has taken a cohort of community partners to make this successful,” said Kate Vesely, director of the Justice Services department . “We knew that there was an issue, but it took a high level of collaboration and innovation to create this type of programming. The Housing First model is a national best practice standard that we were thrilled to apply through a criminal justice lens.” Program partners include the City of Tucson and Old Pueblo Community Services , whose staff “have been in the trenches working with individuals who now have employment, custody of their children, and are making a meaningful impact in the community,” Vesely said. The County has had about 500 people enrolled in the program since it started in 2019. In addition to other programs that provide transitional housing and a pathway to permanent housing, the Pima County Housing First program includes criminal justice case managers who work with the individual to comply with any court standards and resolve any outstanding cases. As of July 1, 2024, the program became fully funded by grants and community partners. “I think NACo recognized us not only for the program’s exceptional results, but for our innovation in finding a more diversified funding portfolio, making it more sustainable,” Vesely said. Each year, NACo’s Achievement Awards recognize outstanding programming in 18 categories aligned with the vast, comprehensive services counties provide. The categories include children and youth, criminal justice and public safety, libraries, management, information technology, health, civic engagement and more. Launched in 1970, the program is designed to celebrate innovation in county government. Each nominated program is judged on its own merits and not against other applications.

Kelly, Crapo Applaud Fighter Force Recapitalization Inclusion in FY 2025 NDAA

Posted on by Yellow Sheet Report Staff
Senators Mark Kelly (D-AZ) and Mike Crapo (R-ID) applauded the inclusion of language based on the Fighter Force Preservation and Recapitalization Act in the Senate version of the Fiscal Year (FY) 2025 National Defense Authorization Act (NDAA) . The Senate Armed Services Committee (SASC) announced the Committee voted 22-3 to advance the FY 2025 NDAA.    Kelly secured the language in SASC’s FY 2025 NDAA. Crapo and Senator John Hickenlooper (D-Colorado) introduced the Fighter Force Preservation and Recapitalization Act in July 2023.   The language requires the Secretary of the Air Force, in consultation with the Director of the Air National Guard (ANG), to develop and implement a plan to sustain and recapitalize the 25 fighter squadrons of the ANG. This language is mirrored after the Fighter Force Preservation and Recapitalization Act , which prevents the closure of ANG fighter squadrons at a time when pilot and maintenance manning are at critically low levels.    “As we modernize our Air Force to meet the growing threats we face, we also need to modernize our Air National Guard. This will give us the roadmap we need to support the Air National Guard’s continued role in providing tactical airlift, air refueling, natural disaster, and other reserve and support capabilities in Arizona and across the country,” said Kelly.    “Inclusion of this language protects squadrons–such as the Idaho Air National Guard’s 190th Fighter Squadron–from force reductions,” said Crapo.  “Preserving our National Guard fighter squadrons means our nation will continue to be well-prepared amid increasing national security threats.”  “The National Guard is the first choice, proven choice, and enduring choice for both the war fight and homeland defense,” said Maj Gen Kerry Muehlenbeck, Arizona National Guard Adjutant General. “Concurrent and proportionate investment in and modernization of our ANG fighter force is critical to the preservation of national security.”  Since 1987, the Air Force fighter fleet has been reduced by 60 percent. The ANG represents 27 percent of the Air Force fighter force and is responsible for 94 percent of homeland defense missions. Unfortunately, the Air Force is moving to divest many of the ANG legacy equipment, including A-10s, F-15Cs, and older F-16s, without a plan to recapitalize them with advanced aircraft. The Fighter Force Preservation and Recapitalization Act will ensure the Air Force maintains 25 ANG fighter squadrons across 22 states, ready to protect Americans at home and abroad. On average, the pilots and maintainers in the ANG are twice as experienced as their active duty counterparts.  The Senate may consider its version of the FY 2025 NDAA as soon as this month.

Famous filmmaker gives to local causes, candidate

Posted on by Yellow Sheet Report Staff
A high-profile, former Arizona resident is showing interest in the state’s local political contests, campaign finance records show. Movie director Steven Spielberg, who attended Arcadia High School in Phoenix, has donated more than $100,000 to two political action committees and one local candidate over the past year. Arizona for Abortion Access and the Arizona arm of the PAC for America’s Future each received $50,000. The AAA donation came in February, while the PAC for America’s Future donation came in December 2023. According to Open Secrets, the PAC for America’s Future is a Democratic committee that donates to state Democratic parties and Democratic candidates across the country. Dawn Penich, spokesperson for the abortion access ballot measure, did not respond to a specific question about the Spielberg donation, but noted the group fundraises at every level with every kind of donor. “The most successful campaigns raise dollars at every level, and that’s exactly what we are working hard to do: raise the funding needed to reach, educate and mobilize voters in every corner of the state,” Penich wrote in an email. Spielberg also gave Richer a $6,650 donation in June and is seemingly the only individual candidate to have received a contribution from the director. Richer told our reporter via email that the donation “belongs in a museum.” Spielberg grew up in the Phoenix area, but resides in California, according to the campaign finance reports.

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