ADOT making rapid progress on interim repairs to SR 88

Posted on by Yellow Sheet Report Staff
PHOENIX – The Arizona Department of Transportation is making rapid progress on a project to restore limited public access to several miles of State Route 88 (Apache Trail). The project is making the unpaved roadway suitable for those traveling in high clearance four-wheel drive and utility task vehicles.

 

The $4 million interim project, which is expected to be complete in September, addresses 5 miles of the roadway that were extensively damaged from flooding in 2019. In addition to the current project, ADOT continues seeking federal funding for more extensive upgrades , estimated to cost $33.7 million, that would make the highway accessible to other vehicles and more resilient to storms.

 

Since the interim project began July 22 between mileposts 222 and 227, a contractor has worked quickly to remove large boulders that blocked SR 88 on a steep section at Fish Creek Hill, which is 9 miles east of Tortilla Flat. Crews have since broken up the boulders and used the material to fill in eroded areas of the roadway and slope.

 

Other work underway now or in the coming weeks includes mitigating rockfall between Fish Creek Hill Overlook and Fish Creek, installing new signage, and cleaning and repairing drainage culverts. 

 

ADOT emphasizes that the roadway will only be suitable for high clearance four-wheel drive vehicles as well as utility task vehicles when this stretch reopens. The roadway is not intended for travel in vehicles that lack four-wheel drive.

 

Before this project began, ADOT maintenance crews removed vegetation, filled in eroded roadway sections and cleaned out culverts. Work in the project area requires U.S. Forest Service review and approval of any activity, as SR 88 follows an easement through federal land. The project also must meet all applicable state and federal environmental requirements.

 

These 5 miles of SR 88 have been closed between Fish Creek Hill Overlook and the Reavis Trailhead since the 2019 flooding, which was made worse in areas by runoff from the Woodbury Fire scar. ADOT reopened 1.7 miles west to the popular Reavis Trailhead in 2022. The original closure point on the east side was at Apache Lake Marina at milepost 229.  While the area between mileposts 222-227 previously had been open to hikers, bicyclists and equestrians, no public access is allowed during the current project. 

 

Traveling between the East Valley and Roosevelt Lake, Apache Trail was built during construction of Theodore Roosevelt Dam, which was completed in 1911. Prior to closing in 2019, the stretch between Tortilla Flat and Apache Lake was used by an average of 232 vehicles daily.   ADOT has performed extensive work since 2019 to restore access to and improve other damaged sections of SR 88 and made regular repairs when flooding has damaged areas that are open to traffic. Motorists can safely access Canyon Lake, Tortilla Flat and other points on the west side of the closure. 

 

For more information on the SR 88, please visit azdot.gov/SR88ApacheTrail .

Court rules in favor of AZ Restaurant Association, allows Tipped Workers Protection Act (Prop 138) to remain on November ballot

Posted on by Yellow Sheet Report Staff
The Tipped Workers Protection Act (Proposition 138) will remain on the Arizona ballot this November, following a Maricopa County Superior Court decision today. The court rejected a complaint filed by Raise the Wage AZ, political activists who asked for a preliminary injunction against the Tipped Workers Protection Act under the grounds the ballot measure is misleadingly named.   “This was a bogus lawsuit from the start, and the Arizona Restaurant Association thanks the court for granting our request to have the complaint promptly denied,” said Steve Chucri, President & CEO of the Arizona Restaurant Association. “It is clear the out-of-state special interests behind the lawsuit simply don’t want Arizona voters to have their say this November on the Tipped Workers Protection Act.”   Arizona business groups and community leaders are rallying in support of the ballot measure.   “Arizona employers and families are already struggling with rising costs,” said Danny Seiden, President & CEO of the Arizona Chamber of Commerce & Industry. “The Arizona Chamber of Commerce & Industry fully supports the Tipped Workers Protection Act because it will boost pay for tipped workers, protect jobs and keep costs down for Arizona small businesses and consumers.”   The Tipped Workers Protection Act preserves Arizona’s existing tip system for restaurant wait staff and other workers, while raising the pay floor to ensure every tipped worker earns at least $2 above minimum wage.   Added Chucri, “This is a balanced, bipartisan and Arizona-led ballot measure, and we are confident it will be supported by voters this fall.”

Sinema’s Special District Grant Accessibility Act Clears Homeland Security Committee

Posted on by Yellow Sheet Report Staff
WASHINGTON – The U.S. Senate Homeland Security & Governmental Affairs Committee approved Arizona senior Senator Kyrsten Sinema’s Special District Grant Accessibility Act – bipartisan, bicameral legislation she introduced alongside Republican Senator John Cornyn (Texas) ensuring Arizona special districts have equal access to federal financial assistance to improve community safety and delivery of essential services. U.S. Representatives Pat Fallon (R-Texas) and Brittany Pettersen (D-Colo.) introduced companion legislation in the U.S. House.   Sinema introduced the Special District Grant Accessibility Act following conversations with Arizonans about the need to help Arizona’s special districts access federal funds more fairly.    “Arizona is home to over 300 special districts – all of which provide critical services to our communities, including firefighting, clean water, health care, and more. We’re ensuring special districts can access federal funding so they can keep helping and serving everyday Arizonans across our state,” said Sinema.    Special districts are a political subdivision of a state and deliver specialized services to a specific community that would otherwise not be provided. In Arizona, there are over 300 special districts, employing over 14,500 Arizonans, that provide essential services including firefighting, public utilities, and infrastructure. Special districts have struggled to access federal funds for infrastructure projects and community programs because the U.S. Census Bureau does not consider special districts to be a unit of government – leaving special districts unable to access federal funds as easily or fairly as other parts of government that provide the same services.   Sinema’s legislation builds on previous work in defining “special districts” under law to ensure these entities have equitable access to federal funding opportunities. Additionally, Sinema’s bipartisan and bicameral legislation directs the U.S. Office of Management and Budget (OMB) to issue guidance to federal agencies regarding treatment of special districts and report on agency compliance with published guidance.

 

Gallego Crosses the Aisle, Becomes First Democrat to Back Bill Expediting CBP Hiring

Posted on by Yellow Sheet Report Staff

PHOENIX – Rep. Ruben Gallego (AZ-03) has become the first Democrat to back the Anti-Border Corruption Improvement Act. The legislation would remove the polygraph requirement for Customs and Border Protection (CBP) applicants who have prior law enforcement experience or military security clearances.

“When I meet with CBP and border community leaders, one of the first things they mention to me is the shortage of CBP officers,” said Rep. Gallego. “Securing our border should be a bipartisan issue, which is why I’m proud to be the first to cross the aisle and support this commonsense legislation to expedite CBP hiring. Law enforcement officers and veterans who have already served our country once shouldn’t face unnecessary hurdles to serving again.”

Background On Rep. Gallego’s Wins To Support Arizona’s Border Communities:

Following numerous letters urging the Federal Emergency Management Agency (FEMA) and the Biden Administration to deliver Arizona’s frontline border communities essential resources to deal with the border crisis, as well as a one-on-one call with Sec. Mayorkas, Rep. Gallego announced in September 2023 that he had secured over $2 million in emergency funding from the Department of Homeland Security (DHS) to support Arizona’s border communities as they address an increase in migrant crossings.

After close coordination with Arizona’s non-profits, border community leaders, and law enforcement officials, Rep. Gallego rolled out his plan to institute sweeping reforms to address the problems plaguing FEMA’s Shelter and Services Program (SSP) that has shortchanged Arizona’s border communities on the front line of the border crisis.

In December, Rep. Gallego traveled across Arizona meeting with border community leaders. He met with local officials, farmers, and business owners in Yuma to discuss the impact the closing of the Lukeville Port of Entry had on their businesses and Arizona’s economy, and he visited Nogales, Bisbee, and Tucson to meet with local leaders, nonprofit officials, and representatives from Customs and Border Protection (CBP) to discuss the impact of increased migration on Arizona’s border communities.

To stop the flow of fentanyl across the border, Rep. Gallego introduced the Buck Stops Here Act to authorize the U.S. Treasury’s Financial Crimes Enforcement Network to designate financial institutions, transaction classes, or accounts as primary money laundering concerns in connection to illicit fentanyl trafficking. This bill was signed into law in April 2024.

Also in April, Rep. Gallego announced $54,573,093 in funding from SSP to support Arizona’s border communities on the frontlines of the border crisis. Rep. Gallego helped secure $650 million in SSP funding as part of the fiscal year 2024 government funding package. He immediately called on Homeland Security Secretary Alejandro Mayorkas to swiftly disperse the funds and to prioritize Arizona border communities.

In May, Rep. Gallego introduced the Direct Hire Act and the Screening Efficiency Act, both aimed at speeding up migrant processing and providing relief to Arizona’s frontline border communities.

NCSL: Tax policy, K-12 education among top issues, fiscal analyst survey says

Posted on by Brett Stover

LOUISVILLE, Ky. — Tax policy, K-12 education funding and housing are among this year’s top issues noted by state fiscal analysts across the country.

Along with state economic conditions and long-term liabilities, those topics are top of mind for legislative fiscal offices, a senior policy analyst with the National Conference of State Legislatures said Tuesday. Eric Syverson said the list — which will be released in a forthcoming report — comes from a new database the organization is compiling.

In 2024, the top tax policy implemented by states was property tax relief, Syverson said. Other popular policies included income tax cuts, business incentives, tax benefits for families and sales tax exemptions:

  • Fifteen states enacted property tax relief this year, Syverson said. Those cuts came primarily as homestead exemptions, either broad or targeted. For example, Kansas exempted the first $75,000 of home value from a homeowner’s property tax bill.
  • Many states implemented new income taxes or accelerated previously enacted cuts. Syverson said there were fewer cuts this year than last year, but states are still cutting income taxes at a historically high pace.
  • There’s been increased interest by legislatures in using tax policy to help families with children, particularly to address the cost of child care. For example, Georgia, Kansas and Wisconsin made those types of tax benefits more generous this year. Syverson predicted more federal action on child tax credits in 2025.
  • Six states enacted business-specific sales tax exemptions this year, and seven did so for certain goods and services.

A ‘reality check’ on some concerns

Michael D’Arcy, director of U.S. public finance for Fitch Ratings, gave attendees at the NCSL session a “reality check” on some of the top concerns identified by policymakers: declining revenues, economic uncertainty, demographic changes, structural deficits and state credit ratings.

The top concern, declining state revenue, is a very real issue, D’Arcy said. Revenue declined for 16 states in the last fiscal year, and year-over-year revenue growth across all states has decelerated.

Some of those declines are the result of economic conditions. But D’Arcy said it’s a “largely engineered phenomenon” because of states’ recently enacted tax cuts.

There are reasons for concern over the economy, but D’Arcy said Fitch is skeptical of some of the economic indicators that point to a coming recession. For example, he said recent increases in the U.S. unemployment rate are a “statistical anomaly” because the numbers are driven by an increase in young, unskilled immigrant workers.

Fitch doesn’t have any states on a negative outlook, and no state’s credit rating is in an “immediate danger of going down,” D’Arcy said.

As for structural deficits — where a government consistently spends more than it makes in revenue — Fitch’s state credit team doesn’t see reason for concern over the next few years. D’Arcy said the “economy would have to really hit a recession” for those deficits to become major problems.

‘Unprecedented’ teacher pay growth

Teacher compensation was the top K-12 education funding issue identified by state fiscal analysts.

There’s been “unprecedented” increases in teacher salaries over the past few years, said Michelle Exstrom, director of the National Conference of State Legislatures’ education program. The growth rate of teacher compensation has caught up with the private sector for the first time in years.

In 2023 and 2024, lawmakers across the country introduced 191 bills addressing special student populations — such as special education, English-language learners and at-risk students — the most of any education topic.

Part of that figure includes a new trend, Exstrom said: funding specifically to help homeless students, a group that graduates at significantly lower rates.

The biggest outstanding at-risk funding issue? Exstrom said states are still trying to figure out how to ensure the money actually goes to those particular student groups after it’s sent to school districts.

Other major school funding issues in 2024 include reducing schools’ reliance on property tax revenue, reforms to school funding formulas and big efforts to rethink schooling, including through avenues such as voucher programs and community schools.

Other issues: Long-term liabilities, housing

State and local governments reported $3 trillion in long-term debt as of 2021, according to Fatima Yousofi, a principal associate for Pew Charitable Trusts. The good news, she said, is that states have made progress in recent years, particularly in funding their pension liabilities.

Additionally, deferred costs of infrastructure maintenance are estimated to be in the range of $1 trillion to $2 trillion.

Yousofi said climate change will add to that bill through various avenues, including road and bridge repair and updates to states’ water systems.

Heather Wilson, a senior policy specialist for the National Conference of State Legislatures, said the four primary ways states are addressing the nation’s housing shortage are through stability, easing zoning restrictions, development incentives and efforts to increase home ownership.

State lawmakers have introduced 1,913 housing-related bills so far this year, Wilson said, and 336 have passed.

She cited the Joint Center for Housing Studies’ 2024 report, which showed the nation is 1.5 million units short of meeting its housing needs and no state has a sufficient supply of affordable rental housing.

Brett Stover is a Statehouse reporter at State Affairs Pro Kansas/Hawver’s Capitol Report. Reach him at [email protected] or on X @BrettStoverKS.

NCSL: Swatting, catalytic converters and redistricting anchor ‘Lightning Round’ session

Posted on by Krista Kano

Georgia Sen. John Albers, R-Roswell, shared how his family was the victim of “swatting,” when someone makes a phony 911 call that results in a response from a SWAT team. 

In Albers’ case, an individual called local police for a domestic dispute at the senator’s home when he and his wife were out of the state. Fifteen police officers responded to his home when only his son was there. 

“When you have 25 vehicles out on a Code 3, a lot of bad things can happen,” Albers told attendees at the National Conference of State Legislatures summit in Louisville, Kentucky. 

Maryland Sen. Cheryl Kagan, D-Montgomery, said each swatting call can cost $15,000 to $25,000. 

Albers said several other high-ranking officials in Georgia were also targeted, and earlier this session, the Georgia General Assembly passed a bill to increase penalties. 

Maryland passed its version last year, Kagan said, which was controversial because of “challenges with juvenile justice.” 

“I call myself a pragmatic progressive, and people on my left were worrying about increasing penalties,” she said. “It’s a challenge, but it’s a crime. We’ve got to make sure people know about it and hopefully that’s part of the disincentive.” 

All 50 states have penalties for swatting, but no federal legislation has been enacted. Thirty-three states have some level of felony penalty, usually when causing injury or death. Twenty-one states provide the ability to seek restitution for costs incurred. 

Catalytic converters

Virginia tackled rampant catalytic converter thefts not by going after the perpetrators but by eliminating the market, Senate Minority Leader Ryan McDougle, R-Hanover, said. 

The exhaust emission control devices in motor vehicles were quick and easy to steal and were being sold for $1,500 to $3,500, he told NCSL attendees.

While the parts themselves hold little value, the metals are in high demand, he said. 

Addressing the crime as a larceny had evidentiary challenges, so Virginia lawmakers instead focused on the resale market. 

“If you weren’t acting for a motor dealer, or scrap metal, if you didn’t have a registration or it wasn’t new, then it’s assumed you were possessing it illegally,” he said of catalytic converters. “After that went into place, it [theft] went from being a scourge to dropping dramatically.” 

“It’s an effective tool,” he continued. “It’s not eliminated, but it’s reduced substantially and we’re no longer getting calls in our office like we did before.” 

One negative side effect, he said, was that surrounding states saw an increase in catalytic converter thefts because there was no longer a market in Virginia. 

The Ohio House in June passed a proposal, HB 328, aimed at curbing catalytic converter thefts. The current version, which awaits Senate action, requires additional record keeping and reporting and imposes a $10,000 to $50,000 penalty on business entities that violate those requirements, among other provisions. 

Redistricting

Attorneys involved in Ohio’s and New York’s redistricting litigation explained the challenges faced in their respective states and how other states have handled redrawing their maps. 

Frank Strigari, former chief legal counsel for the Ohio Senate, noted that Michigan has faced significant issues since a newly established independent commission was put in place.

“Basically, the people that were on that commission didn’t have any experience,” he said. “Their system was meant to be that way, but because they didn’t have experience, they had to rely on experts, consultants and all types of people, which, you can imagine, come with all sorts of partisan agendas.” 

Ohio voters will decide whether to establish a similar body in November following a heavily litigated process.

“In Ohio and New York, we didn’t have the greatest success, even with well-intended reforms,” Strigari said. “I don’t know if there’s really, truly a panacea for this type of issue, especially when politics are involved. You can try to take the politics out of it, but it’s impossible to do that.”

He said it is his personal opinion that redistricting should remain in the hands of state legislatures and advised against placing the process within state constitutions.

“You’ll just constantly change the state constitution to try to make the process perfect, but it will never be perfect,” he said. “It’s not a good idea.” 

Strigari and Jeff Wice, special counsel to the New York Legislature, advised lawmakers to begin planning now for the 2030 Census by making updated data easily accessible for constituents and thinking about the future system for public input and maps. 

Krista Kano is a staff writer for Gongwer Ohio/State Affairs. Reach her at [email protected] or on X @krista_kano.

Indiana completes I-69 corridor connecting Evansville to Indianapolis

Posted on by Jarred Meeks

Indiana on Tuesday “filled in the missing link in the crossroads of America” with the completion of the Interstate 69 corridor connecting Evansville to Indianapolis, former Gov. Mitch Daniels said.

Daniels joined former Gov. Mike Pence and Gov. Eric Holcomb to celebrate the accomplishment at an opening ceremony for the final major section of the decadeslong project that spanned all of their administrations. The ceremony was held at a new interchange linking I-69 to I-465 on the southwest side of Indianapolis.

Initially scheduled for a 2027 completion date, the interchange will allow officials to open all of the new highway, which Holcomb said is the largest new interstate project in America. Ultimately, federal officials foresee I-69 stretching to the Mexico border, creating an artery through which goods and services can flow across the U.S.

“To have it done on budget and three years ahead of schedule just speaks to how Hoosiers came together,” Holcomb said.

Continue reading “Indiana completes I-69 corridor connecting Evansville to Indianapolis”

Sen. Young hails $450M CHIPS Act boost for West Lafayette plant

Posted on by Tom Davies

The federal government has awarded up to $450 million in CHIPS and Science Act incentives to South Korean chip manufacturer SK hynix Inc. for its planned facility in West Lafayette.

The U.S. Department of Commerce said Tuesday that its preliminary agreement with SK hynix also provided for up to $500 million toward the company’s project at the Purdue Research Park.

The company announced in April that it planned on spending $3.87 billion to build the advanced packaging fabrication and research and development facility. It is expected to produce high-intensity and AI microelectronic products and employ an estimated 1,000 workers by the end of 2030.

U.S. Sen. Todd Young, R-Ind., a key sponsor of the 2022 CHIPS and Science Act, hailed the agreement with SK hynix as fitting with the goal of boosting domestic semiconductor production rather than relying on imports from China and other countries.

“The funds that we are celebrating today are going to unleash more private investment, create more jobs and further those national security and economic security goals,” Young told reporters Tuesday.

The CHIPS Act, signed by President Joe Biden, was a $280 billion package aimed at securing U.S. military technology and avoiding future chip shortages, such as what occurred during the COVID-19 pandemic that impacted production in many industries.

SK hynix CEO Kwak Noh-Jung said in a statement that the company appreciated the federal government’s support to “ultimately supply leading-edge AI memory products from West Lafayette.”

“We look forward to establishing a new hub for AI technology, creating skilled jobs for Indiana and helping build a more robust, resilient supply chain for the global semiconductor industry,” he said.

Young credited U.S. Commerce Secretary Gina Raimondo for wanting to see companies commit to manufacturing projects before awarding CHIPS Act funding.

“I am so appreciative she’s taken that approach because of her frugality with the taxpayer dollars,” Young said.

SK hynix expects to start mass production at the West Lafayette facility during the second half of 2028. The Indiana Economic Development Corp. also offered the company nearly $700 million in various state incentives and tax rebates for the project.

Young said he did not expect challenges in implementing the CHIPS Act’s program under the next presidential administration, pointing to support from President Donald Trump’s administration for Young’s previous work to boost chip research and production.

“I credit the Biden administration for rallying support of Democrats, in particular, as I worked on some key Republicans, and we got this thing across the line,” Young said. “This has not been a partisan initiative at all. In fact, it’s been notably nonpartisan.”

Tom Davies is a Statehouse reporter for State Affairs Pro Indiana. Reach him at [email protected] or on X at @TomDaviesIND.

FBI seized Andy Ogles’ phone the day after he won GOP primary

Posted on by Erik Schelzig

Federal agents executed a search warrant on controversial U.S. Rep. Andy Ogles’ phone the day after he won the Republican nomination to serve another term in the 5th Congressional District seat.

“It has been widely reported for months that my campaign made mistakes in our initial financial filings,” Ogles said in a statement Tuesday. “We have worked diligently with attorneys and reporting experts to correct the errors and ensure compliance going forward.”

“Last Friday, the FBI took possession of my cell phone,” he said. “It is my understanding that they are investigating the same well-known facts surrounding these filings. I will of course fully cooperate with them, just as I have with the Federal Election Commission. I am confident all involved will conclude that the reporting discrepancies were based on honest mistakes, and nothing more.”

The federal search warrant was first reported by WTFV-TV.

The congressman’s campaign finances have come under heavy scrutiny since he first ran for Congress in 2022. The lawmaker in May filed revision to all 11 Federal Election Commission disclosures he had filed to that date to eliminate any reference to a $320,000 loan he had originally claimed to have made to his campaign two years earlier. Ogles said in a statement that the amount had been mistakenly listed as a loan when it really was a “pledge” should it have been needed.

It wasn’t the first time Ogles story about the loan had evolved. After announcing in 2022 that he had raised $453,000 in the first 30 days of the race, he told The Tennessee Journal in an email that the total had included “no loans.” But when he finally submitted an overdue overdue campaign finance report as early voting had gotten underway in the primary race, it revealed Ogles had brought in just $247,100 through the entire quarter, plus the $320,000 loan from himself. 

By that point, Ogles had earned the backing of national groups like the Club for Growth that might not have been as interested in supporting him if his fundraising totals had been more lackluster. Ogles went on to a plurality of the vote for the newly-drawn seat in the GOP primary over former state House Speaker Beth Harwell and retired National Guard Brig. Gen. Kurt Winstead.

Ogles last week defeated a challenge from Metro Nashville Council member Courtney Johnston.

Editor’s note: This story has been updated with Ogles’ statement that federal agents seized his phone.

Kelly praises Minnesota Gov. Walz as VP pick 

Posted on by Bryan Richardson

Gov. Laura Kelly on Tuesday congratulated Minnesota Gov. Tim Walz on being selected the Democratic vice presidential nominee.

Kelly issued a statement in her capacity as vice chair of the Democratic Governors Association, of which Walz is chair.

“As a teacher, veteran, and elected leader, Governor Walz brings to the ticket a dedication to public service and a record of winning tough races and improving lives that makes him exceptionally prepared to help Vice President Harris win and deliver for the American people,” she said.

Vice President Kamala Harris announced Walz as her running mate Tuesday morning. It is expected that Kelly will take over as Democratic Governors Association chair, but the organization hasn’t made an announcement on the matter.

Kelly said the Harris-Walz ticket is “a powerful contrast to the dysfunction of the Republican party” with former President Donald Trump and Sen. JD Vance, R-Ohio, on the opposing side.

“Governor Walz has shown the country the power of spending political capital rather than banking it, leading the ‘Minnesota Miracle’ that enshrined reproductive freedom into state law, expanded voting rights, ensured universal free school meals, is tackling gun violence, combatting climate change, and growing the economy for the middle class,” Kelly said.

Bryan Richardson is the managing editor at State Affairs Pro Kansas/Hawver’s Capitol Report. Reach him at [email protected] or on X @RichInNews.

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