Breaking News - Greater Yuma Economic Development Corporation

Arizona Commerce Authority Gets Green Light

Jun. 29th, 2010
Howard Fischer

BY HOWARD FISCHER - CAPITOL MEDIA SERVICES 2010-06-29 17:58:00 PHOENIX — Unable to get the Legislature to approve her plan, Gov. Jan Brewer moved ahead on her own Tuesday with the creation of a quasi-public agency to promote economic development. Brewer signed an executive order creating the Arizona Commerce Authority. Run by a 34-member board of directors mainly from private companies, it is charged with attracting new businesses to the state and retaining those already here. That includes everything from marketing the state to advising the Legislature of changes needed in policies, including tax structure. The governor actually wants to scrap the current state Department of Commerce, farming out its duties unrelated to economic development to other state agencies and giving what's left to the new authority. But the Legislature adjourned without taking action on her plan she first proposed more than two months ago. Brewer said, though, she can start the process without them. The governor even took $10 million in federal stimulus dollars she has at her discretion and earmarked them to get the authority started. But gubernatorial staffers conceded that the funds actually will have to go to the Department of Commerce until lawmakers make the necessary legal changes. Under Brewer's plan, the governor will chair the authority. But the day-to-day operations will be overseen by former Phoenix Suns owner Jerry Colangelo, whom the governor named as vice chairman. He said the change was long overdue. “We found ourselves slipping in terms of the competitive playing field of going after businesses around the world, nationally and domestically,'' Colangelo said. The problem, he said, is the lack of a sufficient link between government and the business community. Colangelo said that will be remedied, not only by having the governor chair the authority but having the Senate president and House speaker as non-voting members. Colangelo also said one part of that link will be the authority recommending to lawmakers changes in policy designed to make Arizona more business friendly. He said one part of that is going to have to be revamping the state tax code. “I'll use whatever means I can to sell our state and attract businesses and new companies,'' he said. “And I want a tool box full of all kinds of initiatives, tax breaks, whatever it takes,'' Colangelo continued. “Because we have to bring ourselves back.'' The plan has been endorsed by House Speaker Kirk Adams, R-Mesa, who called it a necessary first step. But Adams already wants sharp cuts in taxes for business, cuts that Brewer has so far refused to endorse. Colangelo stressed the state cannot just focus on landing new companies. He said more attention needs to be paid to retaining the firms already here and making Arizona a place they want to expand. ``If those companies don't feel the state is moving in the right direction, we could very well lose jobs, additional jobs,'' he said. ``And we don't want that to take place.'' The state has lost close to 300,000 jobs since employment peaked at more than 2.7 million at the end of 2007. Still unclear is exactly what will happen to the various functions of the Department of Commerce that don't fit within the new authority's purview. These range from affordable housing programs and energy rebates to calculating the state's unemployment rate. Brewer said these programs likely will continue to exist but instead be done by different state agencies.

Howard Fischer

Capitol Media Services
Jun. 29th, 2010

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