03/21/2003
CONTACT: Todd Bradford (602) 263-7690
ARIZONA, March 21, 2003 -- The state's leading small-business advocacy group, NFIB, today urged state lawmakers to tighten the state's purse strings and find a way to exist within economic means, just as every Arizona household and business does in financial hard times.
NFIB/Arizona Assistant State Director Todd Bradford told the Citizens Finance Review Commission that with the country at war, our economy in a serious slump and the state facing an uncertain future, this would not be the time to raise taxes to help the state's budge crunch. "Arizona's small businesses are fighting a daily battle to keep their doors open and to keep people employed," said Bradford. "The state cannot tax its way out of a financial hole. State revenues are down because business revenues are down."
The 22-member commission, created by the governor to review the state's revenue structure, has been meeting since January. Bradford told the commission to look at other revenue sources. "Businesses are hurting all over the state," Bradford said. "Now is not the time to look to struggling businesses that are often borrowing against their homes and children's college funds just to stay in business and ask for more."
Bradford noted that a recent study found that Arizona's spending has steadily increased in recent years above and beyond adjustments for population and inflation. Since 2001, the state has consistently spent more than it took in in revenue.
"When the corner grocery store owner finds himself making less money because people are spending less, he can't make up the difference by raising their prices because they lose more customers," said Bradford. "They have to make up the difference by cutting costs.
"I urge the commission to consider the difficult option, the ones that every family and business in this state faces when faced with a serious financial difficulty-making do with what they have rather than imperil their long-term financial health," Bradford said.
