Arizona remains in the center of national headlines following the 2020 election, exposing the tension between two competing interests: access and accuracy. New laws aimed at reforming the voting process have been proposed and implemented at the federal and state level. As the debate rages on over ballot access and election integrity, Americans of all stripes are curious about how the election system works and what problems exist.

On November 9, elections expert Dr. John Fortier, along with state and local officials will explore Arizona’s election system and opportunities for reform. Dr. Fortier is a senior fellow at the American Enterprise Institute and is the co-author of “Lessons Learned from the 2020 Election,” a special report made for the U.S. Elections Assistance Commission. 

“Studying elections at the American Enterprise Institute, I’ve had the opportunity to explore this issue from a national level,” Fortier said. “The 2020 presidential election had record voter turnout across the board, including record turnout by mail. People care that their votes count, and they deserve to understand their election system. I commend the Arizona Junior Fellows and ASU SCETL for bringing about this thoughtful discussion on how to ensure voter access and build a trustworthy elections system.”

Fortier will be joined by respected and experienced state and local experts, including Hon. Kirk Adams, former Speaker of the Arizona House of Representatives and chief of staff to Gov. Doug Ducey; and, Hon. Lisa Marra, president of the Election Officials Association of Arizona and the elections director for Cochise County. The discussion will be moderated by Hon. Eileen Klein, former state treasurer of Arizona and president emerita of the Arizona Board of Regents.

“As a local elections official, nothing is more important than upholding elections laws and protecting people’s right to vote,” Marra said. “I look forward to talking about ways to ensure Arizonans can have confidence in their elections system.”

The event is the second in the series “The Future of Arizona Democracy” produced by the Arizona Junior Fellows, a project of the Arizona şÚÁĎłÔąĎÍř Foundation in partnership with the School of Civic and Economic Thought and Leadership at Arizona State University.

The event is free and open to the public.

Event Details

November 9th, 2021 

5:00 – 7:00PM

ASU Memorial Union – Turquoise Room (2nd Floor)

For updates and further information, follow the Arizona Junior Fellows on , , , and .

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President Joe Biden has proposed an increase in the United States’ Global Intangible Low-Tax Income (GILTI) tax, which applies to a category of foreign income for U.S. multinational businesses. 

The proposed American Jobs Plan Act raise the GILTI tax “from 10.5 percent to 21 percent, calculate GILTI on a per-country basis, and eliminate the exemption of the first 10 percent return on foreign qualified business asset investment (QBAI).”

A study produced by the Seidman Institute at Arizona State University’s W. P. Carey School of Business and Ernst & Young’s Quantitative Economic and Statistics Team (QUEST) concludes that an international tax increase on U.S. multinational companies operating in Arizona could create substantial economic uncertainty—and place up to 47,000 Arizona jobs at risk over the next five years.

The GILTI tax “is specifically targeted at the income earned by foreign affiliates of those companies from intangible assets including intellectual property such as patents, trademarks, and copyrights,” according to the study.

More than 260 businesses operating within the state of Arizona could face negative consequences as a result of the proposed tax hike.

Job losses and economic impact

The study released by the Seidman Institute and QUEST calculates both low- and high-impact scenarios for the proposal’s effect on Arizona’s economy.

The worst case scenario for the Arizona economy is that it loses 42,569 jobs in year one, which will increase to 46,872 in year two, and taper down to 46,452 in year three. Additionally, the state’s GDP would be negatively affected by $5,056,200,000 in the first year, grow to $5,883,000,000 in the second year, and swell up to $6,387,000,000 in year three.

While this does not mean that the state’s GDP would lose that much in GDP growth annually, each year the total negative impact of the tax increase on GDP would increase. The same goes for job losses. Each year’s numbers are cumulative.

The best case scenario for the Arizona economy is that it loses 2,326 jobs in year one, increasing to 2,555 in year two, and going down slightly to 2,532 in year three. The state’s GDP would be negatively impacted by $276,700,000 in the first year of its implementation, grow to $321,400,000 in year two, and grow once again to $348,900,000 in year three.

Once again, each year’s numbers are already cumulative.

Dr. Timothy James, director of research and consulting at the Seidman Research Institute, told şÚÁĎłÔąĎÍř that if the GILTI tax increase is implemented, it will negatively impact Arizona’s economy. A higher tax on foreign income exploited for intellectual property — which is the category of income that the GILTI tax applies to — will affect companies’ investment decisions.

Industries and businesses that are more dependent on intellectual property would be disproportionately affected by the policy. It won’t be the “Fords and GMs of the world” that are impacted, but tech- and software-related companies, said Dr. James. That’s because more of their foreign income is likely to be taxable under the GILTI tax.

Arizona’s post-COVID recovery

As Arizona recovers from the COVID-induced pandemic, leaders across the state are intent on keeping the momentum going. Among the top strategic objectives of Gov. Doug Ducey’s administration and pro-business leaders across the state has been the maintenance and acceleration of Arizona’s economic competitiveness.

“The Biden administration should be looking for ways to accelerate and sustain the post-pandemic economic recovery,” Arizona şÚÁĎłÔąĎÍř of Commerce & Industry President and CEO Danny Seiden said. “A new tax increase that creates a drag on overall GDP growth is not only the wrong policy move, but it couldn’t come at a worse time. Congress should reject this proposal.”

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Tax hikes proposed by the Biden administration place tens of thousands of Arizona jobs at risk, according to a new analysis conducted by the Seidman Research Institute at Arizona State University and Ernst & Young.

Looking for revenue to help pay for trillions of dollars in new spending, President Biden and congressional leaders have backed a $3.5 trillion package, which includes a slew of tax hikes – the bulk of which are aimed at employers and upper-income Americans. One provision in particular – a planned doubling of the Global Intangible Low-Tax Income (GILTI) rate – would hammer companies based in the U.S. but with operations overseas.

ASU Seidman and Ernst & Young found that 266 Arizona companies would be impacted by the GILTI increase. Specifically, according to the report, adoption of President Biden’s plan would:

• Eliminate up to 27,700 Arizona jobs in the first year following adoption, including as many as 42,500 total jobs if indirect losses are taken into account.
• Kill up to 46,800 Arizona jobs within the first five years.
• Reduce total economic growth in the state by as much as $5.1 billion in the first year and $6.4 billion over the course of a decade. 

“At a time when too many Arizona employers are just now recovering from the pandemic, this multi-trillion-dollar series of tax hikes is one more blow we don’t need,” Arizona şÚÁĎłÔąĎÍř of Commerce & Industry President and CEO Danny Seiden said. “The tens of thousands of job losses forecast by this troubling report mean further economic downturn and reduced opportunity for Arizona workers and families.”

GILTI was intended to target foreign income derived from intangible assets like software services, trademark royalties, intellectual property and more. Unfortunately, its impacts have proven far broader, placing a surtax on essentially any U.S. company that reaches customers abroad. The Biden administration has proposed doubling the GILTI rate to 21%, up from 10.5%. Arizona employers warn the increase, especially when coupled with a raft of other proposed tax hikes, will kill jobs and reduce their competitiveness in a global marketplace.

“Our economic recovery remains fragile, and these tax increases are just one more headwind for Arizona businesses to face,” said Steve Trussell, executive director of the Arizona Rock Products Association. “Many of our members have operations around the world, and these proposed tax hikes put them at a real competitive disadvantage. Ultimately, it’s Arizonans who pay the price if these damaging tax policies are adopted.”

Certain industries would be hit hardest by the GILTI increase. For example: the ASU Seidman/Ernst & Young analysis found that the agriculture, cConstruction, mining and oil & gas sectors could lose more than 4,800 jobs in the first year. The manufacturing industry risks the loss of more than 8,400 jobs.

In recent days, the National Association of Manufacturers (NAM) that found nearly 94% of U.S. manufacturers believe higher taxes would harm their business; 90% said the hikes could hurt their ability to add workers, expand facilities, or invest in new equipment.

Issuance of the report from ASU Seidman and Ernst & Young comes as House Democrats race to finalize details of their budget reconciliation bill, which is likely to include a host of tax hikes. The package is expected to come to a vote before the end of September.

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For the second year in a row, Arizona State University in Tempe is ranked No. 1 in the nation for its impact in reaching goals set forth by U.N. countries to achieve “a better world” by 2030.

The annual rankings are presented by magazine and are the only global performance tables that assess universities against the United Nations’ 17 Sustainable Development Goals (SDGs).

ASU’s ranking is a reflection of the institution’s “impressive ability to rapidly innovate, replicate and scale meaningful solutions,” said Amanda Ellis, director of global partnerships in the , which is helping lead the effort.

Goals include creating and scaling solutions for climate change, clean water and air, sustainable cities, poverty and hunger, gender equality and quality education. 

For the 2021 rankings, 1,117 universities from 94 countries and regions were analyzed. Calibrated indicators were measured to provide comparison across four broad areas: research, stewardship, outreach and teaching. 

ASU scored highest in goal of “sustainable cities and communities”

ASU received its highest scores in the goal of sustainable cities and communities followed by responsible consumption and production, eradicating poverty, clean sanitation and water, and climate action.

Overall, ASU scored 95.8 out of 100 points, placing it ahead of Purdue University, the Massachusetts Institute of Technology, Penn State University, and the University of North Carolina at Chapel Hill.

ASU ranks ninth in global rankings 

In the global rankings, ASU tied for in the world out of 1,115 institutions from more than a dozen countries, ahead of schools like King’s College London, the University of British Columbia and Western Sydney University. 

Future’s Lab, School of Global Management leading effort  

Leading the effort to attain SDGs are ASU’sand the . 

Sanjeev Khagram, CEO, director general and dean of Thunderbird, who led the establishment of a global network —the — to use data to achieve the goals, said it is the largest multi stakeholder initiative of its kind. 

“We must make this the decade of delivery worldwide,” Khagram said. 

Programs helping the planet 

Some of the ASU programs that are contributing to achieving sustainability goals include:

• Global Carbon Removal Partnership Public, private and civic members of the work to influence policy and market environments to support the rapid scale-up of carbon removal actions. 
• The Connective is a that is building a “smart region” in the greater Phoenix area with Thunderbird’s Phoenix Global Rising Initiative. This global multi-stakeholder partnership is advancing Phoenix’s goals to deploy equitable and scalable technology solutions that support sustainability and improving quality of life.
• Decision Center for a Desert City The is focused on advancing research, education and partnerships for urban water transitions through the power of data. Complementing its work is the Kyl Center for Water Policy, which promotes research, analysis, collaboration and dialogue to build consensus on sound water stewardship for Arizona and the West.
• Swette Center for Sustainable Food Systems The provides research and education options to address the integrity of the agriculture systems and the well-being of farmers, producers and providers, and help drive policy-relevant knowledge to ensure food safety.

“Our purpose at ASU is not only to support these goals by aligning our programs and service to local and global communities but to build upon them beyond 2030 so that we, as a global community, are shaping and creating bold ideas for a planet-positive future through opportunity, not sacrifice,” said Peter Schlosser, vice president and vice provost of the Global Futures Laboratory.

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Arizona State University often touts its annual U.S. World News as the number 1 university in the world for “innovation.” But what does that really mean? How does this concept fit into Arizona’s economic outlook? 

Michael Porter, a Harvard professor who has dedicated his career to studying economic competitiveness, believes that “Innovation is more than just scientific discovery. Innovation stretches beyond science and technology, and includes all the activities involving the discerning of needs and the transformation of knowledge into commercial products, processes, and services. In advanced regions, prosperity rests heavily on the capacity for continuous innovation.” 

U.S. World News describes its methodology for choosing the “most innovative universities” by analyzing a school’s investments in “curriculum, faculty, students, campus life, technology or facilities.”

Innovation as a touchstone

The university’s focus on innovation has taken root across the state, with Arizona Gov. Doug Ducey in his first year in office that Arizona “has a culture of innovation.” Through economic reforms, expanded programs, and public-private partnerships, the state government has collaborated with local governments and the private sector to draw investment and enterprise to the state. 

One strategy leveraged to accrue investment was the implementation of the . This program certifies up to $2.5 million of tax credits annually from July 2017 through June 2021 for “qualified investments made in qualified small businesses.” This program reached its full funding potential in November 2020 when the Arizona Commerce Authority that all the funding for the program had been allocated. 

Venture capital is a large resource to both the economy and workforce, economic growth and for career creation. Venture capital dollar amounts in Arizona over the past two years have set records. In 2018, went to Arizona startups over 133 deals. In 2019, $723 million in venture capital was invested in startups based in Arizona over 114 deals. 

In 2018, Gov. Ducey signed , which created a FinTech (Financial Technology) Regulatory Sandbox, the first of its kind in the United States. This allowed for companies to launch products on a temporary and limited scale to consumers in order to test their products, services, business models, and delivery mechanisms in the real market without having to face regulatory costs and burdens that would otherwise be imposed. 

At the time, Arizona Attorney General Mark Brnovich, “Arizona has always been a state for big ideas and this is just one more place where we are trailblazing in entrepreneurship and innovation.” 

Then in 2019, Ducey signed House Bill 2673 into law, which established a Property Technology–PropTech– Sandbox. Similar to H.B. 2434, it provided opportunities for startups and existing companies, which are focused on real estate, a regulatory free space to test their products and services without incurring repercussions normally incurred in a real market. 

Workforce expansion

All of these efforts combined with the location of the state and the high-tech and highly skilled pipeline talent have led to the influx of companies looking to make the Valley their new homebase. 

According to the , Maricopa County is among the top counties in the United States for talent attraction, driven by a growth migration and regional competitiveness. In 2020, the skilled workforce in the county by 18 percent and the county as a whole number 1 for regional competitiveness. 

Regional competitiveness in the scorecard is as the job change that occurs due to factors within a region, as opposed to being the result of national border trends. Other counties which are typically compared to Maricopa such as Los Angeles County or Palm Beach were ranked 601st and 23rd respectively. 

With the of Silicon Desert, the state of Arizona has garnered a lot of attention from companies looking to capitalize on the economic benefits the state offers. 

Chris Camacho, CEO of the Greater Phoenix Economic Council (GPEC), that Arizona’s highly skilled workforce and competitive taxation (compared to neighboring states) has enabled this expansion: “These individuals and companies are seeking other alternatives from the high tax and regulatory environment that plagued them.” 

Companies such as DoorDash, Opendoor, and Norton LifeLock have all moved into the state or made decisions that are expanding their influence in the region, . Twenty-two percent of the population of Tempe is made up of millenials and the city is home to Arizona State University. On top of this, 30 percent of the Phoenix metropolitan area holds a bachelor’s degree or higher. 

There are lots of benefits to reap from coming to the Valley, including the workforce coming out of the large state universities. This means that companies can have a large staff for a lower price of leading tech locations in other states. is expected to grow and prosper over the next few years as businesses look to make the move toward technological hubs to promote networking between skilled individuals and companies. 

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Arizona State University (ASU) renamed its film school after the trailblazing actor Sidney Poitier, whose life and career symbolizes the university’s core mission to produce a diverse workforce for the new digital economy, school officials said.  

The newly-named also is undergoing a major expansion with the addition of two new state-of-the-art campuses in downtown Mesa and Los Angeles.

“We will measure ourselves by who we include and how well they do, not by whom we exclude, and that is the charter and the mission of this new American Film School that we’re proud to advance and name today,” Steven Tepper, dean of ASU’s the Herberger Institute for Design and the Arts, said during a virtual renaming celebration Monday.

“His legacy will serve as a guide and inspiration for our school and the thousands of film students we educate.”

Poitier first Black actor to win Oscar for a leading role 

Poitier, who often portrayed poignant characters faced with racial prejudice, redefined the image of African Americans in film.

He was the first Black actor to receive an Oscar for a leading role in the 1963 movie, Lilies of the Field, which was filmed in Arizona. He also was the first Black actor nominated for a best actor Academy Award in 1959 for his role in The Defiant Ones. 

Now 93, his legacy includes approximately 60 movies including A Patch of Blue, A Raisin in the Sun, In the Heat of the Night, and To Sir With Love. He later went on to direct several movies, including “Uptown Saturday Night” and “Stir Crazy.” 

Poitier, who grew up in the Bahamas before moving to the United States, served as the Bahamian ambassador to Japan from 1997 to 2007.

Emphasis on entrepreneurship, taking ideas to market 

Poitier’s personal and professional life exemplify the film school’s charter to strive for “excellence and egalitarianism,” ASU President Michael Crow said at the renaming event. 

“Film schools have not been scalable and have not been broadly representative of all aspects of our society,” he said.

To change that, ASU is aiming to make the school the largest, most inclusive, affordable and innovative film and media production program in the country, Crow said. Entrepreneurship and taking ideas to the marketplace will play a starring role. 

“We’re investing everything we’ve got to make this work,” Crow said. 

Multicampus expansion includes downtown Mesa and L.A.

The film program is one of five schools in ASU’s Herberger Institute for Design and the Arts, the nation’s largest, comprehensive design and arts school at a research university.

With nearly 700 students, the school plans to double its enrollment as it adds two locations besides its current home on the Tempe campus, Dean Tepper said. 

A new state-of-the-art 118,000 square foot immersive media and film production facility in downtown Mesa is to be completed in fall 2022. It will be  the primary home for the school—a top 25 film program.

Later this year, a Los Angeles campus is opening in the ASU-owned and renovated historic Herald Examiner Building in downtown Los Angeles.

The school will prepare students for careers across the film, television and media industries, from writing, directing, and editing to digital cinematography, production design, sound recording and design, location scouting and management, music direction, costume design, visual effects, casting, talent management, sales, finance, marketing, distribution, and more.

Three of Porter’s six daughters featured at renaming 

Members of the Hollywood film community, including actors Harry Belafonte and John Lithgow and the vice chairman of Lionsgate, Michael Burns, praised Poitier’s accomplishments and the new school at the renaming celebration. 

ASU officials, film students, Mesa Mayor John Giles and Los Angeles Mayor Eric Garcetti also spoke about the importance of the school’s mission. 

Three of Poitiers’ six children — all daughters — were featured in a video by ASU film students.

Anika Poitier, Beverly Poitier-Henderson, Sydney Poitier Heartsong, each a talent in their own right, spoke of their father’s influence growing up.

Heartsong said the two most important things to her father are education and the arts, a marriage found at ASU’s film school.

Anika Poitier said Poitier taught his children “you have to know where your moral compass lies and not veer from that course.”

To read more about the naming ceremony and the film school, visit:

About the Herberger Institute for Design and the Arts

ASU’s Herberger Institute for Design and the Arts is the largest comprehensive design and arts school in the country. It comprises the schools of Art; Arts, Media, and Engineering; Music, Dance, and Theatre; The Design School; The Sidney Poitier New American Film School, and the ASU Art Museum. For more information on the Herberger Institute for Design and the Arts, visit

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At the end of each year, Arizona şÚÁĎłÔąĎÍř of Commerce & Industry President and CEO Glenn Hamer hands out his Ham(m)er Awards to recognize the people and groups who contributed in a big way to the year that was. This year’s edition looks back on a year that was unlike any other.

Hit by a once-in-a-century pandemic that created an instant economic worldwide collapse, and soon after racial unrest triggered by the tragic murder of George Floyd, it’s fair to say that 2020 has been a tough year. We’ve lost more than one out of every one thousand Americans to the virus, we’re still down more than 10 million jobs and there’s continued social unease. 

But these difficulties brought out the best in many of us and that’s the focus of this year’s Hammers.

The public health heroes

Let’s start with the obvious. No group is more deserving of recognition than the frontline healthcare workers who have worked nonstop despite near-constant personal danger to keep us well and to educate us on what we should do to keep well. Our hospitals, including Banner, Honor Health, Dignity (CommonSpirit Health), Mayo and others have been working overtime on top of overtime. 

I want to especially call out Dr. Cara Christ for leading Arizona’s response. If you want the definition of an impossible and thankless job, it’s leading a state health agency during a pandemic.

A Hammer Award also goes to Dr. Amish Shah, an E.R. doc who is also a state representative. His blog posts early in the pandemic provided crucial information to the general public.

State Rep. Lorenzo Sierra deserves a Hammer for his deeply personal account of his harrowing battle with Covid that he shared in USA Today and with media outlets across the country.

Our universities stepped up massively. Led by Dr. Michael Crow, Arizona State University developed an easy and effective  for Covid that was a welcome alternative for those who don’t like something stuck up their nose. Dr. Bobby Robbins, a distinguished medical doctor, developed several efforts to assist in the pandemic, including a huge  to store vaccines. NAU stepped up under the direction of Dr. Rita Cheng as well, lending needed  in the development of vaccines. 

Testing. Testing. Testing. Kudos and a Hammer to Dave Dexter and Sonora Quest for rapidly developing the leading  for Arizonans. Testing remains critical to controlling the spread and we’re fortunate to have a major testing lab based in Arizona. 

Speaking of testing, A.P. Powell deserves a Hammer for setting up testing sites in underserved communities. A.P. also used his Bridge Forum to promote much needed dialogue between neighborhood leaders and senior law enforcement leadership. 

Our friends at Vitalant deserve a Hammer for their continuous efforts to encourage blood and plasma donations. Vitalant’s work is always essential, but in 2020 it was absolutely critical to help the scientific community learn more about Covid antibodies and convalescent plasma. Plus, they’ve ensured that blood donations can continue safely.

Frontline workers. The men and women who work in our grocery stores, serve our coffee and keep America running deserve our deepest thanks…and more. Many months ago, Peggy Noonan wrote that those who are undocumented who are keeping the gears of the American economy turning should be put on a track to citizenship. I agree. 

Over the air

Arizona’s media outlets have been essential partners in getting information out to the public throughout the pandemic.

Day in and day out, KTAR’s Jim Cross has been a go-to source for useful news about the pandemic’s impact on the state and national economies. The consummate workhorse, Jim was deservedly part of the . In addition to joining the Hall of Fame, he deserves a Hammer. I’ll let him decide which is the more flattering honor. 

ABC 15’s Garrett Archer, the Data Guru, boils down the flood of data from the state Department of Health Services into easy-to-follow daily digests. He points out positive and negative trends, avoids alarmist reporting, but also gives this crisis we’re living through the seriousness it deserves. He’s also relied on his years of experience as a congressional aide, campaign hand, and Secretary of State’s Office staffer to help us understand all there is to know about ballot counting. 

It’s also worth noting that AzDHS has done yeoman’s work in providing the public a wealth of information. I’m looking forward to seeing a daily tracker in 2021 on the number of vaccinations given across the state.

Crisis response

The Paycheck Protection Program is the most successful small business program ever developed or administered in the history of the country. The relatively smooth administration happened because multiple parties in Arizona stepped up in a major way. 

A Hammer Award goes to Paul Hickman, the head of the Arizona Bankers Association, for leading the charge. His organization was in regular contact with Capitol Hill and his member institutions were essential in getting the funds flowing to small businesses that desperately needed the help.

A Hammer also goes to David Adame of Chicanos Por La Causa for helping to save thousands of jobs through Prestamos, a Community Development Financial Institution, which issues microloans to struggling small businesses in underserved communities.

More than 80,000 Arizona companies secured over $8.5 billion in largely forgivable loans. A new round is on its way. I want to thank the U.S. şÚÁĎłÔąĎÍř of Commerce for the fantastic materials it distributed on PPP and other relief for businesses that have now been downloaded a billion times. 

A Hammer goes to Sandra Watson and her entire team at the Arizona Commerce Authority for putting together comprehensive programming for small businesses on how to navigate the pandemic. I believe that Sandra is the best economic development professional in America. The proof? During a pandemic it was announced that  would come to Arizona. This news would be eclipsed in the evening of the same day when it was announced that  would invest more than $12 billion and bring nearly 2,000 jobs to Arizona, the biggest deal in our state’s history. 

Sandra was charged with leading the Arizona Together fund, the business community’s response to the pandemic. This fund chaired by Eileen Klein has distributed millions of dollars in aid. Many donors deserve credit. Special recognition goes to Catherine Ivy of the Ben and Catherine Ivy Foundation for her generous $5 million donation and to Michael Bidwill for being the first to contribute seven figures. 

Speaking of the economy, a Hammer goes to Jim Rounds and the crew at Rounds Consulting Group for their outstanding work to help industries of all types not only understand the impact the pandemic has had on the Arizona economy, but also what policymakers can do to help Arizona recover in a position of strength.

A Hammer goes to Sen. Kyrsten Sinema for hosting weekly conference calls with the business community during the early stages of the pandemic. These practical calls helped to ensure that Arizona businesses were well represented in Washington when it came to Covid relief. She delivered. 

Kim Sabow and the Arizona Lodging and Tourism Association deserve a Hammer Award for rolling out the best safety program on the market. The AZSAFE + CLEAN hotel certification program is the model that can be used for other industries. Kim’s industry was hit first and worst, so credit to her for leading her industry through the most difficult period ever.

Globalization is good. A Hammer goes to Pfizer (U.S.) and BioNTech (Germany) for developing the world’s first widely distributed vaccine. Clocking in at 95% effectiveness using mRNA technology, the vaccine provides hope that other illnesses (cancer) will ultimately benefit. The key is to get as many people as possible vaccinated and as quickly as possible. The U.S. is leading the world in doses administered, with Israel leading on a per capita basis. The Trump administration deserves tremendous credit for developing Operation Warp Speed. Many experts said a speedy, safe vaccine was not possible. They were wrong. To have multiple vaccines at around 95% efficacy hit the market in less than one year is the accomplishment of this century. 

Speaking of private sector contributors stepping up to meet a global need, Honeywelldeserves a Hammer Award for its lightning-fast turnaround of its Arizona production lines to crank out millions of N95 masks. The effort was so impressive that it earned a factory visit from President Trump. Honeywell’s work in 2020 wasn’t a nice-to-have, it was must-have, and it was an inspiring display of American ingenuity and invention. 

The Hammer Award for Model Bipartisanship goes to Gov. Doug Ducey and State Superintendent Kathy Hoffman for joining together to provide smart, healthy and at times politically courageous guidance to keep our K-12 system running. Our teachers and school staff members all deserve big thanks for ensuring our kids have a safe place to go during this most disruptive period.

There’s no I in team

I’m very fortunate to have served under excellent board chairs throughout my tenure at the şÚÁĎłÔąĎÍř, and this year was no exception.

We started out 2020 with Susan Anable at the helm, who was completing her second year with the gavel, which itself was unusual because our chairs usually rotate every year. But Susan didn’t bat an eye when the board asked her to take on a second year. No one knew then that the business community would be entering its most challenging year ever, but Susan took on the challenge with her usual aplomb and helped shift the şÚÁĎłÔąĎÍř into crisis response. I should also recognize her company, Cox, which has proven to be an indispensable partner in helping thousands of Arizona kids learn remotely and folks like me work from home.

In June, we welcomed Dawn Grove as our board chair. Dawn’s a longtime şÚÁĎłÔąĎÍř member and is recognized nationally and globally as a leader in manufacturing policy with a razor-sharp legal mind. An executive with Karsten Manufacturing, the parent company of PING, few have Dawn’s insight into what makes Arizona’s manufacturing environment one of the country’s most competitive. The fact that Arizona now has more manufacturing jobs than construction jobs is in no small part thanks to Dawn’s contributions over the years. As we turn our attention to the great Arizona economic recovery of 2021, the şÚÁĎłÔąĎÍř board couldn’t ask for a better business leader. 

Finally, a Hammer Award to each team member at the şÚÁĎłÔąĎÍř, şÚÁĎłÔąĎÍř Foundation and Arizona Manufacturers Council. Our last regular day in the office was in mid-March. They didn’t miss a beat. The team assembled regular virtual meetings with our colleagues across the business community; presented dozens of webinars for small businesses to access relief funds; shifted each of our regularly scheduled events online; coordinated dozens of video calls for our members with leaders in government, business and academia; launched a  with the Arizona Medical Association to help businesses keep their employees and customers safe and healthy; issued  on big issues; and even cranked out a regular YouTube show on news of the day (that sometimes as many as dozens enjoy!). To top it all off, they kept me and my schedule in one piece as I shifted to mostly working from home.

I would not want to repeat 2020, but I’m thankful for my colleagues at the şÚÁĎłÔąĎÍř who made lemonade out of a year full of lemons.

We’re in the final months of what has been a lethal pandemic. There is light at the end of the tunnel. Please be safe and get the vaccine as soon as it’s your turn. 2020 has been tough. There’s potential for 2021 to be the year we vanquish Covid-19 and begin a new and robust expansion. Let’s make it happen.

Glenn Hamer is president and CEO of the Arizona şÚÁĎłÔąĎÍř of Commerce and Industry. 

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Arizona’s economy is rebounding from the pandemic, but uncertainty still looms as COVID-19 cases are rising and federal aid programs are about to disappear, one of the state’s leading economists said last week. 

For now, Arizona is seeing positive signs with continued population growth, employees returning to work and retail spending on the rise, said Lee McPheters, director of the at Arizona State University (ASU), who spoke during the 57th annual ASU/PNC Bank Economic Forecast Luncheon last week.  

Full recovery should come next year, but it will require more federal stimulus to help those still affected by the pandemic, said McPheters, the editor of the Western Blue Chip Economic Forecast publications who also oversees the Job Growth USA website that tracks employment across states and metropolitan areas. 

Here are the key takeaways from the luncheon:

Jobs outlook 

Before Covid hit, Arizona ranked second in the country for jobs creation. The state has now recovered 66 percent of the jobs lost to the pandemic this year and is on track to add about 40,000 more — as long as there is an effective vaccine and additional federal stimulus.  

“That will have the effect of propelling job growth in Arizona back up to around 4 percent,” McPheters said.

Currently, Arizona is seeing some of the highest rates of job growth in the country in four sectors: transportation and warehousing; wholesale trade; professional, scientific and technical; and retail trade. Over the next year, the state is projected to see employment return to full force in 2021 as it adds 115,000 new jobs. 

Population, housing, spending up 

Other positive signs for recovery are the numbers of people continuing to move to Arizona, which is fueling the robust housing market. Projections are for another 100,000 residents to arrive in 2021. 

Consumer spending has now returned to January levels. Retail spending is up more than 17 percent.

Outsized negative impact on low wage earners, service industries

Those still in need of assistance are small businesses and lower wage workers. 

While high and mid-wage jobs have recovered to January levels, low wage jobs are down 20 percent. 

One of every four Arizona small businesses is now closed due to the pandemic. Restaurant spending is down 26 percent. Entertainment and airline sectors remain depressed.

And of the 285,000 unemployed in the state, they predominantly come from lower-wage industries, making recovery even more challenging for these displaced employees.

Federal assistance set to expire day after Christmas

Federal aid programs that have helped hundreds of thousands of citizens and small businesses in Arizona are set to expire on Dec. 26.

“There’s a serious issue as these policy programs wind down,” McPheters said. “Consumers saved quite a bit of money over 2020, but those savings are being exhausted and food insecurity is becoming a problem.”

U.S. to see “very gradual” economic recovery  

Stuart Hoffman, senior economic adviser for the PNC Financial Services Group, who also spoke at the event, predicts a very gradual economic recovery for the nation as a whole. 

The U.S. economy lost 22 million jobs with one out of every seven people becoming unemployed in March and April. About a half of those jobs have returned. 

But like Arizona, recovery will depend on federal aid and what happens with the vaccine, Hoffman said. 

“I want to emphasize that the strength and durability of any economic recovery depends on the path of the pandemic, which is getting much worse, and on the arrival of a vaccine, and of course vaccinations, consumer willingness to resume normal activities and an additional federal stimulus, which we think is absolutely necessary,” he said.

About the JPMorgan Chase Economic Outlook Center

Established in 1986, the Economic Outlook Center informs individuals and corporations about the likely future course of business and economic events, thereby enhancing decision-making. Led by Lee McPheters, current offerings include:

• , providing consensus projections from leading economists about conditions in the twelve Western states
• , providing consensus projections from leading economists about conditions in the Metropolitan Phoenix area

for Arizona and Maricopa County.

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Last month, the leaders of both Arizona state houses announced committee assignments, setting the stage for next year’s legislative session after a bumpy year in and out of session with COVID-19 interruptions. 

One committee important to business and industry is the Senate Finance Committee, which is charged with ensuring there is enough money to run the state, expand or shrink programs as needed, and craft legislation related to taxes and revenue. 

Senator David Livingston (R-Peoria), long an advocate for job creators, was named the new chair of the committee for next session. Livingston, who currently serves as vice chair, spoke to şÚÁĎłÔąĎÍř about what he foresees as priorities in 2021.

Livingston, whose personal in finance has centered around managing budgets, pensions and insurance, said he will continue to work to ensure the Public Safety Personnel Retirement System of the State of Arizona and the Arizona State Retirement System state pensions are funded and to attract insurance companies and their high paying jobs to the state.

As Finance Chair, he will continue to support bills that reduce government red tape and overregulation and create a friendly environment for existing businesses and to attract new industry.

“As a conservative Republican, my priorities are always how can we reduce taxes and regulations on the citizens and businesses of the state,” he said. 

Priorities for 2021 legislative session

Much of the committee’s work next year will be revisiting bills that got pushed aside due to COVID-19 interruptions, Livingston said. While much will be “clean up” work, there are two major new challenges facing businesses in the state.  

Lawmakers will be seeking solutions on how to offset harm to employers from the two statewide propositions passed in the recent election: Proposition 208, which instituted a major state income tax increase, and Proposition 207, which legalized recreational marijuana.

The Finance Committee was scheduled to begin discussions on the two new laws Monday, but the meeting was cancelled due to a COVID-19 scare after legislators may have been exposed to the virus when President Donald Trump’s personal lawyer, Rudy Giuliani, met with them last week. Guiliani has since for the virus.  

Mitigation for small businesses hurt by Proposition 208

Once they are able to reconvene, the committee will discuss and solicit input on what can be done to lessen the impact on small businesses from the income tax increase proposition. 

The new law almost doubles the income tax on Arizona’s wealthiest citizens to fund education. But in doing so, it also impacts tens of thousands of businesses. These are companies with 500 or fewer employees who file under the individual tax code as pass-through entities, such as sole-proprietorships, partnerships, LLCs, and S corporations. 

Many voters were unaware that small businesses would be affected when they voted for the measure, business advocacy groups said. Now, news reports are already surfacing about companies or rethinking plans to consider locating here. 

“I’ve had a lot of discussions with business owners and chambers about how devastating Proposition 208 could be on our businesses — our existing businesses and our ability to recruit businesses to move to Arizona,” Livingston said. “So we have to find a way to deal with Proposition 208. If that means softening it, if that means repealing it, if that means going back to voters…”

Analysis by a number of economists like of Arizona State University’s Economic Outlook Center and organizations like the and estimate that the proposition could result in the loss of up to 124,000 jobs and $2.4 billion in tax revenue over the next decade. New business locations to the state are estimated to drop by 15 percent. 

Pollack, at a Pinal Partnership 2021 Market Forecast last week, said, “The only negative for the Phoenix economy is this Proposition 208, which has already affected some companies but will affect a number of companies moving here in the next several years. I’m not saying education doesn’t need more money– it clearly does — but this was a bad way to get it.”

At least two constitutional to the measure have been filed in court. Meanwhile, lawmakers are seeking ways to lessen the impact on small businesses and keep Arizona attractive to new investment if the law stands, Livingston said.

“We’re having those discussions now and a lot of people are working really hard at figuring out how to deal with this. The way Proposition 208 is as it passed is unacceptable. It needs to be fixed and modified.” 

Mitigating impact of Proposition 207 for employers

Another top priority in the upcoming session will be to take a close look at Proposition 207, which legalized adult recreational use of marijuana for adults 21 and older, Livingston said.

Employers are calling on legislators to find ways to protect the workplace and business owners from legal liability. They are worried about workplace errors, injuries and accidents and less productivity on the job. Trade organizations like the Arizona Trucking Association are concerned about more impaired drivers on Arizona roads. 

Opponents said it is written in such a way that employers will have difficulty taking adverse action against employees. 

The committee will be looking at ways to improve the new law to help protect employers as well as provide protections for consumers, particularly medical patients, who use the products, Livingston said.

The 17-page law is confusing for employers who need clarity, he said. Lawmakers also need clarity on how the state will access the sales tax the new law will generate. 

“This is not my specialty, so I’m hoping someone will take the lead on it. We need some general reforms so we can manage it better, not to eliminate it because the voters have spoken,” Livingston said. 

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A unique program at Arizona State University (ASU) that partners top students with corporations and government agencies to advance prototypes, product development and other design projects is gaining traction as a talent pipeline for modern industry. 

The program, called Practice Labs, also is helping attract businesses to the state. Not only do companies and agencies get to partner with the brightest students, they have access to ASU’s vast research offerings, laboratories and state-of-the-art as well.

Practice Labs is one example of ASU’s national leadership role in commercializing ideas and sending students into high paying careers, said Jon Relvas, who oversees the program as director of business development, Corporate Engagement and Strategic Partnerships, ASU Knowledge Enterprise. 

“The essence of this is to get students applied experience while in school so when they leave, whether it’s an undergraduate or a graduate degree program, they’re leaving ASU with experience in their field of study,” Relvas said. “Companies want to know students have worked on some challenges, and these students are leaving with major accomplishments on their rĂ©sumĂ©s.”

Practice labs solve complex industry challenges

Practice Labs is designed to help businesses and government agencies achieve their “large objectives,” Relvas said.

“This is meant to help industry go after their vision, and how do we help them get there and utilize all the resources across ASU to do it.”   

Test labs from interior design to space technology 

Each Practice Lab is created to solve the specialized need of a corporate sponsor. When a company or government agency becomes a sponsor, Practice Labs coordinates with ASU’s to find the best students for the test lab. 

Corporate sponsors can pick from any number of programs for a Practice Lab, from software design and development, drone technology, data science, and interior design to space technology. Among the most popular are engineering within Ira A. Fulton and design programs within the Herberger Institute for including architectural design, environmental design, prototype development, and product redesign.  

Since Practice Labs was initiated about three years ago, the program is seeing results including one spinout. 

The company CYR3CON, collaborated with ASU to form a Practice Lab tasked with developing  cyberattack identification software. Students helped accelerate development of a system that uses artificial intelligence, machine learning and data mining to predict when hackers are planning to strike. CYR3CON recently filed its first patent for the software which will be commercialized as part of the company’s suite of products. 

Phoenix Children’s Hospital, one of the highest ranking and largest pediatric hospitals in the country, also formed a Practice Lab with ASU students to create an app that would replace outdated medical forms. The app is designed to eliminate much of the time doctors must spend filling out electronic records every day.  

Practice Labs available year-round 

Unlike internships, Practice Labs are available to industry year-round. Also, projects are not time-limited. Companies and organizations can work with student and faculty teams from a few months to a few years, Relvas said.

“This opens up opportunities for businesses that have a challenge that they want to solve in January and they don’t want to wait until June or July for summer internships to roll around. They’re also not locked into the semester schedule.” 

ASU focus on entrepreneurship and commercialism pays off 

ASU’s focus on collaboration and research with corporate partners is one reason it has been named the most university five years in a row by U.S. News & World Report. 

Much of the credit goes to ASU President Michael Crow, whose vision has transformed Arizona’s largest university into a powerhouse of entrepreneurship and research. In fiscal 2019, its research expenditures totaled $640 million.  

Today, ASU is considered a magnet for industries like Taiwan Semiconductor Manufacturing Co., the world’s largest contract manufacturer of silicone chips. The company recently plans to build a $12 billion plant in Phoenix. The project will create over 1,600 new high-tech jobs and generate thousands of additional jobs in the state.

Communications technology company Zoom also recently announced its plans for ain Arizona. It is looking for space near ASU where it is actively recruiting student engineers. For more information about the practice labs, visit: .

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