PHOENIX – Tuesday’s release of the monthly Small Business Optimism Index from the National Federation of Independent Business (NFIB), indicates there is not a lot to be optimistic about. Home-grown challenges to an economic rebound are not helping matters, according to the state director for the NFIB, that conducted the Index poll.
Arizona’s Republican lawmakers pushed back against Gov. Doug Ducey’s draconian emergency measures when they passed on Monday Sen. Ugenti-Rita’s Senate Concurrent Resolution 1001.
The resolution terminates the governor’s March 11, 2020, Declaration of Emergency. The governor’s state of emergency powers end when the state of emergency proclamation has been terminated by proclamation of the governor or Concurrent Resolution of the Legislature.
“The small business half of the economy will start to improve when business owners have confidence looking to the future,” said Chad Heinrich, Arizona state director for NFIB, the nation’s leading small-business advocacy association. “Today, Arizona business owners see big risks in reopening due to potential COVID-19 legal liability, they’ve also pressed pause on plans to expand their businesses due to voters recently roping small businesses into paying for the largest tax increase in state history. If that’s not enough, when business owners realize that the property tax rate they pay on business property is double the rate of what residential property pays, they will continue to think long and hard if it’s even worth investing in Arizona. Our Legislature is meeting now and small business is hoping for reasonable leaders at the State Capitol to remedy these maladies. We will see if our elected leaders will rise to the challenge.”
The Optimism Index declined in January to 95.0, down 0.9 from December and three points below the 47-year average of 98. Owners expecting better business conditions over the next six months declined seven points to a net negative 23%, the lowest level since November 2013. The net percent of owners expecting better business conditions has fallen 55 points over the past four months.
“As Congress debates another stimulus package, small employers welcome any additional relief that will provide a powerful fiscal boost as their expectations for the future are uncertain. The COVID-19 pandemic continues to dictate how small businesses operate and owners are worried about future business conditions and sales,” said NFIB chief economist Bill Dunkelberg.