While Governor Katie Hobbs defended the controversial Arizona Commerce Authority during her State of the State address on Monday, State Senator Hoffman announced his intention to defund it.
Hoffman’s bill, SB1044, would repeal the Arizona Commerce Authority, ending what Hoffman says is an “unaccountable agency” guilty of “reckless spending.”
A recent audit by the Arizona Auditor General found that the Arizona Commerce Authority (ACA):
• Met some statutory objectives we reviewed but lacked statutorily required documentation from some grant recipients, guidance for evaluating grant applicants, and policies and procedures for administering nearly $100 million for the Arizona Broadband Development Grant program, increasing risk for misuse and inaccurately accounting for and reporting on use of grant monies.
• Spent more than $2.4 million between 2018 and 2023 hosting 5 private CEO Forums that the ACA reported were marketing campaigns held around the Waste Management Phoenix Open (WMPO) golf tournament and the 2023 Super Bowl, attended by private sector executives, their spouses, and ACA staff.
• As of June 2023, the ACA reported that 23 of the 118 companies whose executives attended the 2018 through 2023 private CEO Forums proposed potential nonbinding investment and jobs commitments in Arizona.
• CEO Forum expenditures included items such as hotel rooms; transportation; suites at the WMPO; a Super Bowl sponsorship providing attendees access to Super Bowl LVII and related VIP events; food and alcohol; conference rooms for educational activities; various gifts such as hats and sunglasses; and opportunities to attend other events, such as a VIP nightclub/concert at the WMPO, and the Super Bowl Music Festival.
“I’m proud to say these achievements were possible because of partnerships between the public and private sectors,” said Hobbs during the State of the State referring to employment numbers. “We should applaud the chambers of commerce and economic development groups across the state, and most particularly, the Arizona Commerce Authority, for their tireless efforts to attract new, high-quality jobs – jobs that can be life-changing for families and transformational for communities. With this continued success, there’s no question we must pass continuation of the Arizona Commerce Authority.”
“In today’s State of the State Address, Hobbs continued to show how out of touch Democrats are with the people of Arizona,” said Hoffman. “The Arizona Commerce Authority under Katie’s watch has ballooned into the epicenter for waste, mismanagement, and luxury spending at a time when Arizonans are struggling in Democrats’ failing economy. It’s time for our government to stand up for the hardworking people of our state by repealing this unaccountable agency. It’s time to build a responsible government that works for all Arizonans.”