If you’d like to see an example of the extreme “no taxes” political persuasion – you need to look no further than Arizona.

In Arizona taxes are evil, for years our politicians have built their reputations on one simple idea – taxes kill growth, so let’s not have any. They’ve perpetuated a myth… and now we are going to pay for it.

Arizona is full of people and companies that are here for one reason – they don’t want to pay taxes. Our economic structure is built on developers putting up planned communities and strip malls. Our tax base is based on people buying all the things they need to fill their new McMansions. The problem is, that model isn’t sustainable – never has been. An effective government would have begun making the investments years ago to allow our economy to smoothly transition from population growth to a sustainable industry based model.

Instead our government (and quite frankly, we) ignored a simple reality – you can’t build a sustainable economic base on a foundation of tax cuts.

Sustainable economies don’t occur by magic – and much of what is required by companies will never be invested in by those companies:

• Education
• Public Infrastructure
• The Arts

So here we are – and it is time to pay the piper. And for all the conservative bluster about not saddling the next generation with debt or higher taxes they will instead be saddled with something much worse – a woefully substandard education and with it hugely diminished lifetime earnings.

While I do not believe that money alone can solve the problems we see in the state’s education system – I also know that reducing school funding to roughly the level of high quality daycare won’t result in better educated citizens.

And sadly, Arizona has already reached rock bottom – 50th in the US in graduating high school seniors going on to higher education, 50th in the nation in education spending, bottom third of US in high school graduation rate.

Now, it is time for the next round of cuts – and (no surprise here) education leads the way:

• Reduced Funding for Charter Schools
• Elimination of “non-Formula” K-12 Programs
• Elimination of all day Kindergarten
• Reduce funding to 2005-2006 levels
• Elimination of Building Renewal funding

Link to Govenor Brewer’s Budget Proposal

What does all this mean? No art, no gifted programs, no music, closing charter schools, no restoration of dilapidated schools, all day kindergarten eliminated.

The worst part is, there will be more to come. Why? Because our elected representatives do not have the moral character required to admit that you can’t sustain anything on a platform of:

• Times are Good!!! Lower Taxes!
• Times are Bad!!! We can’t Raise Taxes!

At some point you hit the logical limits of that line of thinking – and we are there. It is time for the citizens of Arizona to realize that there is no sustainable future for this state (or our country) if we fail to invest in the future. There is no more important investment than an investment in our children’s education.

As the owner of an Arizona Based business – and as a father, I am happy to pay more taxes in order to ensure the education of our states children. Sure, I could just spend my money on my kids – send them to private schools, but that doesn’t improve our state or our nation. Essentially it will just allow my children the opportunity to one day leave Arizona for a college or a job that is appropriate for them.

It is time for all of us to start thinking about the future. It is time for us to demand our local and state governments implement sound taxation policy (the temporary sales tax increase is a band-aid and a poor one at that). In short, it is time for Arizona to grow up…

Shame on you. Shame on each and every one of you. You are not accountants… your job is NOT to balance the state’s checkbook. Your job is to use the tax revenue you collect to provide the services that make Arizona better… every day, every year, for us and our children.

You de-funded environmental protections. You de-funded a program to foster bio-science and technology growth, you de-funded education. You’ve crippled our future.

You assume that leaving debt to the next generation is the ultimate wrong. And in order to avoid that you strip them of the education, growth and environment that will allow them to prosper. You haven’t saved the state… you’ve set it marching down a path that inexorably leads to future budget cuts. Who will start the next great AZ business? Who will move their high value/high pay jobs here? Who will invest in a state that refuses to invest in itself?

You believe that any tax is a bad tax and you laud your ability to cut, slash and refuse to pass any taxation. You tell us you are putting money back in our pockets. But the truth is you are simply stripping us of the services we want from our government. You tell us that we can choose private schools, home school or find the best education alternative for us and our children. What you do not tell us is that you are relegating our children to demonstrably inferior educational alternatives unless we are wealthy. We can not afford to live in a state which educates the children of the wealthy and relegates the rest to menial labor.

I’m not a socialist, or a liberal. I’m a businessman. I know what you do not and can not seem to understand. Prosperity is a result of investment. If you will not invest, you will not prosper. If you will not invest I will no longer invest in AZ either.

Ladies and gentlemen, there are things worth paying for. There are things worth sacrifice and, yes, even higher taxation. If our children, and our future are not worth that sacrifice what, I ask you, is?

Disgustedly Yours,

Brian Roy

President and Founder

cosinity

602.635.1013

UPDATE: This letter is my reaction to the state budget signed into law today by Gov. Brewer – http://www.azcentral.com/news/articles/2009/01/31/20090131azbudget-ON.html

This is for all of my friends in Arizona.

As you may be aware the Arizona State Legislature has proposed to cut $1.5 billion from education budgets over the next year and a half. That is a 20% cut for K-12 and a 30% cut for higher education. Arizona currently ranks 49th in per student spending for K-12 education and 35th for spending on higher education.

These cuts will sacrifice our future – they will in the words of Michael Crow, ASU President “give Arizona a Third World education and economic infrastructure.”

I encourage all of you to visit speakupnowaz.org and send a letter to your state representatives informing them of the error they are considering and your full displeasure with it.

I’ve included the letter I sent this morning:

Dear Arizona Legislator,

As a veteran of Silicon Valley technology companies; and as a entrepreneur in Chandler; and as a father of two elementary school children; and as a dedicated proponent of Arizona and the Valley of the Sun; and as a committed partner of ASU; I’d like to inform you that cutting Arizona’s education budget at this moment in time – is both ill advised and exceptionally short sighted.

I’ve been an Arizona resident for more than 15 years. During that time I’ve worked for Silicon Valley technology companies as both a consultant and an executive. I know first hand that Arizona has lost major offices (specifically data centers) from several of these companies due in large part to the state of our education system. I have refused lucrative job offers in Silicon Valley because I believe that Arizona is capable of producing great technology talent and companies. I’ve committed to Arizona – I continue to wonder why our State officials refuse to do the same.

Phoenix has a single major university. Every major metropolitan area of equal size has many more. Our K-12 per student funding is 49th in the nation. Is it really any wonder that the only way we can sustain growth is via construction? While that may have been a viable approach in the past, it will no longer work. We must begin the process of transitioning from a boom and bust real estate market to building the competencies that can and will – with your support – transform our economy to a vibrant and lasting technology base.

Please understand, low taxes alone are not enough to attract and retain these businesses. They require well educated workers – workers they do not have to import. Workers who want to be in Arizona because they can raise their children here with the confidence that our education system will not fail them. Workers educated right here in Arizona.

While I understand that there are tough decisions to be made, we can not continue to sacrifice our future for the expediency of today. Tough choices will need to be made. But understand this, cutting education funding is not an appropriate choice. Do this – cut education funding – and not only will you lose my vote, but you will lose my business, and my commitment to the state of Arizona.

Sincerely,

Brian T. Roy

Founder and President

cosinity

http://www.cosinity.com

602.635.1013

Update: January 22nd 2009 @ 11:20 AM AZ Time

Linda Lopez – The AZ State Senator for District 29 responded to my email as follows:

Thank you for your email regarding your concerns about proposed cuts in
the Senate and House Republican Appropriations Committees Chairmen’s
budget. I do not support these cuts. I know full well that because of
our current budget crisis there will need to be some strategic reduction
in funding in all areas of state government, including education.
However, the level of reductions that are being proposed will, in my
estimation, not only decimate education at all levels it will undermine
our ability as a state to recover from this economic situation. I
strongly suggest that you let the appropriations chairs, Senator Russell
Pearce and Representative John Kavanaugh, and the legislative
leadership, Senate President Bob Burns and House Speaker Kirk Adams,
know about your concerns. In addition, you must also contact Governor
Brewer and her staff and let them how upset you are with these
proposals.

I have been a long time vocal supporter of education at all levels,
preschool through university. It is the bedrock of our state and our
country. We shortchange education at our own peril.

Sincerely,

State Senator Linda Lopez
District 29

Update: January 22nd 2009 @ 11:49 AM AZ Time

Frank Pratt – The AZ State Representative for District 23 responded as follows:

Thank you for sharing your concerns. We are taking any proposed budget
cuts to education very seriously.

Very truly yours,

Frank Pratt
State Representative
District #23

Frank – that is a very political response. I assure you I take your votes on this matter very seriously.

New video today.

Video Blog 01-02-2009 Innovation and Education from Brian Roy on Vimeo.