Governor talks about the past, looks to the future

Mutinkhe Kaunda

Arizona is at the apex of the housing crisis and diversification into other sectors of the market will be critical for Arizona to withstand any further slumps in the economy said Governor Janet Napolitano at the fifth Annual International State of the State Address Monday Sept. 29, 2008. The Phoenix Committee of Foreign Relations (PCFR), a nonpartisan educational consortium created to assist leaders to make more informed decisions about economic, social and political issues.

During the address, Napolitano outlined the critical achievements of the past year as well as the state’s international goals for 2009.

In attendance were business, education and government leaders from across the state of Arizona. Foreign delegates included the Britain’s ambassador to Washington, Sir Nigel Sheinwald as well as representatives from the counselor offices of Korea and Canada.

Though cautious, Napolitano was fairly optimistic about the economic trends. Napolitano explained that over the last five years, while Ohio had lost approximately 500,000 jobs, Arizona had gained approximately 500,000 over a similar timeframe.

Although the Arizona unemployment rate has risen from its typical value of 4 percent to 5.6 percent, this rate is still lower than the national average of 6.1 percent.

“All states are suffering, but some more than others,” said Napolitano.

Oil producing states, Texas and Alaska, survive in spite of the energy crisis. According to Napolitano, states with ports of entry such as Seattle and Washington, however, have been able to sustain themselves through the economic downturn, with Seattle reporting tax revenues high enough to compensate for the economic downturn.

A budget management plan, released by the governor’s office, forecasts, at worst, a shortfall $800 million in the state’s budget for the fiscal year 2009.

Cost saving measures to mitigate against the adverse effects of this shortfall include reducing state agency expenses through hiring freezes and use of the budget stabilizing “rainy day” fund with approximately $120 million available for the 2009 fiscal year.

Napolitano emphasized the importance of working with businesses in Arizona to boost exports which, according to the governor, are a “good source of revenue and jobs.”

“Arizona exports were up five percent from the year before,” Napolitano reported.

Mexico remains the largest recipient of Arizona products, but other nations have also become major markets for Arizona exports including Taiwan, Germany and Canada. In the second quarter of this year exports were up eight percent from the same quarter last year.

The governor’s office is taking a more strategic approach in cementing Arizona’s position in an increasingly global economy by identifying and targeting markets including solar energy, aeronautics and optics.

Napolitano reported that in order to boost trade, it was necessary to improve the ports of entry. The governor’s office had obtained funding to upgrade the ports of entry between Arizona and Sonora that had been built in the 60s and 70s.

The port is a source of commerce for tourism, electrical goods and agriculture. Construction of a new port in San Luis near Yuma is underway.

In spring 2007, the governor met with Canadian investors to discuss innovations in software, water and environment clean-up technology. South America has also been identified as a potential source of commerce and talks are in progress.

However, for Napolitano, education remains a long term solution to sustaining the economy:

“Education of Arizona students have to remain our top priority. They have to ready when they come out of high school or higher education and we must have the capacity, the accessibility and the affordability of higher education for them to go on to,” she said.

Initiatives are also in place to bolster math and science standards and give incentive to the math and science teachers to go into underserved areas, especially in rural Arizona.

Last year, the legislature approved $1 billion to improve the infrastructure of Arizona universities. Approximately $470 million will be allocated to the downtown Phoenix Biomedical campus; the rest will be split amongst the other universities for similar building projects.

  • Mesa Legend Staff

    These are archived stories from Mesa Legend editions before Fall 2018. See article for corresponding author.

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