KJZZ Here and Now Weblog

Impact of Recession: Increase in Demand for Help from Social Services

Education & Social Service Budget Cuts / AZ Real Estate Market & Foreign Buyers

The latest round of state budget cuts are certainly not the first, and are far from being the last. Here's the problem state lawmakers and Governor Brewer are trying to solve: the state is scheduled to spend $2 billion dollars more than it's taking in. Only, unlike you and me--well, okay, me --they don't have credit cards to pay for expenses when the cash runs out.

What to do? Only two things. Spend less or raise more money. Lawmakers actually did both in this past legislative special session. They approved $144-million in cuts to Arizona's K-12 school system and $155-million from the Department of Economic Security, which is where people turn to for government help. Lawmakers also approved a bill that allows state agencies to increase fees. While they are safe to campaign saying they did not raise taxes, let's face it, revenue is revenue--whether it's in the form of a tax or fee.

So, we have on the show one of the most respected people in the state when it comes to school finance--Chuck Essigs of the Arizona Association of School Business Officials. He'll explain how the just enacted budget cuts affect schools and what else you need to know about past and proposed budget cuts.

We also have on Neal Young, not the singer, but the director of the Department of Economic Security. He'll explain what programs are impacted by the legislative budget cuts and what will happen if the governor has no choice but to cut agency budgets by 15%.

If that is not dire enough, we then delve into Arizona's real estate market. The Wall Street Journal reports 47.9% of Arizona homeowners with mortgages are upside down--meaning they owe more money than their home is worth. The report comes as new data shows home sales and home prices are up in Arizona. But so too are foreclosures. ASU real estate finance professor Karl Guntermann joins Greg Swann of Bloodhound Realty to discuss what's going on and what all this means. BTW, we had Greg on Here in Now back in August of 2006 talking about the real estate bubble beginning to burst. And boy did it!

We also have realtor Sheila Espinoza join the real estate conversation. A British native, Sheila specializes in helping Canadians and other non-US citizens buy homes here. She'll join Greg to talk about what they are seeing, why so many foreign home buyers are snatching up homes, and some of the complexities involved.

Please post any comments or questions you have for our guests. Thanks for being a part of our show! Paul

Here and Now - Arizona's Competive Supermarket Industry

Here and Now - Finances

Okay, maybe this is a lame show idea. But it's a topic we all could learn more about: finances. Not the kind it takes to buy a car, but how we spend our money as a government, as a business, and as individuals and families. And considering we're in a recession, we could be spending what money we have a little more wisely (yes, I know Ben Bernanke says its over, but tell that to the 9.1% of out-of-work Arizonans).

To that extent, we'll learn more about what the state of Arizona is doing to make up for a $3 billion dollar gap between revenues and spending, including the sale of state buildings and other assorted ideas. We'll also look at what businesses are doing to stay solvent and what families are doing and can do to make sure they survive.

We'd love to hear what your family or business is doing. And if you have any ideas for the mess that is the state budget, we're all ears!

Here and Now - Resolution Copper Mine, H1 N1 Virus

David Salisbury, president and CEO of Resolution Copper Mining, will join host Steve Goldstein to discuss the proposed Resolution Copper Mine near Superior. Roger Featherstone of the Arizona Mining Reform Coalition will Roger Featherstone will discuss environmental and cultural concerns about the project.

Dr. Marwan Sabbagh will talk about the prevelence of Alzheimer's disease in the Native American population.

And Maricopa County Public Health director Dr. Bob England and Will Humble, interim director of the Arizona Department of Health Services discuss concerns over the H1N1 virus and vaccine.

Here and Now - Phoenix Coyotes, Mining in Arizona

Here and Now - CityNorth, Development, Retail and the Recession

Sometimes there are times when you tackle an issue or a topic that can go in a couple of directions. This is one of those times. Our goal is to profile the dilemma facing CityNorth, a new development in northeast Phoenix that is feeling the effects of the recession and a challenge to public-private development partnerships in form of keeping sales tax.

Despite its worthiness as a new kind of development--one that focuses on higher density offering places to live, work and shop -- CityNorth has gotten more attention because of an agreement with the city of Phoenix to allow it to recapture half of all city sales tax generated up to $97.4 million dollars. The amount offsets the price of adding parking garages, which are much more expensive than a simple paved parking lot. The reasoning behind the deal works like this: by letting the developer keep a certain amount of sales tax, the city is able to attract large retailers and their tax revenue that might have gone to neighboring Scottsdale.

Host Steve Goldstein talks with attorney Clint Bolick, who is challenging the quid pro quo. Development attorney, Grady Gammage, who is representing CityNorth and the city, will provide his perspective. We'll also talk to Grady a bit more about CityNorth and how the recession is affecting retail and other forms of new development. We'll also learn more about how the recession is hurting retailers by checking in with Melinda Burke, Director of the Lundgren Center for Retailing at the University of Arizona.

Finally, a man that knows a tremendous amount about Arizona's weather joins Steve. Tony Haffer recently retired after countless years (19) at the helm of the Phoenix office of the National Weather Service. He'll talk about some of the more unusual weather abnormalities he's witnessed as well as the role technological innovations play in weather forecasting.

Your comments, questions and general observations are welcome!

Here and Now - Obama's ASU Commencement Speech & AZ Housing Market

President Obama returns to Arizona to give the commencement speech at ASU Wednesday night. A look at past commencement speeches by the skilled orator shows he uses many different rhetorical devices to inspire and challenge new graduates. What do you expect to hear and what would you like to see the President address in one of the largest graduation ceremonies ever?

Also, new data show that some sections of Arizona's housing market may be improving? Is it real or a mirage? We plan to find out Wednesday.

We appreciate your observations, comments, or questions!

Here and Now - Federal Spending and State Budget Woes

Our nation and state are facing financial issues that most of us have never seen in our lifetime. That's why as producer of KJZZ's Here and Now I'm trying to devote as much of our limited time to help all of us better understand what's going on with fiscal policy. Yeah, I know, you'd prefer watching paint dry. But trust me, the more we know about what's going on in D.C. and at 1700 West Washington, the better we can respond to what our elected and appointed officials are doing. And do they have their work cut out.

Okay, I'll get off my soapbox.

Here's the lineup for Wednesday. We have an interview scheduled with Arizona Senator John McCain to talk about the omnibus spending bill before the senate. I'm interested in hearing what he thinks about some of the identified spending if and how we can cut out earmarks, a pet peeve of his.

Eileen Klein, Governor Brewer's Strategic Policy and Budget Director, will take time out of her busy schedule to help us better understand what's going on with the state's finances. Governor Brewer will address a joint session of the legislature later Wednesday and she could propose a temporary tax to get the state through the economic downturn.

Have a question or comment? Please submit it below. If it doesn't appear right away it's because I have to moderate comments to prevent spammers from filling this webpage with the kind of weblinks none of us want or like. Thanks! Paul

President Obama's Foreclosure Plan and Stimulus Package

President Obama will unveil his administration's plan to deal with the foreclosure problem in America at a speech Wednesday morning at Dobson High School. It could include spending $50 billion dollars in bank bailout money to offer low-interest loans to people in danger of having their homes foreclosed upon.

What do you think needs to happen? Are we helping people who should have known better? Or are we helping people just to get money circulating again in the hopes of increasing spending?

Also, only three Senate Republicans voted for the federal stimulus package. So much for bipartisanship. But regardless of who loves it and who hates it, the real question is what does it mean to Arizona?

How much money will the state see in terms of infrastructure projects for transportation and water systems? How much money will be for schools, and more importantly, who decides how to spend it? Then there's the bailout of financially strapped cities and the state. Arizona could get $1 to $1.5 billion to help with its budget shortfall.

What do you think? Waste of money? Wise investment? Or wait and see? If your comment or question doesn't appear right away, we moderate the blog to keep spammers from having a field day.

Here and Now: Cities Brace for Budget Cuts / Congressional Candidates

The city of Phoenix is in for the largest budget cut in its history. Other municipalities are looking at scaling back their spending as revenues from sales tax and other sources dwindle.

We'll have on Ken Strobeck of the Arizona League of Cities and Towns to take about how local governments have prepared for the downturn, what parts of city and town governments face cuts, and what it maymean to you and me.

We'll continue our interviews with candidates for Congress.

Please submit your comment or question below! Thanks!

Arizona's Foreclosed Future

What's going on with Wall Street is a direct result of the greed that begin in Arizona and other states. Realtors, mortgage bankers and investors took advantage of incentives to encourage more homeownership. Real estate agents saw huge pay days as they helped people buy and sell homes like there was no tomorrow. Mortgage companies such as First Magnus, which declared bankruptcy last year, are accused of offering kickbacks to builders, real estate agents and brokers. Many individuals and couples started buying up property in hopes of selling a few months later for a pretty profit.

Some who wouldn't have otherwise qualified for a home loan used government incentives to buy a home, often times one they ultimately couldn't afford. Brokers and mortgage companies also threw caution to the wind by not confirming income or the ability of home buyers to pay mortgages. This became a problem when those who took out subprime loans saw their mortgage payments increase several hundred dollars after two years.

Those mortgages were bundled by banks and investment companies and sold as securities. One problem. When an excess of homes were built or put up for sale, the high prices the real estate market experienced from 2003 -2006 suddenly dropped. And are still dropping, causing many people to be upside down with their home mortgages--owing far more money than their house is worth. People stopped paying their mortgages and the rest is history.

Have a comment or question about what happened or about the new federal housing law that takes effect October 1? We'll try to get to as many questions as possible. Thanks!

Here and Now: Dick Mallery

One look at his resume and you have to wonder where Dick Mallery finds the time to devote his energy to so many causes. He's on the board of directors of local, national and international organizations. The valley attorney isn't without controversy. He was behind some proposed public development deals in the 1980's in which he stood to make a profit. But many civic leaders credit Mallery as being the driving force that helped established the biomedicine industry in the valley. Motivate by his wife's death from cancer, Mallery wanted to do what he could to help researchers find the causes behind cancer thus leading to a cure.

Have a comment or question for the show? Jot it below. If it isn't posted right away, don't worry, we moderate the blog to prevent SPAM. We'll get it online ASAP!

Real Estate's Bubble Burst

Homes prices have dropped almost 20% in the past year. Many real estate analysts say the market is simply correcting itself after a huge run up in home values in 2004 and 2005. Here and How delves into what's going on and much lower home values will drop?

An Arizona bank was the latest taken over by the FDIC. Problem loans and a declining real estate market are blamed for the collapse of First National Bank of Arizona. It comes after the federal government promised to help Freddie Mac and Fannie Mae. What's going on? We aim to find out.

Have a comment or question? Post it below and we'll use it on air. If you don't see it posted right away it's because we moderate the blog to prevent spammers from messing things up. So, be patient, it will appear. Also, the more concise your post the more likely it will be used on air.

Here and Now - Arizona's Economy

Have a question about Arizona's economy and when it will rebound? Your comments and questions are welcome below!

Here and Now: Energy in Arizona

Think electric and gas bills are high now? Just wait. APS says it needs to build more powerplants and recently announced plans to construct a $1 billion dollar solar facility near Gila Bend. SRP says it will increase electric rates and those rates will be higher when electric demand is at its peak.

Natural gas prices continue to increase. Can you believe that prices have increased 300% since 2001?

A big topic for KJZZ listeners is the use of renewable energy such as solar and wind.

Have a question or comment for Corporation commissioners Gary Pierce or Kris Mayes? Start typing below!

Here and Now - Super Events Impact

We in the media like to use a variation of the cliche' from the movie Field of Dreams. "Build it and they will come." (It's actually 'build it and HE will come,' but that's besides the point) Maricopa County taxpayers and tourists paid for $300 million of the $455 million dollar University of Phoenix Stadium. The NFL promised if people voted in favor of building the so called 'multi-purpose facility' it would reward the region with a Super Bowl. Besides hosting this year's big game, it also hosted last year's national college football championship in addition to the Fiesta Bowl. But football isn't the only game in town this time of year. Tens of thousands come for the Barrett Jackson Car Auction in north Scottsdale in January. And the FBR Open, held at a north Scottsdale golf course, is the most widely attended event on the PGA tour, raising millions for charities. What does hosting all these events mean to the valley? Okay, besides the massive traffic headaches? More jobs? Yep. Tons more revenue? Good question. Give us your thoughts below!

Here and Now: The Cost of Living in Arizona

Arizona has always been an affordable place to live. Cheap food, affordable homes. But is that still the case? Are the prices in the grocery stores a reflection of normal inflation or are they much more expensive than they should be? What about utilities in a state where air conditioners are pretty much mandatory? And housing? Unless you want to live on the fringes of the valley, good luck finding a nice, livable and affordable home. What do you think? Jot your thoughts below!

Here and Now: Mortgage Mayhem

What's going on with the mortgage industry and what does it mean to Arizona? You've seen the headlines: Mortgage companies declaring bankuptcy, financial institutions laying off employees, realtors seeing sales collapse and prospective home buyers finding themselves unable to secure a loan. Is this the beginning of another S&L crisis? Or just a market correction to make up for out-of-control mortgage financing that enabled a run-up in real estate? What do you think?

Share your thoughts below!

Here and Now: Development

Tempe Town Lake is home to a growing number of condo towers. Downtown Phoenix is adding hundreds of condos that reach high into the sky. Will people abandon their open space for a vertical living environment?

After record home sales and new home construction two years ago, home sales are down and recently built houses sit empty.

It is a different story for commercial development. New shopping centers are cropping up around the valley as are business offices. How is development--both residential and commercial--shaping our economy and our communities?

Your comments, thoughts, and questions are welcome below. You can also ask your questions during the live broadcast Wednesday, July 18 from 11am to noon.

Real Estate's Bursting Bubble

Home sales in Arizona are down sharply. Compared to last year, there are about half as many houses for sale in the valley. And prices have followed. No longer does the Phoenix area lead the nation in home appreciation. Has the real estate bubble burst? Or are typical economic factors just cooling off what some economists say was an overheated housing market?

Listen Wednesday from 11 a.m. to noon as KJZZ's here and now explores what the slowing housing market means to people who own a home, or want to sell or buy a house. Plus, how does the real estate slump affect The Valley's growth-based economy? Overall economy which is based on growth?

Additional background information for this discussion, see the Here and Now "Fast Facts".

To ask a question during the show call 480-774-8200 or you can post a question ahead of time by clicking the "comment" link below.

Air Travel on Here and Now

Airplanes and airports play a major role in the valley's economy. More than a thousand planes take off and land each day at Sky Harbor International Airport. Hundreds more utilize municipal airports in Scottsdale, Glendale and Mesa. Here and Now explores aviation's economic impact on the valley. We'll also look into noise, convenience, and safety concerns shared by some local officials. Plus, a look at what the future holds for local air travel.

To hear this hour of Here and Now again, or to read additional background information for this discussion, Click here."

To post a comment about this topic, click on the "comment" link below.

Rising Energy Costs

The cost of energy is up across the board. Gas Prices? Try three bucks a gallon! Electric bills? APS rates increased 8% the past month. Here and Now explores the impact of higher energy costs to both families and businesses in Arizona. Why are we paying more? What are our elected officials doing about it? And how can you save energy and money?

To find out additional background information for this discussion, see the Here and Now "Fast Facts".

To ask a question during the show call 480-774-8200 or you can post a question ahead of time by clicking the "comment" link below.

Business in Arizona

Business in Arizona appears to be on the upswing.  Google is coming to the Valley, and Intel’s expanding.  The newly merged U.S. Airways is keeping its headquarters in Tempe, while some companies are deserting California and resettling here.

Taser International

In this hour of Here and Now, our guest will be a representative of Scottsdale-based Taser International.  The company has become enormously successful in recent years as police departments around the world add Tasers to their arsenals.  But, the company is facing a federal probe - and Amnesty International is calling for tighter constraints on the use of stun guns.

Call in with your questions at 480-774-8200, or click on the "comments" link below;

Real Estate Market

The Phoenix area has long been touted for its lower cost of living compared with other sun belt cities.  But in recent months, real estate prices have been skyrocketing.  In this hour of Here & Now we talked with Jay Butler, director of the Arizona Real Estate Center at Arizona State University, about the upward pressure on housing costs.  Is the real estate market a bubble waiting to burst?