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Randy Pullen, Candidate for Arizona State Treasurer Response to The Arizona Republican 2014 voter guide questionnaire
Was leveraging state buildings during the recession a sound fiscal policy? Why or why not, and what, if anything, would you do differently?
As a CPA with 40 years of financial experience operating and consulting to all sizes of businesses regarding their financial condition, my opinion of the financial situation in 2009 was the state was on the verge of bankruptcy unless it took steps to correct its financial course. The alternative to selling and leasing back state buildings as well as implementing the temporary sales tax was to cut 20% to 25% of the K-12 education budget. All state functions had already been cutback including Higher Ed, as well as funds swept from agencies, towns and cities. The cuts to education would have caused havoc in our schools and likely resulted in school districts closing some schools. The disruption would have been unacceptable to many families.
What, if any, reforms to Arizona’s sales-tax system would you support?
One of the key reforms was accomplished last year. Consolidating the collection and distributing sales taxes through the Department of Revenue made it much easier for private businesses to navigate the local sales taxes. It is incumbent on the Treasurer to assure that these funds are distributed as quickly as possible to the towns and cities. Going forward, Arizona should consider establishing enterprise zones where Internet companies could locate operations and not be have sales tax on their transactions.
The state’s credit rating is faltering. How would you improve it?
This is a condition that can be turned around pretty quickly once the state takes corrective action. Raising taxes is not the solution. Arizona needs to grow its economy. While the rest of the country has been experiencing a lackluster economic recovery, the Texas economy has been growing leaps and bound. This is the result of policies that Texas has been implementing for over a decade to reduce the drag of government on the private sector and promote economic development. We need to follow their example. As mentioned above, setting up more enterprise zones that lower taxes and provide infrastructure for growth is one way to grow Arizona.
Arizona’s debt level has jumped in recent years. Is this a good or bad thing for the state long-term? What, if anything, would you do differently?
Much of the debt is associated with building new school buildings at the direction of the court. Long-term, this will be a positive for public education in Arizona and is quantifiable. More disturbing is the unfunded liability that the four state retirement funds are creating for the taxpayers. Actuarial estimates are it exceeds $30 billion. There need to be major changes to these systems. Changing to a defined benefit plan that caps the amount the state can match at a market level would be a start. While the Treasurer is not responsible for managing theses funds, it would be wise if the Treasurer evaluated the performance of these funds and made sure the long range projections are reasonable and supported by reliable data.
The state Supreme Court has ruled that many of the 2011 pension reforms were unconstitutional. What else can the Legislature do to improve the financial health of state pension systems without putting an additional burden on taxpayers?
Pass a referendum for a constitutional amendment on the ballot to add the pension reforms the state Supreme Court rejected.
Independents are now the largest voting bloc in the state. You are running on a partisan ticket. What are you doing to reach out to these voters?
Independents are looking for Republicans who are conservative, but also know how to get things done in government. My record as a proven conservative, a leader in Arizona's fight to secured the border, and as Chairman of the Arizona Republican Party who worked with Governor Brewer to balance the state budget in 2010 and supported the temporary sales tax will sit well with Independents. As part of my outreach, I am speaking at Chambers of Commerce, Rotary Clubs and other community organizations around the state. I will also be doing radio and press interviews around the state discussing my record. These efforts will get the message out to Independents who are interested.
What is the greatest threat to Arizona’s future, and how would you address it?
The greatest threat to Arizona is the same that all states face. The continued expansion and encroachment of the Federal government on the constitutional rights of the State of Arizona. The over reach of the federal government threatens our financial future, political future and the independence of our citizens. The potential for Arizona remains very positive. Even during the great recession, people continued to move to our state. Arizona is a great place to live and raise your family. I would support a national convention that would be focused on limiting the power of the federal government and expanding states' rights.
