Yellow Sheet Report Sample

∙NEWS NOTES AND GOSSIP∙

EXPECT NO WALTZ FOR BIGGS IN CD5 A politically active source in the East Valley assured our reporter yesterday that, despite a number of potential candidates already turning down the opportunity to run in CD5, Biggs will have a primary challenge. “Biggs is not just going to waltz into this race,” the source said. It will take several days, maybe even a few weeks, before a candidate emerges, but once that happens, the source predicted that non-tea party conservatives in the East Valley will quickly fall behind that individual. The source doesn’t expect to see exactly the same political lines that appeared when Jerry Lewis ran against Russell Pearce in 2011. That race largely became a referendum on Pearce’s get-tough approach to confronting illegal immigration. This time, the ideological divide is broader, but also more nuanced, the source said, adding that the closest analogy is the fight between the Ted Cruz types, who have no problem shutting down government, and other conservatives in DC who view that stance as reckless. The source noted Biggs’ bill from a few years ago to abolish the state’s Medicaid program as a sign that he’s squarely in the shut-the-government down camp (LINK). The source said that’s not mentioning the fact that Salmon, who recruited Biggs to run in CD5, is a founding member of the House Freedom Caucus, and he has had no qualms about shutting down the federal government over Planned Parenthood funding (LINK). The source said conservative pragmatists in the East Valley would rally behind someone with the political leanings of Flake, a hard core conservative who, “deep down,” knows that people need to compromise in order to advance a cause.

WHO KNOWS WHY? KVOA is pressing Gowan about his trips to CD1, and why he had tapped House sergeant-at-arms Billy Cloud as his driver, instead of a DPS officer. The Tucson TV station based its reporting on the Capitol Times’ inquiry into the House’s increased use of state-owned cars under Gowan’s leadership (LINK). KVOA noted that, in an Oct. 8 trip to Flagstaff, Gowan had posted a tweet about his “vision to make DC accountable” and also spoke about his congressional campaign in a radio interview. When pressed about that trip, Gowan replied, “Right, so the point here is you’re not going to separate the speaker from the candidate. And they asked me that question. What am I going to do? Decline?” When asked why he didn’t take a DPS driver to his trips in CD1, Gowan didn’t have an answer: “You know, who knows why? I go out there and take these vehicles and travel around… He’s my sergeant-at-arms, so he was taking me to certain different areas. It’s just the same, and sometimes those [DPS] drivers aren’t regularly ready.”

TOM RYAN SAYS HE WILL ASK AG TO INVESTIGATE GOWAN Tom Ryan told our reporter that he’s preparing letters to Brnovich, calling on the AG to launch two

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investigations into the House. One would be into Gowan’s use of fleet vehicles and House staffers for what are ostensibly campaign activities, and the other would be into the Mitchell and Montenegro’s fleet vehicle use (YS, 2/26). Ryan said he also wants to test House General Counsel Rob Ellman’s opinion that the July 2015 ALEC conference in San Diego represents “a quintessentially valid House business purpose,” which justifies the use of fleet vehicles to attend. If the courts agree with Ellman, Ryan said that would open up a can of worms that could lead to public disclosure of all sorts of documents that the organization would prefer to keep secret. He said that, had the press not dug into the chamber’s travel records, the $12,000 Gowan was reimbursed for travel and per diems that he shouldn’t have received would have never been caught, and the speaker would have continued receiving reimbursements he wasn’t entitled to. And since the chamber has not turned over its travel records to the press in response to a public records request, Ryan said the review the House did is likely far from comprehensive. “That’s like letting a bank robber investigate his own bank robbery. He says, ‘Well, you know, perhaps there were a few things that were done wrong, but all in all, I really don’t find anything problematic, but just in case, I’ll give some of the money back,’” he said.

MORE QUESTIONS Ryan also questioned how Gowan repaid the $12,000, given his low salary. Gowan has long complained about his legislative pay, and told the Capitol Times in 2013 that he actively seeks out meals with lobbyists because of his low pay. “I’m looking for free food. I get [paid] $24,000 per year... I have to keep a place here, I’m away from home, I can’t keep a business up, and I can’t find regular work because I’m gone part of the year. It’s rough on us out-of-towners. I look at this as a duty, and you shouldn’t have to starve to do your duty,” he said at the time (LINK). How Gowan was so quickly able to repay the reimbursements has been a point of speculation in Capitol hallways since news of the repayment broke last week. Wheeler was among the several lawmakers who told our reporter that they want to know how Gowan came up with the money. “The public has the right to know: Who made the reimbursement and, more specifically, are there campaign donors behind the payment?” Wheeler said. House GOP spokeswoman Stephanie Grisham told our reporter that Gowan repaid the state “with a personal check,” and not with funds from his campaign account. She wouldn’t say how Gowan came up with the money and whether anyone else helped him with the payments. “These questions are inappropriately personal and we therefore decline to answer them,” Grisham said in an email.

HOW TO LOSE FRIENDS 101 Ryan is fast collecting a constellation of friends and enemies at the Capitol. Last week, he had criticized the Ninth Floor for “being the ‘Full Employment Relief Act’ for Andy Tobin,” complaining about legislation that Tobin is pushing to clarify that he may vote on solar matters even if his son-in-law works for SolarCity (YS, 2/25). Ryan’s characterization of Tobin’s efforts promptly got a push back. A Capitol source said while Ryan might have done well in exposing Susan Bitter Smith’s conflict of interest, “he has now crossed the line from being a watchdog to a zealot.” His interpretation of the law, the source said, is “detached from reality.” The source surmised that the Ninth Floor has no motivation other than to clarify the application of current conflict of interest laws amid a problem that the source blamed on Corp Comm’s lawyers. The commission’s lawyers have been stung by their failure to flag Susan Bitter Smith’s conflict for three years, the source said, and have over-corrected. “I think they’re in shell shock mode, and because of that, they are being overly cautious to the point of government paralysis on these conflict of interest issues,” the source said, adding Tobin is bearing the brunt of that paralysis.

SOURCE: BEGAY IS MAKING THE ROUNDS IN CD1 Speculation persists that Begay is preparing for a run in CD1. A source familiar with the district told our reporter today that Begay is definitely eyeing a Congressional run, and recently hit up at least one “well known” donor in CD1 to rally support. “He’s making the rounds. He wants to run,” the source said, adding

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that Begay is delivering a soft pitch, along the lines of, “If I were to run, would you support me?” The source surmised that Begay would be a formidable candidate in the general election, but questioned his ability to get through a Republican primary. One GOP consultant told our reporter he was contacted late last week about working for Begay, but declined, telling our reporter there wasn’t much of a path to victory for a candidate who was a Dem until four months ago and has no base of support in the Pinal and Pima portions of the district, which is where the GOP primary will be fought.

TOLD YA THAT WHITE HORSE WAS GORGEOUS Remember that almost-like-a-campaign video that Begay made when he switched parties to become a Republican? Well, it’s still getting hits – lots of hits (YS, 11/24). As of 2 pm today, it has been viewed 160,911 times, a remarkable feat for what’s supposed to be just another well-made, feel-good video that has nothing to do with campaigning (LINK).

PUBLIC INTEGRITY ALLIANCE GOES AFTER PAUL BABEU Public Integrity Alliance, which focuses on (perceived or otherwise) public misconduct, has followed in the Goldwater Institute’s footsteps and filed a public records request with the Pinal County Sheriff’s Office over the office’s use of civil forfeiture funds to send a mailer touting Babeu’s accomplishments in office. Many of the mailers were sent to CD1 voters. PIA President Tyler Montague said he suspects that the mailer mostly went to Republicans, and that it was masquerading as a campaign piece. “It’s just pretty blatant, I mean the timing of it,” Montague said. He said his group supports reforming civil forfeiture laws. More specifically, money raised from seized assets should go to the general fund, and not be used as a “slash fund” by individual law enforcement entities, he said. He argued that having the money go to the general fund diminishes, if not eliminates, its “profit motive,” and, using a bit of hyperbole, adding, “it doesn’t go into your office’s party fund.”

AUDITOR GENERAL: CLASSROOM SPENDING IS LOWEST SINCE 2001 Arizona’s classroom spending is at its lowest share since 2001, resulting in lower teacher salaries and more crowded classrooms, the Auditor General reported today. Compared nationally, Arizona spends less on classroom and administration, and more on all other operational areas, such as transportation, utilities, and building maintenance. In FY15, Arizona spent 53.6 percent on instruction (60.8 percent nationally), an all-time low since state auditors began tracking the data in 2001 (LINK). Auditor General Debbie Davenport partly attributed the decline in classroom spending to fewer dollars overall going to schools. Total per pupil spending has decreased by $424 or 5.2 percent from FY2004 to FY2015, while spending in the classroom dropped $629 per pupil (13 percent) in that same period. Meanwhile, spending in all the other operational areas increased or remained steady. “Therefore, on a state-wide basis, it does not appear that the decline in classroom spending was due to an increase in monies earmarked for use outside the classroom, but rather, represents a shift in how school districts directed resources,” Davenport wrote. At the same time, the average teacher salary dropped by eight percent, despite the average teachers’ work experience essentially remaining steady, the auditor reported. In the last five years, the average teacher salary went from $47,077 to $46,008,

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even though teachers’ average years of experience grew by four percent. Teachers also saw an increase in the average number of students in their classes from 17.9 to 18.6.

REMEMBER #CLASSROOMSFIRST? Last year’s audit got a lot of buzz as Ducey launched his much-hyped Classrooms First Initiative, which is aimed at getting more money into the classroom. To that effect, Lawrence even introduced H2390 (schools; expenses; classroom funding), which went nowhere. Districts and charters, especially high-achieving schools and those with a high number of poverty stricken and special needs students, aren’t particularly enamored by plans that included mandates on managing their spending. Tim Ogle, president of the Arizona School Boards Assn, told our reporter that this year’s report by state auditors could be helpful in light of Prop 123. Lower teacher salaries and larger classes mean fewer dollars for teaching and learning, he said. “That’s very valuable information for people to understand we absolutely need to be keeping our best and brightest teachers in the classroom and rewarding them for their work,” Ogle said.

∙PRESS RELEASES AND NEWS CLIPS∙

Governor Doug Ducey’s Monthly Address Spring Training: A Proud Arizona Tradition And A Crucial Economic Driver PHOENIX – With opening day of Spring Training in Arizona upon us, Governor Doug Ducey's monthly address celebrates the growing popularity of Cactus League, and the significant impact it has on the state economy. Today, 15 major league baseball teams hold their spring training in Arizona, contributing to an industry that generates more than $800 million annually to the state economy. Listen to the governor's radio address, and read a transcript of the address below. Baseball is back, Arizona – and when it comes to Spring Training, NOBODY does it better than our great state. For 70 years, the Cactus League has been drawing devoted fans from all over the world to the Arizona. When the League started there were just two teams involved. But because of Arizona’s great quality of life, 15 Major League Baseball teams now practice spring ball here. Arizona locals and visitors alike flock to spring training to enjoy a great game and unparalleled access to their favorite players along with some unbeatable weather and unmatched Arizona hospitality. We’ve seen spring training’s impact on the Arizona economy. In fact, the results of recent studies show us that the Cactus League is growing stronger by the year – and is a major contributor to Arizona’s economy. The Cactus League industry annually now contributes more than $800 million to our state economy. Of that, more than $544 million was generated by out-of-town fans last year. This year is expected to be just as strong – if not stronger. To those visiting for spring training, welcome to Arizona and go D-backs! Enjoy the sunshine – I’m excited to see what this year’s baseball season brings.

Rep. Ruben Gallego Calls on Congress to Address Aircraft Noise Washington, DC – The FAA’s decision in 2014 to implement new flight paths for aircraft departing from Phoenix Sky Harbor International Airport had a severe impact on the quality of life for many Phoenix residents. On Tuesday, Rep. Ruben Gallego called on Congress in a floor speech to act to compel the FAA to consider steps to mitigate aircraft noise-related concerns.

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Language in the 2016 omnibus spending bill requires the FAA to develop a plan to address the concerns of communities exposed to high levels of aviation noise. The FAA has thus far failed to comply with that requirement. In his remarks on the House floor, Congressman Gallego called on the FAA to take the necessary action. As the Congress considers the FAA reauthorization bill, he is committed to continuing to find ways through that legislation to ensure the FAA does right by the people of Phoenix. Excerpts of Rep. Gallego’s remarks are below. The full speech can be found here. “Civic leaders, business owners, and families in Phoenix have been ignored for too long. The flight paths over our city must change and so must the course of an agency which, for too long, has disrespected Congress and disregarded the needs of my constituents. “Now is the time to pass legislation to ensure that local communities have a seat at the table when new flight paths are plotted. And let’s give local residents the ability to appeal routes that are undermining their quality of life. “Mr. Speaker, on the issue of aircraft noise, the people of Phoenix are speaking loudly and they deserve to be heard.” Rep. Gallego is a member of the Quiet Skies Caucus.

Statement from Matt Kenney, Executive Director of Arizona Grassroots Action PAC “Despite her claims of having one of the most independent voting records in Congress, Ann Kirkpatrick has consistently placed her loyalty to President Obama over loyalty to her constituents. Her record of hard-left partisanship is undeniable, and voters need to look no further than her nearly 90% voting record with President Obama. Congresswoman Kirkpatrick has said that her disastrous vote for Obamacare is the one for which she is “most proud.” And she even voted for Obama’s Iran Deal, which guaranteed billions of dollars to a known state sponsor of terror which threatens our country and our closest ally in the middle east. “Arizona voters have twice rejected President Obama when he appeared on their ballots. They will certainly reject a Congresswoman who placed her loyalty to him over her responsibilities to the people of Arizona.”

National outlets expose McCain’s support of Trump No longer a maverick: McCain on the defensive as he is forced to defend his support if Trump is nominee TEMPE – John McCain is getting lots of media attention – just not the kind he had hoped for. National news outlets are highlighting McCain’s bold, calculated, cowardly stance of saying he would support Donald Trump for president if Trump became the nominee, despite Trump’s attacks on women, Latinos and even McCain himself – all of which is documented in the first ad by Kirkpatrick for Senate released on Monday. The ad’s release has generated headlines across the country and has already received tens of thousands of views on YouTube. National and Arizona outlets feature Kirkpatrick’s first ad:  CNN: Democrat tries to tie Trump to John McCain in scathing new ad o “Rep. Ann Kirkpatrick … released Monday a 60-second ad highlighting Trump’s most jaw- dropping comments and noting that [McCain] would support the GOP nominee, even if it turns out to be [Trump].”  Washington Post: The GOP’s Donald Trump nightmare scenario is already happening in Arizona o “If you’re McCain and the eight or so Senate Republicans up for reelection in swingy or even blue- leaning states, this is more like a real-life nightmare.”  New York Times: Ad tars John McCain’s pledge to back the Republican nominee o “If Republicans are worried about a Donald J. Trump presidential nomination damaging the party down the ballot in November, the Arizona Democrat challenging Senator John McCain, is offering a prime example of why they should be.”

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 Politico: Senate Republicans stand by as Trump marches to the nomination o “Still, Kirkpatrick attack ad serves as a reminder that while the pro-Trump forces inside the GOP may be strong, the anti-Trump forces outside the party could be equally dangerous for vulnerable senators when they face general election voters.”  Time: Here’s the ad Democrats will run if Trump is the nominee o “Arizona Rep. Ann Kirkpatrick condemns Republican Sen. John McCain for saying that he would support Donald Trump if the real estate mogul wins the Republican presidential nomination.”  New York Magazine: Here’s how Democrats aim to turn a Trump nomination into Senate control o “John McCain’s Democratic challenger in Arizona, Congresswoman Ann Kirkpatrick, gave us a preview of the anti-Trump onslaught that awaits GOP candidates everywhere, should the mogul become the party’s standard-bearer.”  National Memo: Democratic candidate ties Donald Trump around John McCain o “… this ad skillfully corners McCain on his obligation to endorse the eventual Republican nominee for president, while painting a picture for the voters of just how crazy things have become.”  Phoenix New Times: Ann Kirkpatrick targets John McCain’s support for Donald Trump in video o “Kirkpatrick has launched a strong ground campaign to portray McCain as a flip-flopping candidate who only cares about Arizona issues when it’s election time, and according to the latest polls, her strategy appears to be working.”  Arizona Daily Star: Ad Watch: Kirkpatrick faults McCain for supporting Trump o “The Democratic candidate for Senate attacks McCain for not distancing himself from presidential candidate Donald Trump, highlighting recent news articles citing various Republicans who are trying to derail his campaign.”

Prominent Queen Creek Families Endorse Judah Nativio for AZ House of Representatives Queen Creek, Arizona -- Today, Judah Nativio, a Republican candidate for the Arizona House of Representatives in Legislative District 16 announced his endorsements from prominent Queen Creek leaders. The first endorsement is from the Mayor of Queen Creek, Gail Barney, and the second endorsement is from Jamie Sossaman, owner of Sossaman Queen Creek farm and former Arizona legislator serving both in the House and Senate. Mayor Barney said of Judah: “I have seen the positive input, accountability, and oversight of the Queen Creek Unified School District with Judah’s appointment and subsequent election to the board. He is passionate about education and the success of all children and all schools. He has made hard decisions and help set a new path for our public schools. He will represent us well at the legislature with his intellect and bravery. Please join me in supporting Judah in the GOP district 16 primary house race.” Additionally, Jamie Sossaman said: “During my 24 years in the state Legislature, both in the House and Senate, I came to understand what is required of an effective public servant. I believe Judah Nativio will serve the people of our District with passion and integrity. I believe he will bring common sense solutions to our state’s most pressing issues. I hope you can join me in supporting Judah Nativio for Arizona House in Legislative District 16.” To learn more about Judah and his campaign, visit his website or Facebook page.

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“Biggs is not just going to waltz into this race.”

- East Valley source, speculating that Biggs will face a primary challenger in CD5.

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