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Fox News: Arizona’s Coronavirus Mitigation Measures May Be Behind 75% Drop In Daily Cases In August: CDC
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McSally Secures Protections for Tribes’ Affordable Housing Funding
U.S. Senator Martha McSally (R-AZ) announced today that tribes will not lose future Indian Housing Block Grant (IHBG) funding as a result of the CARES Act funding they received.
Following a letter McSally sent last week to the U.S. Department of Housing and Urban Development (HUD), the Agency is exempting tribes from the disbursement requirement that would have reduced the amount of future IHBG funding that a tribe is eligible for. This change will ensure that CARES Act IHBG funding can be used for supplemental expenses related to COVID-19, and will not detrimentally impact regular IHBG grant amounts.
“Indian Housing Block Grants are vital for improving housing conditions on tribal reservations and reducing the spread of the coronavirus,” McSally said. “This requirement waiver by the Department of Housing and Urban Development is a huge win for tribal communities who can continue to receive this block grant funding regularly. The goal of the CARES Act was to provide needed relief during a crisis, not penalize recovering communities.”
Background:
On September 23, McSally sent a letter to Housing and Urban Development Secretary Ben Carson asking him to waive the disbursement requirement that would have reduced the amount of future IHBG funding that a tribe is eligible for.
Arizona To Receive More Than 2 Million Rapid COVID-19 Tests
Governor Doug Ducey today announced that Arizona will receive 2.19 million Abbott rapid point-of-care tests from the federal government. The tests can produce results within 15 minutes. Delivery is expected to take place with shipments beginning in the next seven to 10 days. The Arizona Department of Health Services is working with county health departments to prioritize the tests for K-12 schools and congregate care facilities for vulnerable individuals.
“Arizona is grateful to President Trump for his continued partnership during this pandemic and for once again prioritizing our state,” said Governor Ducey. “These new FDA-approved rapid tests will allow us to quickly identify cases and prevent outbreaks among our most vulnerable citizens. Combined with the PPE, ventilators and health care workers the White House has provided to Arizona, these tests will go a long way in making sure we are able to continue to safely keep Arizona’s economy open.”
Yesterday, President Trump announced that the administration will distribute more than 150 million rapid Abbott tests around the country in the coming weeks. Of these, roughly 50 million tests will be targeted to vulnerable communities including nursing homes, assisted living facilities, hospice care, and tribal nations.
To date, more than 1.4 million diagnostic tests have been completed in Arizona, as well as more than 290,000 serology tests. Last week, Governor Ducey announced $6 million for the development of Arizona State University’s groundbreaking point-of-need testing, which will allow people such as first responders, health care workers and those in congregate care settings to get COVID-19 test results within minutes.
Historic ACC Vote recognizes Utility Obligation to Assist Tribes with “Just and Equitable Transition” when Closing Coal Plants
It happened quietly and without a lengthy debate, but the Arizona Corporation Commission’s vote on Sept. 23 to approve a seemingly minor docket item on energy efficiency marked a historic moment, and the commissioners who approved it should be applauded for taking the first steps toward rectifying a long overdue injustice.
The amendment, approved 3-to-2, requires APS to develop a Tribal Energy Efficiency Program, supported annually with $457,000 in funding, that will help implement energy efficiency projects for Navajo and Hopi communities “impacted by the closure of coal-fired power plants that Arizona Public Service Company owns or operates, including Navajo Generating Station, Four Corners Power Plant, and Cholla Power Plant.”
In approving the measure, the Commission for the first time ever took official action recognizing that utilities have a responsibility to provide funding and assistance to communities impacted by early power plant closures. Here’s the crucial language: “… as part of its corporate obligations to support a just and equitable transition of communities impacted by early power plant closure …”
“This is an important step in acknowledging that utilities have a responsibility to assist the people and communities, they benefited from for so long,” said Nicole Horseherder, director of the Navajo grassroots group Tó Nizhóni Ání. “Navajo Generating Station closed almost a year ago, and we’re still waiting for the utility owners to step up and provide funding and support, to help rebuild Navajo and Hopi communities that provided them with inexpensive power and water for nearly a half century. We’re grateful that the Commission saw the importance of taking this initial step to make it happen.”
The full text of the amendment approved by the Commission is below. It was introduced by Commissioner Sandra Kennedy and followed a motion in proceedings on Arizona Public Service’s plan for energy efficiency submitted by three grassroots tribal community groups in late August: Tó Nizhóni Ání and Diné CARE, both Navajo community organizations, along with Black Mesa Trust, a Hopi grassroots group.
“This really is historic, and the Commission has our gratitude for taking a first step to confront important issues that are affecting both tribal and non-tribal communities,” said Carol Davis, executive director of the Navajo grassroots organization Diné CARE. “One power plant has already closed, another will close in two years, and in all likelihood, two more that are connected to the Navajo Nation and Hopi Tribe will be shutting down soon. It’s crucial that we take steps now to help our communities transition to sustainable post-coal economies. The utilities can’t be allowed to just lock the gates and walk away anymore.”
Before its closure last November, Navajo Generating Station was the largest coal-burning power plant in the West. It was supposed to operate into the 2040s, but in early 2017, the plant’s owners, including Arizona Public Service, determined it simply wasn’t economic to keep it operating and decided to close it no later than December 2019. Navajo and Hopi communities had less than two years to rebuild their economies, replace tens of millions of dollars in lost tax revenue and deal with the consequences of nearly 1,000 displaced workers from the plant and Kayenta coal mine.
Our groups have been working for many years to ensure that such business decisions do not leave behind the people and communities that made operations at plants like NGS possible. We have participated in and filed numerous comments in proceedings requesting assistance from utilities like APS. Until Wednesday, that had never happened. Nearly a year AFTER the closure of NGS, we are still waiting for APS and its co-owners (Salt River Project, Tucson Electric Power, NV Energy and the U.S. Bureau of Reclamation) to provide even a dime of support to help the tribes’ transition to post-coal economies.
“We hope this is the first of many decisions that will hold utilities accountable for providing our communities with support and funding to move beyond coal,” said Vernon Masayesva, director of Black Mesa Trust and a former chairman of the Hopi Tribe. “Our coal and our water powered growth of cities like Phoenix and Tucson, and it’s long overdue for the companies that profited from that to give back. There is still much work to be done in ensuring a Just and Equitable Transition.”
Commissioner Kennedy, along with ACC Chairman Bob Burns and Commissioner Lea Marquez Peterson, voted for the amendment.
Sinema Highlights the Importance of Arizona Universities to NASA’s Continued Research and Innovation
Arizona senior Senator Kyrsten Sinema spoke today in a Senate Commerce Committee hearing and highlighted the important partnerships between Arizona State University, University of Arizona, and Northern Arizona University and NASA for continued space research and innovation.
“NASA partnerships with Arizona’s universities are strong and beneficial. All three Arizona public universities – the University of Arizona, Arizona State University, and Northern Arizona University – provide students with hands-on STEM education and research opportunities, thanks to the Space Grant program and other NASA partnerships,” said Sinema.
Sinema questioned NASA Administrator Bridenstine about potential changes to the Near-Earth Object Surveillance Mission at the University of Arizona. Kyrsten has long championed the Near-Earth Object Surveillance Mission, and helped secure 36 million dollars in dedicated funding to further the mission in last year’s end of year spending bill. Sinema also recently introduced the NASA Authorization Act—bipartisan legislation strengthening American’s leadership in space, bolstering national security, and creating economic opportunities for all Arizonans. The bill also directs NASA to fully fund and launch the Near-Earth Object Surveillance Mission by 2025.
Last year, Sinema introduced the 21st Century Space Grant Modernization Act—bipartisan legislation boosting space education and research funding at Arizona universities by reforming the National Space Grant College and Fellowship program to better support state-based space education and research programs. As part of the Space Grant College and Fellowship program, each state creates a Space Grant Consortium which provides funding for space-related research, workforce training, and education programs throughout the state. Space Grant Consortium consists of Arizona State University. University of Arizona, Northern Arizona University and Embry Riddle Aeronautical University. In recent years, NASA’s office of STEM Engagement has diverted a portion of Space Grant funding to cover administrative overhead and unrelated programs, which deprives states, including Arizona, of federal funding upon which they rely. Sinema’s 21st Century Space Grant Modernization Act protects and boosts funding for Arizona space initiatives.
Navajo-Owned CPA Firm Named New Mexico ‘Diversity Honoree’
Last week, Albuquerque Business First media announced several outstanding individuals and organizations making an impact in New Mexico. On Nov. 5, these “Diversity Honorees” will be awarded at the 2020 Diverse Business Leader Virtual Awards for bolstering diversity and equality across age, disability status, gender, sexual orientation, race and religion.
McCabe CPA & Consulting Group LLC (McCabe) will be one of four organizations to be recognized alongside Mandy’s Farm, Rio Grande Credit Union and T-Mobile. McCabe is a Navajo-owned CPA and Tribal business and government advisory firm. They are based in Albuquerque and serve various Tribal communities in the western United States.
“We believe that diversity is paramount for the future success of our economy, especially in this current environment,” said Sean McCabe, CPA and managing partner. “To be recognized as an organization that leads the way is truly an honor. I would have to attribute our organizational culture to the core of our values, which is the ‘one-man or woman’ concept.”
“This concept is the fundamental belief that we are all one. One with each other and everything around us, no matter your cultural, racial, gender or sexual identity; no one individual is greater than the whole,” he added. “This belief is who we are and what we do. It drives our team to accomplish our goals, also helping us to accomplish our client’s goals.”
For the past 15 years, McCabe has been dedicated to the mission of lifting Tribal communities from the persistent disparities that hinder community and economic development. The firm’s internal and external capacity is exceptionally diverse, with talented Native Americans, Hispanics, and females in professional fields of accounting, government relations, health care policy, technology and more.
New Mexico’s economy depends heavily on the contributions from companies like McCabe. The Business First announcement cited that in 2019, the 25 largest Hispanic-owned businesses had $350 million in revenue and employed over 1,400 residents, and the 25 largest American Indian-owned businesses had $290 million in revenue and employed 1,500.
To celebrate and show gratitude, McCabe is allowing Tribal leaders and workers to join them during the Tribal Coronavirus Strategic Response Virtual Summit on Oct. 1-2 at no cost. The virtual summit will include panelists who specialize in various fields and who will engage in educational conversations about the interplay between health and economy during and after the pandemic.
“It is a training opportunity for Tribal nation leadership, enterprises and businesses, and individuals to enhance their knowledge of the pandemic and its effect on Tribal health and economy,” said McCabe. “We understand and we appreciate everything they do for Tribal communities. We want to strengthen our alliances in Indian Country.”
To register, go to https://us02web.zoom.us/webinar/register/WN_QeI9tfB6SbO78XXSfpm8cg.
Promoting Businesses from the Canyon
Though the rural setting of the South Rim of Grand Canyon Village can pose a few minor setbacks for running a media consulting business, the good far outweighs the bad for Elise Burnette.
“High-speed internet is the only thing I miss,” said Burnette. “Sometimes I have to head to Flagstaff in the middle of a project to upload the client’s project there in order to meet deadlines. But I knew that moving here and it’s just part of the struggles of operating your business.”
Citing that smaller cities fit her lifestyle, Burnette specializes in graphic design, multi-media and marketing and simply refers to herself as a media consultant. “I’m a full-service provider for everything my clients might need for marketing,” she said. “I create logos, photos, packages, brochures and website design, both back- and front-end management.”
As if that’s not enough, Burnette also specializes in print advertisements, graphic design, audio editing, video editing, photography and demographic/target marketing.
Burnette’s clients include distilleries, equipment manufacturers and a rock band and are based in the United States, Canada, the United Kingdom, and even one in India.
Steven Cage, owner of Cage and Sons Distilling Systems in Alberta, Canada, said, “I trust Elise with all of my media and marketing. She does great work and has increased our business over the years threefold.”
Born in St. Louis, Missouri, Burnette attended Northern Arizona University (NAU), where she met her husband, Chris. “We always wanted to return to this area,” she said. When Chris was offered a position at Grand Canyon National Park, he accepted and their dream was fulfilled.
While at NAU, Burnette studied electronic media, along with career and technical education. She worked for KNAZ and UTV NAU’s university television station, as technical director, director and chief video editor. “NAU was the only school my mother would allow me to attend,” she said. “She was a graduate of their art department in 1974 and was dead set on me attending there, also.”
In the last 10 years, Burnette and her family have lived in seven different states. “During this time, I went back to school and received a graduate degree in communications.”
An interesting fact about Burnette is that she, along with her husband, owned and operated Shawnee Bend Farms and Coulter & Payne Farm Distillery in Union, Missouri.
“We produced high-quality moonshine, vodka and bourbon in small batches using traditional Appalachian methods and grains that we grew on our own farm,” she said.
That undertaking led the Burnettes to publish a book, “Coulter & Payne Farm Distillery’s 101 Uses For Moonshine,” addressing everything from the history of moonshining to social skills to practical housekeeping hints, medicinal uses, recipes and more.
“Our book features my photography, illustration and design,” said Burnette. “It was really fun to write and incorporate my art and design skills.”
Burnette generally works evenings after her two children go to bed. Her late afternoons are spent hiking along the rim or riding her electric bike with her family.
“Most of my tedious and creative work is done after 8 p.m.. I typically get to bed at 1 a.m.”
The Burnettes’ book can be found at schifferbooks.com and Amazon. QCBN
By V. Ronnie Tierney, QCBN
On a Roll
Tony Carcoba feared the pandemic would crush his electric bike rental business. Opened on July 4, 2019, Prescott Ebike was slowly gaining awareness and popularity when COVID-19 rolled in.
With the uncertainty of the new virus, Carcoba closed the business through much of spring. He opened again June 1, confident that he could offer a safe, fun experience. “It’s the perfect COVID business. We wear masks while we’re at the trailhead loading and unloading bikes,” he said. “Riders can keep a safe distance from each other and enjoy the fresh air and being outdoors in the amazing scenery.”
Carcoba expected recreationists would be ready to be out of their homes, but he had no idea just how busy he was about to become. “People really wanted to get outside after sheltering in place for months,” he said. “We were crazy busy all summer.”
Prescott Ebike is a mobile business that books by appointment only. Customers will find the website informative and easy to navigate. After booking, they quickly receive correspondence with a map directing them to the trailhead where they will meet, like the trailhead for the Prescott Peavine Trail and Iron King Trail.
“This is our most popular ride. Watson Lake and the Granite Dells are beautiful. And, within a few minutes, you can really feel like you are in the wilderness, immersed in nature.
For most riders during the two-hour self-tour, they can cover about 17 miles, take some water breaks and capture some pictures. The wide pathway on the Peavine follows an old railbed and offers breathtaking views of the lake and stunning rock formations.
Carcoba says riders also enjoy a two-hour spin around downtown Prescott as well as half or full day rentals. He has partnered with local hotels such as Springhill Suites by Marriott and the Residence Inn by Marriott Prescott to offer ebike rentals to guests. “They can make a reservation and we will meet them at the hotel or we can pick them up and take them to the trail.”
He is working with Point of Rocks RV park and also the Prescott Pines Christian Camp of Yavapai County to offer the service to members. He is interested in expanding this service to other businesses, such as Airbnbs, as well.
For those who have never experienced an ebike, he explains that it is like riding a regular bike, except you get a push going up hills. Riders can adjust the level of torque, which will power the bikes to 13 miles an hour. The Class 2 ebikes are designed go 23 miles an hour, but Carcoba has limited their speed for safety.
A machinist since he was a teen, Carcoba owns and operates Toro Manufacturing in Chino Valley, which creates aerospace components such as spindles, gears, shafts and valves for airplanes and the dollies that move them. The business also makes parts for telescopes, jet skis and motorcycles. The name Toro came from the first two letters of Tony’s name and the first two letters of his wife’s name, Robbie. The couple has two sons.
In addition, Carcoba teaches CNC machining in community education night classes at Yavapai College.
Carcoba was first introduced to electric bikes on a family vacation in Santa Monica, California, a few years ago. He purchased one for his wife, Robbie, and then found his regular bike couldn’t keep up with her. “Now I can go all day on the electric bike and feel like I’m in my 20s again,” he said. “It’s really fun!”
He thought there might be others who would feel the same way. He researched business trends and market growth and predicted ebikes would find their niche.
“I believe the success of the business is because of the demographics we reach,” said Carcoba. “Mostly, our customers are in their 40s, 50s and 60s. Some of them haven’t ridden a bike for 15 years.”
Tripadvisor gives Prescott Ebike five stars. “Our family took the Peavine Trail with the Ebikes and it really is a must-do activity. The sights are amazing. We were able to stop and take some really great pictures. The bikes are super easy to use and make for a really fun ride,” wrote a customer who rented in January.
Another customer rated Prescott Ebike five stars plus in February. “Could not have asked for a better experience on a great spring Saturday morning. Took the 11 a.m. self-guided two-hour ebike rental for the Iron King and Peavine trails (total cost was $50 per ebike). Tony, the owner, goes out of his way to make sure you have all you need and are prepared. He will train you on the bike and answer all your questions. The two hours flew by! Highly recommend.”
Carcoba plans to offer his ebike rentals all year. His vision is to expand the business to other Northern Arizona communities.
For more information, call 928-83E-BIKE. To book online, visit prescottebike.com. QCBN
By Bonnie Stevens, QCBN
Building Wealth with an HSA
Let’s talk about the Health Savings Account (HSA). What is it? How do you use it to build wealth? Create an HSA and begin to build wealth tax-free. An often-overlooked tool, an HSA is available to build a slush fund for retirement.
Through the last several years, health insurance has been a changing world. But with a little bit of knowledge and some planning, you could create a sizable nest egg for retirement.
Who Qualifies for an HSA?
To be eligible for a HSA, you must purchase a high-deductible health insurance plan. Many employers offer a high-deductible plan as an alternative to the traditional coverage (first dollar coverage, often with a co-pay). If you purchase your own insurance through the many other options such as the health exchange, then a high-deductible option will be available.
A high-deductible plan is defined as a plan that has a deductible of $1,400 for an individual and $2,800 for a family in 2020 and will remain the same for 2021. In other words, you would be responsible for the first $2,800 of payments for your family’s health care; or, stated another way, you will need to go out of pocket. Once this deductible is met, your insurance will pay the amounts in excess of the deductible. Often there is a copay of some sort as well.
There are plans with higher deductibles but the highest limits are capped. The higher the limits, the lower the premium, but the greater your risk for out-of-pocket expense. Using an HSA effectively can reduce that risk.
Are these high-deductible plans for everyone? No, if you are not healthy and use health care regularly because of some underlying condition, this may not be the right option. However, if you and your family are healthy and use health care for routine care such as well care visits, this is definitely a direction for you to save some money and begin to build your slush fund!
Triple Tax Break
HSAs have the advantage of being triple tax-free.
Contributions are made pre-tax.
Growth is tax-free.
Withdrawals are tax-free when used for a qualified medical expense.
An added benefit is that contributions are free of social security and Medicare tax (a savings to you of 7.65%). So, you get a tax break when you make a contribution and the earnings are tax-free as well. When used for a qualified medical expense, that is also tax-free. You cannot use these dollars to pay premiums. However, in retirement, certain premiums can be paid with these dollars (check the regulations).
HSAs for Retirement
What does an HSA have to do with retirement? When you fund this account, the monies are yours. You can use this account in retirement. The account is always yours. The out-of-pocket expenses you will have with Medicare can be paid with these funds.
Contributions in 2021 are $3,600 for yourself and for a family it is $7,200. If you are 55 or older, you can add another $1,000 as a catch-up contribution. You may be starting to get the idea that this can add up to a nice sum pretty quick. One of the keys as always is to start early. The more years you have to contribute, the better.
As you turn 65, contributions will no longer be an option. Medicare does not have a high-deductible plan and you do not want to miss out on Medicare (it’s important that you get on Medicare at 65). Essentially, your account is frozen to contributions.
As discussed above, the account is always yours, except now you can only invest and use it for medical expenses. If you decided to take all your money out for a non-qualified expense, then it would be taxed like an IRA.
What can an HSA be used for?
There is a long list of medical expenses that qualify (too many to list here). Funds can be used to pay your deductible or copay, eye glasses, dental, dependent care expenses and prescriptions to mention a few. The list goes on and there are specific expenses that qualify. Have a look at IRS publication 502 for a complete list and what qualifies and what does not.
These are always changing, the recent CARES act has expanded what qualifies, so check the regulations.
HSA v. FSA
When comparing the Health Savings Account and the Flexible Saving Account, again, check regulations and with your employer, as some uses may be plan-specific. The primary difference is that an HSA allows you to roll your money over if you do not use it within the year. An FSA requires you to spend all the money within the year. No rollover. Use it or lose it.
Also, FSA contribution limits are lower than an HSA’s.
Conclusion
If you are not taking advantage of an HSA, I ask, why not? Don’t think you can afford it? How about: you can’t afford not to!
Take a look at the premium difference between the first dollar coverage (usually has a copay, so there is out of pocket) and a high-deductible plan. Let’s say the difference is $200 per month. What happens if you put that $200 into an HSA? That would be $2,400 per year. Now you have a start and if you have to pay for your deductible, you have it covered.
The HSA needs to be part of your overall wealth plan before retirement and as part of your retirement. The more time you have between now and 65, the larger your HSA slush fund will be.
An important key is to start! I have given one possible way to fund your account. There are any number of ways you can go about funding.
Think About This:
If you are 20 years away from age 65 and you begin to contribute $200 per month over that period of time based on contributions only, you will have $48,000. And, yes, you can invest these dollars like your 401k or IRA. What would you do with an extra $48,000 in retirement?
Retirement planning requires that you take all potential vehicles into consideration. This is one that is overlooked and with a good plan in place, it can have great benefit! QCBN
By Steve Calabrese
Steven Calabrese, CPA, is the CFO of West Yavapai Guidance Clinic. He also is the owner operator of a website known as thebiweeklyadvisor.com, where such topics as budgeting, investing, paying off debt and goal setting are discussed.