Valley Leaders Less Conservative than Their Reputation:

Education Key to Economic Development in Arizona

 

Business and community leaders in Maricopa County overwhelmingly cite educational improvements as the most important factor for economic development in Arizona, according to a new O'Neil Associates Valley Influentials Poll.

When Valley leaders were asked to state in their own words "what is the most important thing the state could do to further economic development in Arizona?" fully 38% mentioned various upgrades they hope to see made to the state's education system. Said Dr. Michael O'Neil, Ph.D., "Everyone who follows the news in Arizona has been bombarded for years with bad tidings about the condition of our school system and how it compares to other states. It probably comes as a surprise to nobody that education clearly tops the list of Arizonans' concerns."

Dr. O'Neil continued, "It is surprising, however, that business leaders place education so far ahead of the other factors on their list of possible improvements, especially considering that we were asking not what the state's biggest problem is, but specifically what could be done to further economic development."

As a distant second, factors relating to the business climate and the structure of and investments in industry in Arizona were mentioned by 23%. Changes to the state's tax structure or taxation level came in third, cited by 18%. Two other factors were mentioned by notable numbers of Valley leaders: changes to various levels of government and governmental policy (10%) and changes needed to enhance the quality of life in Arizona (4%), for instance through environmental improvements and resolution of growth problems.

A Closer Look at Tax and Education Responses

O'Neil continued, "When we dug a little deeper and looked at the breakdown of responses within these categories, we found even further evidence that the lowering of taxes is very low on the priority list of business leaders."

The 18% who cited various tax issues included only 5% who cited tax cuts. An additional 11% called in more general terms for changes to Arizona's tax code and structure, mainly to create better business incentives. This is consistent with a survey finding we reported several weeks ago: when the same group of business and community leaders was faced with the choice between lower taxes and increased education, the overwhelming majority opted for more education funding. The current survey data underscore that result; even when the question is posed in terms of "furthering economic development," education trumps tax cuts by a wide margin.

Other breakdowns were also interesting. Of the 38% who mentioned education, 16% said in general terms that education in Arizona was in need of some type of improvement, while 12% specifically mentioned the need for increased funding, and another 10% mentioned education first among several factors needing reform. The 23% calling for changes to the state's business structure includes 7% citing recruitment problems, 3% citing lack of diversity in the workforce, 3% venture capital, and 2% each citing improvements for small businesses, the need for higher-wage industries in Arizona, an inadequate business climate, and lack of support for existing businesses.

Conservatives vs. the Rest

Education is cited most frequently by nearly all subgroups of Valley business and community leaders. Even those registered with the Republican party, a party that traditionally has placed great emphasis on lessening the tax burden, give higher priority to education than to any other issue, though the proportion of Republicans (33%) citing education is somewhat lower than for Democrats (43%) and those with other registrations (41%). In turn, tax factors were cited relatively more frequently by Republicans than by Democrats (11%) and "others" (16%). Those with other registrations, incidentally, appear to be more alienated by Arizona's political system, citing problems with government somewhat more frequently (16%) than Democrats (6%) and Republicans (11%).

Only those who identify themselves as conservatives break the pattern of giving highest priority to educational improvements. At 24%, conservatives are far less likely than liberals (47%) and moderates (42%) to cite education. Education, in fact, is only third among conservatives' priorities, which are topped by calls for improvements to the business and industry climate (31%) and tax reform (26%). Liberals and moderates adhere more closely to the overall order of priorities.

"Much of the Arizona legislature defines itself as conservative, and part of this identification has been a strong emphasis on lower taxes," said Dr. O'Neil.

"As our poll shows, however, it cannot be presumed that this political platform represents the business community in its entirety. It seems there may be a disconnect between the conservative legislature and some of its supposed constituents. This is not to suggest that the business community is not conservative, but it sounds more like a type of conservatism that emphasizes prudent spending over low taxes at any cost."

Finally, few notable differences exist in the preferences of the members of the four organizations whose members participated in the survey of business and community leaders (Greater Phoenix Leadership, Valley Leadership, East Valley Partnership, and Westmarc).

Education is cited most frequently in all groups. Concern with the climate for business and industry is most common among East Valley Partnership and Greater Phoenix Leadership members, whereas members of Valley Leadership and Westmarc are also relatively concerned with the system of taxation in Arizona.

 

About the Poll.  The O’Neil Associates Valley Influentials Poll is a web-based survey that was sent to all members of Greater Phoenix Leadership, Valley Leadership, East Valley Partnership, and Westmarc. As such, this survey does not purport to be a random or representative sampling of the general population of the Phoenix metropolitan area. It would be difficult, however, to conceive of a more comprehensive representation from which to draw inferences about the opinions and sensibilities of business and community leaders than the combined membership of these organizations, although, inevitably, any definition of influentials is somewhat subjective. The persons surveyed are likely to exert disproportionate influence on and be an early indicator of community opinion by virtue of their position, community involvement, and political participation. The O’Neil Associates Valley Influentials Poll was not sponsored or paid for by any outside organization. Four hundred eight participants completed the survey between June 13 and June 24, 2002, yielding a margin of error of ±4.5%. O’Neil Associates, Inc. is a Tempe-based public opinion research firm specializing in client-focused attitude and awareness studies for a wide variety of industries and organizations.

FOR RELEASE AUGUST 16, 2002, 12 NOON                                                                              (VIP011-2002-01)

FURTHER INFORMATION:    Michael O'Neil, Ph.D., 480-967-4441

These results may be reported freely provided that they are identified as the “O’Neil Associates Valley Influentials Poll” including identification on any graphic material.

 

O’Neil Associates has tracked public opinion across the Valley, Arizona, and the Nation since 1981. To be healthy, public debate must be informed—this is why we commit our resources to measuring opinions on the political and social issues people care about and talk about. O’Neil Associates, however, is much more than that. While the Valley Influentials Poll and Valley Monitor may be our most publicly visible activities, we do most of our work for private businesses and organizations as well as state and other public agencies. As a full-service research firm, we assist our clients with a broad range of research efforts to measure customer satisfaction, improve customer service, fine-tune public images, focus marketing campaigns, engineer products, increase market shares, strengthen employee relations, and plan, refine, and assess business strategies.

 

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