Arizona: Fiscal Issues and Analysis
Over the course of the "Great Recession" and its aftermath, Arizona has faced one of the most severe state budget crises in the nation. In fiscal year 2010, The State of Arizona was facing spending of roughly $10 billion, while collecting revenues of only $6.2 billion. In January, the 2011 legislative session faced a $543 million shortfall for the fiscal year ending June 30, and a $1.2 billion deficit for fiscal year 2011-12. (These targets excluded over $1 billion in formula spending that was suspended when the economic downturn began.)[more]
June 16, 2011
Arizona’s State Government Closes Budget Gap (For Now)
Read
EBR Director, Marshall J. Vest's latest update on the Arizona Budget and projections for where it is headed in the future.
- 18.1% less than the national average on a per capita basis, ranking 50th among states [including the District of Columbia as a “state]
- 7.5% less than the national average per $1,000 of personal income, ranking 39th among states
Arizona’s own source tax revenue was:
- 18% less than the U.S. average on a per capita basis, ranking 37th among states
- 8% below the national average on a per $1000 income basis and ranked 40th
Arizona’s use of the sales tax was above the norm; sales taxes were:
- 30% above average on a per capita basis, ranking 10th in the nation
- 47% above average on an income basis, ranking 8th in the nation
Arizona’s use of property tax collections were:
- 24% less than the national average, ranking 36th among states
- 15% below average on a per income basis, ranking 33rd
Arizona’s use of personal income taxes were:
- 41% below the national average on a per capita basis, ranking 40th (out of the 42 states that have income taxes)
- 33% below the national average on an income basis
Source: Figures are pulled from the 95th Arizona Town Hall Background Report
Arizona's Budget Situation:
In recognition of seriousness of Arizona's budget situation, EBR staff have assembled current research on this important topic:
Public Services Positively Impact Economic Growth: A Review of Taxation and Growth Literature 5/6/10
What Will It Cost If Arizona Voters Reject the One-Cent Sales Tax Hike on May 18, 2010? 3/30/10
- Sales Tax Increase vs. Expenditure Cuts: An Economic Impact Study. 3/19/10
- Comparison of UA, REMI, and STAMP Simulations of Tax/Spending Increases. 3/19/10
- Response to: Beacon Hill Institute's Tax Analysis Modeling Program: A Response to Charney
A Needed Increase in Taxes Won't Hurt Arizona's Economy 2/9/10
Governor Brewer's Balanced State Budget Plan 1/25/10
By the Numbers: Arizona is Not a High Tax State 12/09
Crisis in State Government 12/1/09
The Effects of the Economic Cycle on Government Revenue 11/09
Arizona's Budget Stabilization Fund 11/09
Arizona's Empty Pot: Bad Decisions Years Ago Created the Budget Crisis We Face Now This article was first published in the Arizona Daily Star on March 2, 2003
Higher Taxes Won’t Hurt Arizona’s Economy This article was first published in Arizona's Economy on June 19, 2003
Fiscal Alternative Choices Team Report 4/2/09
Arizona’s fiscal condition was selected as the subject of the 95th Arizona Town Hall, held in early November, 2009. Read EBR's summary of important issues and conclusions from these Town Hall reports:
Readers are also strongly encouraged to read both of the 95th Arizona Town Hall reports in their entirety:
Riding the Fiscal Roller Coaster: Government Revenue in Arizona ” (background report)
Final Report of the 95th Arizona Town Hall, including recommendations
For additional information, please contact us.
