Morrison Institute for Public Policy Publications Archives

Public finance—taxes and other revenues collected by government and the expenditure of those revenues—always has been somewhat controversial because of wide philosophical differences among residents regarding the role that government should play in providing public services and in collecting taxes and fees from its residents. Recently, public finance in Arizona has become a prominent public issue due to the need to resolve the deficits that afflict state government and most county and municipal governments in Arizona.

Since statehood in 1912, Arizona has been among the nation’s leaders in using the initiative process to either adopt a statute or amend the state constitution by placing a measure on the ballot. But such efforts are anything but easy. In fact, organizers have found it to be an expensive, time-consuming and exhausting process – and one that is unlikely to end successfully.

The author writes about Arizona's longstanding belief in direct democracy via referendum, initiative and recall. The Legislature continues to grapple with election reform and strike a balance of how much binding authority should remain in the hands of voters in terms of initiative, referendum and recall, but Arizona’s penchant for people power has been demonstrated since before statehood. In the midst of his campaign for Congress in 1911, for example, Arizona’s Carl Hayden noted that everywhere he went he found voters eager to take control. "The people want their own kind of government,” Hayden told reporters. “They want to be the dictators.”

Report takes a look at the pros and cons of three propositions that will be on the November 2014 ballot.
* Prop 122: a constitutional amendment to allow the Legislature to ignore any federal law or action they think is unconstitutional.
* Prop 304: would increase legislator's salaries to $35,000/year.
* Prop 303: would permit a manufacturer to give or sell investigational drugs, biological products, and medical devices to terminally ill patients even though the FDA has not cleared them for general use.

Arizona is emerging from one of the worst state budget crises in the nation. Entering 2003, its projected deficit, measured as a percentage of the general fund, was the fifth largest in the country.1 The state had slashed spending in 2002 in the face of a $900 million deficit, but still faced a $400 million shortfall for fiscal year 2003 and an estimated $1 billion deficit in fiscal 2004. Although improved revenues have reduced the anticipated gap, fundamental underlying problems remain concerning the ability of lawmakers to control the budget. Some observers consider this a revenue problem, others a spending problem. Our concern in this paper is whether state lawmakers have enough control over either revenue or spending.