Morrison Institute for Public Policy Publications Archives
Morrison Institute for Public Policy is a leader in examining critical Arizona and regional issues, and is a catalyst for public dialogue. An Arizona State University resource, Morrison Institute is an independent center that uses nonpartisan research and communication outreach to help improve the state's quality of life.
Morrison Institute is part of the College of Public Programs in the School of Public Affairs at Arizona State University. Additional publications are available at the Morrison Institute for Public Policy. Date range of repository publications is 1992 – 2015.
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- All Subjects: Finance, Public
- All Subjects: Income
Numerous tax cuts over the last 15 years have substantially reduced revenue to the Arizona state general fund and greatly narrowed the tax base.
Examines the size and growth of Arizona’s economy and the productivity and prosperity of its residents. Learn about Arizona’s gross product, occupational mix, per capita personal income, and more.
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.
Per capita earnings in Arizona has been lower than the national average for decades. The 2011 differential of 19 percent is the largest on record; the typical differential has been between 10 and 15 percent. Thus, for residents who have spent some or all of their working life in the state, the state’s historically low per capita earnings help to explain the state’s below-average per capita property income.
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.