Morrison Institute for Public Policy Publications Archives

For a century, Arizona has pursued prosperity through outward expansion of its urban areas. In metropolitan Phoenix and elsewhere, “growth” has meant developing raw land with new houses, new shopping centers, and new industrial parks--and the metropolitan “frontier” has moved farther outward from downtown every year. This has not been uniformly true, of course. Some cities--Phoenix, Tempe, and Scottsdale especially--have been grappling with the question of revitalizing older urban neighborhoods for many years. But the “outside game” has been the predominant development pattern in the Valley of Sun for many decades. And the Phoenix region has played this game better than one might think, creating many high-quality master-planned communities, protecting lots of open space, using impact fees to build good infrastructure. In other words, Phoenix has used the “outside game” to create a region so attractive it continues to be one of the fastest-growing metropolises in America. But in order for cities to play a good inside game, Arizona must get serious about urban revitalization. And that will require big changes.

Though the Great Recession may be officially over, all is not well in Arizona. Three years after the collapse of a massive real estate “bubble,” the deepest economic downturn in memory exposed and exacerbated one of the nation’s most profound state fiscal crises, with disturbing implications for Arizona citizens and the state’s long-term economic health.

This brief takes a careful look at the Grand Canyon State’s fiscal situation, examining both Arizona’s serious cyclical budget shortfall—the one resulting from a temporary collapse of revenue due to the recession—as well as the chronic, longer-term, and massive structural imbalances that have developed largely due to policy choices made in better times. This primer employs a unique methodology to estimate the size of the state’s structural deficit and then explores the mix of forces, including the large permanent tax reductions, that created them. It also highlights some of the dramatic impacts these fiscal challenges are having on service-delivery as well as on local governments. The brief suggests some of the steps state policymakers must take to close their budget gaps over the short and longer term. First, it urges better policymaking, and prods leaders to broaden, balance, and diversify the state’s revenue base while looking to assure a long-haul balance of taxing and spending. And second, it recommends that Arizona improve the information-sharing and budgeting processes through which fiscal problems are understood—so they may ultimately be averted.

“What about the water?” was one of the questions Morrison Institute for Public Policy asked in its 2008 study, "Megapolitan: Arizona’s Sun Corridor". That report looked at the potential growth of the Sun Corridor as Tucson and Phoenix merge into one continuous area for economic and demographic purposes.

With its brief review of the water situation in urban Arizona, "Megapolitan" left a number of questions unanswered. This report will consider questions like these in more detail in order to examine the Sun Corridor’s water future. This topic has received less sophisticated public discussion than might be expected in a desert state. Arizona’s professional water managers feel they are relatively well prepared for the future and would like to be left alone to do their job. Elected officials and economic-development professionals have sometimes avoided discussing water for fear of reinforcing a negative view of Arizona. This report seeks to contribute to this understanding, and to a more open and informed conversation about the relationship of water and future growth.

This follow-up to the 2001 landmark report, "Five Shoes Waiting to Drop on Arizona's Future," focuses on the projected future of the state if Arizona fails to address its Latino educational attainment gap. The publication is more of an economic impact statement than an education report, with indicators pointing out consequences and contributions, depending on action or inaction in closing the gap of Arizona's future workforce.

Fast Growth in Metropolitan Phoenix is the first product of a comprehensive effort to describe and analyze the region’s growth. The Brookings Institution Center on Urban and Metropolitan Policy in Washington, D.C. presented the opportunity for this project to Morrison Institute for Public Policy. The story of growth in metropolitan Phoenix is a complicated, often surprising, tale. There is much to be proud of in the region. Yet there is also much to worry about, and much that needs to be done. Hits and Misses will have been successful if it becomes a catalyst for getting started.

It’s been more than five decades now since Scottsdale incorporated as a city.During that time, the city emerged as one of the most well-known communities in the Western United States—or, as the local logan says,“The West’s Most Western Town.” From the 1950s onward, Scottsdale combined upscale resorts, an outstanding arts and culture scene, and a spectacular natural setting to create a cachet that few other cities anywhere in the nation could match. So powerful was the Scottsdale name that the city focused on competing nationally with other brand name towns, rather than operating within the context of metropolitan Phoenix.