Morrison Institute for Public Policy Publications Archives

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.

In the Valley, developing viable long-term transit from where we are currently will be very difficult if key
components continue to remain unaligned. Thus, before getting to the primary purpose of this report, it is important to first establish the players and basic considerations relevant to the effectiveness of a transit system.

Few would dispute that the Phoenix metropolitan area is severely lacking in terms of mass-transit compared to other similarly sized and configured cities. The Valley’s fleet of roughly 400 buses is about one-third of the service found in San Diego, Atlanta, and Seattle. In addition, most of Phoenix’ peer regions either already have, or are planning rail systems. Of the 30 largest metropolitan areas in the U.S., only six -- Phoenix included -- do not currently have or are not planning to add rail to their transit system.

Believing that voters might support transit if they felt like an integral part of the transit proposal decision-making process, the Phoenix Chamber of Commerce's Valleywide Transit Task Force set out in early 1995 to initiate a bottom-up process which would enable people to say, "here's what we want." The Task Force agreed that the first step in the process was to initiate a new dialogue. the Morrison Institute for Public Policy was asked to write a briefing paper, which would re-invigorate the transit debate. The resulting report, "Transit in the Valley: Where Do We Go From Here?" painted a bleak picture of the Valley's existing transit system and challenged many long-held conventional wisdoms. The dialogue had begun. The report was then presented to the citizens of 17 Valley cities and towns for their consideration in 16 public meetings sponsored by cities and their local Chambers of Commerce. In community forums conducted between October 1996 and February 1997, more than 500 Valley residents discussed the Valley's transit future. This document summarizes the questionnaire responses by 501 people who attended the forums.

A series of 51 individual “stakeholder” interviews and two focus groups conducted with members of the Pima County business community in fall, 2001, documented significantly divided opinion about the likely economic impacts of the county’s Sonoran Desert Conservation Plan (SDCP). The results of the stakeholder inquiries were striking. Only one major finding reflected consensus, while several others revealed sharp differences of opinion in the business community about the potential economic impacts of the SDCP and associated initiatives.

In a rapidly growing desert metropolis such as Phoenix, the question of which water conservation measures and factors actually save water and which do not is an obviously important one. The water-related decisions made today and in the years to come will have lasting impact on the future of this area, including upon its sustainability. Estimates from the City of Phoenix suggest that, in non-SRP-areas, water demand will exceed water supply by the year 2025--absent droughts or intervention.

This report documents and analyzes the results of a multivariate regression analysis designed to estimate the effects on residential, single-family water consumption of a host of factors, particularly water conservation policies.

What do we mean by "shoes waiting to drop?" We mean the trends that are already well under way — but that we can't quite see yet. These trends could overwhelm us if we don't spot them now and aggressively use our knowledge to plot our course for the future. The five "shoes" highlighted in the report are: A Talent Shake Up; Latino Education Dilemma; A Fuzzy Economic Identity; Lost Stewardship; and The Revenue Sieve.

This report brings together the results of a survey of 1100 homeless people living in and around downtown Phoenix in 1996 with the results of a similar survey conducted in 1983. In addition to providing a snapshot of the homeless population in Phoenix, the data and comparative information presented in this report also reveal the complex and intractable nature of the homeless problem in general.

Does H20 = Growth in Arizona? That is how many people view the water-growth equation -- any introduction of "new" water supplies inevitably stimulates population growth and economic activity. However, the report by Morrison Institute for Public Policy, Growth on the Coconino Plateau, offers some surprisingly contrary conclusions. Completed on behalf of Arizona Department of Water Resources and the Coconino Plateau Watershed, this document is relevant for all regions of rural Arizona. Among the findings: - Some rural areas in the West have constructed major water supply projects only to see most of their towns languish, not prosper. - New water infrastructure in growing rural counties hasn't affected the size so much as the pattern of new development. - Leapfrog sprawl into unincorporated areas has been discouraged in regions where cities and towns hold control over the distribution of new water supplies. Bottom line, water won't automatically produce population growth. But planning for water - how it is supplied and governed - does offer a useful tool for managing future growth. Moreover, it can provide some measure of protection for the environment. We believe this report has important application well beyond northern Arizona. By providing original research and analysis on the water-growth equation, this report helps resolve one of Arizona's most critical issues. As a result, public policy discussions in the future will be able to focus on the state's most important growth drivers and how they can be managed.

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.