Arizona’s vulnerable populations are struggling on a daily basis but usually do so in silence, undetected by traditional radar and rankings, often unaware themselves of their high risk for being pushed or pulled into full crisis. Ineligible for financial assistance under strict eligibility guidelines, they don’t qualify as poor because vulnerable populations are not yet in full crisis. To be clear, this report is not about the “poor,” at least not in the limited sense of the word. It is about our underemployed wage earners, our single-parent households, our deployed or returning military members, our under-educated and unskilled workforce, our debt-ridden neighbors, our uninsured friends, our family members with no savings for an emergency, much less retirement.

As Arizona pulls itself out of the deepest recession that it has faced since the Great Depression, this 105th Arizona Town Hall is convened to examine Arizona’s economy. In Arizona Town Hall’s fifty-two year history, this is the eleventh time citizens from across the state have come together to reflect on the current state of Arizona’s economy and how best to shape its future.

Arizona’s total value of international exports as a share of gross product was 33rd highest among the 50 states and District of Columbia in 2012. Arizona ranked 36th for manufactured goods. In 1997, Arizona had ranked eighth overall and ninth for manufactured goods. The state’s large relative decline in export share can be traced to its sizable relative decrease in its manufacturing sector. In particular, the electronics manufacturing subsector’s share of total GDP has dropped considerably.

Assesses the health of both ends of the P-20 spectrum: early childcare and education and the high school/postsecondary-to-industry nexus. Both are viewed through the lens of Arizona's current competitive position and its trajectory through the broader economic landscape. How well does Arizona regulate, promote and ensure equitable access to quality early childcare and to programs that help children enter Kindergarten ready to learn? Does Arizona's production of graduates and skilled workers align with current and projected industry needs?

This paper, drawing upon historical data and information from surveys and interviews with more than 50 legislators, lobbyists, and knowledgeable observers, finds that the term limits reform adopted by the Arizona voters in 1992 has caused legislators to make some painful adjustments. Because of term limits many legislators have decided to run for another office prior to the expiration of their terms. This has often meant trying to move from the one legislative house to another, most commonly from the House to the Senate. On the plus side, the report finds that term limits have encouraged greater competition for legislative and other seats and have given voters a greater choice among candidates. To some extent, limits have been a force toward a more inclusive governing process. At the same time, they have generally reduced the power of legislative leaders and generally increased the influence of lobbyists and staff, though not all lobbyists and staff have gained equally. Recent newcomers to the Arizona Legislature are probably not any less knowledgeable than previous classes of newcomers, but under term limits there are more newcomers and members have less time to learn their jobs. For many, the limit to four two-year terms (eight years total) provides too little time to learn how to do the job and do it well.