This is a summary of several reports related to government finance in Arizona that have been produced by the Office of the University Economist since December 2008. Some new information has been added in an attempt to provide a complete picture. The format of this report is a brief summary by issue, sometimes accompanied by a table or chart. References are provided to the report and the page number where additional detail can be found.

Volume I: Facts
Analyses of Arizona state government finance, using data of the Arizona Joint Legislative Budget Committee, and of the combined finances of all state and local governments within Arizona, using data of the U.S. Census Bureau. A historical perspective is provided for both datasets. For combined state and local government finance, comparisons are made to other states and to the national average. In addition, other measures of the tax burden by state are examined.

Volume II: Concepts and Issues
Addresses the conceptual and empirical relationships between taxes, government revenue, and economic growth. Also discusses current issues specific to Arizona state government finance. This is a revised version of the report "Tax Reductions, the Economy, and the Deficit in the Arizona State Government General Fund," incorporating new and updated material.

Volume III: Options for Managing the Arizona State General Fund
Presents options and offers recommendations for managing the Arizona state government general fund. The near-term budget deficit is addressed as well as ways to prevent budget deficits from recurring every time economic growth slows.

The purpose of the stabilization fund is to reduce the fluctuations in general fund revenue caused by the economic cycle. These fluctuations result in large budget surpluses in some years and large deficits in other years. Without considering the structural deficit, the budget stabilization fund almost certainly will not have the funding necessary to offset the cyclical reduction in revenue that will occur during the next recession.

In August 2001, a resident of New River contacted the Arizona Department of Health Services, Office of Environmental Health to request information on the health risks of arsenic in drinking water. The resident collected two well water samples and submitted them to a private laboratory for arsenic analysis. The analyses detected arsenic at 560 and 600 μg/L. To confirm these very high arsenic results, ADHS staff sampled the well for arsenic and submitted the samples for analysis by the ADHS State Laboratory. Arsenic was detected at 340 μg/L. After that, a large number of people requested health advice on arsenic in their well water. This public health consultation primarily evaluates arsenic levels found in private wells and documents health advice provided to well owners. When other metals were found at levels of concern, health advice was provided to well owners regarding exposure to those metals too.

The purpose of this health consultation is to determine whether contaminants in groundwater from the Motorola 56th Street facility represent a threat to public health. The facility was first occupied in the spring of 1950 as the Western Military Electronics Center. From 1950 to 1958, it was primarily used for bench type electronics, electronic assembly, and semiconductor production. The chemicals used in these processes included solvent degreasers such as trichloroethylene, acetone, and freon, and metals such as cadmium, chromium, and arsenic. From 1959 through 1961, the facility was used primarily for document storage. Beginning in 1962, manufacturing of electronics resumed to include assembly of circuit boards, plating, and degreasing. Chemicals used between 1962 and 1974 included trichloroethylene, tetrachloroethylene, and a number of acids and metals including arsenic. In 1975, the facility began manufacturing liquid crystal products. These activities continued until 1982, when it was converted to office use. The investigations that have been conducted to date have shown that there are residual levels of arsenic and fluoride in down-gradient private wells west of the facility. Solvent contaminants that were found in the 1980s are no longer present at detectable levels in down-gradient private wells.

In September 1999, the U.S. Environmental Protection Agency contacted the Arizona Department of Health Services, Office of Environmental Health, concerning potential contamination of private drinking water wells along Lynx Creek in the Walker, Arizona, mining district. Historical mining activities in the area might have resulted in contamination of groundwater by acid mine runoff as well as metals from extraction processes. EPA and ADHS determined the historical mining activity had caused environmental damage and the potential for adverse human health impacts. ADHS initiated a private well sampling program to determine if the mining activity has had an adverse impact on the quality of water from these wells. Several area residents have expressed concerns about their water quality. The objective of this public health consultation is to evaluate the potential for health effects from exposure to contaminants in private drinking water wells in the Walker, Arizona area.

The W.R. Grace facility in Phoenix, Arizona, received vermiculite concentrate from the Libby, Montana, vermiculite mine. W.R. Grace Company has owned and operated the Arizona site since 1964. In 1964 W.R. Grace purchased the company that had previously occupied the site and, following the relocation of its vermiculite exfoliation furnace from Glendale, Arizona, began processing vermiculite concentrate and marketing it under the Zonolite® brand. The objective of this health consultation is to evaluate exposure pathways and potential health effects in those persons who, between 1964 and 2002, may have been exposed to Libby asbestos as a result of vermiculite concentrate processing activities and waste materials from the W.R. Grace exfoliation facility in Phoenix.

In March 2004, a resident of Cornville contacted the Arizona Department of Environmental Quality to request information on arsenic in drinking water. The resident collected six well water samples from their own well and neighbors’ wells and submitted them to a private laboratory for arsenic analysis. The analyses detected arsenic ranging from 15 to 952 μg/L. ADEQ and the community members asked the Arizona Department of Health Services to provide health information about using the water. Initial conversations with the well owner and other community members revealed that many people had concerns about potential health effects from arsenic exposure.