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.

The primary purpose of this paper is to examine the educational achievement and attainment of Latinos living in Arizona. In short, the educational performance and attainment of Hispanics lags considerably behind that of the state’s non-Hispanic white residents. Moreover, the growth in the number of Hispanics, especially children, has far outpaced that of the non-Hispanic white population, raising the importance of this educational gap. This issue was highlighted in the 2001 Morrison Institute report Five Shoes Waiting to Drop on Arizona’s Future.

The specific goal of this report is to assess the future of Hispanic educational performance and attainment in Arizona, but this outlook is dependent to a very sizable extent on the characteristics of the Hispanics living in Arizona. In particular, the educational achievement and attainment of Hispanic immigrants has been substantially less than that of Hispanics born in the United States. Forecasting Hispanic immigration specifically and the characteristics of the Hispanic population generally is extremely difficult for two reasons: severe data limitations, and recent legal and policy changes related to immigration.

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.