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 September 2005, some concerned Walker residents contacted the Arizona Department of Health Services in regards to the quality of groundwater in the area. The residents petitioned ADHS to perform well water tests to determine the character of the water, and whether there is any potential health risk associated with consuming or using the water. In response to the concerned community members and in agreement with the Agency for Toxic Substances and Disease Registry, ADHS collected water samples from the site and completed a health consultation. This health consultation evaluates if the levels of lead and other metals in the private wells in Walker area pose any adverse health effects.

From May 2005 to June 2005, the Arizona Department of Environmental Quality conducted a study, Potable Well Sampling Task 4.0, to determine if the chromium and chromium VI plume due to the discharge of the Pacific Gas and Electronic Topock Compressor Station has migrated under the Colorado River and impacted water supplies in Arizona. The ADEQ investigated the total chromium and hexavalent chromium (chromium VI) concentrations in (1) public water supply wells, (2) combined industrial and domestic water supply wells, and (3) private domestic water supply wells at Topock and Golden Shores, Arizona. The communities of Topock and Golden Shores have expressed their concerns regarding the findings. Thus, the ADEQ requested the Arizona Department of Health Services to evaluate the potential health effects of exposure to well water contaminated with chromium.

The Arizona Department of Health Services completed this health consultation at the request of the Arizona Department of Environmental Quality. This consult evaluates whether soil vapors from volatile organic compounds in the subsurface near the Silver Creek Subdivision in Tucson, Arizona are present at levels that may cause adverse health effects.

The Rodeo-Chediski Fire Complex began as a small blaze in a remote region of east-central Arizona and within days erupted into the largest wildfire in Arizona history. Fortunately, no lives were lost. However, from June 18, 2002 to the time of its containment on July 7, 2002, the Rodeo-Chediski fire destroyed over 490 structures and 467,000 acres of ponderosa pine and pinyon-juniper woodland—an estimated 500 million to 1.3 billion board feet of timber. Jurisdictions involved included the Fort Apache Indian Reservation, the Apache-Sitgreaves National Forest, the Tonto National Forest, and private lands adjacent to Highway 260, from the Town of Forest Lakes east to the City of Show Low. Virtually all of the acres burned were in Navajo County, with some damage in the contiguous counties of Coconino, Apache, and Gila Counties. This health assessment describes the fire events and summarizes the resulting public health impacts from the fire.

The Stoneridge subdivision is a growing rural community with approximately 5,000 residents. The Prescott Valley Water Company (Prescott Valley, AZ) provides drinking water for residents in this area. A resident in the community indicated that there is a “paint thinner” type odor coming from the tap water. The Prescott Valley Water Company sampled the water due to request of the resident. On July 27, 2004, the resident called the Arizona Department of Health Services to express his/her concern regarding the analytical results of benzene in tap water samples collected from faucets inside the house. As a result, the Arizona Department of Health Services completed a health consultation to evaluate if benzene and other volatile organic compounds in the water supplied by the Prescott Valley Water Company pose any adverse health effects.