Co-chairman Bill Post and other members of the Citizens’ Finance Review Commission have identified Arizona’s management of its federal funds as an issue for consideration. To assist the Commission with its deliberations, the co-chairman asked Arizona State University to develop a very brief “think piece” on this matter. As requested, this document intentionally provides only the most basic information on this complex subject. Its primary purpose is to frame the issue for discussion by the Commission and to list alternative ways the state could better manage its substantial grant activity with the federal government each year.

Arizona is one of the nation’s most urban states, and now it includes one of 20 “megapolitan” areas in the U.S. People have predicted for 50 years that Phoenix and Tucson would grow together into a giant desert conglomerate. That possibility has been seen as exciting, intriguing, and distressing. While a solid city along Interstate 10 is unlikely given the diverse land ownership in central and southern Arizona, the two metro economies are already merging.

Megapolitan: Arizona’s Sun Corridor, one of the first reports on a single megapolitan area, recognizes a more sophisticated technique for analyzing urban growth—that shared economic and quality of life interests are more important than physically growing together.

Scholars at Virginia Tech defined the megapolitans based on economic and growth patterns.
The Sun Corridor, which cuts across six counties from the border with Mexico to the center of Yavapai County, is the home of eight out of 10 Arizonans. In the next several decades, two out of three Americans will live in a megapolitan accounting for 60% of the population on only 10% of U.S. land.

Megapolitan offers a bold new picture of Arizona’s geography and its future opportunities and “megaton” challenges. This report presents a scenario for 2035 based on current trends. It analyzes the Sun Corridor and provides insights into the region’s global potential, water, governance, sustainability, and “trillion dollar questions.” It discusses the “tragedy of the sunshine” and asks the indispensable question: In 2035, do you want to live in the Sun Corridor?

It is an oversimplification to describe the new economy as a technology revolution, something that is mostly driven by and affects business. Clearly, new technologies and business practices are central to the concept of a new economy. However, that’s the easy part to understand. The bigger challenge is to grasp—and then develop strategies to take advantage of—how public policies in the new economy can most positively affect people and places. This report is meant to help Arizonans do just that.

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.

This report follows The Coming of Age report produced in 2002 by some of the principals involved in this project, and published by St. Luke’s Health Initiatives. That research showed that Arizona had much to do to get ready for the baby boomer age wave. The results of Unlocking Resilience from new survey data, interviews, and secondary research indicates Arizona still has much to do to prepare for aging and must make concrete policy decisions about aging.

Maricopa County has experienced remarkable population growth for decades, and will continue to do so. But while expanding metro areas tend to pay close attention to physical infrastructure—diligently budgeting for roads, sewers, schools and the like—there is often a relative lack of attention to meeting the future demands for human services. Relying on the expertise from throughout the College of Public Programs, this report analyzes 12 critically important topics, including children and families, poverty, substance abuse, and Latinos.

The report includes original articles by Arizona policy practitioners and observers, reprints of pertinent articles by experts beyond Arizona, and a list for further reading. Articles of varying lengths and complexities are purposefully included so as to offer something to readers with different levels of interest in and knowledge of the subject matter.