In the 2009 report entitled "Vision 2020," the Arizona Board of Regents outlined the objective of raising Arizona to the national average of college graduates in the work force and moving Arizona to the status of a large scale center for academic research. This realignment plan outlines how both of these significant goals will be achieved in an era of more modest public investment.

The Arizona Board of Regents presents in this 2020 Vision a framework for the Arizona University System to improve the economic strength of our state and quality of life for Arizonans over the next 12 years. This plan lays out a series of touchstones for this ambition organized around four key themes: Educational Excellence, Research Excellence, Community Engagement and Workforce Impact, and Productivity. This plan builds on a foundation manifested in previous strategic planning efforts of the universities and the Board, including the establishment of a medical college in Phoenix, development of new health professions programs not offered by public institutions in the state, growth in the research enterprise, and increasingly intensive efforts to provide baccalaureate access to all regions of the state.

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.

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.

The long-term trend toward lower-quality jobs in the United States continued between 2001 and 2004. Industrial job quality fell 1.6 percent nationally between 2001 and 2004. The decrease in occupational job quality was not quite as great at 0.9 percent. Thus, overall U.S. job quality dropped 2.5 percent during the three years, causing the U.S. average wage to be 2.5 percent less than it otherwise would have been. Arizona’s job quality fell between 2001 and 2004 at a pace worse than the national average. Relative to the national average, the industrial and occupational job mixes each slipped a bit more than 0.3 percent during the three years, for an overall decline of 0.7 percent. In Arizona, job quality in 2004 was 2.0 percent below the national average, but Arizona ranked 23rd among all states.