In "Roadmap to Arizona's Economic Recovery," a general fund revenue forecast is presented which includes proposed changes to the revenue system. If the proposed changes are backed out of these figures, the baseline forecast can be obtained. This addendum provides detail on the Roadmap's revenue projection. the three key points are: 1) Arizona's economy is highly cyclical, growing much faster than the nation during economic expansions; 2) Revenues everywhere, but especially in Arizona, given its revenue structure, are much more cyclical than the overall economy; 3) the revenue forecast in the Roadmap is actually conservative. Revenues relative to the size of the economy remain below the historical norm, even in fiscal year 2015.

Arizonans face the twin problems of recovering from a deep and long economic recession and dealing with significant fiscal imbalances in state and local governments. This report details a roadmap to address both the short-term and long-term economic and fiscal issues. The roadmap addresses economic needs by proposing actions in the near term to stimulate the economy and to provide jobs. In the longer term, the economic focus of the plan shifts from job creation to job quality. The roadmap also addresses the state's fiscal difficulties in both the short and long term.

The initial $1.4 billion construction investment results in an immediate addition of $828 million to GSP and $700 million in labor income after controlling for resource and material acquisition from out-of-state sources. The in-state activity induces additional GSP generation of $1.1 billion and $711 million in labor income as the direct effects ripple through the Arizona economy.

The condition of Arizona’s infrastructure has a direct impact on economic productivity and quality of life. As economic competition expands domestically and globally, and as the knowledge economy evolves, the importance of a strong infrastructure increases. Education, in particular, is of growing importance. Arizona’s infrastructure challenges will require commitment and creativity to meet the needs and potential of 10 million people and to ensure a positive future for the state.