The general goal of this report was to collect data on citizens’ needs for information about neighborhood crime patterns and trends, terrorism, and public emergency planning and response in the western region of the Phoenix metropolitan area. There was particular interest in obtaining citizen feedback on data-sharing questions related to terrorism prevention.

This follow-up to the 2001 landmark report, "Five Shoes Waiting to Drop on Arizona's Future," focuses on the projected future of the state if Arizona fails to address its Latino educational attainment gap. The publication is more of an economic impact statement than an education report, with indicators pointing out consequences and contributions, depending on action or inaction in closing the gap of Arizona's future workforce.

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.

In step with other organizations, the Greater Phoenix Economic Council (the Valley’s regional public-private economic development organization) published a comprehensive 10-year economic development strategy that codified its change in direction to quality economic development in aerospace, bio-industry, advanced business and financial services, technology, and software. In early 2004, the Governor’s Council on Innovation and Technology issued Building Arizona’s Knowledge-Based Economy with scores of recommendations on venture capital, higher education, collaboration, workforce development, and other topics. Separately, each of these items would have been notable. Taken together, they demonstrate a strong commitment to the growth of a knowledge economy and to the multifaceted approaches needed to develop it.