The state government general fund shortfall in the current fiscal year is projected to be between about $550 million and $1 billion. This shortfall will need to be eliminated through spending cuts and/or revenue enhancements. The Legislature has demonstrated a preference for spending cuts. However demand does not decline during a recession for most public-sector services, including university services. Any reduction in funding for universities will have a negative and direct effect. A reduction in state government spending for universities of around $200 million would cause direct and indirect job losses of approximately 4,000. A substantial decrease in state government funding for universities will have negative consequences beyond these short-term effects.

The demand for new workers in STEM (science, technology, engineering and mathematics) occupations in Arizona is a function of net job growth in these occupations in the state and the number of workers leaving STEM jobs in Arizona. Employees may leave their position for various reasons, including to retire, to move out of the state, or to change their profession. The supply of new workers in STEM occupations in Arizona is a function of the number of new college graduates in related majors, the number of workers moving to the state who are qualified to fill STEM jobs, and the number of Arizonans who are qualified to fill STEM jobs moving from a non-STEM to STEM occupation.