Since statehood in 1912, Arizona has been among the nation’s leaders in using the initiative process to either adopt a statute or amend the state constitution by placing a measure on the ballot. But such efforts are anything but easy. In fact, organizers have found it to be an expensive, time-consuming and exhausting process – and one that is unlikely to end successfully.

Arizona is emerging from one of the worst state budget crises in the nation. Entering 2003, its projected deficit, measured as a percentage of the general fund, was the fifth largest in the country.1 The state had slashed spending in 2002 in the face of a $900 million deficit, but still faced a $400 million shortfall for fiscal year 2003 and an estimated $1 billion deficit in fiscal 2004. Although improved revenues have reduced the anticipated gap, fundamental underlying problems remain concerning the ability of lawmakers to control the budget. Some observers consider this a revenue problem, others a spending problem. Our concern in this paper is whether state lawmakers have enough control over either revenue or spending.