Public finance—taxes and other revenues collected by government and the expenditure of those revenues—always has been somewhat controversial because of wide philosophical differences among residents regarding the role that government should play in providing public services and in collecting taxes and fees from its residents. Recently, public finance in Arizona has become a prominent public issue due to the need to resolve the deficits that afflict state government and most county and municipal governments in Arizona.

Building upon the work of many others who have contributed to quality of life research in Arizona, this report provides a framework for addressing key issues proactively. The data in Arizona Directions are presented in a highly graphic format with must-read information on our competitiveness, individual action steps, opportunities for public-private partnerships, and public policy options – all rooted in a deep understanding that revenue-neutral options are especially important in our current fiscal situation.

Because of the urgency of workforce issues and the desire to begin a statewide discussion about workforce goals and choices, the Governor’s Council on Workforce Policy wanted to understand if, and how, program governance and organization are hampering progress and what changes might be beneficial. The council asked Morrison Institute for Public Policy (School of Public Affairs, College of Public Programs, Arizona State University) to: (1) Explore the strengths and weaknesses of the organization of Arizona’s workforce system, particularly at the state level (2) Review how other states have revamped their systems and connected workforce and economic development (3) Recommend options for improving Arizona’s system During the second half of 2003, Morrison Institute for Public Policy talked with more than 60 workforce professionals, business people, and workforce board members across Arizona either individually or in small groups, researched other states’ approaches through interviews with officials in other states and national organizations, analyzed responses to an online survey of selected local workforce investment board members, and reviewed a wide variety of materials on economic, workforce, and community development. This report is the first of many steps for Arizona to reflect and act on workforce development governance and its system, because as Thurgood Marshall said, "You can’t stand still. You must move, and if you don’t move, they will run over you."

The report includes original articles by Arizona policy practitioners and observers, reprints of pertinent articles by experts beyond Arizona, and a list for further reading. Articles of varying lengths and complexities are purposefully included so as to offer something to readers with different levels of interest in and knowledge of the subject matter.

With unemployment up, consumer spending down, and governments facing revenue shortfalls, Arizona must become more competitive than ever before. AZ Workforce: Latinos, Youth and the Future, produced as part of the ASU Office of Public Affairs’ César E. Chávez Leadership Lecture, examines the “unfinished business” of Arizona’s workforce. The report notes reasons why the workforce remains a critical issue: A skilled workforce is critical to expanding the state’s economy. Arizonans must have the skills employers need. Arizona ranks 17th on Milken Institute’s State Science and Technology Index overall, but 33rd among states on the Human Capital Index; Demographic shifts have put workforce issues front and center. Aging and minority growth in light of enduring disparities make Arizona’s current workforce a priority; and, Arizona’s employers will have to look harder at homegrown workers. Conservatively speaking, for everyK-12 student another Arizonan needs help with skills. For example, more than 430,000 Arizonans do not speak English well, while more than 600,000 Arizonans did not finish high school. AZ Workforce looks at big picture facts and figures about the state’s 3-million-strong workforce. By 2030, Arizona may have more than 10 million residents. A key part of the big picture is that the generation replacing older workers has less education than today’s mature workforce.

The purpose of this brief report is to provide information about Arizona’s system of workforce development, the Workforce Investment Act of 1998 (WIA), how the Act has been implemented in the greater Phoenix area and the program’s relevance to business. It is an update of a previous brief on the subject from February 2000. Prepared by Morrison Institute for Public Policy at the request of Greater Phoenix Leadership, the information contained in this report is intended for a business audience.

Fierce competition for workers is one of the top issues today in Arizona. Many people may be surprised to hear that anything related to the state’s economic situation is on a list of pressing issues. Arizona’s economy is and remains robust, the state is finding it difficult to supply workers in demand by industry. The result is a new but deep threat to our economic future. Businesses’ inability to find and retain the workers they need, where they will need them, may in fact be the spear that unexpectedly pierces the state’s prosperity.

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.