This is a summary of several reports related to government finance in Arizona that have been produced by the Office of the University Economist since December 2008. Some new information has been added in an attempt to provide a complete picture. The format of this report is a brief summary by issue, sometimes accompanied by a table or chart. References are provided to the report and the page number where additional detail can be found.

Volume I: Facts
Analyses of Arizona state government finance, using data of the Arizona Joint Legislative Budget Committee, and of the combined finances of all state and local governments within Arizona, using data of the U.S. Census Bureau. A historical perspective is provided for both datasets. For combined state and local government finance, comparisons are made to other states and to the national average. In addition, other measures of the tax burden by state are examined.

Volume II: Concepts and Issues
Addresses the conceptual and empirical relationships between taxes, government revenue, and economic growth. Also discusses current issues specific to Arizona state government finance. This is a revised version of the report "Tax Reductions, the Economy, and the Deficit in the Arizona State Government General Fund," incorporating new and updated material.

Volume III: Options for Managing the Arizona State General Fund
Presents options and offers recommendations for managing the Arizona state government general fund. The near-term budget deficit is addressed as well as ways to prevent budget deficits from recurring every time economic growth slows.

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.

The purpose of this brief report is to present a balanced look at current issues surrounding the education reform know as "academic standards." The information contained in this report is intended for a business audience. It does not advocate any particular stance or make policy recommendations, but rather presents a platform from which the business community might choose a position.

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.

This instrument is intended to help schools at all levels of performance assess the strengths and limitations of their instructional practices and organizational conditions. It serves three primary functions:
1. as a blueprint to communicate the high expectations of the Superintendent of Public Instruction for all Arizona schools;
2. as an internal self-assessment tool to be used by the educational community at the local level; and
3. as an external assessment tool to be used by ADE Solutions Teams.

This document is intended to help schools identify the strengths and limitations of their instructional practices and organizational conditions. All Arizona schools will use this document to assess their overall performance. The document serves three primary functions: 1) as a blueprint to communicate the high expectations of the Arizona Superintendent of Public Instruction for all Arizona schools; 2) as a self-assessment tool to be used by the educational community at the local level; and 3) as an external assessment tool to be used by ADE School Improvement Teams. This document may also be used in other appropriate external assessment activities. The document is not to be used for staff evaluation. Instead, the focus is placed on assessing the effectiveness of the school for the purpose of sustained improvement.