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.

This report follows The Coming of Age report produced in 2002 by some of the principals involved in this project, and published by St. Luke’s Health Initiatives. That research showed that Arizona had much to do to get ready for the baby boomer age wave. The results of Unlocking Resilience from new survey data, interviews, and secondary research indicates Arizona still has much to do to prepare for aging and must make concrete policy decisions about aging.

From May 2005 to June 2005, the Arizona Department of Environmental Quality conducted a study, Potable Well Sampling Task 4.0, to determine if the chromium and chromium VI plume due to the discharge of the Pacific Gas and Electronic Topock Compressor Station has migrated under the Colorado River and impacted water supplies in Arizona. The ADEQ investigated the total chromium and hexavalent chromium (chromium VI) concentrations in (1) public water supply wells, (2) combined industrial and domestic water supply wells, and (3) private domestic water supply wells at Topock and Golden Shores, Arizona. The communities of Topock and Golden Shores have expressed their concerns regarding the findings. Thus, the ADEQ requested the Arizona Department of Health Services to evaluate the potential health effects of exposure to well water contaminated with chromium.

In September 2005, some concerned Walker residents contacted the Arizona Department of Health Services in regards to the quality of groundwater in the area. The residents petitioned ADHS to perform well water tests to determine the character of the water, and whether there is any potential health risk associated with consuming or using the water. In response to the concerned community members and in agreement with the Agency for Toxic Substances and Disease Registry, ADHS collected water samples from the site and completed a health consultation. This health consultation evaluates if the levels of lead and other metals in the private wells in Walker area pose any adverse health effects.

This report evaluates the potential exposure pathways associated with vermiculite concentrate processing activities at the Ari-Zonolite facility. The site is located in the near downtown area of Glendale, approximately ½ mile from the city hall, downtown shops, and other buildings. The former Ari-Zonolite facility received vermiculite from the Libby, Montana, mine. From 1951 to 1964, the site was leased the site to the Ari-Zonolite Company. Following the removal of the vermiculite concentrate processing equipment in 1964, several businesses have occupied the site. None of these businesses were involved in vermiculite processing activities. The last occupant of the former vermiculite processing building was an automotive restoration business, which vacated the site in 2002.

The officials of Sunnyside High School District and a United States Representative have expressed great concerns regarding the potential adverse health effects due to beryllium exposure in the vicinity of Brush Ceramic Products. The Arizona Department of Health Services was asked to determine whether beryllium released from Brush Ceramic’s plant poses a health threat to school children and employees, and residents in the vicinity of the facility.

The W.R. Grace facility in Phoenix, Arizona, received vermiculite concentrate from the Libby, Montana, vermiculite mine. W.R. Grace Company has owned and operated the Arizona site since 1964. In 1964 W.R. Grace purchased the company that had previously occupied the site and, following the relocation of its vermiculite exfoliation furnace from Glendale, Arizona, began processing vermiculite concentrate and marketing it under the Zonolite® brand. The objective of this health consultation is to evaluate exposure pathways and potential health effects in those persons who, between 1964 and 2002, may have been exposed to Libby asbestos as a result of vermiculite concentrate processing activities and waste materials from the W.R. Grace exfoliation facility in Phoenix.