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.

The purpose of the stabilization fund is to reduce the fluctuations in general fund revenue caused by the economic cycle. These fluctuations result in large budget surpluses in some years and large deficits in other years. Without considering the structural deficit, the budget stabilization fund almost certainly will not have the funding necessary to offset the cyclical reduction in revenue that will occur during the next recession.

The primary purpose of this paper is to examine the educational achievement and attainment of Latinos living in Arizona. In short, the educational performance and attainment of Hispanics lags considerably behind that of the state’s non-Hispanic white residents. Moreover, the growth in the number of Hispanics, especially children, has far outpaced that of the non-Hispanic white population, raising the importance of this educational gap. This issue was highlighted in the 2001 Morrison Institute report Five Shoes Waiting to Drop on Arizona’s Future.

The specific goal of this report is to assess the future of Hispanic educational performance and attainment in Arizona, but this outlook is dependent to a very sizable extent on the characteristics of the Hispanics living in Arizona. In particular, the educational achievement and attainment of Hispanic immigrants has been substantially less than that of Hispanics born in the United States. Forecasting Hispanic immigration specifically and the characteristics of the Hispanic population generally is extremely difficult for two reasons: severe data limitations, and recent legal and policy changes related to immigration.

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.

The Arizona Department of Health Services completed this health consultation at the request of the Arizona Department of Environmental Quality. This consult evaluates whether soil vapors from volatile organic compounds in the subsurface near the Silver Creek Subdivision in Tucson, Arizona are present at levels that may cause adverse health effects.

The Stoneridge subdivision is a growing rural community with approximately 5,000 residents. The Prescott Valley Water Company (Prescott Valley, AZ) provides drinking water for residents in this area. A resident in the community indicated that there is a “paint thinner” type odor coming from the tap water. The Prescott Valley Water Company sampled the water due to request of the resident. On July 27, 2004, the resident called the Arizona Department of Health Services to express his/her concern regarding the analytical results of benzene in tap water samples collected from faucets inside the house. As a result, the Arizona Department of Health Services completed a health consultation to evaluate if benzene and other volatile organic compounds in the water supplied by the Prescott Valley Water Company pose any adverse health effects.