Report takes a look at the pros and cons of three propositions that will be on the November 2014 ballot.
* Prop 122: a constitutional amendment to allow the Legislature to ignore any federal law or action they think is unconstitutional.
* Prop 304: would increase legislator's salaries to $35,000/year.
* Prop 303: would permit a manufacturer to give or sell investigational drugs, biological products, and medical devices to terminally ill patients even though the FDA has not cleared them for general use.

Arizona’s total value of international exports as a share of gross product was 33rd highest among the 50 states and District of Columbia in 2012. Arizona ranked 36th for manufactured goods. In 1997, Arizona had ranked eighth overall and ninth for manufactured goods. The state’s large relative decline in export share can be traced to its sizable relative decrease in its manufacturing sector. In particular, the electronics manufacturing subsector’s share of total GDP has dropped considerably.

For decades, Arizona was one of the national leaders in aggregate economic growth, as measured by the percent change in measures such as gross product and employment. However, its growth rate always has been highly cyclical. During expansionary periods, Arizona always has been among the top states on the rate of growth. During recessions, the Arizona economy generally slumped at a rate similar to the national average, but would experience a rapid recovery. This pattern continued through the economic expansion of the mid-2000s.

Dark money. The name itself carries ominous undertones, undertones that critics of this relatively new campaign-finance phenomenon claim reflect a genuine threat to democracy. Its defenders, on the other hand, argue that the dark money approach to funding political campaigns is merely an extension of Americans’ basic right to free speech. In other words, the issues at hand could hardly be more profound.

The author writes about Arizona's longstanding belief in direct democracy via referendum, initiative and recall. The Legislature continues to grapple with election reform and strike a balance of how much binding authority should remain in the hands of voters in terms of initiative, referendum and recall, but Arizona’s penchant for people power has been demonstrated since before statehood. In the midst of his campaign for Congress in 1911, for example, Arizona’s Carl Hayden noted that everywhere he went he found voters eager to take control. "The people want their own kind of government,” Hayden told reporters. “They want to be the dictators.”

Per capita earnings in Arizona has been lower than the national average for decades. The 2011 differential of 19 percent is the largest on record; the typical differential has been between 10 and 15 percent. Thus, for residents who have spent some or all of their working life in the state, the state’s historically low per capita earnings help to explain the state’s below-average per capita property income.

The transaction privilege tax (TPT), often referred to as the sales tax, is a major source of revenue for state and local governments in Arizona. The TPT is applied to numerous categories, such as contracting and utilities. The analysis in this paper is limited to the retail category, which accounts for half of the TPT collected by state government, and the restaurant and bar category, which contributes one-tenth of the TPT revenue.

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.

This follow-up to the 2001 landmark report, "Five Shoes Waiting to Drop on Arizona's Future," focuses on the projected future of the state if Arizona fails to address its Latino educational attainment gap. The publication is more of an economic impact statement than an education report, with indicators pointing out consequences and contributions, depending on action or inaction in closing the gap of Arizona's future workforce.