The information presented here highlights the findings of a drought history study in support of the Governor's Drought Task Force activities, such as determining triggers for drought mitigation and response actions, based on observed hydroclimatic and other information. The material is intended to provide the relevant climatology background for non-specialists, and it is presented in a top ten or frequently asked question format. The questions and answers cover the major climate-related aspects of drought including long-term averages, seasonality, interannual and long-term spatial and temporal drought variations, extremes, and causes of climatic variability. The answers to each question include bulleted Quick Answers followed by a concise explanation of more detailed information. Example figures are presented within the text.

This paper summarizes the current state of knowledge concerning the climate of the Southwest. Low annual precipitation, clear skies, and year-round warm weather over much of the Southwest are due in large part to a quasi-permanent subtropical high-pressure ridge over the region. However, the Southwest is located between the mid-latitude and subtropical atmospheric circulation regimes, and this positioning relative to shifts in these regimes is the fundamental reason for the region's climatic variability. El Niño, which is an increase in sea surface temperature of the eastern equatorial Pacific Ocean with an associated shift of the active center of atmospheric convection from the western to the central equatorial Pacific, has a well developed teleconnection with the Southwest, usually resulting in wet winters. La Niña, the opposite oceanic case of El Niño, usually results in dry winters for the Southwest. Another important oceanic influence on winter climate of the Southwest is a feature called the Pacific Decadal Oscillation, which has been defined as temporal variation in sea surface temperatures for most of the Northern Pacific Ocean. The major feature that sets climate of the Southwest apart from the rest of the United States is the North American monsoon, which, in the US, is most noticeable in Arizona and New Mexico. Up to 50% of the annual rainfall of Arizona and New Mexico occurs as monsoonal storms from July through September.

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.

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.