Arizona’s Revenue Problem Undermines Economic Performance

January 9, 2017

Arizona’s Revenue Problem Undermines Economic Performance
Dave Wells, Ph.D.
Research Director, Grand Canyon Institute

Key Findings:
 Arizona ranks last in economic performance among the 50 states over last two business cycles.
 Controlling for population and inflation the state has only $3 for every $4 it had ten years ago, a 25% decline.
 Per student funding to universities is half what it was ten years ago and over the last 25 years university spending has declined from being twice what was spent on corrections to corrections now spending exceeding universities by 50 percent.
 The state’s support for vulnerable families is inadequate as the number of children in foster care has nearly doubled in the last six years.
 Nearly $1 billion in K-12 education cuts since FY2007 were not impacted by Prop. 123.
 These shortcomings are undermining the state’s economic performance.

Critical investments could nurture future growth.

Ratio University to Correction Appropriations FY1993-2017

Number of Children in Foster Care 2005-2016

General Fund Per Capita Real Dollars 2007-2017