Over the past decade Arizona’s population and economy have grown rapidly, but more recent data suggests this pace is slowing. Today the state is facing the end of its fastest period of revenue and spending growth ever – over the past five years, General Fund revenue collections have grown 52%, while spending has increased by over two-thirds (to $17.8 billion this year).
In October, the Arizona Legislature’s Financial Advisory Committee (FAC) – a nonpartisan body tasked with forecasting State revenue collections – projected a cumulative $1.0 billion General Fund cash deficit over the next three fiscal years. The last time the state was in this position was in 2015, following years of tepid revenue growth after the Great Recession and during the peak of K-12 formula funding litigation.
How did this happen, and how did it happen so quickly? Host and National Chairman of CSI Earl Wright welcomes President & CEO of the Arizona Chamber of Commerce & Industry Danny Seiden and CSI Arizona’s Director of Policy and Research Glenn Farley to discuss the issue’s origins, its history, and its possible solutions.
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