Structurally Unbalanced: Cyclical and Structural Deficits in Arizona

Reports and Publications
January 2011
Matthew Murray, Kristin Borns, Sue Clark-Johnson, Mark Muro, Jennifer Vey

Arizona is struggling with two related but distinct fiscal disasters. Widely recognized is the state’s budget crisis, which resulted from the sudden collapse of annual revenues after the real estate crash and prolonged recession. Less noted or widely understood is the state’s massive structural imbalance, which arose in large part due to unwise policy choices made during phenomenal growth years. This report by Brookings Mountain West and Morrison Institute for Public Policy examines Arizona's structural deficit and offers recommendations for repair.