Grand Canyon Inst – AZ Budget Priorities: Tax Cuts v. Productivity & Prosperity

The Grand Canyon Institute is a “centrist think tank” that provides a great service to our state by analyzing economic issues and producing independent reports.  (You can read many of these reports at this link on their website.)

Below is June 8, 2021 press release from the Grand Canyon Institute. It incudes key findings from an research paper about educational funding and attainment and related declines in state revenue and productivity. You’ll note that decline in educational attainment among Arizona residents tracks with the state’s decline in school funding and the decline in state revenue. In 1970, Arizona had 18% more college graduates than the national average; by 2018, we had 9% fewer college graduates than the national average. When I moved to Arizona in 1981, I remember reading a quote in the newspaper from then Governor Bruce Babbit. He said the state’s economy was poised for greatness because Arizona had so many college graduates. Well, decades of budget cuts took care of that!

If you scroll all the way down at the bottom of the ASU graphic you’ll find the “money quote” in tiny type: “It is highly likely that the state’s relative declines in educational attainment contribute to declines in productivity and prosperity and have increased Arizonans enrollment in public assistance programs.”

The graphic also notes that if Arizona had not continued to cut taxes each year — thus maintaining the tax base — “the state general fund would have taken in 44% more in revenue.”

As I have said many times: the state of Arizona creates its own problems with short-sighted decisions that are rooted in ideology … not in data, science, or compassion for the people.

Continue reading Grand Canyon Inst – AZ Budget Priorities: Tax Cuts v. Productivity & Prosperity

#AZLeg Should Focus on Food & Housing Security, Not Gambling & Tax Breaks (video)

Robert Reich

Many Arizonans lived with food, housing and financial insecurity before the pandemic hit.

The state of Arizona is doing fine financially — thanks to sales tax revenue (collected primarily from online sales) and pandemic relief from the federal government– but the Legislature is doing little to help those in need. People at the top and people in the middle, who still have their pre-pandemic jobs, are doing OK. The people at the bottom who had low wage jobs or multiple gig economy jobs before the pandemic are the ones who are really suffering during the pandemic. Some of those prolific pre-pandemic gig jobs like rideshare drivers, hotel staff and restaurant workers have almost disappeared. Many of those jobs won’t return because of changes to our lifestyles.

Although Arizona’s economic forecasters warned of the increasing wealth gap in Arizona, these people are being ignored by the Arizona Legislature. The Republican leadership is focusing on tax cuts for the rich people and corporations — rather than focusing in COVID relief or providing food, housing and financially security to struggling Arizona families. What are they offering to the poor to lift themselves out of poverty “by their bootstraps”? Dramatically increased gambling (HB2272). What could go wrong? [Sarcasm font.]

Continue reading #AZLeg Should Focus on Food & Housing Security, Not Gambling & Tax Breaks (video)