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