How Much Control Do Lawmakers Have Over State Budgets?

That is the question being raised by many in Arizona these days.

The Morrison Institute at Arizona State University has just released an interesting analysis of Arizona's state budget situation. It raises many of the right questions and provides some good answers.

Arizona is emerging from one of the worst state budget crises in the nation. Entering 2003, its projected deficit, measured as a percentage of the general fund, was the fifth largest in the \ country.

The state had slashed spending in 2002 in the face of a $900 million deficit, but still faced a $400 million shortfall for fiscal year 2003 and an estimated $1 billion deficit in fiscal 2004. Although improved revenues have reduced the anticipated gap, fundamental underlying problems remain concerning the ability of lawmakers to control the budget. Some observers consider this a revenue problem, others a spending problem. Our concern in this paper is whether state lawmakers have enough control over either revenue or spending.

Download the report here.