Arizona: Structurally Balanced Only If You Omit Funding Shortfalls

Abstract

Author(s): Wells, David | Abstract: The FY2018 Arizona budget had the most discretionary dollars in years with the bulk of it directedtoward K-12 education. “Structural balance” was maintained, demonstrating a new normalin Arizona budgeting. Expenditure growth was less than inflation and population growth. Anotherlawsuit was filed with respect to inadequate state investment in school facilities. A more carefulanalysis finds the state will expend only $3 for every $4 it spent in FY2007 adjusted forpopulation growth and inflation. Rollovers continue to take 10 percent of the budget, eventhough the expansion is in its eighth year. Consequently, structural balance hides a great manyfundamental weaknesses.