Page 26 - AASBO EDGE 2020 WINTER

LEGISLATIVE WORKSHOP

BY DON HARRIS

Budget Expert says Arizona’s Economy Looks Solid in 2020

– Good News for Education

Arizona’s economic outlook appears rosy and funding for quickly as possible,” Gress said.
K-12 schools is a priority of Gov. Doug Ducey, but fi scal
restraint is necessary to be ready for another inevitable In addition, the state bought back state buildings that had
downturn. been mortgaged during the Great Recession and improved
its credit rating, has seen a 40% reduction in debt service
That was the optimistic, but measured, forecast of Matthew charges, and now funds school capital needs on a cash basis,
Gress, Director of the Governor’s Offi ce of Planning & Gress said.
Budgeting in a presentation November 15 at the annual
Legislative Workshop sponsored by ASBA, AASBO and “An overview of the General
ASA.
Fund shows the largest-ever
Gress said Ducey’s vision for Arizona is to have it be the
No. 1 state in country to live and work, for recreation and cash reserves and the third
education, to start a business, and to provide clarity to structurally balanced budget
businesses and citizens regarding the kind of administration
they’re getting under Ducey’s leadership. The governor in a row and $1 billion in the
favors “government at the speed of business, which means Rainy Day Fund”
decide faster, respond faster, resolve faster, add more services
online, and save tax dollars,” Gress said.
Referring to 2019 changes in the tax code, he said: “Thanks
to the opportunity created by the federal tax reform, Arizona
“We’re doing really well,” he added.
last year was able to enact a comprehensive modernization
of the tax code. We reduced and simplifi ed income taxes,
An overview of the General Fund shows the largest-ever
cash reserves and the third structurally balanced budget in a eliminating exemptions, reducing brackets, and cutting rates
row and $1 billion in the Rainy Day Fund, Gress said, noting by a total of over $300 million.”
the situation stems from “a booming economy as well as
fi scal restraint.” In addition, Arizona applied the sales tax to out-of-state
businesses, which stopped “the revenue loss created by the
e-commerce revolution, offsetting our income tax cuts, and
Forecasts indicate the economy will continue to do very
well. Businesses and individuals are continuing to come providing a stable and fair consumption tax-based future,”
to Arizona seeking opportunity, a better quality of life and he said.
a business-friendly climate, Gress said. “Over 200 people
move to Arizona every day,” he said, adding that many of the As the economy expands, there are more jobs, more
new residents come from California. employees and more people paying taxes. At the same time,
infl ation is moderating. Arizona has strong manufacturing
growth, retail overall is seeing a positive trend, and the
Some 300,000 jobs have been created in Arizona since
Ducey took offi ce in 2015, Gress said. “Our view is, we need state will continue to see strong growth in connection with
to sustain this – keeping our talent here and recruiting new Mexico, our largest trading partner, Gress said.
talent,” he said.
“We’re in a really good spot that we haven’t seen in nearly
two decades,” Gress said.
“Arizona continues to outperform national economy and
is well ahead of national peers. Arizona is retiring debt as CONTINUED ON PAGE 28

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26 THE EDGE WINTER 2020