ARIZONA CONSTITUTION: SPECIFIED DUTIES OF STATE GOVERNMENT A Report from the Office of the University Economist November 2010 Dennis Hoffman, Ph.D. Professor of Economics, University Economist, and Director, L. William Seidman Research Institute Tom R. Rex, MBA Associate Director, Center for Competitiveness and Prosperity Research Center for Competitiveness and Prosperity Research L. William Seidman Research Institute W. P. Carey School of Business Arizona State University Box 874011 Tempe, Arizona 85287-4011 (480) 965-5362 FAX: (480) 965-5458 EMAIL:
[email protected] or
[email protected] www.wpcarey.asu.edu/seid TABLE OF CONTENTS Summary 1 Introduction 11 State Government Functions Delineated in the Arizona Constitution 12 Interpretation of Constitutional Duties 18 Description of Expenditure Data 19 Methodology for Assessing Government Expenditures 25 History of Government Expenditures 29 Societal Changes and the Effect on Public Expenditures 68 Educational Achievement and Attainment 74 Reasonable Levels of Investment in Education 86 LIST OF TABLES 1. Arizona State Government Operating Budget by Function, Fiscal Year 2011 17 2. Funding Sources for Selected Programs in Arizona in Fiscal Year 2011 21 3. Noncapital Expenditures in Fiscal Year 2008 in Arizona 24 4. Change in Total Expenditures Per $1,000 of Personal Income in Arizona 29 5. Change in K-12 Education Expenditures in Arizona 33 6. Revenue for K-12 Education in Arizona 38 7. K-12 Education Expenditures in Arizona 39 8. Change in Higher Education Expenditures in Arizona 42 9. Change in Correctional Expenditures in Arizona 47 10. Change in Other Expenditures Per $1,000 of Personal Income in Arizona 49 11.