Common Sense Institute Arizona

Arizona's pandemic-induced revenue boom may be over, but spending growth remains.

CSI's latest budget analysis finds local and state governments expanded spending rapidly during and after the pandemic. Some municipal budgets have grown by more than 30% in the last five years. For example, Tempe's General Fund spending is up approximately 50% since 2020.

The report warns that as revenue growth normalizes, maintaining those spending levels becomes more challenging. Check out the full report: https://bit.ly/4e7wLqh

Did you know?

Arizona's Medicaid enrollment is falling, but costs keep rising.

CSI's new report finds AHCCCS enrollment has declined by about 209,000 people (10%) since its pandemic-era peak. Yet average per-member costs have increased 14%.

The result: total program spending remains under pressure even as fewer people are enrolled. Learn more in the full report: https://bit.ly/4e7wLqh

As part of CSI Arizona’s 2026 Ballot Guide, a new report examines how the proposed “Protect Education Act” could reshape Arizona’s ESA program and impact school choice statewide.

One key finding: Arizona families were already moving away from traditional district schools long before universal ESAs were adopted.

➤ District enrollment has been declining since 2008
➤ Charter schools now educate about 1 in 4 Arizona public-school students
➤ Today, fewer than 70% of Arizona school-aged children are in district schools, down from 80% a decade ago

The report finds Arizona’s shift toward alternative education options predates universal ESA expansion.

Learn more : https://bit.ly/493aurN

Arizona's state budget has more than doubled in the last decade.

According to CSI Arizona's latest Budget Then & Now report, total state spending has grown from roughly $35 billion in FY2015 to more than $71 billion today and could reach $75 billion by FY2027, depending on the outcome of negotiations.

The report also notes that spending outside the regular legislative appropriations process grew 153% over the same period. These are the federal programs whose spending has runaway, like Medicaid/DDD and SNAP.

Learn more in the full report: https://bit.ly/4e7wLqh

CSI’s initial 2026 Ballot Guide report finds Arizona’s ESA program already includes audits, spending rules, and accountability safeguards. In a recent ADE random audit, just 1.9% of ESA spending was found to be “unallowable” — a lower rate than many other public programs. Private and homeschool students also perform better on the NAEP, ACT, and other standardized measures, and many participating schools already use nationally recognized curricula and accreditation standards.

At the same time, district-school students struggle with poor performance on state assessments:
➤ Just 39% proficient in reading
➤ 32% are proficient in math
➤ 27% proficient in science

CSI’s analysis highlights the importance of accountability and transparency throughout Arizona’s entire education system - traditional and new.

Learn more: https://bit.ly/493aurN

Arizona’s ESA program now serves 100,000+ students with $1.1B in annual scholarships. The proposed “Protect Education Act” would add income caps and new requirements that CSI estimates could immediately impact thousands of current ESA families, with more affected over time as incomes rise faster than the cap adjustment.

Universal ESA didn’t start Arizona’s school choice shift, it expanded on a trend families had already been driving for more than a decade.

Learn more in CSI's full report: https://bit.ly/493aurN
Read additional coverage: https://bit.ly/4v9Zn8Y

Arizona’s manufacturing sector continues to struggle.

CSI Arizona’s latest jobs update finds the state lost:
➤ 400 manufacturing jobs in April alone
➤ 500 manufacturing jobs year-over-year

Arizona was also one of 39 states reporting annual manufacturing job losses.

Learn more in CSI's full report: https://bit.ly/4v5IEDP

This Memorial Day, we honor and remember the men and women who gave their lives in service to our country. Their sacrifice made the freedoms and opportunities we enjoy possible.