Government Spending

No government has ever spent its way to prosperity. Our proposals help governments be fiscally responsible so citizens can be prosperous.

<p>No government has ever spent its way to prosperity. Our proposals help governments be fiscally responsible so citizens can be prosperous.</p>

After months of rumblings around the state capitol, a private coalition called TIME Transportation and Infrastructure Moving AZ's Economy has unveiled a $42 billion solution for Arizona's transportation problems. It can be summed up as tax and spend.

The Arizona Republic's front page headline on October 29 read "White House Pressures Banks." The article went on to describe how bankers were being accused of hoarding bailout cash and told to get out there and loan money.

Three law firms dominate the legal work that goes into issuing state and local government debt in Arizona, according to a review of bond documents done by the Goldwater Institute. That finding is consistent with what bond lawyers and government officials have said in interviews about the industry.

In a happy coincidence, I saw a new World Bank study on entitlements and economic growth on the same day a lawsuit against cuts to Arizona’s Medicaid benefits was filed. The World Bank study provides evidence that while reinstatement of the Medicaid benefits might help some right away, in the long run it would likely hurt us all economically, including the people the lawsuit seeks to help.

It was almost like the gold rush all over again in Stockton, California. With booming property values and tax revenue during the past decade, city coffers were flush and cash was flying to sports arenas, retail centers, office buildings, and parking garages.

By Trey Kovacs

By Lisa Halverstadt and Cecilia Chan, AzCentral 

Lawyers for the Goldwater Institute (the de facto Supreme Court of Arizona) used the hammer that is the “gift clause” in the Arizona Constitution to deliver a blow to the Phoenix police union. 

Californians have leaped ahead of Arizonans in reforming local government pensions. Ballot measures in San Diego and San Jose asked residents to put new government employees into the equivalent of a 401(k) system and require old employees to opt into the new plan or contribute more to their existing plan so that it would become financially sustainable. The reforms passed the same day Wisconsin Governor Scott Walker prevailed in his recall election. If these pension reforms  survive promised legal challenges, they could set precedent for Arizona and the rest of the Nation.