State revenues and cash balances in Arizona are doing better than in recent years, but not as well as during past expansions. We are still seeing improvement though. Up until the 2008 recession Arizona outperformed the U.S. in good times and in bad. 2008 was an anomaly; and don’t look for this to repeat.
The state will continue to be a leader in the country in employment and population growth. While the job numbers are up, we would also like to see better quality. This takes time. Even with the risk of a U.S. downturn lurking in the shadows, Arizona is less at risk because we aren’t posting the excesses that we did the last time around. Look for any future economic turmoil to be more like 2001 as opposed to 2008 for our state. See the below video clip for a more in depth discussion of this topic.