Arizona Budget Outlook Dims as April Revenue Forecast Falls Short
State Economists Project Tighter Fiscal Flexibility Amid Slowing National Growth and Persistent Inflation
Arizona's Finance Advisory Committee, a panel of public and private sector economists that advise the Legislature, met Thursday to present the latest expert analysis on the Arizona and U.S. economic outlook.
April Forecast Cuts Available Resources by $199 Million
Arizona's budget outlook has weakened since earlier projections, with the April forecast showing state General Fund revenues falling below the January baseline. Previously, the January estimate projected $577 million in available resources, but the updated April figure reduces that amount to $378 million, tightening fiscal flexibility. Under either scenario, the state is expected to face ongoing challenges in addressing major budget priorities.
National Economy Offers Mixed Signals
National economic conditions provide a mixed backdrop: while the U.S. economy remains resilient and the job market is stable, overall growth is expected to slow. Inflation has declined from its mid-2022 peak but still remains above the Federal Reserve's 2% target.
Consumer Sentiment Remains Low
At the same time, consumer sentiment remains low, driven largely by worries over increasing food and energy costs and geopolitical uncertainty.
