The Arizona Constitution’s “Gift Clause” — which says that “Neither the state, nor any county, city, town, municipality, or other subdivision of the state shall ever give or loan its credit in the aid of, or make any donation or grant, by subsidy or otherwise, to any individual, association, or corporation…” — represents the strongest prohibition on government aid to private enterprise ever written.

In 2021, Arizona passed a budget that dramatically reworked Arizona’s tax policies. To name but a few changes, it aimed to increase the state’s budget surplus by $4 billion by 2025 and protect Arizona small businesses from a 78% tax hike. Most notably, it also aimed to flatten Arizona's state income tax from four brackets with a maximum rate of 4.5% to a single rate of 2.5% regardless of income.

With the 2022 election finally over, we now have a clear idea of the political headwinds in Arizona going into 2023 and beyond. With the election of Katie Hobbs as governor, Arizonans have chosen a democrat for the office for the first time in over a decade. Although the state legislature remains in Republican hands, their slim majority and bipartisan members will likely allow a significant amount of Hobbs’ agenda to pass into law.

As noted in our last article, Arizona’s water usage is unsustainable. Cuts from the Colorado River and lower levels of rainfall and snowpack due to climate change are forcing Arizona residents and businesses to cut back on water use. However, as 72% of Arizona’s water is used by agriculture, these cuts are largely inefficient and insufficient to meet the state’s growing water crisis. However, there is also another side of water use that needs to be addressed if cuts must be made: groundwater.