Arizona and Colorado had similar policy decisions in recent years but diverged on a number of them. A new report says the Copper State's pro-growth moves have resulted in outsized economic growth compared to its northern neighbor.
Partnered with the Arizona Chamber, the Common Sense Institute of Arizona used research from partners in Colorado to estimate the potential impacts on Arizona's economic prospects of enacting some of the policy ideas within the "job killer" bills, according to the CSI Arizona report.
CSI's report analyzed 67 bills and found that if enacted, they would create an additional $25 billion in costs for businesses, resulting in a $9.5 billion decrease in Arizona's economy.
"Bills like those studied here are being shopped at state legislatures across the country, and many of them have been introduced annually at the Arizona Legislature," according to the report. "Though they have not moved in the past, the lesson of Colorado's anti-business policy transformation over the past half decade shows that climates can change quickly."
Five years ago, Arizona and Colorado were on similar growth trajectories. In 1990, Arizona had 3.7 million residents and Colorado was 10% smaller. By 2015, Arizona's population had increased 86% and Colorado's by a comparable 65%.
One difference in the past few years between Arizona and Colorado is the policies.
"Arizona has aggressively invested in policy initiatives post-Great Recession intended to both diversify and make more competitive its business economy (and in particular its manufacturing economy)," according to the report. "The beginnings of this can be traced to the state's passage in 2011 of its 'Jobs Bill,' which established the Commerce Authority and lowered business property and income tax rates."
