A new national analysis of fiscal responsibility among the states gives Arizona state government a "D-." The Fiscal Discipline Report Card, published by Americans for Prosperity Foundation, grades the states' tax and expenditure limits on five objective criteria.
Tax and expenditure limits emerged after the tax revolt of the late 1970s. California governor Ronald Reagan endorsed the first state tax and spending limit, Proposition 1, for California in 1973. Although Proposition 1 failed, it set a precedent for tax and spending limits across the nation. Since then, 28 states have enacted some form of tax and expenditure limit, including Arizona in 1978.
Unfortunately, these tax and spending limits have failed to adequately instill fiscal discipline. According to the report card, 36 states scored D's or F's. Colorado earned the highest grade, an A-, thanks to its Taxpayer's Bill of Rights (TABOR) amendment.