Arizona earned a “B” grade from the latest annual findings from a national review of how state governments manage themselves.

The Government Performance Project, funded by The Pew Charitable Trusts, said its overall grade for each state was based on findings in four categories: money, people, infrastructure and information.

The report on Arizona said its fiscal forecasting is erratic and contingency funds are generally lacking but that the state passes its budgets on time, excels in completing financial reports on time, makes strong use of costs analyses for agency performance and funds its retirement system.

The report also stated that the state workforce’s high turnover rate is largely due to low pay scales, the lack of a statewide comprehensive capital plan, deferred maintenance and extensive agency-by-agency performance data.

Governor Falls Short On Lofty Goals, Report Says

The report also noted that Governor Napolitano upon taking office set ambitious goals for squeezing efficiency savings out of state government but that savings achieved so far have fallen short of those goals.

“Even without huge efficiency savings, Arizona’s fiscal picture is improving faster than many had predicted,” the report stated. “Rebounding tourism dollars and healthy population increases have helped a great deal.

“But all those new residents put pressure on the state’s finances. Arizona is facing cost increases in education and health care even beyond what most states are experiencing,” the report added. —