Darcy Olsen of the Goldwater Institute debates with a panel on the legislative budget in 2007. The state government, thinking it was awash with cash plunged into the summer of 2007 and emerged with a budget replete with earmarks. Shortly after, Arizona’s housing market, the main drive behind state revenue growth, collapses, leading to a budget which will leave the state $1.2 billion in the hole over the next to years. It’s not as if the state hasn’t had enough cash over the last few years either, Arizona state spending has increased 54% since 2003 (with only a 41% increase in the average individual income). Looks like the state should have heeded the warnings of the Goldwater Institute and brought its spending habits under control.