JLVC forecasts conservative budget amid concerns over consumer spending and tariffs

Concerns over economic stability took center stage at the Arizona Legislature's Finance Advisory Committee meeting on April 17, 2025, as members discussed the potential impacts of recent tariff policies and market fluctuations. The committee highlighted a troubling trend of "wealth evaporation" in financial markets, which could lead to consumers tightening their spending.

Randy, a committee member, emphasized the importance of focusing on the Joint Legislative Budget Committee (JLVC) forecast for the next 15 months. He warned that while the state of Arizona's revenue structure is typically stable, there are no indicators suggesting substantial gains in the general fund. Instead, he cautioned that declines in revenue are a real possibility, urging a conservative approach to budgeting.

Lorenzo Martinez from the Bridal regions echoed these sentiments, stressing the need for preparedness in the face of a potential worst-case scenario. He pointed out the risks associated with the ongoing global trade war, suggesting that the U.S. may be perceived as an unreliable trading partner, which could have long-term ramifications for international relations and trade.

Both speakers underscored the critical role of consumer behavior in shaping economic outcomes, noting that a shift in spending patterns could significantly impact the state's financial health. As the committee navigates these uncertain waters, the focus remains on crafting a cautious and informed budget strategy for the upcoming year.