Marina Herrera Director, Development and Communications | Rio Grande Foundation
A recent analysis trip to Phoenix aimed at understanding why Arizona's largest city is more successful than Albuquerque has been deemed unnecessary by the Rio Grande Foundation. The head of the foundation, who has visited Phoenix multiple times, believes that several factors contribute to Arizona's growth and success compared to New Mexico.
One significant difference is the personal income tax rate, with Arizona at 2.5% compared to New Mexico's 5.9%. This lower tax rate is seen as a factor in attracting more people to Arizona. Additionally, Arizona is a "right to work" state, unlike New Mexico, which requires private sector workers to join unions.
Arizona also benefits from not having a gross receipts tax like New Mexico and lacks a state-level prevailing wage law. This allows public infrastructure projects in Arizona to be completed at market wage rates rather than inflated ones.
The labor force participation rate in Arizona is higher than in New Mexico, leading to fewer people on welfare programs and more taxpayers. In contrast, New Mexico has the highest Medicaid population in the nation.
Business friendliness is another area where Arizona excels, with ten companies listed on the Fortune 500 index compared to few publicly traded companies headquartered in New Mexico. Crime rates are also lower in Arizona despite being high.
In education, Arizona offers various school choice options and spends 45% less per student while outperforming New Mexico's K-12 system. Despite efforts by the New Mexico delegation to expand higher education as a revitalization strategy for downtown areas, Arizona spends about one-third of what New Mexico does per student.
Information from this article can be found here.
