STATE GOVERNMENT FINANCES
(Amounts are in thousands.  Per capita in dollars.)

                                                      Percent           Per
ARIZONA                                      1995 Distribution       capita

Population (thousands)                      4,218           -             -
Total Revenue                          12,593,371       100.0%     2,985.63
  General revenue                      10,509,675        83.5%     2,491.63
    Intergovernmental revenue           3,026,512        24.0%       717.52
    Taxes                               6,223,489        49.4%     1,475.46
      General sales                     2,771,856        22.0%       657.15
      Selective sales                     827,935         6.6%       196.29
      License taxes                       343,607         2.7%        81.46
      Individual income                 1,482,749        11.8%       351.53
      Corporation net income              417,481         3.3%        98.98
      Other taxes                         379,861         3.0%        90.06
    Current charges                       619,315         4.9%       146.83
    Miscellaneous general revenue         640,359         5.1%       151.82
  Utility revenue                          19,200         0.2%         4.55
  Liquor stores revenue                         0         0.0%         0.00
  Insurance trust revenue               2,064,496        16.4%       489.45

Total Expenditure                      11,162,452       100.0%     2,646.39
  Intergovernmental expenditure         3,992,499        35.8%       946.54
  Direct expenditure                    7,169,953        64.2%     1,699.85
    Current operation                   4,866,267        43.6%     1,153.69
    Capital outlay                        622,500         5.6%       147.58
    Insurance benefits and repayments   1,066,842         9.6%       252.93
    Assistance and subsidies              430,043         3.9%       101.95
    Interest on debt                      184,301         1.7%        43.69
Exhibit:  Salaries and wages            1,668,427        14.9%       395.55

Total expenditure                      11,162,452       100.0%     2,646.39
  General expenditure                  10,072,094        90.2%     2,387.88
        Intergovernmental expenditure   3,992,499        35.8%       946.54
        Direct expenditure              6,079,595        54.5%     1,441.35
  General expenditure, by function:
      Education                         3,601,018        32.3%       853.73
      Public welfare                    2,468,116        22.1%       585.14
      Hospitals                            55,212         0.5%        13.09
      Health                              489,489         4.4%       116.05
      Highways                            925,358         8.3%       219.38
      Police protection                   109,774         1.0%        26.03
      Correction                          436,779         3.9%       103.55
      Natural resources                   159,104         1.4%        37.72
      Parks and recreation                 25,992         0.2%         6.16
      Governmental administration         332,543         3.0%        78.84
      Interest on general debt            180,062         1.6%        42.69
      Other and unallocable             1,288,647        11.5%       305.51
  Utility expenditure                      23,516         0.2%         5.58
  Liquor stores expenditure                     0         0.0%         0.00
  Insurance trust expenditure           1,066,842         9.6%       252.93

Debt at end of fiscal year              3,037,066       100.0%       720.03

Cash and Security Holdings             18,430,585       100.0%     4,369.51