Their economy is in considerable trouble, they are cutting a lot of programs trying to find a solution and ignoring the 600 pound gorilla in the room that is eating up all their money. Arpaio's immigration enforcement is seeing an over $100 million deficit which cannot be explained. This question was asked before, somewhere around this thread and there were quite a few examples of adverse effects that happened to Arizona some of them more directly attributed to their stance.

Some of the stuff they have cut have made Arizona despised among people as being unjust and inhumane. At one point Governor Brewer denied life-saving transplants that would have saved the lives of multiple people in order to save a couple million, the donors were available, it was authorized and the governor of Arizona essentially handed a death sentence to those people, it was a while ago, however.