PHOENIX -- A leading state economist says Arizona needs to fix its budget problem in order to attract business and create more jobs in the state.

“Direct attention on solving the budget problem can be as growth enhancing as job creating as anything we could do today,” said Dennis Hoffman, economist for the W.P Carey School of Business at Arizona State University.

"I think, right now, we have a stop sign out on borders,” he said.

Arizona has one of the worst deficits of any state in the nation, and state leaders have failed to come up with a plan to balance the budget.

House Republicans have taken aim at the improving the economy by passing a piece of legislation called the Arizona Economic and Job Recovery bill.

“This bill brings jobs into the state of Arizona,” said Rep. Debbie Lesko, R-District 9.

It gives tax breaks and other incentives to in order to attract businesses to relocate to Arizona.

House Democrats voted unanimously against the bill.

Rep. David Lujan, D- District 15, said the bill will not create jobs.

“I think it could be more appropriately titled the corporate bail out bill,” he said.

Either way, Hoffman said any jobs bill will do little to create opportunities in Arizona as long as the state is in deep in debt.

“Our fiscal house is not in order,” Hoffman said.