Things are not looking good on the state economic scene. Arizona Treasurer Dean Martin has announced that the state must enact a new state budget by the end of the week or it will lose the flexibility to borrow money from banks to continue paying its bills.
The state was $386 million in the red as of Wednesday and has been making up for it by borrowing money from some of the 1,800 state government funds. But Martin said the state will lose its flexibility to make internal loans when the figure hits the $500 million mark. Then it will need to borrow money from banks, but they’re not willing to lend to the state until its budget is balanced.
Although Arizona isn’t projected to reach its internal-loan limit until Oct. 15, Martin said the budget must get enacted this week to give the state the six to eight weeks needed to set up bank loans.
Read the entire report in the daily here.
*With apologies to Professor Harold Hill.