State Treasurer: AZ could be out of cash by mid-FebruaryPosted: Updated:
PHOENIX - State Treasurer Dean Martin said Monday he is setting the stage for Arizona to borrow for paychecks and other expenses and that lawmakers must erase a budget shortfall he says puts Arizona on a path to bankruptcy.
Martin said the state could run out of cash by mid-February unless steps are taken.
The state faces a projected $1.2 billion shortfall in its $9.9 billion current budget but Martin said short-term borrowing could total multiple times that amount.
Martin said state officials need to set a maximum interest rate for short-term borrowing by the state.
He said lawmakers need to cut spending and authorize short delays in school funding.