Ariz. general fund to borrow from state accounts

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PHOENIX -- State Treasurer Dean Martin said Tuesday the state general fund will borrow from an investment pool of hundreds of other state government accounts to get the state through a cash-flow crunch next week.

Martin had announced previously that the state's budget crisis would force the state to borrow to cover a big school aid payment due April 15.

Martin said his office will arrange to borrow "a couple of hundred million" dollars for six days, until sales-tax payments arrive at month's end.

Martin said he decided against using commercial sources because of setup costs in establishing the financial ties.

He said the state investment pool will make the loan to the general fund as an investment similar to purchasing U.S. Treasury notes.

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