Arizona fiscal year ended on disappointing note

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By Mike Gertzman By Mike Gertzman

PHOENIX (AP) -- Arizona legislative budget analysts say the state finished its last fiscal year on a disappointing note, thanks to tax collections that were less than anticipated.

According to preliminary data, the state at the June 30 end of the last fiscal year had a surplus about $66 million smaller than anticipated.

The budget staff says the lower-than-expected revenue and its effect on the state's treasury means the new fiscal year could produce a $49 million shortfall instead of the expected $64 million surplus.

The budget staff says its estimates don't incorporate the impact of a recent court order requiring the state to increase funding for K-12 schools to include inflation funding mandated by a voter-approved law.