
ARIZONA STATE TREASURER DEAN MARTIN (Photo by Capitol Media Services)
We all know the state of Arizona has huge money problems. But if State Treasurer Dean Martin’s projections are accurate, Arizona is going to be begging for cash from the banks, from China or from just about anyone willing to float a few billion dollars in loans.
Martin held a news conference and sent out a press release this afternoon with the really, really bad news — the state might have to borrow $2.5 billion to $5 billion just to keep operating through the end of the fiscal year on July 1. And the next budget could be even worse.
“The new Legislature and Governor must address this problem quickly or the State will be looking at bankruptcy next year,” Martin said.
If Martin sounds a little bit like Chicken Little, it’s because his projections assume the Legislature and the incoming Gov. Jan Brewer wouldn’t act to get the budget in order. He’s offering the worse-case, completely unlikely scenario; if only to intimidate timid policy makers who think the state can just take on a little more debt until the economy turns around and tax revenues climb again. Martin’s warnings also lay the groundwork to convince the public that painful but fundamental reforms are needed to the budgeting process. Some Republican lawmakers started talking last summer about asking voters in a special election to reduce or eliminate spending mandates, primarily as they apply to education and health care.


