State officials have set the stage for Arizona to borrow money for the first time in its modern history.
"We literally have no other way to raise cash," state Treasurer Dean Martin told members of the state Loan Commission this morning.
The commission voted 3-0 to set the maximum interest rate the state would pay on short-term loans that Martin estimates would range from $104 million to $184 million. The rate would float until the actual borrowing is done – most likely in mid-April – but would be below 2.25 percent, the commission decided.
Gov. Jan Brewer, who sits on the commission by virtue of her post as governor, called it "alarming" that state has to borrow in order to pay its bills.
"Needless to say, this is not the right way to run government," she said.