Two years ago Arizona state legislators were discussing how to best use the state’s budget surplus, or "Rainy Day Fund". Now they are borrowing money to make ends meet:
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.
I don’t always agree with Governor Brewer, but I have to admit, she got this one right. Where’s the "Rainy Day Fund"? Don’t let the sunshine fool you- it’s raining out there.
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So how many years are they prepared to borrow instead of reduce spending? Please don’t tell me recovery is too close to be talking about borrowing again….
Bagbalm-
Why reduce spending if you’re sure that the “Bailout Fairy” will come along and bail you out?
Fiscal responsibility seems to be the government’s last resort.
Ah, the equivalent of getting a cash advance on one’s credit card to pay the bills — this will turn out well.
profnickd…..lol…exactly. sometimes when you just say something out loud you should be able to hear how awful the idea sounds.