Arizona's Budget Problems

State Budget Woes Worsen
Up to $5.7 billion loan may be needed, treasurer says
by Mary Jo Pitzl - Jan. 6, 2009 12:00 AMThe Arizona Republic

Arizona would have to borrow between $2.5 billion and $5.7 billion as early as February to bridge the state budget through a cash-flow crunch caused by a shortfall.
That's the estimate of State Treasurer Dean Martin (Republican), who on Monday said that the state may have to borrow money for the first time in decades.
"It's like . . . using your Visa to pay off your MasterCard," Martin said at an afternoon news
He said he hopes to convene a meeting this week of the state Loan Commission, the first step to securing the short-term loans needed to literally keep the lights on in state fovernment.
The loans would add to the state's financial woes. The current $9.9 billion budget is already $1.2 billion in the red, and many expect it to worsen. Any borrowing would have to be repaid, with interest, a circumstance that is not contained in the current budget.
Martin said he will ask legislators for two changes to state law that could delay borrowing until April.
But, he added, borrowing appears inevitable.
Even if lawmakers make deep budget cuts when they start work next week, the savings won't pile up fast enough to avert the need for borrowing. Likewise, any tax increases - highly unlikely in the Republican-controlled Legislature - wouldn't be able to bring in enough money fast enough to reverse the state's upside-down trend of spending outpacing tax collections.
The only hope, as Martin (Republican) sees it, is a federal stimulus program that would send cash to the states.

My Comment: Wait a minute – this Republican sees the only way out of Arizona’s problems is a Federal stimulus program that would send cash to the states? I wonder how the Republicans on the other end of this deal would feel abut this? How would Alabama Sen. Richard Shelby, the top-ranking Republican on the Senate Banking Committee respond to this?