Arizona Treasurer Dean Martin said the state general fund has repaid short-term loans taken out to cover day-to-day spending, but warned that the state may have to borrow again in the near future if federal stimulus funds aren’t received soon.
The general fund has a positive balance again after 12 days in the red. Martin said the general fund dipped below zero on April 15, after he issued nine treasurer warrant notes, or TWNs, to help the state cover expenditures such as employee salaries, tax refund checks and payments to schools. The state paid about $38,500 in interest on the loans, he said.
“The state general fund has repaid its ‘overdraft protection’ exactly as we had predicted,” Martin noted in an April 29 press release. “The general fund was in the red for 12 days, and is now back in the black, although just barely.”
But with another payment to K-12 schools due on May 15, Martin said the state may need to take out more short-terms if it does not receive stimulus money from the federal American Recovery and Reinvestment Act before that deadline. “As long as the state continues to spend more than it makes, this will happen again,” Martin said.