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Arizona not alone in fiscal storm (access required)

The recession hit Arizona hard, but the situation here isn't as precarious as in Illinois, which is struggling from a whopping $13 billion budget deficit. Like Arizona, many states face significant budget shortfalls this year, a situation that probably will get worse as federal aid expires next year.

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School officials threaten lawsuit over proposal forcing them to raise teacher pay (access required)

The lobbying arm of Arizona’s school boards is threatening to sue over a proposed amendment that would require 50 percent of inflationary funding increases for K-12 education to be used for teacher pay raises.