Arizona

In a marathon session that lasted all night Friday and well into Saturday morning, the Arizona Legislature passed a $9.1 billion budget that even some supporters said they regretted.

Bondholders have authorized an $8 million increase in debt for a Glendale, Ariz., project designed to convert trash into energy. A dispute with the city has stymied the operation, leading to a five-notch downgrade from Standard & Poor's.

Arizona Gov. Doug Ducey and Republican legislative leaders have reached agreement on a $9.1 billion budget that cuts higher education spending by 14% and delays plans to build a private prison.

Phoenix voters will consider a plan to fund $33 billion of transportation programs through 2050 with a 0.72-cent sales tax.

Phoenix Sky Harbor Airport remains vulnerable to service reductions after the merger of its major carrier US Airways and American Airlines, according to Standard & Poor's. Otherwise, the outlook on the airport’s AA-minus rating is stable.

A bill that reduces Arizona's income tax revenue by $15.4 million in the next fiscal year won state Senate approval despite the state's anticipated $1 billion budget deficit.

Affluent Scottsdale, Ariz., will offer investors $160 million of top-rated general obligation refunding bonds and $117 million of excise-tax revenue bonds that are doubly tax-exempt in the Grand Canyon State.

After bearing the cost of its second Super Bowl, Glendale, Ariz., expects to finish a series of refundings this week with more than $44 million in present value savings so far.

Arizona State University will begin a major remodeling of its 56-year-old Sun Devil Stadium this spring, financed in part by a $356 million bond deal coming to market Feb. 24.

Standard & Poor's lowered the outlook on Arizona State University's AA rating based on prospects for increased debt issuance over the next two years, the agency said.

In his first state-of-the-state address Gov. Doug Ducey promised to work with legislators to cover a $1 billion budget deficit but said he was "not persuaded by appeals to raise taxes so we can spend more."

Standard & Poor's has revised its outlook to stable from negative on Glendale, Ariz.'s BBB-plus credit general obligation rating as the Phoenix suburb prepares to issue $294 million of refunding bonds.

Thirty-six Republican Arizona legislators should be allowed to challenge the constitutionality of a measure to expand Medicaid eligibility even though it won legislative approval, the state Supreme Court ruled.

Agencies in Arizona, California and Nevada are expected to agree on reduced consumption of water from Lake Mead as a 14-year drought continues to lower the reservoir toward a level that requires federal restrictions.

Phoenix plans to raise $155.2 million for new water projects and lower the interest cost on outstanding debt with a combined $610 million issue.

Pinal County, Ariz. disclosed that it may settle with the Internal Revenue Service to favorably conclude an audit of 2004 Certificates of Participation whose proceeds were used for detention facilities, though the county said it believes there are no tax problems with the COPs.

Arizona has seen seven straight months of revenue running below forecast, according to legislative budget analysts.

The Arizona Transportation Board will enter rush-hour traffic to the refunding market this week with a $457 million issue expected to bring net present value savings of better than 5%.

Arizona voters approved more than $2 billion of bonds in the Nov. 4 election, with most of the proposals winning by a comfortable margin, according to official results.

Phoenix voters refused to shift more investment risk to the city's employees by rejecting Proposition 487, which would have eliminated the defined benefit pension for new employees.