Arizona

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.

With top credit ratings, the Arizona Water Infrastructure Finance Authority enjoyed strong demand for $345 million of revenue refunding bonds, earning savings of 6.3%.

At least two issuers recently redeemed or said they are planning to redeem bonds issued to finance detention facilities because of private use. One redemption was required under a settlement between the issuer and the Internal Revenue Service and the other was triggered by provisions in the offering document.

The Phoenix City Council has approved a $103 million construction contract for the first phase of a $590 million renovation of Terminal 3 at Sky Harbor International Airport.

Arizona's Treasurer and Republican candidate for governor is easing off calls for elimination of the income tax amid a $520 million deficit in the current fiscal year and a potential $1 billion shortfall in the next.

Moody's Investors Service has shifted the outlook on its A3 rating of Glendale, Ariz., to stable from negative, citing continued improvement and solid liquidity.

As other Arizona cities took on long-term debt for professional sports facilities, the Phoenix suburb of Chandler gave Major League Baseball its walking papers and pursued more promising ventures. Spring training left but prosperity followed.

The Marana Unified School District near Tucson will ask voters for $125 million of bond authority in the Nov. 4 election for an array of projects.

Citing weak debt coverage, Standard & Poor's downgraded Arizona Health Network's revenue bonds to BBB from BBB-plus and retained a negative outlook.

Phoenix has formed a citizens committee to plan for expansion of the city's light-rail after Mayor Greg Stanton said he wanted to triple the length of the existing system over three decades.

Arizona Gov. Jan Brewer said the state will appeal a state district court order to restore $1.6 billion in school funding.