Arizona

Phoenix Mayor Phil Gordon said last week that a temporary increase in the city’s sales tax could prevent additional cuts in municipal services that have already been pared down significantly.

DALLAS — Amid a continuing plunge in revenues, transportation planners in the Phoenix area are cutting nearly $7 billion from a $16 billion freeway program financed through revenue bonds.

DALLAS — The Arizona Department of Transportation estimates it would have to fire up to 60% of its workforce, halt all non-emergency maintenance, and close all highway rest stops under a legislative plan to close a $2 billion budget shortfall.

DALLAS ­— With its credit outlook already negative from two rating agencies, Arizona faces increasing pressure to balance its budget after the state’s projected revenue shortfall soared to $2 billion.

DALLAS — Regional transportation planners in the Phoenix area will take the first step toward a rail link to the western suburb of Glendale next week with the $878,000 study of the new route.

The Rio Nuevo Multipurpose Facilities District will sell $11.8 million of certificates of participation in a negotiated sale this week to finance site work and design and development efforts for a downtown hotel as part of the Tucson Convention Center expansion project.

A significant drop in sales tax revenue may require Phoenix to reduce its bus system’s $171 million annual operating budget by $16 million in fiscal 2011 to avoid an operating fund deficit.

DALLAS — Arizona’s Salt River Project Agricultural Improvement and Power District is preparing to sell $325 million of electric revenue bonds by the end of the month to refund all but $50 million of the utility’s commercial paper.

DALLAS — With Arizona’s double-A rating on negative outlook from two rating agencies, Treasurer Dean Martin is again warning that failure to fix a $1 billion budget deficit will continue to raise the cost of doing business.