The Republican-controlled Legislature voted along party lines last week to freeze $581 million in state spending to spark negotiations on dealing with Arizona’s anticipated revenue shortfall in fiscal 2008 of $1.2 billion.

The measure, which Democratic Gov. Janet Napolitano is expected to veto, would suspend $260 million in spending by state agencies along with $321 million in spending from special program fund balances.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.