Arizona’s general fund has repaid the money it borrowed from the state when the fund dipped to zero in mid-April, Treasurer Dean Martin said last week.
The deficit averaged $198 million a day, but went as high as $340 million.
Arizona’s operating fund, which includes the general fund, had a positive balance of $48.3 million on April 29.
“The state general fund has repaid its 'overdraft protection’ exactly as we had predicted,” Martin said. “The general fund was in the red for 12 days, and is now back in the black, although just barely.”
Martin said the government may need to borrow again later this month unless new stimulus funds are received before this week’s payroll is due or the public schools’ payment on May 15th.
He said the state collects an average of $22 million a day in taxes and fees, but spends $27 million a day.
“As long as the state continues to spend more than it makes, this will happen again,” Martin said. “Legislative action is needed to address the state’s cash-flow deficiencies.”
The treasurer borrowed $339.3 million from an investment pool of hundreds of state government accounts.
Arizona issued nine treasurer warrant notes over the 12 red days that began April 15 to cover the state’s daily spending. The notes were issued daily to ensure the government was borrowing as little as possible.
The interest rate ranged from 0.51% to 0.57%. The total amount of interest paid by the state was $38,513.35.
The notes were used to cover expenditures, including payroll for state employees and public school teachers, tax refund checks, and payments to universities and public schools
