Arizona's Upcoming Bankruptcy is starting to get some attention.

Here's the latest from the Wall Street Journal.

In Arizona, Republican Gov. Jan Brewer convened a special legislative session Thursday to consider about $200 million in spending cuts and fund transfers. Although the state made $452 million in budget cuts and other changes in November, slumping tax collections mean the legislature faces a $1.6 billion shortfall.

Arizona took out a $700 million credit line from Bank of America Corp. in November to pay bills, but that credit line was spent within days. State Treasurer Dean Martin said if the state wasn't able to raise an expected $737 million next month by selling several buildings, Arizona might have to issue IOUs.

Comments

[Thane Eichenauer]

I've read elsewhere

http://arizona.typepad.com/blog/2009/11/accidental-governor-flipflops-on-education-concedes-defeat-to-gop-insane-clown-posse.html

that a state government cannot file for bankruptcy. Can it or can't it?

[PW]

The interesting moment is going to be when Arizona seeks federal assistance... A very red state, with Senators who block Obama's bills, a former Governor in the Cabinet, and a bunch of folks in the state GOP who would rather slide down a razor blade than take federal dollars.

[nick]

Arizona would have received a gazillion
Obama Bucks if it elected any democrat to
the Senate.

[ron]

The state should do like it did in Fife's day -- take the Fed money, put it in the bank, collect the interest and then send the money back....

[nick]

Fife served when Arizona did not elect drunken sailors spending the 20 year enlistment bonus during several years.

[ron]

nick, LOL!

[Joe]

Maybe we should start charging snowbirds a "good weather" tax.