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.