As reprinted from 02/25/2010

PHOENIX (AP) — State Treasurer Dean Martin says the state should refinance billions of dollars of current debt to raise upfront cash to help avert budget cuts.

Martin included the debt refinancing as part of a package that would ask voters to place tougher limits on state borrowing, including a prohibition on new state general-obligation debt without voter approval.

Martin, a candidate for the Republican nomination for governor, said Thursday his proposal would extend current debt to 20 years with the current annual payment of $452 million.

He said that would provide $820 million in the next fiscal year — money that he said could be used to avert further budget cuts if voters reject a temporary sales tax proposed by Gov. Jan Brewer.