As reprinted from 03/13/2008

Treasurer says state's no-cash date moving up

PHOENIX (AP) - Treasurer Dean Martin says the worsening revenue shortfall means the state general fund will run of cash it can legally spend earlier than the previous estimate of late May.

Martin says his office is fine-tuning its calculations and expects to project a new no-cash date by next week.

But the treasurer says the increased size of the estimated shortfall likely moves up the date when there's no cash in the general fund to early May or even late April.

That adds to pressure on legislative leaders who have yet to hammer out a budget compromise after two months of close-door talks. Gov. Janet Napolitano is now a participant.

Martin says the state will have money in other accounts but that legislative authorization would be needed to spend those dollars to pay the regular expenses of state government.

Associated Press Writer