Arizona agency says financing vital to avoid IOUs is on track to get cash in January

Arizona agency says new state financing on track

PHOENIX — The state says it’s on track to obtain new financing that Treasurer Dean Martin says Arizona needs to avoid having to issue IOUs for state paychecks and other payments in February.

The state plans to sell securities to investors to raise $735 million through sale-leaseback deals on about a dozen state buildings and other facilities. Department of Administration spokesman Alan Ecker said Tuesday his office is “on track” to get the money in January.

Martin said Monday that the state will use up its current borrowing sources by January and will need the sale-lease money to cover a school aid payment in early February.

According to Martin, alternatives would include issuing IOUs and getting legislative permission to delay the aid payment.