Arizona uses federal COVID-19 money to reduce spending in the state

Posted at 3:08 PM, Nov 27, 2020

PHOENIX — Arizona Gov. Doug Ducey has funneled nearly $400 million of federal coronavirus relief funding to state agencies to help pay for operations, allowing them to return some of their original budget allocations to the state treasury.

Ducey’s office says the move is prudent budgeting that will help Arizona avoid a severe fiscal crunch, but Jared Walczak of the Tax Foundation's Center for Tax Policy calls it's a “very aggressive interpretation" of federal rules.

Arizona on Friday reported 4,314 additional confirmed cases and 20 deaths.

Earlier this week, experts at Arizona State University said the state could be hitting hospital capacity in 1-2 weeks.