For the first time ever, Arizona needs to borrow money to pay its bills.
State Treasurer Dean Martin estimates the state will need to borrow $700 million to get it through revenue shortfalls through June 30.
As of Tuesday, Martin said the state went over $500 million in IOUs and would need to turn to institutional lenders. Up to now, the state has been borrowing against internal accounts.
State lawmakers convening Tuesday for a special legislative session on the budget said it shows the dire financial situation Arizona faces.