Maricopa County offers state $1B loan to fight coronavirus pandemic

Jul 22, 2020, 4:15 AM | Updated: 5:19 am

(Maricopa County Board of Supervisors Photo)

PHOENIX — Maricopa County on Tuesday offered the state of Arizona a $1 billion loan to aid its response to the coronavirus pandemic.

The funds would be allocated from the county’s investment portfolio, which recorded an annual high balance of $6.7 billion in June, according to a press release.

Maricopa County’s investment of property taxes is primarily limited to bonds and securities, and since interest rates on bonds are currently near 0%, Maricopa County Treasurer Royce Flora told KTAR News 92.3 FM that now would be an opportune time for the state to accept the loan proposal.

“Rather than just have that money sitting there not earning anything, we could loan it to the state to benefit the taxpayers of Arizona,” Flora said.

“We can either charge interest or not charge interest, depending on what the governor and the legislature wants to do.

“With the interest rates so, low it doesn’t hurt anybody, it doesn’t affect our cashflow — the only impact to us would be down the road … in that we would see a small reduction in our interest earnings.”

Flora added that the projected reduction is difficult to calculate since interest rates are so low.

New legislation would be required for the state to accept the loan, which would have to be preceded by Gov. Doug Ducey calling a special legislative session.

Flora said he contacted Ducey earlier on Tuesday but had not heard back from the governor or his office.

“None of my calls have ever been returned — nobody down there [the governor’s office] seems to acknowledge our existence,” he said.

Flora added that he’s been contacted by members of the state legislature who are interested in the proposal, but said whether or not it’s a good idea will depend on how representative would vote to spend the funds.

KTAR News 92.3 FM’s Martha Maurer contributed to this report.

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