Capital Financing for the state of Arizona Research Paper

Capital Financing for the state of Arizona - Research Paper Example Funding for project financing was an important consideration in the recently issued Budget for the State of Arizona. While deciding on the type of project financing funding availability, important factor that must be considered is that project financing funding depends on the cash flow needs. Hence, the amount of cash required in the project undertaken will guide in deciding about the type of project financing available. The State of Arizona imposes a limit on the amount of debt service. The amount limit is $800 million for HURF debt. The requirements of revenue coverage ratio imposes limit on other types of debt offered in Arizona (Rowell, Buonincontri, & Semmens, 199, p.13). The State of Arizona is open to use of alternative sources of financing for capital projects. One such example is the State of Arizona requiring an alternative financing for lease purchase of the State properties. The State will be achieving such financing requirement though issue of certificate of participation. It will be done in publicly operating debt market. Other innovative techniques used are: Autonomous state authorities in Arizona work independently and make their own decisions. There are some autonomous State Authorities, not included in the budget that has major public capital spending. Arizona Health Care Cost Containment System (AHCCCS) is one such autonomous state authority which does major capital spending in the State of Arizona. Arizona Toll Ways is also another such State Authority which runs independently. Almost all the public capital spending is included in the State Capital Budget with the exception of Arizona Department of Transportation, which has major public capital spending in the State of Arizona but it is not included in the Capital Budget of the