The Governor today used her line item veto to mark out the parts of the budget she didn't like and was only willing to put up with if there was going to be an election in November for a temporary sales tax increase. Well, that never made it to the floor to be voted on by either legislative body. Brewer today called a special session bringing them all back with the agenda to fix the issues and pass the special sales tax. The state in the meantime is still functioning but nothing would surprise me at this point so I wouldn't say we're out of the woods.
Lots of stuff to read so here are the links.