Multiple points:
It takes $1.25 million to string a couple of ropes over a road?
They're claiming it will save five squirrels a year. This expenditure doesn't address the ongoing cost of training the squirrels over multiple generations to cross at the rope instead of jaywalking. We can't even train humans to do that. It might save one or two at best.
Arizona takes and spends $1.30 of federal taxpayers' money for every $1.00 it sends.
http://www.infoplease.com/ipa/A0923084.html
California spends about $0.79 for every dollar it sends. Part of California's financial trouble comes from the fact that California is paying for Arizona's liberal spending squirrel lovers.
