Recent approaches to large vocabulary decoding with finite state graphs have focused on the use of state minimization algorithms to produce relatively compact graphs. This paper extends the finite state approach by developing complementary arc-minimization techniques. The use of these techniques in concert with state minimization allows us to statically compile decoding graphs in which the acoustic models utilize a full word of cross-word context. This is in significant contrast to typical systems which use only a single phone. We show that the particular arc-minimization problem that arises is in fact an NP-complete combinatorial optimization problem, and describe the reduction from 3-SAT. We present experimental results that illustrate the moderate sizes and runtimes of graphs for the Switchboard task.