THE $10.6 BIL BUDGET, HOW IT BREAKS DOWN
The House Republican budget proposal is $10.6 billion worth of spending, up 2.3 percent over this year's budget. It affects state programs from prisons to schools to obscure boards such as the Board of Physical Therapy Examiners. Here are some highlights of the plan, unveiled Monday, and what could lie ahead:
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Money for programs
Every budget plan continues funding for ongoing programs. Here are areas where Republicans propose an increase in spending:
Education
* $187 million to cover enrollment growth, plus $94 million to pay for a 2 percent inflation factor for school budgets. This $28 million increase over current year spending will keep schools even with growth.
* $20 million for additional funding.
* $80 million that can be applied to all-day kindergarten or, if a school district chooses, other priorities.
* $8.7 million for additional teacher pay. This was an amendment successfully pushed by Rep. Linda Lopez, D-Tucson.
* $120 million in new funding for school construction (on top of $250 million already in the budget).
Transportation
* $62 million to accelerate road-construction projects.
* No increase in the 20-year limit on highway bonds. (The governor has proposed 30 years.)
Public Safety
* $65 million to cover growth in the prison population. This would pay for 4,000 beds, with half coming from state funds and half from private contractors.
* $15 million for illegal immigration.
* $2 million for raises for state Department of Public Safety officers.
Miscellaneous
* 3 percent employee pay raise. (Republicans had proposed 2.5 percent, but an amendment from Rep. Pete Rios, D-Hayden, successfully boosted it.)
* $25 million for Science Foundation Arizona, to stimulate growth in Arizona's bioscience sector.
* $30 million to the Arizona Board of Regents for various university programs.
* $8 million for the University of Arizona medical campus in downtown Phoenix. This would pay for expanding the program to 48 students from 24.
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Tax relief included
The proposal also calls for $272 million in tax relief. But of that amount, $212 million was approved last year and continues into the coming budget year.
Such as a 5 percent cut in the individual income tax that was approved last year for tax year 2007. Its estimated cost is $178 million.
Some of the new cuts, totaling $59.6 million:
* A cut in the corporate income tax, to 6.8 percent. Republicans say it is business' turn to get some tax relief, given that the top individual income-tax rate is much lower. The cut would take $28.5 million from state collections.
* Tax deductions for people who contribute to college-savings plans (up to $2,500 for individuals and $5,000 for couples). A cost of $10 million.
* Expansion of the research-and-development tax credits to spur high-end jobs. A cost of $5 million.
* Speeding up by four years the period over which the state cuts the ratio at which business equipment is assessed for tax purposes. A cost of $3 million.
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What's next?
In the House:
The GOP leadership will consider changes proposed to the budget plan, then take the plan to the House floor for a full vote.
"This isn't the end, of course," House Majority Leader Tom Boone said. For example, lawmakers will consider whether to add funding for the Arizona State Veteran Home, a recommendation that just came out last week and has yet to be considered by a joint legislative committee that is looking at the home's problems.
Lawmakers also have to decide what to do with a late $8 million request from Health Care Group to subsidize its medical insurance.
Boone said the budget plan will be put up for a vote "as soon as we can do it." He did not commit himself to any timelines.
In the Senate:
Bipartisan negotiations continued Monday evening between Senate Republicans and Democrats. Their budget proposal has the buy-in of House Democrats, as well as Gov. Janet Napolitano, leading most to speculate that this is the budget that will set the pace at the Capitol.
Senate Majority Whip John Huppenthal, R-Chandler, said the Senate has one significant hurdle to clear. He declined to identify it.
"We're getting close," he said about unveiling a budget. "Of course, it's been getting close for weeks."
And then?
After the House and Senate agree on a budget plan and pass it, they most likely will enter negotiations with Napolitano. When a consensus is reached, the Legislature should be able to wrap up work and go home.
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VOICES ON THE BUDGET
Although crafted by House Republicans, the budget drew some Democratic support and some nose-holding by Republicans. Here's what they were saying Monday:
"It supports Arizona business and families, striking a balance, if you will."
-- House Majority Leader Tom Boone, R-Peoria, on the tax-cut package. The business relief comes from cuts in the corporate income tax, research-and-development tax credits and accelerating the pace at which a business-equipment tax is reduced. Families would benefit from such things as tax deductions for college savings and tax credits for charitable donations.
"This is a horrible bill." -- Rep. Andy Biggs, R-Gilbert. However, Biggs said he would vote to move the package along lest it get overtaken by the yet-to-be-unveiled Senate proposal, which he called "more disgusting than ours."
"I saw this budget for the first time about three hours ago." -- Rep. David Schapira, D-Tempe, about 1 1/2 hours into the budget discussion. Like other Democrats, he complained there was no time to dig into the budget plan because it was released around noon Monday.
"I can't believe we're talking about passing this when we still haven't solved Flores." -- Rep. David Lujan, D-Phoenix. He said the education portion of the budget would be better off if it contained the cost of educating students who are deficient in English, instead of continuing to fight it in federal court. The Flores lawsuit deals with English-language learners.
"This is a budget that is probably too
generous." -- Rep. Russell Pearce, R-Mesa.