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PHOENIX (AP) — The Arizona Legislature has passed a $9.6 billion budget after debating a package that left out a health insurance program for children of the working poor that supportive Republicans failed to include in the proposal.
Lawmakers debated until nearly 2 a.m. Wednesday before giving final approval to a spending package for the state budget year beginning July 1.
After a week spent wrangling over additional funding for K-12 schools that wasn't in the initial budget agreement, lawmakers included a small increase for several school line items.
Democrats unsuccessfully sought to restore a health insurance program for children from families of the working poor that was closed to enrollment in 2010 amid a state funding crunch.
That effort appeared to fall victim to politics Tuesday despite weeks of effort by its Republican backers to get it into the budget.
Arizona remains the only state that doesn't participate in the Children's Health Insurance Program, known in Arizona as KidsCare. A proposal to resume participating in KidsCare passed the House by a wide margin on in March. It stalled in the Senate after President Andy Biggs refused to hear it.
Biggs has blocked the proposal because he's opposed to the Affordable Care Act and is worried the federal government will cut payments and force Arizona to pick up more of the tab.
Advocates who want the program restarted rallied at the Capitol on Monday in a last-ditch effort. KidsCare once covered more than 63,000 children, but fewer than 1,000 now have the insurance.
Gov. Doug Ducey had said he was open to the health insurance proposal but didn't press for the coverage for 30,000 low-income children when the Legislature passed the budget package.
Biggs previously said it isn't that easy to cut off insurance if federal funding drops once 30,000 or so children are insured.
Rep. Regina Cobb, R-Kingman, planned to add the provision to the budget but pulled back at the last minute because of opposition from some in her own caucus that could have scuttled the budget deal.
"There's a lot of things that are going on in this budget — there are a lot of areas that I felt very strongly about," Cobb said. "And I was not willing to give up all of the other things for this one issue."
Cobb said she's hoping Biggs will still consider her stand-alone bill, and if not she'll return with the proposal again next year.
Both House and Senate Democrats tried to get their own version of Cobb's bill onto a budget proposal, but were unsuccessful.
Minority Democrats complained that continuing to cut taxes every year creates a constant cycle of funding shortfalls that Republicans use as an excuse to cut more spending. But lawmakers pressed ahead, with the Senate passing a series of tax breaks that are part of a $26 million package that mainly benefits businesses.
Democrats tried to amend a revenue bill to add a five-year freeze on the phase-in of corporate income tax cuts and to block a yearly, 20-percent increase in a private school tax credit program.
"As we continue these corporate tax cuts, we continue to cut funding for public schools," said Rep. Lisa Otondo, D-Yuma.
Republicans blocked the effort, with one saying there will never be enough revenue to meet all the needs that some people believe exist.
"The flavors of the day that I see are that a structurally balanced budget is evil and bad. Even though it's is a constitutional requirement for the state of Arizona," said rep. Bob Thorpe, R-Flagstaff. "Corporations are evil, even though they hire the families that need jobs."
The minority party also tried to add an additional $116 million to the K-12 school budget, which totals $4 billion for about 1 million public school children. They pointed to the upcoming vote on a school funding referendum known as Proposition 123 as the promised first step and the small budget increase in the state funding proposal as inadequate.
"There are many, many holes left - many, many issues left," said Rep. Randy Friese, D-Tucson. "It's just not enough - it's not an adequate second step."
But Republican Rep. Eddie Farnsworth, D-Gilbert, said K-12 schools and universities take the largest part of the state budget and are obviously the top priority for Republicans.
"It seems to me that when we spend over 50 percent of the budget — billions and billions of dollars — that there has to be some level of commitment," Farnsworth said.
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