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PHOENIX (AP) — A tentative agreement announced Monday between Republican Senate and House leaders and Gov. Doug Ducey boosts spending in the coming budget year by about $100 million above what Ducey proposed in January.
The bottom line budget plan includes $9.58 billion in spending, and includes extra cash for universities, K-12 schools and county and city roadbuilding, Senate Majority Leader Steve Yarbrough said. The plan also includes the end to some budget-balancing gimmicks dating to the Great Recession for universities and social service and child safety agencies, leaving only K-12 schools still subject to the years-old maneuver that shifts spending into the following budget year.
Also in the deal are $26 million in tax cuts, many going to businesses. They include $8 million to speed depreciation for new equipment, a $47 million expansion of a tax cut on power used by manufacturers, and a property tax break for Grand Canyon University, a private Christian college in west Phoenix, Yarbrough said. Another tax cut helps charities by increasing the amount people can donate and get a dollar for dollar tax credit, and there are several others.
Republican lawmakers were briefed Monday on the budget deal. Formal introduction of the legislation is expected to come Tuesday.
"I think the universities may very well be greatest beneficiary of what we're trying to accomplish," Yarbrough said. That includes $32 million in new spending, well above the $8 million proposed by Ducey. The budget also includes a $200 million payment to eliminate a roll-over that delayed current year payments.
The agreement came after a week of daily meetings between Gov. Doug Ducey's aides and Republican leadership in the House and Senate.
Rank and file lawmakers will be briefed starting Monday, said Stephanie Grisham, spokeswoman for House Speaker David Gowan.
Many members have been pushing for additional spending above the tight $9.5 billion plan proposed by Ducey in January and vowed not to support any proposal that didn't include their priorities.
An agreement between the leaders would be worthless unless it can garner 31 House votes, 16 Senate votes and Ducey's signature.
Senate Appropriations Committee chairman Don Shooter said it's the first budget in his six years in office in which the state will be able to boost spending significantly to address major needs.
"It's a magnificent feeling, I must say," Shooter said. "I think people might be pleasantly surprised - it's a little bit different than it's been the last five years because we are finally beginning to turn the corner financially.
"It's still a very conservative budget, don't get me wrong," he added.
The House and Senate appropriations chairmen are key to budget agreements because they participating in negotiations with Senate President Andy Biggs and Gowan.
The January budget proposal by Ducey left in place much of a budget surplus expected to top $600 million by July 1, 2017.
"We're definitely not sitting on that money — we're making a variety of significant one-time expenditures, one of which are the three reductions to the deferrals," Yarbrough said.
But many lawmakers, especially in the Arizona House, were pushing for added spending for universities, K-12 schools, and county and city roadbuilding.
The details on total new school funding weren't immediately available, but Yarbrough said they also came out ahead of the governor's budget. There also is a partial rollback of cuts to district-sponsored charter schools and a partial payment to help ease a change to how schools paid per student.
That's not enough for Rep. T.J. Shope, R-Coolidge, who said House leaders appear to have hit a lot of the major issues in their negotiations but fell short on school funding.
"Especially on the K-12 side, I don't think the numbers are close to where I need them to be to give a yes vote to," Shope said. "I think in this climate with prop 123 especially, I think we truly need to be showing we're giving a fresh start to our funding priorities for education.
Another key component for many House members was restoring a health care program for low-income children known as KidsCare. That proposal passed the House but was opposed by Biggs and isn't in the budget plan, Yarbrough said.
"If it is not in there I will more than happy to support an amendment that has it in there," Shope said.
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