State lawmakers agreed late Thursday on a combination of raiding the state's bank, budget cuts and short-term borrowing to finally bring the current state budget into balance.

The deal, which got the blessing of Gov. Janet Napolitano, essentially employs all of the least complicated methods of bringing expenses into line with revenues. At this point, estimates are the budget is $1.2 billion in the red.

And the situation could get worse if tax collections between now and June 30 continue to defy expectations.

This package fills that gap largely by taking $487 million out of the state's "rainy day" fund, with another $300 million coming out of special funds earmarked for other purposes. It also means no major cuts for most state agencies, though the three state universities will have to slash spending by a combined $14.7 million, with the exact split determined by the state Board of Regents.

But in agreeing to the immediate fix, Democrat and Republican legislative leaders simply deferred the more difficult decisions on how to balance next year's budget and a deficit approaching $2 billion.

In fact, one of the "budget cuts" for this year actually makes next year's problem worse: The state will delay $272 million it is supposed to pay public schools in June until the following month - and, more to the point, the following fiscal year.

But that just puts the $272 million obligation on top of the $2 billion shortfall.

Not everyone was happy with that prospect.

Sen. Ken Cheuvront, D-Phoenix, called this plan "irresponsible'' because it relies heavily on "accounting gimmicks" and does not make deep enough spending cuts, leaving the state in a fiscally precarious position next year. And Sen. Karen Johnson called the package "pretty much smoke and mirrors."

But Sen. John Huppenthal, R-Chandler, called the measure "a good start." Most senators agreed, approving the package on a 24-5 margin; the House voted 53-3 for the plan.

Despite that, a sharp divide does remain over how lawmakers will bridge next year's $2 billion gap. Napolitano wants to save operating cash by borrowing money for school construction. In fact, her financial advisers conclude the state can borrow money next budget year not only for more than $450 million in schools to be financed then, but even $318 million for schools actually paid for this fiscal year, making that much more cash available to balance next year's budget.

Many Republican lawmakers have balked at long-term bonding, which is why it is not part of the budget package. But even Senate President Tim Bee, R-Tucson, admitted Thursday there are few alternatives.

"The problem in (fiscal year) 2009 is so big we will utilize virtually every tool available to us," he said.

Senate Majority Leader Thayer Verschoor, R-Gilbert, said the big fight will be how much to borrow - which goes directly to the issue of how much to cut state spending.

But Senate Minority Leader Marsha Arzberger, D-Willcox, said there are other options, like the "revenue enhancements" proposed by Napolitano.

Key among them is having the state collect $90 million in net new revenue from the more than 170 fixed and mobile photo radar cameras she has directed the state Department of Public Safety to order.