Senate OKs $10.6B spending plan

Senate lawmakers passed a $10.6 billion state spending plan late Monday that includes more money to boost salaries for teachers and state employees, as well as more cash to keep prisoners behind bars.

The budget deal now moves to the House for approval, where it is expected to run into some resistance — especially from East Valley Republicans who think the tax cuts weren’t deep enough or that the agreement doesn’t include enough cash for local law enforcement to fight illegal immigration.

“The bottom line is this is a bad budget,” said Rep. Warde Nichols, R-Gilbert. “It also throws school choice and illegal immigration to the wind.”

Representatives are expected to vote on the budget either today or Wednesday. If it passes without major changes, Gov. Janet Napolitano has said she would sign off on the deal.

Although lawmakers craft and vote on hundreds of bills each year, the budget is the one action the Legislature is constitutionally bound to accomplish. The new fiscal year starts July 1.

EDUCATION

Arizona’s education system takes up the largest percentage of the state budget — roughly 40 percent. This year, spending on education will grow by $335 million, representing an 8.3 percent increase over last year. The money will go toward:

• $46 million for teacher pay raises.

• $3 million to increase per-pupil funding for charter schools,

• $27 million for a Joint Technical Education District that includes the East Valley Institute of Technology.

• $20 million aimed at raising enrollment in the state’s universities.

• $30 million to help keep teachers and students at state universities.

• $2.3 million to retain and recruit math and science teachers

TAX CUTS

Republican leaders in the House had pushed for a nearly $60 million taxreduction package that included a $30 million cut in corporate income taxes. But they didn’t get what they wanted. Instead, they settled for the more modest $11 million tax cut that includes:

• $7 million to cut business property taxes.

• $3 million in tax credits to encourage parents to save for their children’s college education.

• $1 million tax credit that goes toward family members of injured soldiers. The money would help family members pay to visit them in the hospital.

PUBLIC SAFETY

Lawmakers want more walls, bars and guards for Arizona’s overcrowded prison system. They also set aside some cash to go after what is perceived as a growing street-gang problem, as well some money to investigate and prosecute businesses that knowingly hire illegal immigrants. Here are some of the highlights:

• $200 million for 4,000 prison beds.

• $4.5 million to pay for additional gang and border security.

• $2.8 million to investigate and penalize businesses that knowingly hire illegal immigrants.

• $2.6 million for salary increases for employees in the state attorney general’s office.

• $3 million increase for private prison companies to house state prisoners.

PORK

After lawmakers budget money for all the state agencies and programs, there’s usually some cash left over to pay for special projects — sometimes referred to as pork. Insiders at the Capitol call it “The Box.” This year, there was $29.5 million left in The Box to pay for:

• $1 million for a welcome center in Yuma.

• $150,000 to guard against copper-wire theft.

• $100,000 to build a World War II memorial in Tucson.

• $1 million for Arizona State University’s Criminal Justice program.

• $2.6 million for private prison companies.

By the numbers

The tentative $10.6 billion budget deal marks a 2.3 percent increase in spending over last year’s $10.4 billion figure. That money goes to pay for the state’s business, which includes:

$4.3B for the Department of Education

$1.2B to run the Arizona Health Care Cost Containment System

$880M for the Arizona Department of Corrections

$58M for the state Legislature. That includes the auditor general, state library, archives and public records, House of Representatives and the Senate