Arizona Lawmakers Approve $9.6 Billion Budget

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PHOENIX - The Arizona legislature worked into early Wednesday morning to finish a controversial $9.6 billion budget package.

The Republican-controlled legislature passed the fiscal 2017 budget in the early morning hours without the support of Democrats, who held out for additional health coverage and education spending.

The budget they approved eliminates the state's long-running structural deficit to achieve its first balance since 2007, and spends $181 million on K-12 education and $86.5 million on transportation infrastructure, some of which is to be used to leverage additional federal infrastructure spending.

The budget includes $705 million in state support to universities.

Arizona Gov. Doug Ducey, a Republican, praised the budget, which closely resembled his own proposal.

"This budget would have been unattainable just 15 short months ago, when the state was in a billion dollar hole and government was living beyond its means," Ducey said. "Because of the decisions elected leaders made to set priorities, we are now in a position to make strategic investments in K-12 education, higher education, child safety and public safety."

The bill includes various cost-cutting measures that Ducey's office called "common sense consolidations," including the elimination of the Arizona Department of Weights and Measures and the consolidation of other government entities.

But Democrats blasted the budget as a "shameful failure of leadership" though it includes some things they supported, such as additional funding for local governments to repair neglected roadways.

"This budget does some good in areas for which legislative Democrats have long advocated, said Senate Democratic leader Katie Hobbs.

"But even then, we could do so much better for the people of Arizona," she said. "What this budget leaves on the cutting room floor is hundreds of millions in surplus revenue - a fraction of which could be used for a down payment on a true 'next step' toward adequately funding our K-12 schools, restoring the spiteful 12 month reduction of temporary assistance for needy families made in last year's budget back to 24 months, and prison reforms that prevent recidivism."

Hobbs was particularly incensed that Republicans refused to restore a program called KidsCare, which Democrats said would have provided health coverage to 30,000 Arizona children at no additional cost to the state. Republican legislative leaders had disputed that the program was actually free.

Arizonans will head to the polls to vote on additional education spending on May 17.

Proposition 123 would add $625 million in education funding over 10 years to K-12 students and settle a lawsuit on K-12 funding between the legislature and public schools.

The measure would not raise taxes for the vast majority of Arizonans, but would rely instead on revenue from a land trust owned by the state.

The state also approved a pension reform measure earlier this year that has been lauded by muni experts.

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