State tax collections continue to outpace expectations, and April general fund revenues were boosted by an unexpected spike in individual income tax collections.

Gov. Jan Brewer on Monday signed into law a new state budget that reflects the state’s improving finances.

The budget’s spending totals just under $8.6 billion for the 2012-2013 fiscal year starting July 1.

The Arizona Board of Regents began the legislative session seeing nothing in any budget proposal for two of its prime spending requests:

Money for parity among the three universities and for the Phoenix campus of the University of Arizona medical school.

The Arizona Supreme Court was able to work out a deal allowing the Legislature to take money from a variety of smaller accounts rather than a larger, more critical one that lawmakers were targeting.

A last-minute push to create the legal framework to reimburse recalled politicians for their campaign expenses died on the last day of session, after allies of former Sen. Russell Pearce failed to consolidate support behind the legislation.

The proposal could have paved the way for Pearce to get a reimbursement of more than $260,000 — the amount his campaign spent defending him last year, when he was ousted from the Senate in a recall election.

The GOP-controlled Senate today approved Gov. Jan Brewer’s proposal to overhaul the rules that govern state workers.

The measure seeks to remove workers from the state’s merit system, giving supervisors more flexibility in firing them.

The measure split the Senate along party lines.

Republican leaders quickly consolidated support behind an $8.6 billion budget plan and gave it final approval today, less than a week after finally reaching a deal with Gov. Jan Brewer.

The spending plan is a product of a session-long negotiation between Brewer and legislative leaders, and the give-and-take between the two sides is palpable throughout the budget document.

Housing advocacy organizations are crying foul over a proposed sweep of $50 million from a multistate mortgage settlement, and one group is threatening to sue to stop Gov. Jan Brewer and the Legislature from taking the money intended to ease the effects of a foreclosure crisis that hit Arizona harder than nearly any other state.

A budget deal between Gov. Jan Brewer and GOP leaders received quick approval in the Senate Rules committee this afternoon.

But Republican leaders indicated they’re open to tweaking the budget proposal before they vote on it, which could take place as early as Tuesday.

The Republican-led Legislature plans to approve an $8.6 billion spending plan for the state on Tuesday, shortly after Gov. Jan Brewer and GOP leaders sealed a budget agreement last week.