An $8.3 billion balanced budget that expands school choice for Arizona families, provides an economic stimulus package through tax relief and offers substantial teacher pay increases was passed by the Legislature early May 6.

A press release from Senate President Ken Bennett and House Speaker Jim Weiers describes the plan as “fiscally responsible.”

The Legislature will send the budget to Governor Napolitano for her signature next week.

The plan, according to both leaders, pays cash for new schools rather than “continuing the practice of mortgaging Arizona’s future through borrowing hundreds of millions of dollars. Children, families, teachers and public safety all benefit substantially through increases in education spending, higher pay for DPS and correctional officers and the expansion of Arizona’s trend setting school choice options.”

“I am very pleased that the hard work legislators have put in throughout the process has resulted in a budget that features tax relief, fiscal responsibility and expansion of school choice. This is a bipartisan budget built on strong Republican principles,” Mr. Bennett said.

Mr Weiers echoed the statement. “This Republican budget represents a clear vision that moves Arizona forward and protects our taxpayers and their families. I am proud of the job our legislators have done and I am pleased with the fiscally responsible budget that we gave to the people of Arizona.”

The budget includes:

•Expands school choice by creating a corporate tuition tax credit to fund scholarships for Arizona children from lower income families to attend the school of their choice.

•Reduces business property values for tax purposes by 20 per cent over the next 10 years while protecting homeowners.

•Eliminates the marriage penalty in the state income tax code for tax credits over the next two years.

•Conforms Arizona law to take advantage of President Bush’s tax cuts, including tsunami relief deductions and adds indexing for inflation for personal deductions in state income tax code.

•No new debt — pays $250 million cash for new schools.

•Keeps $163 million in rainy day fund for emergencies, and puts all additional revenues for ’06 into the fund.

•No new or increased taxes required to balance budget.

•Fully funds basic education formula with a $126 million increase for schools.

•Provides additional $45 million for teacher salaries or smaller class sizes.

·Provides $17 million to fund second year implementation for full day kindergarten, while requiring that children must be 5 years old by September 1st for state funded full-day K and requiring a comprehensive review of the academic literature and research on full-day kindergarten and longitudinal studies that assess the long-term academic impact of full day kindergarten instruction.

•Provides $6 million more for funding of Developmental Disabilities providers and $14.8 million more for caseload growth for long-term care.

•Provides $4 million in special assistance to rural hospitals.

•Provides additional $4 million for Alzheimer’s research and $203,300 more for breast and cervical cancer services.

•Includes $1 million for abstinence funding and continues funding of $1.2 million for marriage skills training.

•Adds $259,500 to draw down $4 million in federal funds for services for the elderly.

•Fully funds community college state aid formula with an increase of $8.8 million.

•Fully funds enrollment growth at the universities with an additional $14.5 million.

•Provides a 5.5 per cent pay raise for DPS officers starting July 1, 2005 and adds 28 new highway patrol officers at $3.5 million.

•Adds $1.6 million to begin multi-year upgrade of DPS communication system.

•Provides pay increase for correctional officers of $1410 each.

•Funds $3.5 million to the Department of Corrections for implementation of Blue Ribbon Panel recommendations resulting from the 2004 Lewis Prison escape attempt.

•Provides $6.6 million to the Department of Juvenile Corrections to provide renovations and staffing required to meet needs addressed in recent federal audit.

•Increases funding by $846,000 for college and university tuition grants to members of the National Guard.

•Adds $32 million for a 1.7 per cent pay raise for state employees starting July 1, 2005.

•Fully funds healthcare formulas with approximately $200 million more for AHCCCS and $60 million more for mental health services.

•Additional $12.5 million to increase reimbursements for foster care by 12.5 per cent.

•Additional $9.3 million for a 12.5 per cent increase for adoption services.

•Provides $11.2 million for child care caseload with reforms such as a five year limit per child.

•Provides additional $9 million for CPS caseworkers.