Governor Napolitano has presented a FY2007 budget to the Legislature.

The proposal includes the statewide implementation of voluntary full-day kindergarten; a raise for every school teacher in the state; approaches to reinforce the rule of law at the Arizona-Mexico border; tax relief; healthcare;

investment in science and technology-based business growth and increased number of law enforcement officers.

“Although Arizona’s revenues are very good right now, we know this won’t last forever,” said Governor Napolitano. “We need to be smart about how we use the money. My budget pays off our old debts, deposits money to savings, and invests in the kinds of things that bring future success: the education of our children, health care, and the development of cutting-edge technology that will turn into cutting-edge products.”

The initiatives amount to only 2.7 percent of the Governor’s budget proposal. The majority of the budget pays for mandates required by law: prison beds, public health, and school construction.

Also included in the budget:

Health care tax breaks: an income tax credit of up to $1,000 is offered to small businesses (2 – 24 employees) that currently offer or will begin offering health insurance to their employees. Small businesses can also take advantage of a premium subsidy for low-income workers.

Sales tax holiday: a three-day sales tax “holiday” for school supplies, clothing and computer equipment. There are caps in place to prevent state overspending.

Vehicle license-tax reductions: for high mile-per-gallon personal cars and trucks.