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Lower state revenue gain in new Arizona forecast

Differing revenue forecasts pose a challenge for Republican Gov. Jan Brewer and Republican legislative leaders to resolve as they continue negotiations over spending increases proposed by Brewer.

A calculation of how much the state will collect from taxes is a key ingredient in preparation of a new state budget.

Legislative budget analysts on Thursday lowered their predictions for state revenue growth in the next three years, while Brewer’s revenue projections remain higher than the legislative versions.

Some majority Republicans want to avoid spending increases and instead tuck away any extra money for use when the state faces increased Medicaid costs under the federal health care overhaul.

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