State Budget ~ Positive Aspects

This past session the Legislature approved a $10.6 Billion dollar state budget package. This post will address some of the positive aspects of the budget, though they are few and far between.

The tax package includes $10.5 million in tax reductions, this years's carry over from the last legislative session amounted to $400 million. We increased the Budget Stabilization Fund (BSF or Rainy Day Fund) by 7% or $705 Million for this fiscal year. (I am not a fan of the rainy day fund but that is another post.) We also implemented legislation that allows Arizonans to contribute tax-free to a child's college 529 savings plan. The annual deduction is $750 dollars for individuals and $1,5000 for married couples.

Other notable provisions include:

• $500 Million for Highway Funding
• $46 Million for Teacher Pay Raises
• $120 Million for School Construction
• 4000 new prison beds
• $68.8 Million (3.25%) State Employee Pay Raises

Coming Soon: State Budget ~ Negative Aspects!