Republican leaders in the Arizona Legislature and Gov. Doug Ducey have agreed on a $9.8 billion spending plan for the budget year beginning July 1 that includes cash allowing the state's three universities make payments on a $1 billion bonding program.
It also includes much bigger teacher raises than Ducey sought.
The university bonding remains the most contentious portion of the spending plan and still could delay passage. The final agreement faces opposition from some Republicans, but House and Senate leaders plan to introduce legislation anyway on Tuesday.
The agreement uses general fund cash for university bonding instead of sales taxes.
The agreement also adds $30 million in highway funding for cities and counties and includes much of the $114 million in new K-12 education spending the Republican governor wanted.