The Arizona House Appropriations Committee has unveiled its proposal for the budget year that begins July 1.
The budget proposal calls for an immediate $100 increase in the personal income tax exemption and ongoing adjustments for inflation after that, the Associated Press reported.
Gov. Doug Ducey has also urged changes to the personal income tax exemption, but didn’t go as far as the House proposal. Instead, he only sought to adjust it annually for inflation. That would save the average person $42 a year, according to the Arizona Republic.
Ducey’s plan would cost the state $2.8 million, while the House plan would cost $11 million, according to AP.
The House committee’s budget proposal also calls for funding for road projects, teacher raises, and school construction, the Arizona Republic reported.
“We’ve just got to negotiate with the executive on what can work and what goes where to end up with a structurally balanced budget,” House Speaker J.D. Mesnard told AP.