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Lawmakers approve state budget just before 2 a.m.

Lawmakers were up into the early morning, passing the state budget just before 2 a.m. Wednesday. 

PHOENIX - Lawmakers were up into the early morning, passing the state budget just before 2 a.m. Wednesday.

The $9.6 billion budget was approved after a week spent wrangling over additional funding for K-12 schools that wasn't included in the initial agreement.

Lawmakers delayed a policy that would have cost schools $31 million, because of a change enacted last year to fund schools based on current-year attendance instead of prior-year attendance.

They also provided some funding to mitigate cuts approved last year to district-sponsored charter schools.

The vote approved plans to fund $8 million in tax cuts for businesses that can now quickly depreciate the deduction they take for new equipment purchases.

Other than additional funding to K-12 education, another big clash between Democrats and Republicans was cutting KidsCare, which backers said provides insurance to 30,000 Arizonan children.

MORE: Health plan for needy kids rejected by Arizona lawmakers

The prime Republican sponsor withdrew her proposal to reinstate the program. This means Arizona will retain its status as the only state without active children's health insurance.

Democrats argued the program is federally funded and would not cost the state any money.

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