PHOENIX (AP) -- With the support of some Democrats, House Republican leaders on Monday proposed a $10.6 billion state budget for the fiscal year that begins July 1, with funds included for tax cuts, law-and-order initiatives and education.

Highlights of the House Republicans' proposal, which cleared an initial hurdle with acceptance of the main spending bill by the House Appropriations Committee, include $62 million of new tax relief, including a reduction in the corporate income tax and a new tax deduction for college savings plans.

The committee approved the main spending bill on a 13-4 vote, with three Democrats joining 10 Republicans in voting for it after the panel OK'd several Democratic amendments to boost spending for education, state employee pay and social programs. Four other Democrats voted against the spending bill (HB2781).

With the committee's acceptance of a Democratic amendment, the proposed budget would provide most state employees with a 3 percent pay raise.

Other elements include $15 million to combat illegal immigration, and dollars to expand the Phoenix campus of the University of Arizona medical school and accommodate thousands of additional private and public prison beds while spending cash to build new schools. That latter was a rejection of borrowing proposed by Democratic Gov. Janet Napolitano.

"The proposal does focus on education, public safety, economic prosperity, etc., but I do believe we have sound fiscal management all through the budget proposal," said House Majority Leader Tom Boone, R-Mesa. "Overall the proposal gives Arizonans what they want from government. That is a balanced budget with no tricks."

According to papers released by House Republicans, their budget would spend just over $10.6 billion, a 2.3 percent spending increase from the current fiscal year once proposed midyear adjustments are made.

The House Republicans' proposed budget does not include $5.9 million sought by Napolitano to increase a health care program for children nor $50 million sought by Napolitano to increase teacher pay.

However, the GOP-dominated Appropriations Committee accepted an amendment by Rep. Linda Lopez, D-Tucson, to add $8.3 million for teacher pay raises.

Republicans also noted that their budget already had $20 million of funding that school districts could use as they choose.

Lopez and Rep. Pete Rios, a Hayden Democrat who proposed the pay-raise amendment, formerly were the second- and third-ranking leaders of House Democrats but lost their leadership posts when their caucus chose leaders after the 2006 election.

Republicans' acceptance of the amendments "moved the budget in the direction that I want to see," said Rios.

However, one Republican criticized the proposal's overall spending as excessive and questionable, particularly $25 million to boost science research.

"It is perhaps even fascist in my view, and that's unfortunate," said Rep. Andy Biggs, R-Gilbert.

However, Biggs said he felt compelled to vote for the bill to try to fend off an even more unacceptable version from the Senate and "to get some Republican fingerprints on this bill."

Before the committee meeting, current House Democratic leaders complained that they had no meaningful input into the Republicans' offering.

A tax-cut advocate, Steve Voeller of the Arizona Free Enterprise Club, endorsed the proposed tax relief.

"In terms of size and scope, it's clear that this year's tax cut won't be like last year's," Voeller said in a reference to two years of 5 percent individual income tax cuts enacted last year. "But it's also clear that the House intends to keep the culture of meaningful tax relief alive and well."

Rep. David Lujan, D-Phoenix, said the tax relief, on top of that approved last year, meant lawmakers wouldn't be able to adequately fund public education.

Rep. Nancy McLain, R-Bullhead City, defended the tax cuts as valuable for enhancing the state's business climate.

"We could give a zillion dollars, literally, and there still would be some people that saw we underfund (education)," she said. "It's never enough."

The Appropriations Committee considered the budget proposal without taking public testimony. The meeting started about 2 1/2 hours after the bills were posted on the Internet.