PHOENIX ÷ The state will spare UA and the Arizona Health Sciences Center from further budget cuts, at least until next July.

Democratic Gov. Janet Napolitano and Republican leaders of the legislature reached the compromise yesterday.

"That's really, really good news," said Provost George Davis. "It's hard to imagine that they would have put all the cuts on the state agencies right now."

Saying that it was too late in the fiscal year for state agencies to plan for further cuts before July 1, Napolitano and legislators found a way to plug this year's $300 million deficit. They plan to move money between accounts, delay K-12 repair projects and delay payment on a major settlement against the state.

Earlier this month Republican legislators proposed cutting the UA and health sciences budget by $15.9 million this year and $19.4 million next year.

On Tuesday, House Speaker Jake Flake (R-Snowflake) said that Republican lawmakers were looking to cut the university's budget by about $15 million next year.

Lawmakers are hinting that what wasn't cut this time around at various state agencies may fall on the chopping block after July.

This proposal "puts to bed the alligator that is the (2003) budget, and now we can get on to the dragon of '04," said Republican President of the Senate Ken Bennett.

The state faces a total $1.3 billion deficit, $300 million of the amount accounts for the year ending June 30 and $1 billion for the year starting July 1.

More cuts to the UA next year could mean letting go of more employees, Davis said.

"I'm really worried about the budget next year," he said.

He added that given the reductions taken to date, it would be really hard to know where to make more cuts, but that he is grateful that Napolitano protected the university's budget.

Would he think of thanking the governor in future campaign contributions?

No, said Davis, who is also a geosciences professor.

"If she comes near my office, I've got some wonderful rocks and minerals to give her."