SB 1531 makes state-backed money available to for-profit charter school operators.
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The governor's plan adds only $284 million to the current $9.2 billion outlay.
The budget proposal also seeks to add another 2,000 beds to house inmates.
Tony Bouie, a former UA football standout, resigned late Wednesday.
Greg McKay, who took over the agency eight months ago, also lashed out at the media.
The Arizona Department of Transportation says about $89 billion is needed for its 25-year plan.
The issue comes up regularly, when governors leave the state.
The move follows some less-than-spectacular unemployment reports.
Legislators cites worries about its broad authority and too little oversight.
Gov. Brewer says she wants issue to go to full trial.
House Democrats will spend a record $4.2 million on television ads in Arizona during the last weeks of this year’s election.