Gov. Jan Brewer and the Legislature's top Republican leaders announced Friday that they have reached a deal on a state budget for next year that holds the line on most spending while providing modest boosts to education, mental health and public safety.

Their $8.5 billion compromise plan for the budget year that begins July 1 is less than either side had originally wanted to spend and is projected to provide the state with a $250 million surplus.

In a joint statement, Brewer, Senate President Steve Pierce and House Speaker Andy Tobin called the fiscal 2013 budget "prudent" while protecting core education, health-care and public-safety programs.

While it puts the state on steady fiscal footing, at least for the coming two years, it projects a $175 million deficit for fiscal 2015.