PHOENIX — Republican legislative leaders crafted a deal late Wednesday that will cut more than $600 million in state spending.

The package, worked out largely behind closed doors, includes taking more than $141 million from the state’s three universities. While that is more than the $100 million the schools offered in immediate cuts, it is far less than the more than $240 million in spending reductions and fund sweeps suggested just this past week as options by the chairmen of the House and Senate Appropriations committees.

As part of the accord, though, the universities are being given the go-ahead to borrow $70 million to take care of some maintenance projects. While that funding was authorized last year, final permission was held up until now.

State aid to public schools is being slashed by more than $130 million. House Speaker Kirk Adams said, though, the deal gives schools the flexibility to use funds now set aside for “soft capital” spending — classroom supplies including books and computers — for basic operating expenses, including paying teacher salaries.

But the pact does preserve most of the social and welfare programs, including KidsCare which provides virtually free health insurance for many children of families making up to twice the federal poverty level, a figure that translates to about $42,000 a year for a family of four.

Adams said lawmakers are not dictating how affected agencies and programs must deal with the cuts, a move he said is designed to give each of them maximum flexibility. That, he said, can include laying people off or forcing workers to take time off without pay.

“Every budget unit will have the opportunity to manage the way that they see fit,” he said. “And if that budget unit decides that the best way to approach this is furloughs, that’s a decision that local management gets to make.”

Lawmakers sought to move quickly to deal with what is shaping up as a $1.6 billion gap between revenues and expenses. Adams hopes to have the package ratified by the full House and Senate and signed by Gov. Jan Brewer by the end of the week.

Spending cuts make up only part of the solution. Lawmakers also are “sweeping” more than $580 million out of various special funds.

The balance is coming from what legislators hope will be at least $500 million which they believe will be Arizona’s share of cash from the federal stimulus package working its way through Congress.

Adams acknowledged that the process appears to be rushed, with much of the process done behind closed doors. But he said that was necessary.

“We were handed the worst deficit in state history,” he said of the new Legislature which started its session only two weeks ago.