The House proposal would restore school funding cuts made by then-Governor Mitch Daniels three years ago, and add additional money.
Republican Chairman of the Indiana House Ways and Means Committee, Dr. Tim Brown, says it includes $344 million more for K-12 education and also funding for Medicaid.
The plan does not include Pence‘s proposed 10-percent tax cut.
Governor Pense has expressed his disappointment in the House budget proposal saying that while it’s still early in the legislative session, House leaders have committed to Pence that an income tax cut for middle class Hoosier families is still possible.
Under current projections, the House budget plan would leave the state with reserves between 10 percent and 12.5 percent, which would be enough to trigger the state‘s automatic tax rebate.
Brown says the measure could potentially be amended before Tuesday when it is expected to go to the House floor.