A state budget plan put forth by Indiana House Republicans would swap a $500 million tax cut sought by Gov. Mike Pence for new spending on education and transportation.
Details of the two-year budget proposal released today would increase K through12 funding by 2 percent the first year and 1 percent the second year.
It also would boost transportation spending $250 million a year by using all of Indiana’s gas tax on roads projects for the first time. The GOP proposal also would pay for State Police, Bureau of Motor Vehicles and some Department of Natural Resources expenses through Indiana’s general fund.
Republican House Ways and Means Chairman Tim Brown says the House hasn’t ruled out the Pence tax cut. But approving it would mean slashing priorities the House GOP pays for in its plan.
Gov. Pence says he’s disappointed the budget plan doesn’t include a tax cut, but adds that legislative leaders have assured him that it’s still possible.