Legislative leaders in Indiana say they’re close to agreement on a budget deal that would slightly increase overall education funding and leave the state with more than $1 billion in reserves at the end of the two year cycle.

The House and Senate versions of the budget differ on what to do if the state takes in more money that it needs.

The House and Governor Mitch Daniels want the money to be refunded to taxpayers. The Senate wants to use any extra funds to pay down Indiana’s unfunded pension liabilities.

Republican House Ways and Means Committee Chairman Jeff Espich says leaders will probably create a “hybrid” of the two proposals.

(Information for this story came from the Associated Press)

Rick Howlett is host of WFPL's weekly talk show, "In Conversation."