The budget spearheaded by House Republicans passed the Ways and Means Committee on Tuesday along party lines.
The committee approved Monday the Republican budget proposal, which includes increased funding for infrastructure and K-12 education.
The House Republicans' budget does not include the governor's desired tax cuts, but House Democrats want there to be a vote on the proposal.
House Republicans unveiled a budget Friday that spends significantly more than Governor Pence has proposed.
Governor Mike Pence pushed his budget in his first State of the State address, but legislators are not on board with all his ideas.
Governor Mike Pence made a case for a 10 percent income tax cut, even as some GOP leaders have said the state should spend more of its surplus.
The governor will likely advocate for the budget he outlined last week, including a 10 percent tax cut.
Some school corporations may be caught in a financial limbo by discussions at the Statehouse.
A budget proposed by Gov. Mike Pence gives higher education institutions a one percent funding increase, with funding based on performance the following year.
The city of Kokomo has $10 million in reserves and a structural surplus in its yearly budget.