Gov. Pence's proposed budget kept nearly 13 percent of state revenue in reserve. But in their budget proposal House Republicans kept reserves below 12 percent.
House Roads and Transportation Chairman Ed Soliday, R-Valparaiso, says there are more than 1,200 motor-vehicle fees, and many are either obsolete or redundant.
In a statement, the governor said the decision came after "thorough review of the preliminary planning and careful consideration of the concerns expressed."
The governor's 2015 State of the State address will likely focus heavily on education, but it could also include tax reform.
$40 million of the education increase Pence is asking for would go to charter schools. The increase would amount to about $1,500 per charter school pupil.
Lawmakers say the bill that would allow Pence to run for both governor and president in 2016 likely won't even get a hearing in the state Senate.
The $200 million is part of a fund the legislature set up in 2013.
Sen. Mike Delph, R-Carmel, is introducing a bill to let the governor or state legislators run for re-election and federal office simultaneously.
Gov. Mike Pence says he will discuss the notion with his family and announce his decision sometime after the 2015 legislative session.
Gov. Mike Pence and his family are touring holy sites in Israel before the governor begins a three-day trade mission.