Pence Thursday signed legislation authorizing the release of $400 million for transportation projects.
Overall revenues were boosted by a surge in individual income tax collections, which came in more than $70 million ahead.
Americans for Prosperity will air TV ads in support of a tax cut even GOP lawmakers have expressed skepticism about.
Despite forecasts showing modest growth each of the next two years, the Republicans who control the state's coffers say they're staying cautious.
The governor-elect's proposal banks on 2.5-percent revenue increases in the next two years and on spending 1.5-percent more in the next state budget.