GOP releases budget proposal

INDIANAPOLIS (WISH) - The GOP majority in the Indiana House of Representatives released its budget proposal Friday morning. 

The 2 year $29 billion spending plan does not include the income tax cut sought by GOP Gov. Mike Pence. It also does not trigger the automatic taxpayer’s refunds that were included in the governor's budget.

Instead, the House Republicans are giving more money to schools with a 2 percent increase in the first year and a 1 percent increase in the second year.  Spending increases for colleges and universities are also bigger at 3.5 percent in the first year. They are also spending $250 million on roads and bridges.

The governor's budget called for 1 percent increases in each year for schools and universities and called for highway money to come from a bigger surplus.

Pence said in a press release that he is disappointment with the budget proposed by the Indiana House of Representatives.

"Despite having the largest budget surplus in history, this House budget increases spending without giving hardworking Hoosiers one cent of new tax relief. As our administration's budget clearly showed, we can afford to do both."

Pence said the budget proposal doesn't contain a balanced approach to create jobs.

"With so many hurting in this economy, Hoosiers deserve better," he said. "Indiana recently cut taxes for businesses and estates.It's time for average Hoosiers to get a break."

Pence says he will continue to pass a balanced budget that "meets our needs, funds our roads and schools, strengthens our reserves and lets hardworking Hoosiers keep more of what they earn."