Pence office shut down for staff meeting Friday

INDIANAPOLIS (WISH) - Governor Mike Pence wants to cut state income taxes by 10 percent but his tax cut is not in the budget released Friday by his fellow Republicans in the Indiana House of Representatives. 

The Pence budget includes two tax cuts: the automatic taxpayer refund started by Mitch Daniels, plus the proposed cut in the income tax. 

There is no tax cut in the House GOP budget.

The budget unveiled by House Ways and Means Chairman Tim Brown increases spending for schools, universities, and highways.  The governor's tax cut was deleted. 

"We've not eliminated it," says Rep. Brown.  "We're continuing to talk about the priorities."

The House GOP has different priorities than the ones the Governor spelled out in his State of the State address. 

"Now, I know there are some who say we have to choose between letting the people of Indiana keep more of their hard-earned dollars and meeting our state's priorities," said Pence in the speech, "but our budget clearly shows we can do both." 

In a statement released Friday Governor Pence said he was "very disappointed" by the House budget and that "Hoosiers deserve better."

In the meantime, House Democratic Leader Scott Pelath promised that there will be an up or down vote on the Pence tax cut. 

"This is the one bold idea that's been brought forward," said Pelath.  "I think to ignore it is a mistake."

The House GOP budget will be voted on in the Ways and Means committee next week. Votes in the full House will come the week after. 

A final budget must be passed by April 29.