Pence says he, House GOP budget proposal fairly close

INDIANAPOLIS (AP) - Gov. Mike Pence says he believes he and House Republicans are fairly close together on the proposed new state budget and its planned school funding increases.

Pence told reporters at the Statehouse Tuesday that he believed caution is needed as legislators work on the new two-year budget since the state's January tax revenues came in below expectations.

The House Republican budget plan released Monday calls for 2.3 percent increases in school funding during both budget years, while maintaining a state surplus of about $1.8 billion. The school spending increase tops the 2 percent and 1 percent increases Pence had proposed last month.

The House plan results in some urban districts receiving less money as they lose students, while some affluent suburban districts would see double-digit increases.