The Latest: Plan boosts Indiana schools 2.5% for 2 years

INDIANAPOLIS (AP) - The Latest on the final days of the Indiana legislative session (all times local):

4:50 p.m.

Top Indiana Statehouse Republicans are touting their state budget plan that increases base school funding by 2.5% percent each of the next two years as making strides toward improving teacher pay.

Gov. Eric Holcomb joined GOP legislative leaders Tuesday in announcing a budget deal that's expected to be approved Wednesday as this year's General Assembly session ends.

Republican leaders say they are also helping school districts by paying off $150 million of their teacher pension obligations and by boosting a program giving one-time stipends to teachers.

Holcomb says the funding boost is a good immediate step while a group he appointed studies long-term ways to improve the state's lagging teacher salaries.

Democrats say the state could direct more money to schools by either tapping the state's nearly $2 billion in cash reserves or suspending previously approved corporate tax cuts.

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5:30 a.m.

Indiana lawmakers are nearing final decisions on how much more money will go toward school districts as teachers have been pushing for significant pay raises.

The Republican-dominated Legislature must agree on a new two-year state budget before ending this year's session, possibly as early as Wednesday.

Republican budget plans have proposed increases of about 2.5% in base funding for K-12 schools. Hundreds of teachers have attended rallies seeking greater funding increases, while Republican state schools Superintendent Jennifer McCormick said GOP Statehouse leaders gave a "false promise" on teacher raises.

Votes could come Tuesday on a proposal legalizing sports betting and allowing new casinos in Terre Haute and Gary. Legislators could also approve financing toward $295 million in public subsidies for renovation of the Indiana Pacers' arena in downtown Indianapolis.