INDIANAPOLIS (AP) - Indiana Senate Republicans has put forward a two-year state spending plan that nixes a proposed cigarette tax increase wanted by the GOP-controlled House.
The $32.1 billion plan that Republican Senate Appropriations committee Chairman Luke Kenley announced Thursday morning would spend slightly more than the House GOP proposal.
Initially a $1.50 cigarette tax was proposed, but Republican House Speaker Brian Bosma said he was willing to curtail the increase to about 60 cents.
Public health officials hope the tax increase will reduce smoking rates, by raising the legal smoking age in the state to 21.
The budget also includes a $358 million increase for K-12 education. But it would provide $6 million less a year than the House and Republican Gov. Eric Holcomb wanted for the state's preschool program for needy kids.
PREVIOUS | Cigarette tax increase included in GOP's proposed state budget | Indiana House GOP open to smaller cigarette tax increase
It also sets aside $5 million in funding for Holcomb's new drug czar and would increase funding for special veterans' courts by $1 million.
Budget negotiations will continue over the coming weeks as the House, Senate and governor work to agree to a final proposal.
MORE | Cigarette tax proposal targets smoking while raising revenue | Bill that would raise cigarette tax by $1.50 per pack clears Indiana House panel
