INDIANAPOLIS -- Gov. Mitch Daniels on Monday signed a $26 billion, two-year budget bill that includes more than $500 million in property-tax relief for homeowners.

The bill is expected to reduce a projected average 24 percent increase in homeowners' property-tax bills this year to about 9 percent. Under the plan, homeowners would pay their bills in full but get a rebate check toward the end of the year.

The measure also is expected to provide property-tax relief for homeowners next year, but those reductions will be reflected on tax bills instead of rebates.

Daniels thanked lawmakers for passing the bill.

"It won't be enough in every single case, and there'll be other people who will get relief probably beyond what it needed, but I think they did the best they could with the short-term issue," Daniels said.

The plan was endorsed by Democrats, Senate Republicans, and Daniels, a Republican. All 49 House Republicans, however, voted against the bill, saying it didn't provide enough property-tax relief. The bill passed the House 51-49, with all House Democrats voting for it.

House Minority Leader Brian Bosma, R-Indianapolis, also said he was against providing this year's relief in the form of rebates rather than lowering the bills up front.

Senate Republicans said they were disappointed that they didn't achieve long-term property-tax reform. But state Sen. David Long, a Republican, said he was pleased to help homeowners in the short term.

"We're pleased that we got what we did for Hoosiers," Long said.

The relief will in part be paid by a licensing fee and tax revenue from slot machines that the Legislature approved for the state's two horse-racing tracks.

The property-tax package also allows local units of government to raise local income taxes to reduce existing property-tax levies.