INDIANAPOLIS -- Indiana Senate Republicans have passed their version of a new two-year state budget bill, setting up a special session showdown with the Democrat-led House.

The GOP-ruled Senate passed a two-year budget bill 33-17 on Tuesday. Democrats who control the House already had passed a one-year spending plan. Republican leaders said their budget bill offers plenty of compromise.

"We added back funding for choice. We added back funding for public television," said Republican Sen. Luke Kenley. "We added back funding for the area health education centers."

The two sides are at odds over several things, including how much to increase spending on public schools and how the money should be doled out.

The Senate plan would increase state school spending by 0.5 percent in each of the next two years, while the House Democrat proposal would raise school spending by about 2 percent over one year.

"If IPS loses the predicted or projected $41 million ... it will begin the death spiral of the Indianapolis Public School system," said Sen. Jean Breaux, a Democrat from Indianapolis.

Some Democrats want gambling expanded to help fill funding gaps.

"Hopefully, somewhere in the discussions, there will be some discussion about gaming in conference committee," said Sen. Erliene Rogers, a Democrat from Gary.

Lawmakers face a June 30 deadline for passing a new budget before the current one expires.

Earlier in the day, the Senate passed a backup plan in case lawmakers don't pass a new budget by the deadline.

Senate Republicans pushed the bill through Tuesday morning on a 32-18 vote, along primarily partisan lines.

They said it's designed to continue funding for state government at current levels if a new budget isn't enacted on time.

Senate Republican leaders said it's simply a fail-safe proposal, but outnumbered Democrats in the Senate and those who control the House said it's premature.

Democrats contend that it gives the administration of Republican Gov. Mitch Daniels power to make spending decisions absent appropriations specifically approved by lawmakers.

Daniels weighed in on the budget debate on Tuesday, too, with a scathing political jab at House Speaker Pat Bauer.

"Mr. Speaker, please just free your followers to vote their conscience and let's go home," the governor said.