Indiana Governor Mitch Daniels will formally present his new budget proposal to a legislative committee Tuesday.
Daniels spoke briefly about his plan during a live address Monday night, saying he wants to cut overall state spending by 2.5 percent, but give a boost to public schools and student financial aid.
"Every school would receive more per student than it did this year, and if by some happy chance state revenues turn out better than projected, I'm proposing that one of every two extra dollars go automatically to our schools, with the rest going to our savings account, Daniels said.
The governor says he's also willing to use some of the state's reserve fund, but wants to keep a balance of $1 billion.
The governor is expected to call a special legislative session this month to take up the budget, after lawmakers were unable to approve a spending plan during the regular session.
