INDIANAPOLIS (AP) _ Democratic lawmakers say Republicans who control the Indiana Legislature have misplaced priorities as they work toward a final agreement on a new state budget.
 
  Republican negotiators seemed close Wednesday to a deal that would increase school funding by 2 percent and 1 percent in the two years of the new budget. The deal would also make at least a small cut in individual income tax rates and immediately eliminate the state’s inheritance tax.
 
  Rep. Greg Porter of Indianapolis is the top Democrat on the House Ways and Means Committee. Porter says the state shouldn’t speed up the phase-out of the inheritance tax. Instead, more money should go toward restoring $300 million cut from school funding and $100 million cut from the Department of Child Services by former Gov. Mitch Daniels.