INDIANAPOLIS (AP): Indiana Senate Republicans have 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. It includes a $358 million increase for K-12 education, but would provide $6 million less a year than what the House and Republican Gov. Eric Holcomb wanted for the state’s preschool program for needy kids.

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.