An Indiana Senate committee is ready to start its work on the new state budget.
Republican Governor Mike Pence wants to cut personal income taxes by 10 percent. But recently the Republican-controlled House of Representatives proposed $700 million more dollars in school and road spending than Pence called for.
Pence was in South Bend on February 20, not long after members of his own party snubbed him in Indianapolis. FOX 28 talked to him about tax cuts and education and he said Indiana has room for both.
"Hoosiers don't have to choose between funding roads and schools and providing tax relief for working families and small businesses. We can actually afford to do both," Pence said.
"I really do believe that lowering our taxes at a time of the largest surplus in our history is simply the right thing to do."
Pence argues cutting the income tax rate from 3.4 percent to 3.06 percent would spur economic growth.
The Senate committee is expected to spend the next several weeks holding budget hearings before advancing a proposal by mid-April.
The Associated Press contributed to this story.