House and Senate negotiators are set to begin meeting Wednesday for the first of a series of conference committee meetings that will determine the final shape of Indiana's next state budget.
The meeting comes one day after budget forecasters said the state is expected to bring in $290 million more in taxes than expected over the next two years. The sunnier forecast may make it easier for lawmakers to give Gov. Mike Pence his hoped-for tax cut.
House and Senate budget leaders have said they plan to craft a package of tax cuts and spending for roads and schools.
Pence has dug in his heels this session on a $500 million cut in the personal income tax. Budget Director Chris Atkins said Tuesday the governor is not ready yet to accept a smaller tax cut.