Indiana Gov. Mitch Daniels has written lawmakers to urge them to restore an automatic taxpayer refund that was removed from a budget proposal this week.

Daniels wrote in the letter dated Monday that he was "deeply discouraged" that the refund wasn't included in the latest version of the budget bill. The refund would give money back to taxpayers if the state reserves reached a certain level.

The Republican governor says the concept is taxpayer friendly and supported by a large majority.

Republican Senate Appropriations Committee Chairman Sen. Luke Kenley of Noblesville says there are more responsible ways to spend extra state money. The version of the budget that passed his committee would spend excess revenue on unfunded pensions, which Kenley says would help future budgets.