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Luke Kenley

Indiana Senate offers up $32.1 billion two-year budget

Indiana Senate Republicans put forward a two-year state spending plan on Thursday that nixes some tax provisions sought by the GOP-controlled House — most notably a cigarette tax increase.

That could set the stage for tough negotiations as the annual legislative session enters its homestretch and Republicans who dominate state government debate how best to pay for much-needed improvements to the Indiana's crumbling infrastructure.

Both chambers have put forward proposals to increase the state's per-gallon fuel tax and have signaled a willingness to consider tolling interstates in the future.

But they have major differences over a proposed $1 per pack cigarette tax...