Governor Daniels unveiled his two year budget Wednesday, asking the legislature to approve the $26 billion plan.
However, Democrats who control the house say it is just a starting point.
The Governor's would go into effect in July.
That includes an almost 4% increase in the first year and a 3.3% jump the next.
It would also leave a projected surplus of $1.2 billion at the end of the two years.
The budget also has some increases built in for Hoosier schools.
Daniels' plan calls for a 3% in funding each year, for a total increase of about $254 million.
Daniels is also seeking $144 million to start statewide full day kindergarten.
Governor Daniels Unveils New Indiana Budget