House and Senate negotiators are meeting for the first of a series of conference committee meetings that will determine the final shape of Indiana's next state budget.
The budget conference committee members are scheduled to meet Wednesday afternoon.
The meeting comes one day after budget forecasters said the state is expected to bring in an additional $290 million in taxes over the next two years. House and Senate budget leaders have said they plan to craft a package of $500 million in tax cuts and keep additional money for roads and schools.
Gov. Mike Pence has dug his heels in 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.