The Senate has agreed to $250 million in budget cuts for fiscal 2010 proposed by Gov. Mark Parkinson, sending the measure to the House for further consideration.
With action on the current fiscal year budget, lawmakers are expected to deal with a projected $360 million revenue shortfall for fiscal 2011.
Parkinson, a Democrat, had recommended a three-year increase in the state sales tax rate to 6.3% from 5.3%, but the House Taxation Committee rejected his proposal last week. Parkinson also sought increases in state tobacco taxes.
The vote to kill HB 2475 was along party lines, with 12 Republicans voting it down and seven Democratic lawmakers supporting it.
Business interests opposed the tax hikes at legislative hearings, with educational groups backing the measure.
