INDIANAPOLIS - The Indiana House voted 62-37 to approve a $27.8 billion, two-year state budget late Tuesday afternoon - just hours before a state government shutdown was set to begin.
The Republican-controlled Senate had not yet voted, but was expected to easily pass the bill.
A number of Democrats criticized the final compromise as not being fair to some school districts and smaller communities in the state.
"It's toxic when it comes to public education," Rep. Greg Porter, D-Indianapolis, said.
He said 100 school districts will lose money in 2010 and 160 more districts will lose money in 2011.
House Republicans, however, called the bill a win for taxpayers because it does not contain a general tax increase and leaves $1 billion in reserves. It is not a balanced budget because it spends hundreds of millions from the state surplus.
"These are the toughest times we've ever experienced to write a budget. Bar none," Rep. Jeff Espich, R-Uniondale, said. "I think we've done a remarkable job, bipartisanly, collectively."