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The Republican-led Missouri House Budget Committee Monday began to draft its version of Gov. Mike Kehoe’s budget plan, minus a chunk of money for education that the chief Senate budget writer earlier said is a nonstarter.

The looming debate could set the stage for negotiations between the two chambers, with the state’s newly minted governor closely watching the unfolding debate.

Pending the committee’s work, which was expected to go late into the night Monday, the full House could begin voting on the massive package as soon as next week.

A final spending package is due to be finalized by lawmakers in early May, leaving the two sides a month to hammer out their differences.

In drafting the plan, House Budget Committee Chairman Dirk Deaton, R-Seneca, sided with Kehoe in not including the $300 million largesse that is needed to fully fund the state’s school funding formula, which determines how much local school districts receive from the state.

In his January budget speech, Kehoe announced he was shorting the fund, saying he wants to rewrite and update the formula over the next three years

But Senate Appropriations Committee Chairman Lincoln Hough, R-Springfield, said he wants to put the money back in the nearly $4 billion education spending plan because lawmakers last year approved sweeping legislation that calls for the added cash.

The battle comes against the backdrop of attempts by Republicans to cut state income taxes, potentially reducing revenues by $1.3 billion at a time when the state’s robust fiscal growth has begun to slow.

Actions by the Trump administration and Republicans in Congress to extend tax cuts also could alter how much the state receives in federal funding for the state’s MO HealthNet health insurance program. KFF Health News put the possible hit on Missouri’s Medicaid program at $2 billion, representing a 39% drop in aid.

In all, Deaton’s initial plan for the overall budget blueprint puts the spending total at $48 billion, down from the $53 billion Kehoe outlined during his inaugural State of the State address.

It keeps intact Kehoe’s proposal for a $50 million outlay to jump-start the state’s private school voucher program, a Republican-backed program originally designed to run on volunteer contributions and tax credits, not general revenue.

Although the House version is lower than the governor’s request, some of that is due to a plan to reduce departmental budgets that have carried over large, unspent surpluses in recent years.

The plan also slashes Kehoe’s pay raise proposals for state employees in half, meaning longtime state workers will see a maximum of a 5% raise in the fiscal year beginning in July based on years of service, rather than a 10% boost.

Similarly, Deaton has eliminated a $12.3 million request to boost the pay for prison guards in an attempt to increase recruitment and retention of the hard-to-fill positions.

The House version also alters the governor’s plan to change how child care subsidy payments are made to day care facilities, saving an estimated $107 million.

Under the current system, the state pays after a child care provider submits attendance-based reports for reimbursement. Kehoe wants those payments upfront to ease a paperwork logjam that has resulted in some day care facilities closing.

Democrats hope to reverse the cut, arguing that stabilizing and expanding child care offerings will help more parents join the workforce.

Monday’s hearing gave rank-and-file lawmakers a chance to insert their spending priorities into the plan. Rep. Raychel Proudie, D-Ferguson, for example, attempted to add $2.5 million to boost funding for a teacher training program but was at least temporarily rebuffed by Deaton.

“I still have some concerns outstanding,� Deaton said.

The House plan also would decrease funding for the state’s Blind Pension Fund by $3.2 million. Kehoe had sought an $89 per month increase in payments for about 3,200 vision-impaired people who participate in the program, which is funded by a property tax assessment.

Deaton’s proposal includes $19 million to buy property for a 1,600-acre state park in McDonald County, which is in his southwestern Missouri legislative district. The money was vetoed by former Gov. Mike Parson last year.

Also on tap in the House proposal is nearly $12 million to add a third lane on a portion of westbound Interstate 44 near Joplin and $2.5 million to study the potential conversion of U.S. 36 in northern Missouri into an extension of Interstate 72.