Ind. Senate passes 2-year state budget

Indiana lawmakers have passed a new two-year state budget with just hours to spare before the current spending plan was set to expire.

The Republican-controlled Senate voted 34-16 Tuesday in favor of the plan, which the Democrat-led House had passed on a 62-37 vote amid impassioned debate earlier in the day.

The budget now heads to Gov. Mitch Daniels. Republican leaders say he supports the plan, which would spend an estimated $27.8 billion over two years and protect the state's reserves.

Lawmakers had faced a midnight deadline to pass a new budget or stopgap funding measure to prevent most state government from shutting down.