The Republican-controlled Michigan Senate is passing a budget that would spend or allocate $542 million less than what has been proposed by Gov. Rick Snyder.
The $56 billion plan being approved Wednesday would spend $276 million less in general funds than Snyder proposed.
Republicans for now also are not adding about $266 million to savings as called for by the Republican governor.
GOP leaders are setting money aside to potentially cut taxes or address debt in the school employees' retirement system - issues that could become part of negotiations in coming weeks.