The House's expected rejection of the Senate budget occurred Tuesday. The next step has the two houses negotiating over how much to spend and on what.

The North Carolina House's two-year spending proposal developed last month is very different from the Senate plan, which would spend nearly $700 million less next year than what the House wants.

The formal rejection sets the stage for a conference committee comprised of House and Senate members to be formed. They will attempt to work out a compromise that seems at least weeks away. It certainly won't be approved before the new fiscal year begins July 1.

House Republicans raised concerns Tuesday about the number of policy changes in the Senate plan, such as major tax and economic development changes.

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