New Hampshire House and Senate negotiators are opening talks on a $10-point-7 billion dollar budget for the two years beginning July 1.
The two chambers agree on a number of spending priorities, including increased funding for higher education and services for the disabled and mentally ill.
But they disagree on how to pay for spending. The Republican-led Senate rejected a 20-cent increase in the tobacco tax.
The Democratic-controlled House does not like a $50 million dollar Senate-proposed cut in staff and benefits.
The House also proposes expanding Medicaid to an estimated 58-thousand poor adults under the federal health care overhaul law. The Senate wants to establish a commission to study the issue.
Talks begin today. The deadline to reach a compromise is Thursday.
