INDIANAPOLIS — On Wednesday Indiana Governor Eric Holcomb signed off on a plan for spending $291 million in unexpected state tax revenue on college campus construction projects. Republicans in the state legislature denied Democratic attempts to direct at least some of that money toward school funding.

Holcomb had first proposed in July the plan for using the extra money toward paying cash for several building projects that were part of the two-year state budget adopted in April, rather than borrowing money.

Holcomb said in a statement that the plan ensures the state remains “remains the fiscal envy of the nation by saving Hoosier taxpayers more than $135 million in borrowing costs.”

Republicans who dominate the Legislature have repeatedly defended the 2.5% per-year increase in school funding and the current budget saying that it provides significant progress toward boosting teacher pay and protects the state’s $2.3 billion in cash reserves.