Members of the Senate approved a state budget proposal Monday just one day after the House gave its stamp of approval.

Both Democratic and Republican lawmakers backed the $16 billion budget plan, saying it provides more money for municipalities and special education. The budget agreement calls for increasing the property tax credit on income tax returns, eliminating a 15 percent corporate tax surcharge, offering new tax credits for companies that hire laid-off workers and creating new jobs and depositing $246 million of the budget surplus into the Teachers Retirement Fund.

Some proposals that were cut during the course of negotiations included having an earned income tax credit, eliminating personal property tax on cars and phasing out the estate tax. State Senator Judy Freedman (R-Westport) says although she is upset about some parts of the budget, overall she feels it is one that everyone can live with it.

Governor Jodi Rell (R-Connecticut) says she is pleased with the overall budget, but disappointed it does not include direct property tax relief.