Last week Barbour vetoed a restoration attempt that spent $79 million. He voiced opposition to it because he said it spent too much of the state's reserve funds, but did not restore enough of the cuts he had made to the Department of Corrections.
Dan Turner, a Barbour spokesman, told the Associated Press the governor would probably accept the latest compromise proposal.
"It's not the way the governor would have done it, but it's a suitable compromise,amp" Turner said.
The plan restores $16 million of the $29 million the governor has cut from Corrections. But it also provides funding for K-12 education at the level that was in the vetoed bill.
"We were able to get eduction at level where we think it will make a difference for the local school districts," said Rep. George Flaggs, D-Vicksburg, one of the House negotiators. House Appropriations Chair Johnny Stringer, D-Montrose, said he may take up the compromise on the floor of the House as early as today.
The plan restores more than $37 million of the $205 million cut from K-12 education. It also restores $4 million to the Department of Mental Health as advocated by the House budget leaders.
A key to the compromise, budget leaders said, was a commitment from Barbour to provide to community colleges an additional $4 million of the federal stimulus funds at his discretion. That commitment helped free up funds for Mental Health to meet the demands of the House leaders and for Corrections to meet the demands of the Senate budget negotiators.
Lt. Gov. Phil Bryant, who presides over the Senate, said the agreement should wrap up work on the budget for the current year and allow legislators to begin work on the upcoming fiscal year, which starts July 1.
"This bipartisan agreement with the House conferees has taken a lot of hard work and time but it has been worth the fight," Bryant said.
The agreement takes $58 million from the tobacco trust fund and the rest comes from funds appropriated in past years, but not spent for various reasons, such as $5 million from the Public Service Commission.
Barbour made the cuts because revenue has not come in at a level to fund the budget passed last year by the Legislature and signed into law by him.