(RALEIGH) -- The state Senate budget does not replace $258 million in federal stimulus education funds set to end this year. This is one of the big differences when compared to the House budget.

State Senate President Pro Tem Phil Berger said the House budget used some savings and other one-time funds to offset the federal stimulus dollars.  "And we were a little bit concerned about that just being an extension of what we currently have.  At some point we're going to have to make a decision as to how we handle that and we tried to make sure that we matched up recurring dollars available with recurring obligations," said Berger.

The Senate budget allocates about $84 million for public schools that could be used for either raises or retaining teachers who had been paid by federal  funding.  Berger said the Senate budget offers the flexibility for local school districts to decide exactly how the money is used to invest in the state's public school teachers.

“The Senate Budget means more pink slips for teachers and classroom cuts that would threaten our children’s future,” said Gov. Perdue. “It doesn’t have to be this way.  I have outlined two alternatives to fund our schools, but Senate Republicans have rejected both. This budget is simply not good enough for our children or the economic future of our State.  I call on the Senate to do better.”

Overall, the Senate's $20.1 billion spending plan for next year offers about $127 million less than what the House budget offers.  The Senate is expected to pass its version of the budget this week. The House and Senate would then have to work out a compromise.