The House Appropriations Committee voted 59-1 on Thursday to OK the spending plan for the fiscal year that begins July 1.
The state is facing the loss of some $1 billion in federal stimulus money, and committee chairman Terry England said the budget contains some tough cuts.
A $250 million hole in the state health benefit plan is translating into a 20 percent jump in insurance premiums for state employees, teachers and retirees.
But budget writers restored more than $8 million for vision, dental and podiatry care for low-income Medicaid recipients.
The budget now heads to a vote by the full House.
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