Topeka ? Negotiators have agreed to a $66 million school funding package, a deal Republican leaders say represents perhaps the last chance to increase education spending this session.

The deal emerged Tuesday from meetings that began late Monday after the House refused to consider a $107 million package, funded by increased sales and individual income taxes.

Legislators were to debate the new plan Wednesday. It relies on state cash reserves and delays payments to the state employee pension plan.

House Education Chairwoman Kathe Decker said negotiators were quickly running out of options in a climate where legislators have entrenched themselves.

“It’s all or nothing. That’s pretty much it,” said Decker, R-Clay Center.

Decker said the plan preserves a state ending balance of about $45 million. It also would give 16 districts with high home prices the authority to raise local property taxes to give teachers more money to compensate for housing costs.

Democrats negotiating the agreement found trouble with the use of the state’s cash reserves and retirement funds.

“I think it is very ill-advised for the Legislature to fund schools in this manner,” said Senate Minority Leader Anthony Hensley, D-Topeka.

However, Sen. John Vratil, R-Leawood, rejected the notion that legislators were raiding teacher retirement accounts, adding: “It’s a loan.”

Realizing that Gov. Kathleen Sebelius opposes much of the compromise, negotiators put the spending portions of the package in the final budget bill of the session, leaving the education components in a separate bill. Doing so keeps the governor from using her line-item veto power to delete objectionable provisions, such as the one for local property taxes.

“I don’t want to leave my flank open to a veto,” Vratil said.

Much of Tuesday’s negotiations focused on provisions drafted by Rep. Mike O’Neal dealing with the state’s definition of a suitable education. The definition directs school districts to dedicate state funds to providing certain curriculum and disciplines, including reading, writing, math and history.

“It’s a legal presumption,” said O’Neal, R-Hutchinson, adding that it would give the courts a point of reference to ensure that Kansas schools are spending resources on areas intended by legislators.

He said the provision doesn’t change how funding is allocated by the Kansas State Department of Education, but does send a clear message to schools that certain obligations must be satisfied first.

Senators initially objected to the provisions, but eventually agreed the suitable definition would be for one year, with further legislative review.

Vratil said though he liked the policy, the definition lacked enforcement, noting that schools may choose to ignore it.

“School districts would be foolish to think this will go away,” he said. “If they think this will go away, they make that assumption at their own risk.”

The compromise also includes several items that would provide tuition assistance to families of members of the active duty military and the Kansas National Guard, part of a package of bills to strengthen retention and recruitment of soldiers and airmen.