Topeka ? After senators rejected one school finance plan Monday, House leaders had a new one ready only hours later, a three-year, $541 million package – similar to something the Senate passed almost two weeks ago.

The newest package, expected to be discussed today, had many provisions sought by House Democrats to increase funding for students at risk of failing academically, while also giving local school districts greater authority to raise property taxes to supplement their state aid. It retained policy that conservatives thought was important for keeping schools accountable.

“We’ve got a few of our conservatives who will vote for it because of the policy provisions. That’s the hope, anyway,” said Rep. Kathe Decker, R-Clay Center, lead House negotiator.

The at-risk and tax provisions were key items sought by a coalition of moderate House Republicans and Democrats that held together through the weekend. Decker said many of those supporters had a hand in the new proposal.

Earlier Monday, senators rejected efforts to pass a three-year, $575 million package on a vote of 22-16. Many senators argued that plan was too much for the state to fund over the next three years and would lead to budget woes.

“It’s the third year that’s killing us. It’s almost like we’re doing this on purpose,” said Sen. Les Donovan, R-Wichita, who added that he would support a two-year plan and come back in future years to consider more money for schools.

Supporters said the three-year concept was the best strategy to address the Kansas Supreme Court mandate to increase school spending, as well as two cost studies in recent years identifying the needs of students.

Legislative leaders were hopeful a compromise still would be reached.

“It would be useful if we could get a negotiated agreement that we thought could pass both chambers,” said Senate Majority Leader Derek Schmidt, R-Independence. “The problem is it’s difficult to know who to deal with in the House because they seem so fractured voting on different permutations.”

Another wrinkle developed over the weekend with the state’s budget projections. New projections from legislative researchers anticipate that the state could be close to $300 million in the red by 2008 if legislators approve $450 million in new school spending, adopt the state budget as drafted, approve proposed tax cuts for business machinery and equipment, and phase out the estate tax.

“Hopefully, people will realize that we can’t do everything that we’ve promised,” said House Majority Leader Clay Aurand, R-Courtland. “To promise things that we can’t deliver seems pretty irresponsible.”

Aurand said the Senate position, which would increase public education funding by $541 million over three years – including teacher pensions and increases for special education – would be “too rich” with new budget realities.

One possible solution would be reviving a gambling bill that would generate new revenue for the state by allowing casinos and slot machines. That plan received 16 votes when it was debated earlier in the session in the Senate, and leaders there haven’t shown an inclination to bring the issue back to the floor. The House hasn’t debated gambling this session.