House Republicans set the stage early Wednesday for what will likely be a heated fight with the governor over education funding and policy when they approved a $14 billion K-12 budget that faces a probable veto.

The GOP majority in the House passed the policy-heavy K-12 budget bill early Wednesday morning, allocating about 40 percent of the state's general fund spending. Similar bills passed the House and Senate in March, but lawmakers spent weeks resolving them before taking up a final version Tuesday night and debating it into the early hours of Wednesday.

The House approved the measure on a 70-55 vote.

"I think it can best be described as a bold and beautiful bill for the state of Minnesota," the measure's sponsor, Rep. Pat Garofalo, R-Farmington, said Tuesday.

The Senate is slated to take final action Wednesday and send it to Gov. Mark Dayton's desk. But after administration officials met with lawmakers Tuesday, all signs pointed to a veto.

"The way that it is, I don't see how we can support this bill," said Education Commissioner Brenda Cassellius. One of the top concerns, Cassellius said, is what it views as "disproportionate cuts" to schools in the Twin Cities.

The budget bill increases the state's per-pupil funding levels by about $20 a year over the next two years. At the same time, it eliminates millions in funding to encourage integration in the Twin Cities and Duluth. Those funds will instead benefit schools across the state with high or improved reading scores as part of a new literacy program.

Minneapolis, for example, is expected to receive $174 less per pupil than projected costs for the fiscal year beginning July 2012.

Dayton has said he does not want budget bills to contain policy provisions, which make up a substantial portion of the K-12 legislation. The bill would bar teachers from striking, eliminate teacher tenure and set up a teacher evaluation system based heavily on student testing. The state would also begin offering vouchers to poor families at low-performing public schools so they could attend private school.

Garofalo says the GOP has made major concessions to win over Dayton. Republicans nixed a freeze on special education funding in favor of slowing growth, restored some funding to the Twin Cities and Duluth, and decided not to turn the Perpich Center, a state agency, into a charter school.

"I guess I'm hopeful that we'll see some movement towards us here at some point," Garofalo said.

But Cassellius countered that the bill still undercuts the Twin Cities and Duluth and does not adequately fund special education.

"It wasn't enough of a move," Cassellius said. "And, really, they're still doing harm."

Eric Roper • 651-222-1210 Twitter: @StribRoper

$14 billion

Size of Republicans' K-12 budget, which Dayton opposes because of policy provisions.

$20

Increase in per-pupil funding over next two years, under the bill.

$174

Expected gap in per-pupil funding vs. projected costs for Minneapolis, starting in July 2012, under the bill.