BOSTON (AP) — Senate leaders are putting the finishing touches on a nearly $40 billion state budget.

The proposed spending plan for the fiscal year starting July 1 will be unveiled by the Senate Ways and Means Committee on Tuesday, with debate in the full Senate expected the following week.

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The House unanimously approved its version of the budget last month, calling for an overall three-percent increase in state spending and no new taxes. It also calls for a $159 million increase in state aid for cities and towns. Critics say the budget falls short in areas such as higher education and transportation.

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Democratic Senate President Stan Rosenberg says the state needs to find new sources of revenue.

Tax increases can only be initiated by the House.

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