Teachers angered by Ohio Gov. John Kasich's plan to closely tie their wages to performance received some relief Tuesday from the state Senate, which is proposing stripping that idea — at least temporarily — from a state budget proposal that also sends more money to local schools.

The Republican-led Senate's $55.7 billion, two-year budget finds $115 million more for schools, $100 million more for local governments, and $15 million more for home-based nursing care while offering relief from estate, income and property taxes. That's the result of more optimistic state revenue estimates.

The school funding increases still don't fully restore proposed cuts to current funding levels that will occur with the expiration of nearly $1 billion in federal stimulus money.

But high-performing school districts could receive even more state money — $17 per student — through a new reward program for schools that are rated excellent or higher. The Senate's bill would also save money by allowing a private manager to operate the state lottery, which benefits education.

Senate President Tom Niehaus, a New Richmond Republican, said as the state faces an estimated $8 billion budget shortfall, lawmakers tried to be mindful of the economic crunch schools were feeling.

''We're committed to putting the limited resources we have toward areas that need it most, and that begins with our schools,'' Niehaus said.

Senators also want to remove provisions from the bill that would base teachers' salaries on their performance — language that's similar to certain wording in the state's contentious new collective bargaining law.

Niehaus said his chamber wanted to remove that language in order to avoid conflict with any union agreements schools made with teachers as part of federal Race to the Top grants.

Some version of performance pay is likely to be returned to the bill later, said Senate spokesman Jason Mauk.

Niehaus said a November ballot repeal effort against the new bargaining law is not a factor, but that some senators were confused by the language.

The removal of the teacher provision would reverse House-passed language that based teachers' salaries on performance and evaluations, instead of the current increase based on seniority and level of training. The wording was nearly identical to that contained in Senate Bill 5, a collective bargaining overhaul that affects 350,000 unionized police, firefighters, nurses, and state and local workers across the state. It allows unions to negotiate wages but not health care, sick time or pension benefits.

Opponents of the new law have said putting performance-based pay for teachers in the budget bill skirts the chance for voters to weigh in on the idea in an expected referendum.

Supporters of the law also launched a nonprofit political organization Tuesday to counter a signature drive to place allow voters to decide whether to keep or get rid of the law on the November ballot.

While the bill opens the door for private management of the state lottery, it protects the Ohio Turnpike from being taken private without legislative approval, and alters the accountability of charter schools.

Kasich has said leasing the the 241-mile toll road across northern Ohio has the potential to yield $2.5 billion. He wants to use a billion from any possible deal to invest in roads, bridges and harbors.

The first-term Republican governor has proposed allowing the transportation department and budget office to negotiate and enter a turnpike lease with a private operator.

Lawmakers wanted to have a chance to review any deal.

''This is an important asset for the state of Ohio,'' Niehaus said. ''We want to make sure that there is legislative input into anything that would happen.''

The legislation proposed by Republican Senate leaders also includes $1.7 billion in property tax relief to Ohio homeowners and tax credit expansions for job creation and historic preservation.

A Senate panel will have two days of hearings this week on the revised budget. The full Senate plans to vote next week on the measure.

Lawmakers in both chambers would have to work out any differences between the two budget plans. They face a June 30 deadline to pass the state spending plan.