NASHVILLE — The House hopes to act as early as today on what leaders called a “bipartisan” budget proposal that makes major spending cuts but preserves funding for a new UTC library and also restores some reductions proposed by Gov. Phil Bredesen.

The plan, at least for now, also includes Gov. Bredesen’s proposed issuance of $138 million in bonds for higher education projects and $350 million in bonds for bridge repair and replacement.

“It’s a responsible budget,” House Speaker Kent Williams said as the bill began moving through House committees Monday. “There are deep cuts in this budget. Even with the deep cuts, I feel it’s a compassionate budget. We have added some dollars back ... in the areas we feel like are essential.”

Restored spending includes $5.5 million for mental health community services as well as $4.9 million for the state’s school coordinated school health program, which includes funding for school nursing. Rep. Kevin Brooks, R-Cleveland, championed keeping the school health funding, which Gov. Bredesen had recommended slashing.

“This is not the time to be cutting kids, to be cutting mental health, to be cutting those who have no voice to speak for themselves,” Rep. Brooks said.

Senate Republicans, meanwhile, intend to have their own version of the budget on the floor today. It accelerates cuts proposed by Gov. Bredesen, a Democrat, and eliminates his proposed bonds for higher education projects, including the $47.5 million UTC library.

Sen. Bo Watson, R-Hixson, has maintained that under the Senate plan, funding for the library still might survive.

The two chambers have been trying to narrow differences and avoid passing two separate versions of the budget and heading into a contentious conference committee. It was unclear Monday night whether they would be successful on that count.

Senate Republicans have been adamant about not issuing any bonds. A number of House Republicans have, too. But in a key House Finance Committee roll call vote on a budget bond package, seven Republicans voted yes while eight Republicans voted no.

Rep. Brooks earlier noted the UTC project is expected to generate 600 jobs during its 18-month construction period.

Finance Commissioner Dave Goetz said that while the administration prefers its own budget plan, “we think the House is obviously a lot closer to what the governor proposed and the pre-k issue in particular is a serious, serious issue for our governor.”

Senate Republicans, who have a 19-14 majority, spurned Gov. Bredesen’s request that $22 million in pre-kindergarten funding, now coming from lottery proceeds, be funded out of recurring general fund appropriations. Republicans instead are using one-time funds from a lottery reserve, prompting Gov. Bredesen to issue a veto threat, calling it a “precursor” toward eliminating the funding.

The House version follows the governor’s recommendation with Speaker Williams, an Elizabethton Republican elected speaker by Democrats, explaining, “I’m a firm believer in pre-k.”

He predicted that the budget should get 70 to 75 votes in the House where there are 49 Democrats, 49 Republicans and the speaker.

The budget also includes a provision that would prevent state layoffs until April 2010.

House Finance Committee Chairman Craig Fitzhugh, D-Ripley, said the House plan relies on having $26 million in additional funds than the governor’s. According to Rep. Fitzhugh, $19 million of that comes from federal stimulus funds House budget analysts say can be used for general fund purposes.

House members are hoping the remainder will come from other revenue-related bills including $4.5 million from a bill authorizing out-of-state wine sellers to ship their wine into Tennessee.

The House intends to use $20 million more out of reserve funds than Gov. Bredesen has proposed.

House Assistant Republican Leader Gerald McCormick of Chattanooga said he is unsure whether he will vote for the compromise bill. While he supports the funding for UTC, Rep. McCormick said, he remains opposed to the issuance of the $350 million in bonds for bridge projects.

The House bill, officials said, envisions a 2009-2010 budget that is $200 million less than the current $29.8 million budget.

It includes $2.2 billion of federal stimulus funds and would be $27.4 billion with stimulus funds. The state portion of the budget for FY 2010 is $12.1 million, a $1.4 billion or 10.2 percent reduction over the current recession-wracked budget, officials said.