JEFFERSON CITY, Mo. (AP) – A Missouri House panel is moving ahead with a two-tiered budget that makes education funding partly dependent on the strength of the economy.

A plan endorsed Wednesday by the House Budget Committee would add $122 million to the state’s $3 billion in basic school funding. If state revenues meet Gov. Jay Nixon’s more optimistic projections, the House budget would provide a $278 million increase for schools.

The House plan would provide a smaller increase than Nixon sought for public universities. It would also bar the universities from offering resident tuition rates to students living in the U.S. illegally.

Nixon also wanted to expand Medicaid eligibility to more lower-income adults. The Republican-led House committee rejected that. But its plan would restore adult dental coverage that was cut from Medicaid in 2005.