(AP) – Missouri Gov. Jay Nixon is proposing a $278 million increase in basic aid for public schools as part of an aggressive education spending plan.

Nixon called for almost $500 million of additional education spending Tuesday as part of his annual State of the State address. He wants to increase funding not only for public schools, but also for higher education and early childhood programs.

The Democratic governor said Missouri’s economy is “picking up steam.”

But Republican legislative leaders contend Nixon is being too optimistic in his $27.7 billion budget.

Nixon also is calling for increased funding for the developmentally disabled and those with mental illnesses. He again called for expanded Medicaid eligibility for lower-income adults – something Republicans have repeatedly rejected.