Gov.-elect Steve Bullock is increasing education funding as part of his budget changes, and keeping intact a proposed expansion of Medicaid.
   
Bullock on Friday released his changes to outgoing Gov. Brian Schweitzer's two-year budget proposal. The incoming governor gives the budget plan to the Legislature next week.
   
The budget increases spending a little on education and modifies Schweitzer's plan to fix public pensions to get the support of local governments.
   
Bullock is also embracing the proposal to accept the federal money for the expansion of Medicaid that is part of federal health care reform - a potential sticking point with Republican legislative leaders.
   
Bullock is also including his campaign promises to give a $400 tax rebate to homeowners and to eliminate the business equipment tax many small businesses.