MILWAUKEE -

Gov. Scott Walker is beginning to hedge on his initial proposal to boost the University of Wisconsin System's budget.

He said most of that money may be redirected to pay for a tuition freeze or to boost funding for public schools.

Walker had proposed that UW get a $181 million spending increase over the next two years.

Republican Senate Majority Leader Scott Fitzgerald told The Associated Press Thursday that he doesn't think UW should get the spending increase.

Later Thursday, Walker backed off the full $181 million but said he wants to try to keep a $20 million increase allocated for economic development.

The nonpartisan Legislative Fiscal Bureau released a memo on Friday showing the system finished the year with a nearly $650 million surplus.