MADISON, Wis. -

Gov. Scott Walker says the state's $500 million budget surplus should be tapped for additional public school aid, lowering income taxes and building the state's reserves.

Walker reacted Thursday to news that the state's budget is projected to have $500 million more than projected when Walker released his plan in February. Walker says the new estimates are "good news for the people of Wisconsin."

Walker joins with Republicans and Democrats in calling for using the money to increase funding for schools. Republican legislative leaders and Walker are all calling for deeper income tax cuts.

With Republicans in majority control, they will be in control of negotiating a deal with Walker's office in the coming weeks.