BOSTON (AP) — A key House panel is putting the finishing touches on its version of a proposed state budget.

Republican Gov. Charlie Baker filed his $38 billion proposal with the Democratic-controlled Legislature last month that called for a 3 percent overall increase in spending. The administration said its plan would close a $1.8 billion gap between projected revenues and spending in the fiscal year that begins July 1.

The House Ways and Means Committee has been reviewing Baker's plan and is expected to make its recommendations to the full House on Wednesday.

Baker's plan called for level-funding many state agencies, meaning they would receive the same appropriation as in the current year with no adjustment for inflation or other added costs. The governor also hopes to squeeze some $761 million out of Medicaid without major changes in eligibility or benefits.