House Speaker Brian Bosma, however, called the new state budget a victory for Indiana taxpayers.
"We passed a balanced budget with no tax increases; we are living within our means; and we passed the largest tax cut in Hoosier history. This is what it looks like to have a government that works for the people," Bosma, R-Indianapolis, said in a statement.
Pence on Wednesday also exercised his first vetoes as governor since taking office in January, rejecting two bills with new licensing requirements that he said would "create barriers."
The governor vetoed a bill requiring licenses for diabetes educators and a measure creating new license requirements for anesthesiologist assistants and dietitians, as well as state certification for music therapists.
Pence said he vetoed the bills because he believes Indiana needs fewer, not more, licensing requirements. He said both bills do not meet his standard of licensing legislation that opens up new employment opportunities or streamlines existing practices and procedures
"I am vetoing these licensing bills because I believe they create barriers to the marketplace for Hoosiers and restrict competition," Pence said.
His statement said that licensing in Indiana had "exploded" during the past decade. Pence said that in 2004, about 340,000 Indiana residents held a professional license, but that there are now more than 470,000 Hoosiers with such licenses.
He noted that was a 38 percent increase in licenses during a time-span when Indiana's population increased only 7 percent.
Indiana's lawmakers are scheduled to reconvene on June 12 to consider overrides and technical corrections. A simple majority is needed in both the House and Senate to override an Indiana governor's veto.