FARGO - Gov. John Hoeven is expanding his plan to cut property taxes and increase education funding. His Democratic opponent says the proposal favors the wealthy and out-of-state property owners.

The new version of Hoeven's original $300 million plan would provide for an additional $100 million in property tax relief and $100 million in income tax savings. The school districts would then receive $400 million, including an additional $100 million for an education commission to distribute.

"We're able to enhance and expand our plan because of a growing economy," Hoeven said Tuesday. "At $500 million this is a bold plan, no question about it."

Sen. Tim Mathern, the Democratic candidate for governor, said Hoeven's proposal does not do enough for working families. He said a resident earning $30,650 would get $115 back, and someone making $1 million would receive $3,163.

"While the idea of tax relief is a good one, I don't know anyone besides John Hoeven and George W. Bush who thinks the majority of the relief should go to the wealthiest," Mathern said in a statement.

Hoeven said the plan would lower state income tax rates by an average of 14 to 15 percent, and as much as 20 percent for taxpayers in the lowest earnings bracket. The highest bracket would receive an 8 percent cut, he said.

The state Commission on Education Improvement is scheduled to discuss the proposal when it meets Wednesday, said Sen. Tim Flakoll, R-Fargo.

"Now we know going into the meeting tomorrow - which is very important - where we're at in terms of what we have available to us," Flakoll said Tuesday. "From a commission standpoint, this couldn't have come at a better time."

The state's share for local education expenses would be about 72 percent under the new proposal, compared to the current 49 percent, Hoeven said.

"The Legislature has been talking about reaching that 70 percent figure since the 1980s," said Don Larson, Hoeven's campaign manager. "We're doing it."

A group that's sponsoring an initiated measure to cut the state's income tax rates said in a statement that residents cannot depend on the Legislature to pass Hoeven's proposal.

"We've seen the Legislature fail to provide true property tax reform and fail to provide minimal income tax reductions," said Dustin Gawrylow, spokesman for Americans For Prosperity. "Why would we think the next Legislature would be any different?"