BOSTON -- The Massachusetts Senate on Tuesday approved a bill to give Lawrence $35 million in municipal bonds to help balance its budget.

The plan also appoints an overseer, but, lawmakers struck down a Republican push to immediately appoint a control board.

"An overseer is basically a dictator. He'll be able to decide, approve or not approve things and then recommend, as I said, at any time, that a control board come in," said Senate Ways and Means Chairman Steven Panagiotakos.

"The mayor is still in position, the city council is in a decision-making position," said Sen. Michael Knapik, of Westfield.

And therein lies the problem, critics say. Newly elected Mayor William Lantigua sent a wave of hysteria through the Statehouse when he initially refused to quit his job as a state representative, leaving a bitter taste on many political palates.

Reluctantly, Lantigua resigned last month, but only after threats that Lawrence wouldn't get the $35 million it desperately needs.

"This is not a loan from the state. This is not taxpayer money. They have to go out on the open market to borrow this $35 million, and they have to pay it back," said Sen. Susan Tucker, of Andover.

But the state would likely be held liable if Lawrence didn't pay the money back. Late Tuesday, there was a vote: 28 to 7, rejecting the control board option. The overseer and two state agencies will have to sign off on any loans.

"Right now, it's fair with some bright new city councilors, to the new mayor to try and come up with a new plan to solve a problem that was not of their making," Tucker said.

"When the governor filed this bill, it was a $9 million-bailout. Today, it's a $35 million bailout and I have to say, there has been a new mayor elected, but he hasn't done anything to give anybody any confidence that he'll be able to get the job done," said Senate Republican Leader Richard Tisei.

The bill now goes to a conference committee. The House version is slightly weaker than the Senate's bill. But House leaders said they may accept the Senate version to expedite it to Gov. Deval Patrick, who is expected to sign it.