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Texas House Tentatively Approves $3 Billion Plan

The Associated Press

AUSTIN, Texas (AP) — The Texas House has tentatively adopted a $3.3 billion plan to help state agencies cover unexpected costs in the 2-year-old state budget, including $300 million to restore the Hurricane Ike-ravaged University of Texas Medical Center in Galveston.

The supplemental budget, which is expected to get final House approval before being sent to the Senate on Friday, is being used to close out the 2008-2009 budget period, which ends in August. The $178 billion budget for 2010-2011 is on the House agenda for Friday.

The measure, approved Thursday by a 141-5 vote, depends heavily on federal stimulus money, including $1.6 billion to help cover rising Medicaid costs.

"I think that, as we pass this bill, it's important that we acknowledge why we are able to have this bill on the floor today," said Rep. Marc Veasey, D-Fort Worth. "This supplemental appropriations bill would not have been possible in its present form had President Barack Obama and the Congress not passed the American Recovery and Reinvestment Act."

The Texas Education Agency would get almost $769 million in federal stimulus money for textbooks and $221 million for technology. More than $660 million is slated for the Texas Department of Transportation for highway and bridge construction.

The infusion of federal money has helped lawmakers to close a gap between available state revenue and spending needs they identified.

The supplemental budget also includes almost $700 million in spending on expenses associated with natural disasters like Ike, wildfires and flooding. The bill also spends about $8 million for the restoration of the fire-ravaged Governor's Mansion and $100 million for a disaster relief contingency fund.

Neither of the measures up for consideration this week draw from the state's savings account, the Rainy Day Fund, which is expected to have a balance of more than $9 billion within the next two years. Lawmakers have been adamant about not touching the fund, warning that the slumping economy, droopy sales tax revenues and an expected revenue shortfall portend a bloody budget session in two years.

"I want you to realize we were able to do this bill without touching the Rainy Day Fund," said Rep. Jim Pitts, chairman of the budget-writing House Appropriations Committee. "The Rainy Day Fund is intact — and tomorrow we will do the same thing."