Texas House Tentatively Approves $3 Billion Plan

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."