Tuesday, March 15, 2011

State leaders come to agreement on Rainy Day Fund to close 2011 budget gap

"Gov. Rick Perry, Speaker Joe Straus (R-San Antonio) and Comptroller Susan Combs worked out a deal today to access a portion of the Rainy Day Fund to close out the 2010-11 biennium budget, which shows that the state is short by just more than $4 billion.

"Accordingly, the House Appropriations Committee today passed HB 275 (Pitts), which would use $3.11 billion of the Rainy Day Fund to address the 2010-11 budget shortfall. HB 275 now needs 90 votes on the House floor to move on to the Senate.

“We have worked closely with state leaders and lawmakers to balance the current budget, which includes using a one-time amount from the Economic Stabilization Fund to help our budget deal with the impact of the national recession,” Gov. Perry said. “As we craft the next two-year budget, Texas leaders will continue to focus on a more efficient, fiscally responsible government, essential state services, and private sector job creation. I remain steadfastly committed to protecting the remaining balance of the Rainy Day Fund, and will not sign a 2012-2013 state budget that uses the Rainy Day Fund.”