Senator Eliot Shapleigh - El Paso, Texas

AUSTIN – Lawmakers negotiating the state budget agreed late Wednesday to give retired teachers and retired state workers one-time $500 bonuses, as a gesture of appreciation in tight fiscal times.

However, the bonuses could only be paid if the Legislature passes a separate bill saying it's permissible for lawmakers to bypass the Teacher Retirement System and send checks directly to pensioners by Dec. 31.

Also, Attorney General Greg Abbott would have to issue a legal opinion saying the bonuses could be made outside of the TRS and the Employee Retirement System. If Abbott didn't, the $155 million for bonuses instead would go toward improving the two pension funds' solvency.

As they wrapped up work on a two-year spending blueprint expected to exceed $183 billion, the House-Senate negotiators also made several concessions to Gov. Rick Perry.

They took $200 million less than planned from the state's road fund to pay for the Department of Public Safety. Perry has wanted to end all such "diversions." Lawmakers also added some money for Perry priorities such as courthouse preservation and restoration of the fire-gutted Governor's Mansion.

Bryan Republican Sen. Steve Ogden, the Senate's chief budget writer, and his House counterpart, Rep. Jim Pitts, R-Waxahachie, said their deliberations went smoothly.

"This has been one of the most harmonious and, frankly, productive conference committees I've ever been on," Ogden said.

One sticking point was funding for the state Department of Transportation.

The governor has warned against continued raids on the road fund, which is drawn from gasoline taxes and vehicle-registration fees.

Ogden, however, said "times have really changed" since top state leaders jointly wrote a letter to the Texas Transportation Commission in late August, saying they would end the siphoning of about $1 billion every two years to help pay for the Department of Public Safety.

Recession and the stock market plunge have crimped budget writers, Ogden said. Some of the road fund money now is needed for DPS and to balance the budget, he said.

On pay raises, House-Senate budget negotiators have approved salary increases for prison guards of 7 percent over two years, and some raises for state troopers, game wardens and alcoholic beverage agents, Ogden said.

It was unclear late Wednesday whether bonuses would be paid to other state employees. Last month, the House voted to give $1,000 bonuses to all but the highest-paid state workers. The Senate did not offer any across-the-board raises or bonuses for state workers, and it's unclear if they will get any.

Also uncertain was whether lawmakers had left enough money – $172 million was needed – to pay for proposed exemption of about 40,000 small businesses from the revamped state business tax.