Senator Eliot Shapleigh - El Paso, Texas

AUSTIN — More college students would get financial aid, retired teachers might get $500 bonuses and seat belts could begin being installed on school buses under a state budget compromise endorsed Wednesday night by House-Senate negotiators.

The budget proposal, which was still being shaped late into the night, was roughly estimated to top $180 billion for state services over the next two years in state and federal money. It includes nearly $11 billion in federal stimulus dollars.

While the budget proposal would boost a number of programs, it would fall short of meeting the full needs identified by advocates. It is a compromise between versions of the budget passed earlier by the House and Senate.

“There’s more needs, but you know, we’re not able to print money in the basement,” House Appropriations Committee Chairman Jim Pitts, R-Waxahachie, said during negotiations.

Despite tough money decisions, Senate Finance Committee Chairman Steve Ogden, R-Bryan, said, “This has been one of the most harmonious and frankly constructive conference committees that I have ever been on.”

Gov. Rick Perry was weighing in on negotiations. One lawmaker said he pushed for more money for transportation, which occurred after lawmakers took money from an emissions reduction plan.

Perry also made it clear he also was focused on money for trust funds he oversees that are meant to close business deals, attract films and encourage emerging technologies.

“Those are all very important for the state from the standpoint of being able to be competitive in the next two years,” Perry said.

Lawmakers still are working on details of the proposal to begin installing seat belts on school buses, saying they want to ensure that school districts aren’t required to install them if they don’t have the funds. They agreed to set aside $10 million for the program.

The budget proposal — which will go to the House and Senate for approval and then to the governor after negotiators formally sign off on their agreement — would pump $186 million more into the TEXAS Grants college financial aid program, allowing an estimated 29,996 additional college students to get assistance. But about half the students who are eligible still wouldn’t be covered.

Negotiators agreed to provide enough money to give bonuses of up to $500 for retired teachers and retired state government workers. The payments would be contingent upon a ruling by the attorney general on their legality and, for teachers, on passage of separate legislation.

The House had wanted to give $1,000 bonuses to the retirees and to active state employees. Pitts said the bonuses for current employees still could be considered in a separate spending bill.

Among other provisions, people with disabilities would benefit from nearly $500 million in extra money for community care services, trimming but not eliminating waiting lists.

In transportation, diversions from the gasoline-tax-fueled state highway fund to purposes other than roads would largely continue, although budget negotiators added another $200 million to the Texas Department of Transportation late Wednesday to help make up for those diversions. Budget-writers agreed to $2 billion in transportation bonds, but at that level of funding, money for constructing new roads is expected to fall short by 2012.