State spending would increase to pay for growth in public schools and low-income health care programs, plus repairs to state parks and added security near the Texas-Mexico border, under a proposed state budget approved Wednesday by the House Appropriations Committee.

Lawmakers in the past four years have spent about every dime they could find, but the current House proposal leaves $8.5 billion unspent.

Half of the money would remain in the general fund, and the other half would stay in the state's Rainy Day Fund.

Lawmakers can add that money to the budget later or, more likely, save it to cover already-approved property tax cuts in 2009.

"We never came in here intending to spend all the money we could," said Appropriations Committee Chairman Warren Chisum, R-Pampa.

Combined with other legislation that pays for property tax reduction, the budget would allot $164 billion to be spent over two years.

The proposed budget would increase spending by about 5 percent in the next two years.

Much of that reflects growth in existing programs, such as almost $1 billion needed to pay for growth in public school enrollment.

Some key areas of the budget include:

• Education. There is no money for an across-the-board pay increase for teachers, although there is about $300 million for educator incentive pay programs.

Local school boards could decide to raise teachers' pay, although they might have to raise taxes to do so.

"An awful lot of folks certainly campaigned on improving public education, but when it came down to this budget, they didn't vote that as a priority," said Richard Kouri of the Texas State Teachers Association.

Rep. Lois Kolkhorst, R-Brenham, said the budget includes $50 million for new school dropout-prevention programs, plus spending increases for school facilities and classroom technology.

She also said the number of students receiving Texas Grants, which cover college costs for students who take rigorous classes in high school and show financial need, will increase by about 30,000 in two years, up from about 100,000 students now.

• Health and human services. The budget would allow for proposed changes to the Children's Health Insurance Program, which covers children of the working poor, that would lengthen enrollment periods and eliminate a 90-day waiting period.

The changes, if approved, would add about 109,000 children to the program.

"CHIP in our budget has become an entitlement to the standpoint of, if you're eligible, you get it," said Rep. Dan Gattis, R-Georgetown.

• Border security. About $100 million would go toward security along the Texas-Mexico border, including money for more local law enforcement, state troopers, helicopters and other equipment.

Gov. Rick Perry pushed for the money during his re-election campaign.

But Rep. Rick Noriega, D-Houston, said budget writers settled on the number without thoroughly analyzing the problem they were trying to solve.

"It is merely a number to address a fear," Noriega said. "It is not a plan to shape or defeat a threat."

Chisum said he expects the full House to vote on the budget next week.

The Senate is working on its own plan.

The final budget will be written late in the session by five members from each chamber, all of whom will receive plenty of direction from Lt. Gov. David Dewhurst and House Speaker Tom Craddick, R-Midland.

Included in the budget approved by the House Appropriations Committee on Wednesday:

• $150 million increase for college financial aid programs
  

• $35.8 million increase in overall funding for UT-Austin
  

• $19.5 million increase in overall funding for Texas State University-San Marcos
  

• $102 million for border security
  

• $78 million increase to loosen requirements to participate in the Children's Health Insurance Program
  

• $30 million increase for operations and minor repairs at state parks and local park grants (that could increase by another $50 million if other legislation passes)
  

• $0 for across-the-board pay increase for state employees