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Senators issue plan for stimulus money
March 24, 2009

Budget writers in the Texas Senate have decided how to use almost $11 billion in federal stimulus money in the upcoming state budget, with some of it filling an expected budget hole.

Written by Kate Alexander, The Austin American Statesman

Budget writers in the Texas Senate have decided how to use almost $11 billion in federal stimulus money in the upcoming state budget, with some of it filling an expected budget hole.

In a key vote that answered months of questions about how — and how much of — the federal money would be tapped by the state, the Senate Finance Committee on Monday voted 13 to 1 to disperse the stimulus dollars to a host of state agencies in the 2010-11 budget.

Sen. Jane Nelson, R-Flower Mound, was the sole "nay" vote. She voiced the same opposition that has been heard from some state leaders, including Gov. Rick Perry, that the federal money should not be used to expand state government.

Finance Committee Chairman Steve Ogden, R-Bryan, said he has received no indication from Perry that the stimulus money used to balance the $177 billion budget would be rejected.

The federal cash includes:

• $4.8 billion for education, including special education, programs for low-income students and technology.

• $2.5 billion for Medicaid.

• $1.6 billion for highways and public transit.

• $565 million for home weatherization and other housing programs.

• $431.5 million for child care programs and job retraining.

In addition to that stimulus money, $3.3 billion is available for use now in the 2009 budget, though senators have tagged $979 million of that pot to pay for future textbook needs, if federal officials agree.

Lawmakers came into the legislative session needing to close a $3.7 billion gap between available revenue and state agency needs for the 2010-11 two-year budget. That gap has widened to $6.1 billion with new additions to the budget.

The federal money eased that process by freeing up more than $5.4 billion that was already in the budget (which now can be used for other state expenses) and also ensured that the state's rainy day fund would not have to be used to cover those expenses.

The whole state budget will come before the committee for a vote Monday and then head to the full Senate.

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