Regional
6:16 pm
Fri June 24, 2011

Texas Budget: More Trouble Ahead

Texas – Now that the final touches are on the Texas budget, one thing is clear: Lawmakers put off the tough decisions for the next session.

Legislators had to tackle a $27 billion dollar shortfall in state revenue over the next two years. They promised not to raise taxes or drain the state's Rainy Day Fund.

So instead they rewrote the school funding law to push off one $2.3 billion payment into the next fiscal year. They didn't account for growth in the number of students. In Medicaid, they ignored a forecast that there will be $4.8 billion in new demand for the program over the next two years.

Gov. Rick Perry says Texas is living within its means. Democrats say it's not truly a balanced budget.

Copyright 2011 The Associated Press.