Governor Rick Perry and House leadership have struck a deal that would use $3.2 billion from the so-called "Rainy Day Fund" to help close the budget shortfall for the current fiscal year.
In a joint statement by the governor, House Speaker Joe Straus (R-San Antonio) and Comptroller Susan Combs, the remainder of the budget gap would be closed by $800 million in cuts and by using an additional $300 million that's come from increased state sales tax collections over the past few months.
In okaying use of the permanent stabilization fund, Governor Perry said that using the money this year was the "conservative and fiscally responsible" method to close the gap in state spending through the end of August. He added, "The Rainy Day Fund was created to help manage just such unexpected declines in state revenue. We will do so while preserving more than $6 billion in the fund to cover unexpected emergencies in the future.”