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Leaders Reach Agreement on Tapping Rainy Day Fund

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    Gov. Rick Perry and House leaders have reached an agreement to use $3.2 billion from the state's reserve fund to close a deficit in the current budget.

    The announcement Tuesday clears the way for an end to a stalemate, in which Rep. Jim Pitts, the chief House budget writer, urged Perry to agree publicly to tap the fund.

    Pitts had been fighting a wave of conservative opposition from Republicans in the House, spearheaded by Perry.

    The agreement also would make $800 million in agency cuts in the current budget.

    The agreement would give lawmakers wiggle room to deal with a revenue shortfall that could reach almost $27 billion when counting for population growth.