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Leaders Reach Agreement on Tapping Rainy Day Fund

Wednesday, Mar 16, 2011  |  Updated 9:00 AM CDT
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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.

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