The budget chief in the Texas House says a deal with the Senate is imminent and that the Legislature shouldn't be pushed into a special session over spending.
Republican Jim Pitts said Tuesday "we're going to have a deal on everything."
Pitts says that includes $2 billion for water, which has been a priority this 140-day session for Gov. Rick Perry and Republicans and Democrats.
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The apparent breakthrough comes less than a week after negotiations between the House and Senate stalled, raising the potential of a deal not being struck before the Legislature adjourns May 27.
Pitts says the money for a new state water fund will be pulled from the state's Rainy Day Fund.